Nov 26, 2022
Market Outlook: Nifty, Sensex end down, sentiment sours as MSCI cut Adani shares weightage; CPI, US Fed eyed
Indian benchmark equity indices NSE Nifty and BSE Sensex closed in the red on fears of a looming U.S. recession, and as sentiment soured after index provider MSCI said it will cut the weightings of four Adani Group companies.. Nifty 50 declined 37 points or 0.21% to 17,856.5 while Sensex closed 123 points lower at 60,682.7. The broader markets and sectoral indices all closed in the mixed as volatility gauge, India VIX, fell 2.26%. Nifty Realty was the top gainer on Friday as Nifty Metal tanked.
Markets Decoded: Investors to focus on global factors
FPI flows in India negative: Shrikant Chouhan, Kotak Securities
Bulls took charge of markets: Vinod Nair, Geojit Financial Services
Domestic indices lost ground following the global rout as investors speculated over the prospects of further policy tightening. Worries of a looming recession escalated as the President of Richmond Fed added to the hawkish comments by the Fed speakers. The announcement by MSCI to reduce the weighting of four Adani Group companies further hurt sentiments at home.
Nifty Technical View: 17,600 support zone
Nifty could remain in 17,651 – 18,061 band: Deepak Jasani, HDFC Securities
Nifty witnessed a small 74 point high low range on Friday which is the lowest since Dec 14, 2022 likely due to reduction of volatility. On a weekly basis, the Nifty ended just 0.01% higher – essentially flat, after a week of gain. It also made a lower top, higher bottom compared to the previous week. This narrowing of range over daily and weekly time frame could portend higher moves/breakout in Nifty on either side. Till then, Nifty could remain in the 17,651 – 18,061 band in the near term.
Keep booking profits: Om Mehra, Choice Broking
Volume profile indicates Index may find support around 17,600-17,700 zone. Coming to the OI Data, on the call side, the highest OI observed at 18,000 followed by 18,100 strike prices while on the put side, the highest OI was at 17,700 strike price. On the other hand, Bank Nifty has support at 41,000-41,100 while resistance is placed at 42,000-42,200 range. As markets continue to trade in a wide range with high volatility, we advise traders to keep booking profits on their trading positions.
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