Stock Market Update – 27 November 2024
After breaking a two-day winning streak on Tuesday, Indian benchmark indices Nifty50 and Sensex are anticipated to open cautiously on Wednesday, reflecting mixed global cues. At 6:40 AM, GIFT Nifty futures were trading 11 points higher at 24,228, suggesting a flat to slightly positive opening for Indian markets.
The BSE Sensex fell by 0.13% to close at 80,004.06, while the Nifty50 declined 0.11% to 24,194.50 on Tuesday, signalling consolidation after recent gains.
Key Focus Areas for the Day
1. NTPC Green IPO Listing
The much-anticipated NTPC Green IPO lists today. Priced in the range of ₹102-108 per share, the IPO was subscribed 2.42 times during its open window from 19-22 November. Analysts predict modest listing gains, citing NTPC Green’s robust and geographically diversified renewable energy portfolio as a key appeal for investors.
2. Global Economic Indicators
Investors will also monitor the second estimate of US Q3 GDP growth rate, the Core PCE Price Index for October, and weekly initial jobless claims.
3. FOMC Minutes
The Federal Reserve’s latest meeting minutes, released on Tuesday, showed optimism among policymakers about easing inflation and a resilient labour market. Although inflation remains above the Fed’s 2% target, officials suggested room for future interest rate cuts, albeit at a measured pace. No specific timeline for the cuts was provided, adding an air of caution for global investors.
Domestic IPO Corner
Apart from NTPC Green’s debut, the allotment for the Enviro Infra Engineers IPO will be finalised today. This IPO witnessed overwhelming interest, being oversubscribed 89.90 times, with the QIB category oversubscribed by 157.05 times.
Other IPO updates include:
- Allotments for Lamosaic India IPO (SME) and C2C Advanced Systems IPO (SME) will be announced.
- Abha Power and Steel IPO (SME) and Apex Ecotech IPO (SME) open for subscription.
- Rajesh Power Services IPO (SME) enters its third subscription day, while Rajputana Biodiesel IPO (SME) is in its second.
Institutional Activity
On Tuesday, Foreign Institutional Investors (FIIs) bought shares worth ₹1,157.70 crore, while Domestic Institutional Investors (DIIs) sold shares worth ₹1,910.86 crore, contributing to subdued market performance.
Stocks to Watch
- Infosys and TCS: Nifty IT index hit an all-time high on Tuesday, buoying sentiment for IT heavyweights.
- Angel One and Adani Enterprises: Adani group stocks remain in focus amid sector-specific developments.
Global and Commodity Trends
Global Cues
Asia-Pacific markets opened on a mixed note:
- ASX 200 rose 0.4%, tracking Wall Street gains.
- Nikkei dropped 0.5%, while Kospi edged down 0.1% in early trade.
In the US, Wall Street extended its rally:
- Dow Jones rose 0.28% to a record 44,860.31.
- S&P 500 climbed 0.57% to a new high of 6,021.63.
- Nasdaq advanced 0.63%.
More Read
Commodities
Oil prices dipped as geopolitical tensions eased following Israel’s ceasefire deal with Lebanon.
- Brent crude fell 0.3% to settle at $72.79 per barrel.
Gold prices declined to a one-week low due to reduced safe-haven demand.
- Spot gold was down 0.17% at $2,628.77 per ounce, though geopolitical concerns about Ukraine and US trade policies capped losses.
Technical Outlook
Nifty Technicals
According to Hrishikesh Yedve, AVP of technical research at Asit C Mehta Investment, the Nifty formed a bearish belt hold pattern, indicating potential weakness.
- Resistance: 24,350 (short-term).
- Support: 24,070 (21-day exponential moving average).
LKP Securities View
Rupak De, senior technical analyst at LKP Securities, suggests adopting a ‘buy-on-dips’ strategy. Key levels:
- Support: 23,950–24,000.
- Resistance: 24,500.
A decisive breakout above 24,500 could lead to a sharp rally.
Today’s market sentiment is likely to remain cautious, shaped by a mix of global and domestic cues. The listing of NTPC Green IPO, coupled with the analysis of FOMC minutes and US macroeconomic data, will set the tone for the day. Investors are advised to focus on key support and resistance levels while navigating a volatile market environment.
