Tuesday, 19 November 2024
Indian equity markets are set for a cautious start today, tracking mixed global cues. At 6:35 AM IST, GIFT Nifty futures were up 30 points at 23,544, hinting at a flat to slightly positive opening. Investors are gearing up for significant market developments, including the NTPC Green Energy IPO and the final wave of Q2 earnings reports.
In the previous session, the Sensex fell 0.31%, closing at 77,339.01, while the Nifty 50 slipped 0.34% to settle at 23,453. Markets will remain closed tomorrow, 20 November, due to the Maharashtra Assembly Election.
Domestic cues
All eyes are on the much-anticipated NTPC Green Energy IPO, which opens today for public subscription. Brokerages have expressed optimism about the renewable energy arm of NTPC, citing its robust portfolio and growth potential.
Additionally, investors will closely monitor Q2 earnings from Vardhan Capital Finance and Brahmaputra Infra, which are set to release results later in the day.
Meanwhile, the recently listed Waaree Energies reported a 14.7% year-on-year increase in profit for Q2, reaching ₹361.6 crore, with a marginal 1% revenue growth to ₹3,574.4 crore.
IPO updates
In the broader IPO space:
- Zinka Logistics IPO and Onyx Biotec IPO will finalise their allotments today.
- Positive sentiment surrounds these new listings amid strong retail participation.
Fund flows
On Monday, foreign institutional investors (FIIs) were net sellers, offloading shares worth ₹1,403.40 crore, while domestic institutional investors (DIIs) were net buyers, purchasing equities worth ₹2,330.56 crore.
Commodity market check
Oil and gold prices rallied significantly on Monday:
- Brent crude futures surged 3.18% to close at $73.30 per barrel, reflecting renewed global demand optimism.
- Gold prices rebounded after a six-day decline, with spot gold trading at $2,613.23 per ounce. US gold futures climbed 1.7% to close at $2,614.60 per ounce, supported by a weaker dollar and safe-haven demand.
Global markets
Global markets displayed mixed trends overnight:
- US Equities: The Nasdaq rose 0.6%, bolstered by a sharp rally in Tesla shares. The S&P 500 gained 0.39%, while the Dow Jones Industrial Average dipped 0.13%.
- Asia-Pacific: Key indices like the Nikkei and Topix rose 0.68% and 0.65%, respectively, driven by optimism surrounding an investment summit in Hong Kong, where influential Chinese policymakers are expected to discuss economic strategies.
Technical insights
Shrikant Chouhan, Head of Equity Research at Kotak Securities, highlighted that the Nifty has been trading below its 200-day moving average (DMA) for two sessions. “The index may face resistance at 23,700–23,800, with immediate support seen at 23,200–23,300,” he said.
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For day traders, the 23,350–23,600 range is crucial. A sustained move above 23,600 could push the Nifty towards 23,700–23,800, while a dip below 23,350 might trigger further downside towards 23,200.
Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C Mehta Investment, added that Nifty’s short-term trend remains bearish after breaching the 200-Days EMA. He anticipates consolidation between 23,300–23,600 in the coming sessions.
Key developments to watch
- NTPC Green Energy IPO: Opens today, with strong brokerage sentiment likely to support its subscription.
- Waaree Energies Q2 Numbers: Marginal revenue growth amid robust profitability.
- FII-DII Activity: Continued DII buying may cushion market corrections.
- Oil & Gold: Rebounding commodity prices could influence energy and jewellery-related stocks.
- Global Sentiment: Updates from the Hong Kong investment summit could impact global and domestic market sentiment.
As markets gear up for another trading day, a mix of domestic earnings, IPO activity, and global developments will guide the direction. Stay tuned for further updates as we closely monitor today’s session.
