The market delivered negative returns for the second consecutive week, with both the Sensex and Nifty declining by 2% each. All sectoral indices, except Nifty IT, posted negative returns, with PSU Bank and Metals falling by 5% each. Out of 50 Nifty stocks, 42 slipped, with Britannia, Asian Paints, and Apollo Hospitals among the top losers.
A range bound action was seen in the mid part and minor upside recovery was seen from Thursday’s low of 23,484 and Nifty closed on minor upside recovery note. For now, a slide below 23,500 is expected to drag Nifty down to 23200-23000 levels this week. The index has already corrected over 10% from its record high level of 26,276 that it had hit in September 2024.
The upcoming week is also shortened due to a holiday, and with the earnings season largely concluded, attention will shift back to FII flows.
Foreign institutions have been net sellers to the tune of ₹1.4 lakh crore in the cash market to date. They have been net sellers during every single trading session in October and the onset of November so far. The relentless selling from foreign institutions has been absorbed nearly dollar-for-dollar by domestic institutions.
On November 14, foreign institutions continued to remain net sellers in the cash market, while domestic institutions were net buyers yet again.
– FII net sold ₹1,850 crore
– DII net bought ₹2,482 crore
What do the Nifty50 charts suggest?
After showing sharp weakness on November 12 and November 13, Nifty continued its decline amidst range movement on November 14 and closed the day lower by 26 points.
Nagaraj Shetti of HDFC Securities said that Nifty is now placed just below the crucial 200-day EMA at 23540. Previously, this MA has offered significant reversals and upside rally during October 26th and June 4th period.
According to Shetti, Nifty slowing down the negative momentum below 200 day EMA on Thursday may be a good sign, but the market needs to show more evidence to consider for potential upside reversal. Nifty on the weekly chart formed a long bear candle, which is nearing next important support of intermediate ascending trend line around 23,300 levels.
The underlying trend of Nifty continues to be negative. He also said that a sustainable move above 23,700-23,800 levels could open chances of sizable upside bounce in the market.
“On Thursday, Nifty closed near its 200-day EMA, forming a gravestone doji like pattern on the daily chart, signaling bearish sentiment. This suggests a ‘sell on rise’ approach as the index hovers in an oversold zone near a key EMA level,” said Rupak De of LKP Securities.
De said that a bounce is likely, but it should be seen as an opportunity to sell. “If Nifty breaks below the 200-day EMA, selling pressure could intensify. The index has support at 23,450, with resistance expected at 23,650, framing the short-term trading range.”
What do the Bank Nifty charts indicate?
The Nifty Bank index started on a flat to negative note, but after initial volatility, the index saw buying interest and concluded the day on a positive note at 50,180 levels.
“Technically, the index on a daily scale has formed an inverted hammer candle near the crucial support of 200-Days exponential moving average (DEMA), indicating strength. The 200-DEMA support is placed near 49,900 and if index manages to respect it, then it could witness pullback move towards 50,500-50,600 levels, where the short term trendline resistance is placed. Overall, the short-term trend is down, but as long as the Bank Nifty holds above 49,900, a pullback rally could possible,” said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.
“For Bank Nifty traders also 200 day SMA or 49,750 would be the key support zone. If it sustains above the same, then it could move up till 50,900-51,200. However, below 49,750 or 200 day SMA the sentiment could change. Below which it could slip till 49300-49000,” said Amol Athawale, VP-Technical Research at Kotak Securities.
What Are The F&O Cues Indicating?
Nifty 50’s November futures added 2.1% or 2.48 lakh shares in Open Interest on Thursday. They are now trading at a premium of 69 points from 99.5 points earlier. On the other hand, Nifty Bank’s November futures shed 2.4% or 69,510 shares in Open Interest on Thursday. Nifty 50’s Put-Call Ratio is now at 0.88 from 0.7 earlier.
Aarti Industries, Aditya Birla Fashion, GNFC, Granules India and Hindustan Copper continue to remain in the F&O ban.
Nifty 50 on the Call side for November 21 expiry:
The Nifty 50 Call strikes between 23,500 to 24,000 saw Open Interest addition for this Thursday’s weekly expiry.
| Strike | OI Change | Premium |
| 24,000 | 23.49 Lakh Added | 18.45 |
| 23,600 | 21.67 Lakh Added | 120.8 |
| 23,500 | 20.77 Lakh Added | 172.35 |
| 23,700 | 14.94 Lakh Added | 78.3 |
Nifty 50 on the Put side for November 21 expiry:
On the Put side, the Nifty 50 strikes between 23,000 and 23,600 have seen Open Interest addition for this Thursday’s weekly expiry.
| Strike | OI Change | Premium |
| 23,500 | 22.58 Lakh Added | 121.8 |
| 23,000 | 17.97 Lakh Added | 19.65 |
| 23,600 | 11.48 Lakh Added | 169.15 |
| 23,400 | 10.37 Lakh Added | 87.2 |
Fresh long positions were seen in these stocks on Thursday, meaning an increase in both price and Open Interest:
| Stock | Price Change | OI Change |
| Eicher Motors | 6.70% | 14.79% |
| United Breweries | 1.17% | 6.34% |
| UPL | 2.82% | 3.39% |
| Apollo Tyre | 4.71% | 2.89% |
| Chola Finance | 0.47% | 2.62% |
Fresh short positions were seen in these stocks on Thursday, meaning a decline in price but an increase in Open Interest:
| Stock | Price Change | OI Change |
| PI Industries | -4.48% | 18.45% |
| Tata Consumer | -2.38% | 12.16% |
| Manappuram Finance | -1.34% | 9.33% |
| Dalmia Bharat | -1.35% | 8.25% |
| ABB | -1.81% | 8.14% |
Short covering was seen in these stocks on Thursday, meaning an increase in price but a drop in Open Interest:
| Stock | Price Change | OI Change |
| GNFC | 1.98% | -11.94% |
| NALCO | 0.76% | -10.10% |
| City Union Bank | 0.76% | -5.74% |
| Can Fin Homes | 1.37% | -5.70% |
| Samvardhana Motherson | 3.38% | -5.25% |
These are the stocks to watch ahead of Monday’s trading session:
Reliance Industries | Reliance and Disney announces completion of transaction to form Joint Venture (JV) for entertainment brands in India. Nita Ambani will be the Chairperson of the JV.
IGL | The company says further reduction in gas allocation communicated by GAIL effective November 16. Revised gas allocation is 20% lesser than the previous allocation. Reduction in gas allocation will have an impact on profitability.
Adani Total Gas | The firm says GAIL further cuts gas supply to the company by 13% effective November 16. It adds there would be an adverse impact on profitability of the company and it shall calibrate retail prices to end consumers to mitigate the impact of lower allocation.
– Honasa Consumer | Net loss at ₹18.6 crore. Revenue at ₹461.8 crore as against ₹496 crore year-on-year. EBITDA loss at ₹30.7 crore as against EBITDA of ₹40.1 crore year-on-year.
Delhivery: Net Profit at ₹10.2 crore as against loss of ₹102.9 crore year-on-year. Revenue rose 12.8% to ₹2,189.7 crore versus ₹1,941.7 crore year-on-year. EBITDA at ₹57.3 crore as against EBITDA loss of ₹15.7 crore year-on-year. Margin at 2.6%.
Cyient | Cyient has expanded partnership with Allegro MicroSystems for magnetic sensors and power semiconductors for the automotive industry.
Nureca has signed a distribution agreement with Zepto.
For the complete list of stocks to watch, click here.
