StockEdge's Morning Market Update - 19th Nov
The Nifty 50 fell by 78 points during the session, closing at 23,453. The day began under bear pressure, with indices breaking last week's low and creating a new one. However, the market showed signs of stability in the second half. Among the sectors, the Metals index emerged as the top performer, followed by FMCG and PSU Banks. Conversely, IT and Pharma sectors registered the most significant declines. The Dollar Index has shown initial signs of weakness and trades near the 106 level after testing 107. If this trend continues, we may see an immediate pullback.
Technically, the index nearly tested the 23,300 level, hovering in the crucial support zone of 23,300–23,500. The weekly trendline, moving averages, and other technical studies converge at this 23,300 zone. Immediate resistance levels are at 23,675 and 23,850. Market breadth studies are heavily oversold, increasing the chances of a rebound. In case of a pullback, these resistances will come into play.
Bank Nifty continues to consolidate on its 200 EMA and has displayed relative strength.
To conclude: The Nifty is at a critical support zone. With initial signs of weakness in the Dollar Index, a pullback looks likely.
Nifty
Bank Nifty