IndiGo, PFC, and Wipro Gain Momentum

Technical Overview – Nifty 50

The Benchmark Index on 22nd November, witnessed a flat opening near its previous day’s close as indicated by the Gift Nifty. It was quite a volatile day for the index where prices swung both ways in its intraday trading session and continued to hold above 19,800 levels. 

The bullish pattern on the daily chart remains the same where prices continue to hold above their breakout levels of the falling wedge pattern. The momentum oscillator RSI (14) has finally witnessed a horizontal trend line breakout above 50 levels and has sustained above the same. After a span of one month, The MACD indicator has moved above its line of polarity on the daily time frame.

Technically, Nifty needs to reclaim the 19,875 mark to unleash a fresh upside. Nifty’s biggest supports are placed at the 19,700 – 19,650 mark.

Technical Overview – Bank Nifty

The Primary trend for the Banking Index was on the negative side since opening on 22nd November and prices traded in amid volatility during the day. After a sharp fall prices found immediate support near 43,200 levels and witnessed a 200-point recovery from the lower levels.

On the daily chart, the Index formed a red candle, and prices have made an attempt to close below the three-day trading range. The prices are trading below the 9 & 21 EMA and it’s trading below its 50 EMA which is placed at 43,918 levels. The momentum oscillator RSI (14) has entered a bearish crossover mode due to a strong sell-off in the banking index.

On the daily chart, Bank Nifty is finding resistance near 43,700 – 43,800 marks, followed by active call writers. The move above 43,800 levels will initiate a breakout on the daily chart and the support is placed at 43,200 levels.

Indian markets:

• Domestic stock market closed higher despite a day marked by significant volatility.
• Initially opening flat, the market steadily climbed during the first half of the trading session.
• Mid-session selling briefly caused indices to dip, but last-hour buying activities reversed the losses, resulting in a higher close.
• Gains in the market were tempered by the cautious stance of the US Federal Reserve in its latest minutes, lacking clear indications of a potential rate cut.
• This lack of clarity from the Fed introduced uncertainty among investors, slightly affecting market sentiment.

Global Markets

• Most shares in Europe and Asia advanced on Wednesday. Minutes from the U.S. Federal Reserve?s recent meeting revealed that policy officials maintained that monetary policy had to be restrictive and had little appetite for rate cuts.
• US stocks dipped on Tuesday while minutes from the Federal Reserve?s most recent meeting showed the central bank is in a position to proceed carefully. The Feds minutes from its October 31-November 1 meeting showed the policy makers wrestling with conflicting signals and agreeing to continue with caution after voting to leave the Fed funds target rate at 5.25-5.50%.

Stocks in Spotlight

• Interglobe Aviation, the company behind the low-cost airline IndiGo, saw a 1% increase in morning trade on November 22, following a bullish “overweight” rating from global brokerage firm Morgan Stanley. With a target price of Rs 3,217, indicating a 21% potential upside from the current market value, Morgan Stanley highlighted positive near-term demand and airfare trends. Emphasizing IndiGo’s potential as a beneficiary of industry consolidation, the firm noted the airline’s appealing valuation at 7.3 times EV EBITDA compared to a pre-Covid average of 8.5x, further underlining its attractiveness as an investment prospect
• Power Finance Corporation (PFC) shares surged by one percent but later relinquished these gains. The company’s subsidiary, PFC Consulting Limited, established a new special purpose vehicle (SPV) dedicated to developing an intra-state transmission system. Tasked as the ‘Bid Process Coordinator’ (BPC) by the Ministry of Power, PFC Consulting will oversee developer selection via tariff-based competitive bidding for the Independent Transmission Projects (ITPs).
• Wipro experienced a nearly 1 percent increase in early trade on November 22 following its partnership announcement with NVIDIA for AI in healthcare. At 10:29 am, the Wipro stock was trading at Rs 402.24 on the NSE. The collaboration, revealed on November 21, aims to expedite the integration of generative AI into healthcare. Leveraging NVIDIA’s enterprise AI software, Wipro plans to enhance its existing healthcare solutions within the Affordable Care Act (ACA), Medicare, and Medicaid domains, as outlined in the company’s statement.

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