 "Markets Today: Nifty expiry, Rajesh Power IPO allotment, Oil down, Gold up")
Stock Market Today, Nov 28: Benchmark indices, Nifty and Sensex, will likely track mixed global cues in Thursday's trading.
At 6:31 AM, GIFT Nifty futures were down 11 points at 24,289, hinting at a flat to slightly negative opening.
The Sensex closed at 80,234.08, gaining 230.02 points or 0.29 per cent, while the Nifty50 ended at 24,274.90, up 80.40 points or 0.33 per cent, on November 27.
Investors across Asia-Pacific will assess US Q3 GDP growth second estimates, which came in-line with market expectations. The US economy grew at an annualised rate of 2.8 per cent in Q3 2024, but lower than the 3 per cent growth recorded in Q2.
Global cues
Asia-Pacific markets opened on a mixed note on Thursday, reflecting a pause in Wall Street's rally overnight despite inflation data aligning with expectations. The US Personal Consumption Expenditures (PCE) price index rose 2.3 per cent on an annualised basis in October, accelerating from 2.1 per cent in September.
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South Korea's central bank, the Bank of Korea, unexpectedly lowered its benchmark interest rate by 25 basis points to 3 per cent on Thursday. The move defied expectations, as economists surveyed by Reuters had predicted the rate would remain steady at 3.25 per cent.
The Kospi index slipped at the beginning but reversed losses, and was up 0.15 per cent, while Nikkei fell 0.30 per cent. In contrast, ASX 200 started the session on a positive note, and was up 0.43 per cent.
On Wall Street, a thin trading session saw major indices retreat as declines in technology stocks weighed on sentiment. Chipmaking giant Nvidia dropped over 1 per cent, while Meta Platforms shed 0.8 per cent. Weak earnings forecasts drove major losses in Dell and HP, which fell more than 12 per cent and 11 per cent, respectively. Therefore, the S&P 500 snapped its seven-day winning streak, declining 0.38 per cent. The Nasdaq fell 0.6 per cent, while the Dow Jones reversed early gains to settle 0.31 per cent lower.
Commodity check
Oil prices edged lower on Wednesday as traders weighed the implications of a ceasefire agreement between Israel and Hezbollah while looking ahead to Sunday’s OPEC+ meeting. Speculation is mounting that the oil-producing group may postpone a planned output increase. Brent crude futures inched up 0.03 per cent, to settle at $72.83 per barrel, while US WTI crude slipped 0.07 per cent, to close at $68.72 per barrel.
Gold prices, meanwhile, rose after rebounding from a one-week low reached in the previous session, supported by a weaker US dollar. Spot gold was up 0.2 per cent, trading at $2,635.99 per ounce, while US gold futures gained 0.7 per cent to reach $2,638.60 per ounce.
Domestic cues
In the primary market, Agarwal Toughened Glass India PO (SME) will open for subscription today, while Rajesh Power Services’ IPO (SME) is set for its allotment. Meanwhile, the IPOs of Abha Power and Steel (SME) and Apex Ecotech (SME) move into the second day of their subscription period. Rajputana Biodiesel’s IPO (SME) also enters its final day of subscription.
On the institutional front, foreign institutional investors (FIIs) bought shares worth Rs 7.78 crore on November 27, while domestic institutional investors (DIIs) purchased shares worth Rs 1,301.97 crore.
Investors will closely monitor the Nifty50 expiry scheduled for today, which is expected to influence market volatility and trading sentiment.
Here's how analysts are assessing today's (November 28) trading session:
Shrikant Chouhan, head of equity research at Kotak Securities
As long as the index is trading above 24,150/79,800 the bullish sentiment is likely to continue. On the higher side the market could move up to 24,400-24,500/80,500-80,900. However, below 24,150/79,800 uptrend would be vulnerable.
Rupak De, senior technical analyst at LKP Securities
On the higher side, it faces resistance at 24,420; a decisive breakout above this level could trigger a significant move toward higher levels. On the lower side, support is positioned at 24,100. The index is likely to remain range-bound until it makes a directional move on either side.