Today's Market Setup: Things to know before market opens

On November 20, the market concluded another consolidative session on a negative note, maintaining a range between 19,600 and 19,875. The BSE Sensex dropped 140 points to 65,655, and the Nifty50 declined 38 points to 19,694. Analysts suggest that unless the Nifty holds support at 19,600-19,550, the ongoing consolidation may break out on the higher side, encountering resistance at the 19,850-19,900 mark.

Jatin Gedia, a technical research analyst at Sharekhan by BNP Paribas, noted that the Nifty is approaching a crucial support zone of 19,650–19,600, where the 40-hour moving average and the lower end of the rising channel are situated. Gedia anticipates the Nifty to maintain this support, with the hourly momentum indicator signaling a potential upturn.

Kunal Shah, senior technical & derivative analyst at LKP Securities, sees a bullish broader picture despite the consolidation, with major support identified in the 19,550-19,500 zone.

The Nifty Bank witnessed consolidation on November 20, ending with a marginal gain at 43,585. The index formed a Doji candlestick pattern, indicating indecisiveness among buyers and sellers. Shah highlights formidable resistance at 44,000 and lower-end support at 43,300, emphasizing a delicate balance in market sentiment.

Key data points indicate a mix of long build-up, short build-up, long unwinding, and short-covering in various stocks. Notably, 70 stocks, including Balkrishna Industries, Bajaj Finance, Aditya Birla Fashion & Retail, Bandhan Bank, and L&T Finance Holdings, show a short build-up, signaling an increase in open interest along with a fall in prices. Conversely, 34 stocks are on the short-covering list.

The Nifty Put Call ratio (PCR) dropped to 0.91 on November 20, suggesting an increase in bullish sentiment as traders buy more Call options than Puts.

In terms of stocks in the news, ABB India and Titagarh Rail Systems formed a strategic partnership, Karnataka Bank tied up with HDFC Life Insurance for life insurance products, and RateGain Travel Technologies closed its qualified institutions' placement (QIP) issue.

It's worth noting that the market also saw high delivery percentages in stocks like Bajaj Auto, Power Grid Corporation of India, Max Financial Services, Navin Fluorine International, and Infosys. Additionally, 38 stocks exhibited a long build-up, while 43 stocks saw long unwinding.