Honasa’s 12% Leap, LIC’s Growth Plans, and IPO Fervor

Technical Overview – Nifty 50

The nifty index opened on a flat note, but we observed some selling in the market from the higher end overall it was another sideways trading range market. From the last four trading sessions index is trapped within the 100 points range which calls for a directionless trading session for the traders.

On the weekly chart, the Index has managed to close mildly positive and has formed a green candle for the fourth straight week.  The momentum oscillator RSI is trading in the range so we might see choppiness in the market. The index is still comfortably sustained above its short-term EMA (9 & 21) which is acting as a pivot support.

The OI is indicating positivity in the Nifty with a support level of 19600 to the hurdle mark of 19800 levels. A further direction will be confirmed once it breaches any of the mentioned levels. 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 Banking Index has found support on the lower end and has closed in the green for two consecutive days. On the weekly chart prices have formed a hammer candle stick pattern the its trend line support indicates a buying at lower levels.
For the past four weeks, the Bank Nifty has been trading within the 21 & 50 EMA and has got caught within the very narrow range. On the broader time frame, the index is trading within the rising channel pattern and the index has taken support near the lower band of the pattern.

The RSI on the daily chart is hovering near 50 levels and does not indicate a short-term trigger. The Higher high higher low formation is well intact on the weekly time frame. 

The break above 44,000 levels will trigger a breakout from the consolidation range for the higher levels towards 44,250 levels and similarly, if prices drift below 43,400 levels then further selling may be witnessed till 43,200 levels.

Indian markets:

• Domestic equity indices ended with slight losses for the second consecutive day, with the Nifty settling below the 19,800 mark. It had peaked at 19,832.85 early in the day but couldn’t sustain the momentum.
• IT stocks faced a decline, contributing to the market’s downward trend, while pharma and metal stocks experienced increased buying activity.
• The market lacked substantial triggers, resulting in a range-bound movement. However, small-cap stocks continued to outperform amidst this scenario.

Global Markets

• In Europe, markets saw gains as investors reacted to Germanys recent GDP figures, which confirmed a 0.1% month-on-month contraction and an 0.8% decline from the previous year. Additionally, attention is focused on a forthcoming speech by European Central Bank President Christine Lagarde.
• In Asia, most stock declined as investors analyzed important economic data from Japan, including a rise in core inflation rate to 2.9% in October and an acceleration of the headline inflation rate to 3.3%.
• US stocks were closed on Thursday for Thanksgiving and are set for a half day of trading on Friday. Furthermore, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, will hold a virtual meeting on November 30 to decide on crude production strategy, after postponing an in-person meeting in Vienna amid inter-member disagreements.

Stocks in Spotlight

• Honasa Consumer, the company behind Mamaearth, witnessed a remarkable surge, soaring by 12 percent, marking a staggering 36 percent increase over just two days. This surge followed Jefferies’ decision to replace Marico with Honasa Consumer, elevating the personal care company into its esteemed model portfolio. This move notably propelled Honasa Consumer’s market performance and generated significant investor interest.
• LIC witnessed a notable surge of 9.71 percent in its market performance following its announcement. As the largest insurer in the country, LIC revealed plans for three to four upcoming product launches in the months ahead. These strategic launches are aimed at propelling the company towards achieving a double-digit growth target in new business premiums for the current financial year. This announcement garnered positive investor sentiment, reflecting confidence in LIC’s growth prospects.
• The five IPOs launched this week collectively received bids exceeding Rs 2.3 lakh crore, excluding allotments to anchor investors. Tata Technologies’ IPO emerged as a standout, amassing bids of nearly Rs 1.5 lakh crore, oversubscribed by a staggering 60 times the issue size. With bids totaling 286 crore shares against the 4.5 crore shares on offer, the response has been exceptionally robust. Additionally, the Indian Renewable Energy Development Agency’s IPO, closing on November 23, saw substantial interest, being oversubscribed by 38.8 times, with bids reaching 1,827 crore equity shares against an offer size of 47.09 crore, estimated at Rs 58,000 crore at the upper end of its price band.

News from the IPO world🌐

• TATA Technologies IPO sees strong response, issue booked 69.43 times on final day
• IREDA IPO subscribed 38.76x retail portion booked 7.65 times on final day
• SEBI sounds alarm on crowding of IPOs

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