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By Gaurav Bora, Market Expert

 

While the week ended November 12 was volatile for the market, the bulls managed to keep their hold for the second consecutive week post profit booking that gives initial sign of peace of mind for bulls. Sensex managed to get back above the crucial 60,000-mark rose 619.07 points to 60,686.69, while the Nifty closed above 18,100, gaining 185.95 points at 18,102. While the broader market traded in line with the Nifty Midcap 100 rose (1.5%) and Smallcap 100 climbed (1.2%) during the week. Infra, energy, IT, and auto stocks lifted the market sentiments, but the selling in banks and pharma capped the upside. In the coming week, Q2 earnings of frontline stocks like Hero MotoCorp, Ashok Leyland, Grasim, Coal India, and ONGC will drive the market. On the macro level CPI inflation and industrial output data, this came in after market hours on Friday. On the domestic front WPI inflation numbers & balance of trade for October will be released on Monday. The market will remain shut on November 19 for Gurunanak Jayanti. We may see some recovery in the markets but inflation will be the concern. While reduction in excise duty on petrol and diesel is step towards controlling inflation but markets across the world are trying to decode the implications of rising inflation. FII outflow continued in the equity market as they net sold Rs 4,901.76 crore worth of shares during the week, but the DIIs came to the rescue by buying Rs 5,393.52 crore worth of shares during the week.

The market will see multiple IPO listings in the coming week, PB Fintech, Sigachi Industries and SJS Enterprises will get listed on 15th Nov and PayTm will get listed on 18th Nov. Two IPO will also get launched next week. Life sciences company Tarsons Products will open its Rs 1,023.5-crore public issue from November 15 to November 17 at price band of Rs 635-662 per share. Along with women’s bottom wear brand Go Colors owner Go Fashion will open Rs 1,013.6 crore issue on November 17 to November 22 at price band of Rs 655-690 per share. India has managed to keep daily infections to below 13,000 for quite some time now. Total 111.4 crore COVID vaccine doses were administered so far with 32.8% people completing their second COVID vaccine dose increasing from 31.5% on last Friday, Significant increase in pace of vaccination and in recoveries which is supportive factor for equity markets. 

 

Key factors for the week:

 

  • IPO Listing Of PB Fintech, Sigachi Industries, SJS Enterprises and PayTm

 

  • WPI inflation numbers & balance of trade for October will be released on Monday.


  • Tarsons Products IPO will open its IPO from November 15-17. Go Fashion IPO will open from November 17-22.

 

Technical View:

 

Nifty formed bullish candle formation on the daily as well as weekly charts with closing above 18,100 mark, as long as the Nifty trades above crucial 18,000 mark the uptrend may continue in coming days. After a long time Nifty has succeeded to close above 18000, which is broadly positive for the market. While important support is placed at 17,850 to 18,000 and there is a possibility of upside bounce from this levels towards new highs. If Nifty sustains 18,100 levels then we may see momentum towards 18,300 to 18,500, while below 18,000 will act as support. The maximum Put open interest at 18,000 followed by 17,900 strike and is also likely to act as a major support in the coming week. Maximum call open interest at 18,300 followed by 18,500 and is also likely to act as a major resistance in the coming week. Nifty could trade in the range between 17,800-18,500. The volatility index India VIX cooled off from 15.74 to 15.22 levels, cool off in volatility suggests bullish stance and it needs to sustain at lower levels for a bullish market. 

 

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