Sectoral trends were mixed, with IT and FMCG edging higher, while auto, pharma, and energy ended in the red. Broader indices showed a similar trend, with smallcaps gaining about 1%.
Shares of all Adani Group companies ended lower following rating agencies’ actions. Fitch Ratings and Moody’s have taken rating actions on various Adani Group entities following the bribery charges and the indictment of certain board members of Adani Green Energy by the US SEC and District Court.
NTPC Green will be listing on November 27, which will keep both NTPC and NTPC Green Energy in focus. Going ahead, the market is expected to consolidate in a broader range in absence of any major trigger in near term, but the stock or sector specific action is likely to continue, belives Siddhartha Khemka of Motilal Oswal.
Khemka added that an anticipated higher tariff on China by elected US President Donald Trump and caution ahead of monthly expiry on Thursday led to profit booking.
On the positive side, FIIs finally turned buyer for the first time after continuous selling for the last 38 trading sessions. However, trend reversal among FIIs is yet to be confirmed unless buying sustains. Thus, the stock market will monitor FII action over next few days.
The FIIs bought ₹1,157.70 crore while the DIIs offloaded ₹1,910.86 crore in the cash market today.
What do the Nifty50 charts indicate?
The Nifty ended marginally lower on November 26 after failing to hold on to higher levels of the morning. In the process, it snapped its two–session rally. At close, Nifty was down 0.11% or 27.4 points at 24,194.5.
Nagaraj Shetti of HDFC Securities said the huge opening upside gap of November 25 at around 23,956-24,135 is still intact after two sessions of its formation.
“If this gap remains unfilled in the next 1-2 sessions, then that could be considered as bullish breakaway gap. Normally bullish breakaway gaps are formed after a reasonable downtrend and they are indicative of significant trend reversals on the upside,” he said.
Shetti said the near-term uptrend of Nifty remains intact. He added that there is a possibility of some more consolidation or minor dip in the next 1-2 sessions, before showing another leg of sharp upmove. Immediate support is at 24,100 and the next overhead resistance is placed at 24,500.
Deepak Jasani of HDFC Securities expects Nifty to stay in the 23,842-24,503 band for the near term, though the rise from here could be laboured.
According to Ajit Mishra of Religare Broking, Nifty’s consolidation is unfolding as expected post-rebound. Banking and IT remain the key drivers, but he said that a decisive move beyond the 24,350 hurdle will require broader participation from other heavyweight sectors.
What do the Bank Nifty charts indicate?
The Bank Nifty index opened with a gap up, witnessed profit booking, and settled the day on a flat note at 52,192 levels on Tuesday.
Technically, the Bank Nifty failed to cross the major barrier of 52,500-52,580 and formed a bearish belt hold pattern, indicating weakness. As per this pattern, as long as index maintains below 52,580 weakness will continue. Thus, traders are advised to book profits and wait for a fresh breakout above 52,580, said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates.
