Unveiling Trendsetters

MARKET HIGHLIGHTS

Market Synopsis:       

The markets witnessed a subdued performance this week, with both indices closing marginally lower. The Sensex ended at 77,580.31, down 0.14%, while the Nifty settled at 23,532.70, declining 0.11%. The cautious sentiment reflected a consolidation phase amidst key global and domestic developments.

The IT sector emerged as the top performer, supported by robust earnings outlook and favorable global cues. In contrast, the metals sector underperformed, weighed down by weak demand and muted global commodity prices.

The much-anticipated Swiggy IPO made a significant splash in the markets this week. The food delivery giant’s shares were listed at an 8% premium over the IPO price of ₹390, with the stock jumping 11% post-listing, reaching a market capitalization of ₹1 lakh crore. Despite a modest grey market premium(GMP) of ₹1, Swiggy’s entry into the stock exchanges marked a milestone for the e-commerce and food delivery sector. Proceeds from the IPO will be directed toward investments in its subsidiary Scootsy, technology, cloud infrastructure, and brand promotion over the next four to five years.

Global cues also shaped market sentiment, with U.S. Presidential Election results creating ripples. Investors interpreted the potential policy impacts on trade, defense, and technology, influencing equity flows.

Foreign Institutional Investors (FIIs) extended their selling streak, net offloading ₹9,683.64 crore over the week. Meanwhile, Domestic Institutional Investors (DIIs) supported the market with robust net purchases of ₹12,508.14 crore, signaling confidence in the resilience of Indian equities. Market volatility eased, with the India VIX declining by 4.34%, indicating reduced market turbulence and a stable trading environment overall.

As the dust settles post the Swiggy IPO, investor focus will shift to further domestic listings and global cues, including developments in the U.S. political landscape. On the monetary policy front, any signals from the RBI regarding potential rate cuts will be crucial. Analysts predict a range-bound market with selective opportunities, particularly in sectors like IT, e-commerce, and financials.

 Market Developments:

• Hindalco Industries plans to invest $4-$5 billion over three years to expand its aluminum and copper production facilities. 
• PI Industries stock tanks 9% after firm slashes FY25 revenue guidance.
• The RBI has issued an operational framework for reclassification of foreign portfolio investment by FPI to FDI.
• Torrent Power shares crack 4% as Q2 net profit falls on lower contribution from thermal, renewable arms
• The Securities and Exchange Board of India (SEBI) proposed stricter norms for IPO pricing to protect retail investors.

FII-DII DATA:

Net Cash (in Rs. crores):
11 NOV-
FII- (2,306.88)
DII- 2,026.63
12 NOV-
FII- (3,024.31)
DII- 1,854.46
13 NOV-
FII- (2,502.58)
DII- 6,145.24
14 NOV-
FII- (1,849.87)
DII- 2,481.81

TOP GAINERS:
Infosys- 3.41%
Tech Mahindra- 2.21%
Titan Company- 2.01%

TOP LOSERS:
Britannia- -13.59%
Asian Paints- -12.65%
Tata Steel- -8.59%

Top Performing Sector
IT:  4.86%

Worst Performing Sector
METALS:  -7.12%

Technical Analysis: 
The Indian stock market showed mixed technical signals this past week, with the Nifty 50 closing at 23,532.70, registering a marginal decline of 0.11%. The market displayed a cautious tone amidst global uncertainties, with key indicators suggesting potential opportunities and challenges ahead.The support level for Nifty is seen around 23,515, providing a critical threshold for the index to hold.

The RSI, measuring recent price changes, stood at 39.07, reflecting a buying opportunity for retail investors. While the RSI remains above oversold territory, it signals a gradual shift in momentum towards stabilization after recent declines.

The 10-day EMA for Nifty at 24,457 indicates short-term bearish momentum as the index closed below this level at 23,532.70. This suggests continued selling pressure, with 24,457 now acting as a resistance zone. A sustained move above the EMA could signal recovery potential.