How are the Markets Looking ?
The Indian stock market has had an impressive run in November, with the Nifty index crossing the 20,000 mark. This is a remarkable feat considering that just a month ago, the index was at 18,800. In a span of a month, the market has gained almost 1200 points, showcasing the strength and resilience of the Indian economy.
November has proven to be a spectacular month for the Nifty, as it has bounced back from the lows of mid-September and reached new highs. The current peak stands at 20,200, and the market is already trading near 20,100. This positive momentum indicates a promising path ahead for the Indian markets.
Nifty Heatmap
It is worth noting that the banking sector has played a significant role in leading the rally. Banks such as HDFC Bank, ICICI Bank, and Axis Bank have been at the forefront, driving the market’s strong performance. The banking index has witnessed notable gains, and banking stocks have performed exceptionally well.
In addition to the banking sector, other sectors have also contributed to the market’s upward trajectory. Technology companies like Infosys, TCS, and Wipro have seen positive growth. Auto stocks, including Tata Motors, Mahindra & Mahindra, and Hero Motors, have also performed well. Furthermore, Adani stocks, which experienced a correction from the previous day’s significant movement, demonstrated positive gains. L&T Infotech (LTIM) and Bharti Airtel (Bhartiyatl) both witnessed a 2% increase, while Levers and ITC saw a half percent increase each.
Sectoral Overview
Overall, it was a very good day for the market, with few red flags. Auto stocks had a remarkable 1.6% gain, and the Bank Nifty index witnessed a similar increase of 1.6%. PSU banks, private banks, and consumption stocks, as well as public sector enterprise stocks, all experienced positive growth. The real estate sector, however, took a backseat after an impressive 47.7% run-up in the last twelve months, which is normal as some correction is expected in such cases. Pharma stocks, on the other hand, have shown a minor decline (-0.5%), but there are indications that they may catch up in the coming days.
Looking at the overall performance of different sectors over the last month, real estate, public sector enterprise stocks, auto stocks, and commodity stocks have shown significant progress. Energy stocks, in particular, have witnessed double-digit growth, as indicated by the widespread green on the screen.
Mid & Small Cap Performance
The mid-cap and small-cap segments of the market have also experienced notable gains. Mid-cap stocks jumped from 4200 to 4600, signifying a significant jump in a single day. Small-cap stocks followed suit, reaching 13,001.
Bank Nifty Overview
Notably, the Nifty Bank index crossed a pivot point that had been a resistance level for many months. The resistance level of 44,400 was cleared, opening up possibilities for a substantial move in the future. These positive developments in the banking sector have spurred optimism among market participants.
Highlights – Nifty IT Index, Nifty Auto Index
Another noteworthy observation is the resurgence of the Nifty IT sector after three down sessions. Currently standing at 3600, it is likely forming the right shoulder, which could lead to a strong upward movement. Additionally, Nifty Autos demonstrated a double bottom pattern near 15,800, with a big breakout at 16,000. These bullish patterns signal positive sentiment in the market and highlight the overall bullish trend.
Indeed, the market sentiment appears optimistic, with all sectors firing on all cylinders. Mid-caps and small-caps are performing well, indicating broad-based market growth. There were no major underperforming sectors observed on this specific day, further adding to the positive outlook.
Given the strong momentum and market performance, it is highly likely that a new high will be achieved in the near future. The market is only 105 to 110 points away from that milestone. Such closeness to an all-time high is a clear indication of market strength and a potential upward trajectory.
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