Eicher Motors, Hero Motocorp lead gains; Nifty braces for volatility on November 18 amid global challenges

The Nifty ended another painful week in the red, marking its sixth consecutive day of losses. On Thursday, the Nifty 50 fell by 26 points to close at 23,533, while the Sensex dropped 111 points to 77,580.

Market Performance

Top Gainers:

Eicher Motors: ₹4,883.70 (+6.43%)

Hero Motocorp: ₹4,604.00 (+1.87%)

HDFC Life: ₹694.00 (+1.31%)

Reliance: ₹1,267.60 (+1.24%)

Kotak Mahindra: ₹1,707.90 (+1.19%)

Sectoral Performance:

All sectoral indices, except Nifty IT, posted negative returns.

PSU Bank and Metals sectors fell by 5% each.

Out of 50 Nifty stocks, 42 declined, with Britannia, Asian Paints, and Apollo Hospitals among the top losers.

Market Sentiment

Nifty's Performance:

Nifty closed on a minor upside recovery from Thursday's low of 23,484.

A slide below 23,500 could drag Nifty to 23,200-23,000 levels this week.

The index has corrected over 10% from its record high of 26,276 in September 2024.

FII and DII Activity:

FIIs have been net sellers, offloading ₹1.4 lakh crore in the cash market to date.

On November 14, FIIs net sold ₹1,850 crore, while DIIs net bought ₹2,482 crore.

Technical Analysis

Nifty:

The index is just below the crucial 200-day EMA at 23,540.

A sustainable move above 23,700-23,800 levels could signal an upside bounce.

Immediate support is at 23,300 levels, with resistance at 23,650.

Bank Nifty:

The index closed positively at 50,180, forming an inverted hammer candle near the 200-Days EMA at 49,900.

Support at 49,900; if held, a pullback to 50,500-50,600 is possible.

Sustaining above 49,750 could see it rise to 50,900-51,200. Below 49,750, it may drop to 49,300-49,000.

Stocks to Watch

Reliance Industries: Announced a JV with Disney for entertainment brands in India, with Nita Ambani as Chairperson.

IGL: Faces a 20% reduction in gas allocation by GAIL, impacting profitability.

Adani Total Gas: GAIL cuts gas supply by 13%, affecting profitability.

Honasa Consumer: Reported a net loss of ₹18.6 crore; revenue at ₹461.8 crore.

Delhivery: Net profit at ₹10.2 crore, revenue up 12.8% to ₹2,189.7 crore.

Cyient: Expanded partnership with Allegro MicroSystems.

Nureca: Signed a distribution agreement with Zepto.

Nifty's underlying trend remains negative, and the market needs more evidence to confirm a potential upside reversal. Traders should adopt a 'sell on rise' approach, as the index remains in an oversold zone near key EMA levels. Bank Nifty's trend is down, but holding above 49,900 could trigger a pullback rally. Monitor key support and resistance levels closely in the upcoming shortened trading week.