Weekly Wrap-Up: November Week 4, 2023

Weekly Market Snapshot

The market showcased sideways movement near key resistance levels. Expert opinions emphasize the importance of decisive moves for a clear trend. The impact of upcoming events and global cues remains crucial. Investors are advised to stay vigilant, consider potential trend triggers, and focus on selective trades in the current market scenario.

Key Market Movements‌‌

• The market ended the week higher, with Sensex and Nifty rising 0.3% each.
• Midcap Index recorded its fourth straight weekly gain, rising by 0.6%, and Nifty Bank was 0.5% higher.
• Despite the minor decline, both benchmarks are poised for their fourth consecutive weekly gains, driven by expectations that interest rates have peaked in the US and Europe.
• The near-term uptrend of the Nifty remains intact. The outcome of recent assembly elections is anticipated to be a trend decider, with potential sharp movements post exit polls on Nov 30 and election results on Dec 3.
• A move above 19,900 may lead to new highs, while a break below 19,600 could trigger a near-term correction.

Sectoral Movements And Stock Specifics‌‌‌‌

• Top gaining sectors: Realty, Metal, and Pharma, while PSU Banks and IT faced declines.
• Nifty gainers: Hero MotoCorp, Bajaj Auto, BPCL, Divi’s Lab, Bharti Airtel.
• Nifty losers: Cipla, ONGC, Coal India, Bajaj Fin, Ultratech Cement.
• Top Midcap gainers: SPARC, AB Fashion, Castrol, Bharat Forge, JSW Energy.

Leaders And Laggards

• 'Sector Superstars' and 'Buy High Sell Higher' were two of the best-performing models, with 1.39% and 1.15%, respectively.
• 'Quick Short' and 'BTST' were two of the underperformers, with -5.16% and -1.44% returns respectively in the same period.

• Coming to stocks, GICRE, or General Insurance Corporation of India, provided a monthly return of 34.27% as part of 'Alpha Ally' model, followed by ELECTCAST, or Electrosteel Castings Ltd, which returned 31.18% as part of 'Sector Superstars' model.

• On the contrary, ZEEL, or Zee Entertainment Enterprises Limited, was the underperformer with negative 6.25% returns as part of the 'Buy High Sell Higher', followed by INDIANB, or Indian Bank with negative 5.51% returns as part of the 'Alpha Ally' model.

Expert Insights And Market Outlook‌‌

• Ajit Mishra, SVP - Technical Research, Religare Broking: Describes the Nifty's consolidation as healthy, emphasizing the need for a decisive move above 19,850 for a new high. Participants should monitor US markets and banking majors for cues, advised to stay selective and avoid contrarian trades.
• Rupak De, Senior Technical Analyst, LKP Securities: Highlights the challenge in surpassing the 19,850-19,900 resistance range. The index is expected to move sideways unless a breakout occurs. A decline below 19,700 might trigger a correction, while a move above 19,900 could lead to a significant rally.

Reads On The Internet

GST collections: Signifying economic resilience
Despite global headwinds, India’s growth has shown remarkable resilience with high frequency indicators largely growing at steady pace.

CIL to invest $54.5 billion in abated coal projects over next decade
There is still very much a foreseeable and significant future for coal that goes beyond traditional uses because any responsible energy transition must include abate coal as part of the solution

State GST Officer conducts search at Colgate-Palmolive warehouse in Chennai, Rs 1 lakh penalty imposed
Chennai, conducted a search at its warehouse in the southern city on November 16-17, and a penalty of Rs 1 lakh was imposed for "minor non-compliance"

KPMG India, US, and UK in talks for landmark advisory practices merger
The combined entity will invest aggressively in scaling up the India advisory practice and growing client servicing capabilities in India.

Asian Development Bank unleashes $170 million wave to transform Kochi's water landscape
The loan aims to improve urban living standards, ensure clean water access, and boost climate resilience.

L&T Finance gets $125 million loan to support MSMEs, farmers
At least 40 per cent of the proceeds is allocated for women borrowers, while the rest will support farmers, micro, small and medium-sized enterprises (MSMEs), and loans to purchase new two-wheelers, among others.

Disclaimer: The opinions expressed in this blog are personal views and should not be considered financial advice. Please do your own research and consult with a professional before making any investment decisions.