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NSE Intra-day chart (22 November 2022)
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Market Commentary 23 November 2022
Benchmarks to get positive start on firm global cues

 

Snapping a three-day losing streak, Indian benchmark indices ended Tuesday's session with gains of around half percent, led by gains in Metal, IT and TECK stocks.  Markets made a cautious start, as traders were worried after rating agencies Crisil and Icra revised down their India growth projections for the current fiscal and the second quarter mainly due to the ripple effect of slowdown in global growth and mixed crop output. Crisil downgraded the India growth forecast by 30 bps to 7 per cent while Icra pegged the economic expansion at 6.5 per cent for the second quarter of FY2022-23. However, indices quickly moved to green and remained in that zone throughout the session as India and the European Union (EU) signed an agreement on cooperation in areas such as climate modelling and quantum technologies, building on the Trade and Technology Council launched by the two sides earlier this year. Sentiments remained positive as the Centre said the number of beneficiaries under the PM-KISAN scheme has crossed 10 crore, increasing more than three-fold from 3.16 crore farmers covered under the first instalment period in early 2019. Traders took a note of report that DEA Secretary Ajay Seth has exhorted multilateral development banks (MDBs) to explore more private sector investment opportunities to facilitate further crowding-in of private financial resources. He highlighted huge opportunities to scale-up investments in India's key priority areas, including green energy and urban infrastructure. Meanwhile, Finance Minister Nirmala Sitharaman will hold pre-budget consultations with her state counterparts on Friday. Finally, the BSE Sensex rose 274.12 points or 0.45% to 61,418.96 and the CNX Nifty was up by 84.25 points or 0.46% to 18,244.20.

 

The US markets ended higher with gains of over one percent on Tuesday on upbeat earnings, optimism about slower rate hikes. Shares of Best Buy soared by 12.8 percent after the company reported better than expected third quarter results and raised its full-year guidance. Apparel retailer Abercrombie & Fitch (ANF) also spiked after reporting an unexpected third quarter profit on sales that beat street estimates. Abercrombie & Fitch CEO Fran Horowitz also said the company is cautiously optimistic about the holiday shopping season. Further, markets also benefitted from ongoing optimism about the Federal Reserve slowing the pace of interest rate hikes, which persisted despite hawkish comments from some Fed officials. The Fed's next monetary policy meeting is scheduled for December 13-14, with CME Group's FedWatch Tool currently indicating a 75.8 percent chance of a 50 basis point rate hike and a 24.2 percent chance of another 75 basis point rate hike. However, overall trading activity was somewhat subdued with a lack of major U.S. economic data keeping some traders on the sidelines. On the sectoral front, Gold stocks showed a substantial move to the upside on the day, driving the NYSE Arca Gold Bugs Index up by 4.6 percent to its best closing level in well over four months. The rally by gold stocks came even as the price of the precious metal ended the day roughly flat, with gold for December delivery inching up just $0.30 to $1,739.90 an ounce. Substantial strength was also visible among energy stocks, which benefitted from a notable increase by the price of crude oil.

 

Crude oil futures ended higher on Tuesday after Saudi Arabia said OPEC+ was sticking with output cuts and could take further steps to balance the market. Saudi Arabian Energy Minister Prince Abulaziz bin Salman had on Monday denied a report that the oil cartel was considering boosting output. He said that there was no basis for the reports and that the OPEC+ decision on October 5 to cut production would continue to remain until the end of 2023. Meanwhile, a weaker dollar contributed as well to the uptick in crude oil prices. Benchmark crude oil futures for December delivery rose $1.14 or about 1.4 percent at $81.18 a barrel on the New York Mercantile Exchange. Brent crude for January delivery gained $1.08 or about 1.2 percent to settle at $88.53 (Provisional) a barrel on London's Intercontinental Exchange.

 

Indian Rupee snapped four day of losses to close higher against US dollar on Tuesday on the back of selling of the American currency by exporters. Traders got support after India and the European Union (EU) signed an agreement on cooperation in areas such as climate modelling and quantum technologies, building on the Trade and Technology Council launched by the two sides earlier this year. On the global front, the pound rose on Tuesday after falling in the previous session, as the dollar retreated following three days of gains. The greenback - typically the driver of global currency markets - rose sharply on Monday as a jump in COVID-19 cases in China sparked growth fears and sent investors towards the safe-haven currency, causing the pound to drop 0.59%. Finally, the rupee ended at 81.67 (Provisional), stronger by 12 paisa from its previous close of 81.79 on Monday.

 

The FIIs as per Tuesday's data were net sellers in both equity and debt segment. In equity segment, the gross buying was of Rs 5160.40 crore against gross selling of Rs 6381.33 crore, while in the debt segment, the gross purchase was of Rs 457.54 crore against gross selling of Rs 3398.66 crore. Besides, in the hybrid segment, the gross buying was of Rs 41.12 crore against gross selling of Rs 90.28 crore.

 

The US markets ended higher on Tuesday as a sales forecast by Best Buy dampened concerns high inflation would lead to a dismal holiday shopping season while a bounce in oil prices helped lift energy shares. Asian markets are trading mostly in green on Wednesday despite rising COVID-19 cases in mainland China leaving investors uncertain over how much the fresh outbreaks could slow the reopening of the world's second-largest economy. Indian markets ended their 3-day losing streak on Tuesday and closed with gains as investors scooped up IT, metal and consumption stocks amid a largely positive trend overseas. Today, markets are likely to start session on positive note tracking firm global cues. Traders will be taking encouragement as the Organisation for Economic Cooperation and Development (OECD), the Paris-based intergovernmental body that focuses on economic policy reports in its latest Economic Outlook said that India, with a growth rate of 6.6 per cent in this financial year, is set to be the second-fastest growing economy in the G20 in FY 2022-23 behind Saudi Arabia, despite decelerating global demand and the tightening of monetary policy to manage inflationary pressures. Also, Moody's Investors Service said the trend of gradual fiscal consolidation remains intact for India and going forward the country will see strong revenue performance and debt stablisation. Some support will come as highlighting the Centre's efforts in creating employment opportunities, Union Railway Minister Ashwini Vaishnaw said that about 16 lakh jobs are being generated every month by the central government. Traders may take note of the Securities and Exchange Board of India's (SEBI) November Bulletin stating that India's holdings of US Treasury Securities increased 4.3% on-month and 1.9% on a year-on-year basis in August to $221.2 billion. Besides, commerce and industry minister Piyush Goyal said the proposed free trade agreement (FTA) between India and the UK is a high priority for both the countries and the next round of negotiations for the pact is slated to happen next month. However, some cautiousness may come as foreign institutional investors (FIIs) have net sold shares worth Rs 697.83 crore on November 22, as per provisional data available on the NSE. There will be some reaction in telecom stocks as telecom regulator's data showed that India's total mobile subscriber base fell by 3.6 million in September, with Vodafone Idea suffering subscriber count decline even as larger rivals Reliance Jio and Bharti Airtel added users month-on-month. Meanwhile, Inox Green Energy Services will make its debut on the bourses today. The issue price has been fixed at Rs 65 per share.

 

Support and Resistance: NSE (Nifty) and BSE (Sensex)

 

Index

Previous close

Support

Resistance

NSE Nifty

18,244.20

18,167.31

18,291.46

BSE Sensex

61,418.96

61,172.89

61,565.84

 

Nifty Top volumes

 

Stock

Volume

Previous close (Rs)

Support  (Rs)

Resistance (Rs)

(in Lacs)

Tata Steel

278.46

105.35

104.14

105.99

NTPC

151.98

167.10

165.46

168.11

ICICI Bank

112.56

924.30

920.96

927.06

Oil and Natural Gas Corporation

111.98

135.25

133.46

136.46

State Bank of India

80.48

599.35

596.76

601.31

 

  • Reliance Industries' telecom arm -- Reliance Jio Infocomm has added 7,24,790 customers in September 2022. 
  • Tata Motors has introduced its newest addition to the iCNG family with the Tiago NRG iCNG.  
  • L&T has purchased the entire stake held by Chiyoda Corporation in L&T-Chiyoda in accordance with the Share Purchase Agreement dated November 22, 2022. 
  • Bharti Airtel's subsidiary -- Nxtra Data has started the construction of its new hyper-scale data centre in Kolkata.
News Analysis