Factors Guiding the Market forth November 23
Last week, the market of India sailed through great highs but the bulls' hold weakened as the benchmark indies turned volatile as compared to the last couple of weeks. Although, both Sensex and Nifty rose 1 per cent each in the holiday-cut short week, both the headline indices turned volatile after hitting fresh record high levels.
The volatility in the Indian equity markets is set to continue this week as sentiments oscillate between fear of rising Covid-19 cases globally and optimism over vaccine progress. The expiry of November series derivatives contracts would also add to the volatility.
On Friday, foreign institutional investors remained net buyers in the capital market as they purchased shares worth Rs 3,861 crore.
Although, analysts say, that they are not buying as aggressively post the first two weeks of November. And, as such, market participants will also keep an eye on foreign flow fund.
According to Angel Broking, mostly all the major positive factors are already priced in by the markets. And although the possibility of immediate levels of 13,100 - 13,200 is still achievable, the rally may not be that smooth now. From the technical point of view, for this week, Friday’s low of 12,730 will now be seen as key support. A move below this will extend the corrective move towards 12,600 - 12,450 levels; whereas on the higher side, 12,963 is the level to watch out for.
US shares slumped on Friday on a combination of dwindling aid for the U.S. economy and rising novel coronavirus infection rates. The Dow dropped 0.75 per cent, the S&P 500 fell 0.68 per cent and the Nasdaq ended down 0.42 per cent.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.38 per cent, pushing past a previous record high touched on Friday. Trading activity was thin early in the Asian day, with Japanese markets closed for a holiday. Seoul’s Kospi was 1.5 per cent higher and Australia's ASX 200 gained half a per cent.
The SGX Nifty, too, was trading around 80 points up and testing the 13,000-mark. So, traders can expect a gap-up start for the domestic indices today.
Banking-related stocks and financials could be in focus today, after the RBI panel recommended several changes in the banking industry which includes proposals to raise promoters cap to 26 per cent from current 15 per cent in 15-year period and to allow large corporate houses as promoters of banks or take a significant stake in banks.
Besides, Reliance Industries may do the heavy-lifting for the markets today after the Competition Commission of India cleared RIL's bid to buy Future group's retail, wholesale and logistics assets amid legal battle with Amazon.