Views on Market Performance - Nov 23, 2023 - HDFC Securities

Mr. Devarsh Vakil - Deputy Head of Retail Research, HDFC Securities on today's market performance

After opening higher by 16 points on the back of strong global cues, Nifty made an intraday high of 19875 and reversed south afterward. From the day's high, the Nifty witnessed a fall of nearly 90 points, hitting a low of 19787. At close, Nifty was down by 10 points or 0.05% at 19802 levels. Bank Nifty outperformed the Nifty by gaining 0.29%. NSE Cash market volumes were lower as compared to recent averages.

U.S. markets extended a robust November upswing Wednesday. US exchanges will be closed today on Thursday for the Thanksgiving Day holiday. Stock and bond markets will close early on Friday. A lukewarm reception to quarterly numbers from chip designer NVDIA late Tuesday did little to dampen enthusiasm for large-cap technology shares, which helped lift the Nasdaq to a 22-month -high. Markets in Europe and Asia mostly traded in the green today.

Midcap and Smallcap Indices outperformed the Benchmark Indices where the Nifty Midcap 100 Index ended flat while the Nifty Smallcap 100 Index rose by 0.70%. Advancing shares outnumbered the declining shares as the advance-decline ratio stood at 1.27 levels on the BSE.

The healthcare index closed a percent down and the information technology index 0.5 percent. Realty and oil & gas added a percent each and the auto index 0.4 percent. Amongst the sectors, Nifty Reality, OIL/GAS, and Metal were major gainers while Pharma, Healthcare, and IT were major losers.

The short-term trend of the Nifty remains up as it is placed above its important short-term moving averages. The zone of 19850-19900 is expected to remain a strong hurdle for the Nifty. Any close above 19900 could bring back bullish momentum in the Nifty. On the downside 19700 could offer the support in the Nifty.