Energy and Comm Serv in top spots today but still miles apart YTD, with latter outperforming significantly (but former leading MTD) … small caps underperformed and have seen MTD gains fade a bit relative to large caps; Russell 2000 still outperforming S&P 500 by nearly 2% this… pic.twitter.com/CdnYqbMGD0
— Liz Ann Sonders (@LizAnnSonders) November 18, 2024
The Indian stock market continues to face challenges as the Nifty 50 index declined for the seventh consecutive session on Monday. The index fell by 0.34% to close at 23,453.80 points, while the BSE Sensex index declined by 0.31% to 77,339.01 points. Analysts attribute the lack of positive triggers and ongoing sell-offs to the market’s bearish sentiment.
After lagging equal-weighted S&P 500 for a good chunk of summer and early fall, Magnificent 7 has reasserted some dominance over past several weeks
[Past performance is no guarantee of future results] pic.twitter.com/E81h1vKQ4K— Liz Ann Sonders (@LizAnnSonders) November 18, 2024
Siddhartha Khemka, Head of Research at Motilal Oswal Wealth Management, said, “With the Q2 earnings season over and ongoing sell-offs, we expect Nifty to consolidate in a broad range due to the lack of positive triggers.”
For Tuesday, the Nifty 50 and the Bank Nifty index are expected to experience continued volatility.
#MarketAlert | Nifty corrected over 200 points off day's high but managed to close in green
Here's how the market panned out today?#Nifty #StockMarket pic.twitter.com/lbV09CvQpU
— ET NOW (@ETNOWlive) November 19, 2024
Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C Mehta, commented on the market’s technical aspects, stating, “Nifty opened on a positive note but succumbed to continuous selling pressure, closing negatively at 23,454 levels. The volatility index (India VIX) surged by 2.65% to 15.17, indicating increased market volatility.”
ET NOW Closing Bell: Fag-end selling drags Sensex 873 points from day's high, Nifty halts 7-day losing run to sit above 23500#Sensex #StockMarket #Nifty https://t.co/aIkr12bOtc
— ET NOW (@ETNOWlive) November 19, 2024
The Nifty 50 has broken its 200-Day Exponential Moving Average (DEMA) support level of around 23,540, making this range an immediate barrier.
On the downside, the 50-weekly Simple Moving Average (WSMA) near 23,300 levels serves as short-term support. The short-term trend remains down, with expectations for the index to consolidate between 23,300 and 23,600.
Nifty faces extended market challenges
Despite the broader market’s volatility, the Bank Nifty showed positive momentum, closing at 50,364 levels. As long as the Bank Nifty holds above 49,900, a pullback rally towards 50,500-50,600 levels is possible. Breaking above 50,600 could extend the rally to 51,000 levels.
Analysts have identified several stocks to watch for potential gains, including Aegis Logistics Ltd., Syrma SGS Technology Ltd., State Bank of India Ltd., Jindal Steel and Power Ltd., and Ramkrishna Forgings Ltd. These stocks have shown strong technical indicators and may offer targeted investment opportunities. As the market continues to exhibit bearish trends, traders are advised to keep an eye on key observations, market sentiment, pivot points, special formations, options data, funds flow, and the volatility index.
Additionally, tracking stocks showing positive indicators, those in the F&O ban list, and global market trends will be crucial in navigating the current market environment. Investors are reminded to consult certified experts before making any investment decisions and to be cautious of individuals soliciting funds on the false promise of assured returns.
