 "Market Today: F&O rules, Adani Group stocks, NTPC Green IPO, Zinka listing")
Stock Market Today, Nov 21: Benchmark indices Nifty and Sensex are expected to follow mixed global cues in Thursday’s session. At 6:35 AM, GIFT Nifty futures were trading 92.7 points higher at 23,627.5, signalling a positive start for the markets.
On November 19, both indices ended a seven-day losing streak to close in the green. The Sensex gained 0.31 per cent to close at 77,578.38, while the Nifty rose 0.28 per cent to finish at 23,518.50.
Domestic cues
Investors will closely watch Adani Group stocks, the implementation of new F&O rules, NTPC Green Energy IPO Day 2, coupled with the Maharashtra Assembly election developments and Nifty50 expiry.
Adani Group stocks are expected to be in focus today after the US SEC indicted Gautam Adani, chairman of the Indian conglomerate, along with seven others over their role in an alleged multibillion dollar bribery and fraud scheme, according to US prosecutors. READ MORE
The Securities and Exchange Board of India (SEBI) has introduced six key measures aimed at reducing excessive speculation in the futures and options (F&O) segment. Initially scheduled for implementation on Wednesday, November 20, 2024, the new rules will now come into effect on Thursday, November 21, 2024, due to a trading holiday.
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Meanwhile, analysts believe the Maharashtra Assembly election results are unlikely to majorly impact the markets. Analysts suggest that broader market developments will hold more influence in the short to medium term. READ MORE
In other updates, the NTPC Green Energy IPO saw a subscription of 33 per cent on its first day, driven primarily by retail investors, who subscribed 1.33 times the shares on offer.
IPO corner
Zinka Logistics IPO (Mainline), Mangal Compusolution Limited IPO (SME) and Onyx Biotec IPO (SME) will list on the bourses. Additionally, Lamosaic India Limited IPO (SME) will open for subscription today.
FII, DII
FIIs sold shares of Rs 3,411.73 crore on Nov 19, while DIIs bought shares of Rs 2,783.89 crore.
Commodity check
Oil prices fell on Wednesday after US crude and gasoline inventories rose more than expected last week. However, losses were limited as concerns over the intensifying Russia-Ukraine conflict continued to weigh on market sentiment. Brent crude for January delivery settled 0.68 per cent lower at $72.81 per barrel. US WTI crude for December delivery expired at $68.87, down 0.75 per cent.
Gold prices extended their gains for a third consecutive session on Wednesday, hitting a one-week high as investors turned to the safe-haven asset amid mounting geopolitical tensions. Spot gold rose 0.6 per cent to $2,647.43 per ounce. US gold futures climbed 0.8 per cent to settle at $2,651.70.
Global markets
Asia-Pacific markets largely declined on Thursday as investors closely monitored regional tech shares after Nvidia's better-than-expected earnings report. Nvidia posted a 94 per cent year-on-year revenue increase in the third quarter at $35.08 billion. However, this marked a consecutive slowdown in growth compared to the prior three quarters, where revenue surged by 122 per cent, 262 per cent, and 265 per cent, respectively.
Nikkei slipped 0.52 per cent in early trading, while the broader Topix index fell 0.2 per cent. The Kospi was down 0.20 per cent. Meanwhile, ASX 200 bucked the trend, edging up 0.18 per cent.
Overnight in the US, the S&P 500 closed flat on Wednesday. The Nasdaq dipped 0.11 per cent, while the S&P index closed flat. The Dow Jones rose 0.32 per cent.
Here's how analysts are assessing today's (November 21) trading session:
Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas
The 40-hour average (23,733) acted as a strong resistance and until the index manages to sustain above it, we shall maintain a negative stance. The hourly momentum indicator has completed a pullback cycle to equilibrium line suggesting that the pullback is over and is likely to resume the next leg of the decline. On the downside we are expecting 23180, which coincides with the 61.82 per cent Fibonacci retracement level.
Rupak De, senior technical analyst, LKP Securities
The Nifty managed to hold above its recent low, indicating a potential bullish reversal as long as it does not breach the 23,350 level. Conversely, if the index sustains above the 23,500 level, it could move toward the 23,700–23,800 zone.