Sensex Gain 230 Points, Nifty at 24,274; Tomorrow Nifty Prediction

Tomorrow Nifty Prediction

Market Recap: Indian Stock Markets End on a Positive Note, What to Expect on November 28

Indian equity indices rebounded on November 27, putting an end to the losses seen in the previous trading session.

The positive close was led by key sectors such as banking, energy, and media, which helped push the Nifty index higher.

At the close of the trading day, the Sensex rose by 230.02 points, or 0.29%, settling at 80,234.08. Meanwhile, the Nifty climbed 80.40 points, or 0.33%, to end at 24,274.90, signaling a broad market recovery.

Today’s market action saw an encouraging breadth with 2,471 stocks advancing, while 1,302 stocks declined, and 105 stocks remained unchanged.

The day’s trading volume reflected the strength in the market as investors showed confidence in select sectors, particularly in midcap and smallcap stocks.

Notably, the Nifty Midcap index rose 0.6%, and the Nifty Smallcap index delivered an impressive gain of 1.3%, outperforming the Nifty 50.

Among the biggest gainers on the Nifty were Adani Enterprises, Adani Ports, Bharat Electronics, Trent, and NTPC.

These stocks have been in the spotlight recently, as investors have been rotating funds into large-cap stocks that show strong earnings growth potential.

On the other hand, the worst performers on the index included Apollo Hospitals, Titan Company, Shriram Finance, Wipro, and IndusInd Bank, which all saw notable declines during the session.

In terms of sectoral performance, the market showed a marked contrast in investor sentiment. The sectors that experienced selling pressure included IT, Pharma, Realty, and Healthcare.

These sectors have been underperforming due to weaker global demand, regulatory challenges, and concerns over margins.

On the other hand, sectors such as Auto, Bank, Energy, FMCG, Metal, and Media witnessed buying interest, which supported the broader market’s positive move.

What to Expect on November 28:

Aditya Gaggar, Director at Progressive Shares, points out that the recovery in banking stocks and select large-cap names helped the Nifty break out of its narrow trading range, resulting in an 80.40-point gain.

In terms of sector performance, Energy and Media stocks were the top gainers, rising by 1.45% and 0.98%, respectively.

On the flip side, the Pharma sector saw a decline of 0.61%, which weighed on the overall market sentiment.

The Midcap and Smallcap indices outperformed the Nifty, gaining 0.64% and 1.30%, respectively, signaling that broader market participation was driving the rally.

Gaggar further mentions that over the past three trading sessions, the Nifty has remained confined within the narrow range of 24,140 to 24,350.

He suggests that a breakout—either upward or downward—is required for the market to gain a clearer direction.

If the Nifty manages to break above the 24,350 mark, it could trigger a fresh wave of buying, leading to further gains.

Conversely, if it falls below 24,140, it might signal a deeper correction. The market is at a crucial juncture, and traders will be looking for this breakout to define the next move.

Ruchit Jain, Technical Analyst at Motilal Oswal, shares a bullish outlook, stating that the market has made a strong comeback in recent sessions, and today’s rally was another sign of resilience.

Foreign Institutional Investors (FIIs), who were previously net sellers, have now turned net buyers, signaling renewed confidence in the Indian equity markets.

Additionally, technical indicators suggest that the market is in the “oversold zone,” which could present an attractive opportunity for investors looking to buy on dips.

Jain believes that with the global markets improving and a reduction in negative news flow, there is potential for sustained positive momentum in Indian markets.

He also highlights that despite some challenges, the outlook for global growth and easing geopolitical tensions could result in better performance for Indian equities in the coming weeks.

In light of these factors, he suggests that investors begin to gradually accumulate positions in quality stocks, particularly those in sectors like banking, energy, and metals, which are likely to benefit from both domestic and global growth.

Vaishali Parekh, Technical Analyst at Prabhudas Lilladher, emphasizes that the 50-day Exponential Moving Average (50EMA), located around the 24,000 mark, will act as an important support level for the Nifty in the short term.

As long as the index holds above this level, the overall market trend will remain bullish, she suggests.

However, she cautions investors to maintain a watchful eye on the market and exercise caution, as volatility can remain high in the near term due to various global and domestic factors.

In the case of the Sensex, Parekh points out that the index has been hovering around the crucial 50EMA zone at the 80,200 level, facing resistance near the 80,500 level. For the near term, the support zone for the Sensex lies between 79,500 and 79,600.

If this support holds, the Sensex could see an extension of the current upward movement, potentially challenging the resistance at 80,500. However, if the support is breached, the index might face further downside.

Key Levels to Watch:

• Nifty Support: The immediate support for the Nifty is seen at 24,140-24,250. If the index falls below this range, it could signal further weakness.
• Nifty Resistance: The Nifty faces resistance around 24,350 and above. A breakout above this level could trigger a rally toward 24,500 or higher.
• Sensex Support: The 79,500-79,600 range serves as short-term support for the Sensex. If this support holds, the index could resume its upward trend.
• Sensex Resistance: Immediate resistance for the Sensex is near the 80,500 level. A sustained move above this could open the doors for further gains toward 81,000 and beyond.

Sectoral Focus:

• Banking: The banking sector continues to show resilience, supported by positive earnings reports from major banks. With FIIs turning net buyers, banking stocks could see more inflows, leading to further upside potential.
• Energy and Metals: The energy and metals sectors have been buoyed by strong demand and favorable global macroeconomic conditions. These sectors could continue to perform well, particularly if there is further strength in global commodity prices.
• Auto: The auto sector, which has shown strength due to improving demand, could continue to benefit from robust consumer sentiment and the shift toward electric vehicles. Stocks in this sector should be closely monitored for any signs of further growth.
• IT and Pharma: While the IT and Pharma sectors have struggled recently due to global headwinds, investors may find opportunities in select stocks that offer strong growth potential and solid fundamentals.

Final Remarks:

The Indian stock market showed signs of recovery today, with key sectors supporting the rally. The Nifty’s movement within a narrow range of 24,140-24,350 suggests that a breakout is necessary for the market to gain a clearer direction.

Technical indicators point to the market being in the oversold zone, offering an attractive opportunity for long-term investors.

Going into November 28, market participants should keep a close eye on global cues, sectoral performance, and key technical levels.

Sectors like banking, energy, and metals remain in focus, and if these sectors continue to attract buying interest, the broader market could see further gains.

However, investors should remain cautious and be prepared for volatility as the market consolidates its gains and awaits a breakout.