Weekend Investing Daily Byte - November 30

How are the Markets Looking ?

The market started off on a volatile note, but eventually settled with a positive outcome. After opening near a recent high, the market retested the 20,000 level before climbing back up to a close of nearly 20,133 points. This puts us within striking distance of the all-time high, just shy by less than half a percent. It has been an incredible rally over the past month, and we can expect to finish the calendar year on a high note.

Nifty Heatmap

Several sectors stood out for their strong performance in today’s trading session. Aisha Motors, Hero Motors, and Mahindra saw impressive gains, while Tata Motors experienced a slight slump after its listing. Tata Tech had an exceptional listing, and the gains were already factored in. Ultracemco and Titan also had notable gains, and the life insurance companies, ONGC, and BPCL saw positive movement. In the pharma sector, Divis, Sun Pharma, and Cipla all performed well. NTPC and LNT were also among the winners, along with a 2% jump in Bharti Airtel. On the other hand, Reliance was soft, and State Bank, TCS, Asian Paints, Adani Enterprise, Adani Ports, Power Grid, and LTIM experienced downward movements.

Sectoral Overview

Pharma emerged as the sector of the day, with a notable 1.6% increase in value. Real Estate made a strong comeback with a 1.4% gain, followed by Public Sector Enterprises at 1.3%. Consumption, Infra, and Commodities also performed well, with increases of 1%, 0.7%, and 0.6% respectively. Autos, Metals, and Energy took a backseat today, while PSU banks experienced a significant downturn, dropping by -1.1%. This sector has been showing signs of fatigue recently and is struggling to keep up with the overall market performance.

Bank Nifty has struggled to gain momentum over the past three months, and even over the course of the year, is up by a mere 0.1%. In contrast, Nifty has seen an 8% increase. The Real Estate sector takes the cake with an impressive 50% growth for the year, followed by Public Sector Enterprises at 40%. Pharma and PSU Banks also enjoyed significant increases, with growth rates of 28% and 24% respectively.

Mid & Small Cap Performance

Both mid caps and small caps have experienced remarkable rallies. Mid caps have surged from a low of 3,7600 to 4,900, a monumental gain. Small caps have followed suit, rising from 1,500 to 3,252. This continued upward momentum is quite remarkable and suggests that these market segments are still filled with potential.

Bank Nifty Overview

Despite the possibility of consolidation at some point, it is crucial not to let fear hinder investing or being invested. The Nifty Bank had a relatively stable day, showing consolidation after a significant move the day before. The inverse head and shoulders pattern is forming above 40,480, indicating that Bank Nifty has the potential to clear out resistances in the near future.

Highlights – Nifty REALTY

Real Estate has shown astonishing growth, with a remarkable 25% increase over the past five to six weeks.

Highlights – Nifty Pharma Index

Pharma has also been performing exceptionally well, reaching an all-time high from 46,000 to 162,238. As this positive trend continues, more pharma stocks are expected to gain momentum and attract attention from momentum strategies.