Stock Market Highlights: Nifty forms bullish engulfing pattern on weekly chart.


Headline equity index Nifty on Friday formed a small negative candle with a minor lower shadow on the daily charts and a bullish engulfing pattern on the weekly chart. Now, the index has to hold above 18,500 zone for an up move towards 18,600-18881, whereas supports are placed at 18,442 -18,250 zones, said Chandan Taparia of Motilal Oswal.

As reflected by the fear gauge index India VIX, volatility has been cooling off for the last nine weeks and supporting the bulls to hold at higher zones. The momentum indicator has reached the falling trendline on the daily timeframe.

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Merger with HDFC to take 8-10 months more: HDFC Bank

HDFC Bank expects to amalgamate its home loan major parent HDFC into itself by September next year, a top official said on Friday. Both HDFC and HDFC Bank held general meetings on Friday to seek shareholder approvals for what is billed as the largest merger in Indian corporate history at over USD 40 billion.At the time of announcing the merger on April 4 this year, the entities had said the merger will take 12-18 months.

Merger with HDFC to take 8-10 months more: HDFC Bank

Indian Energy Exchange board approves Rs 98 crore share buyback plan

The Indian Energy Exchange (IEX) on Friday said its board has approved a proposal to buyback shares worth Rs 98 crore. A decision in this regard was taken at its board meeting held on Friday, according to a regulatory filing.”The board has approved the buyback of fully paid up equity shares having a face value of Re 1 each of the company at a price not exceeding Rs 200 per equity share and not exceeding Rs 98 crore payable in cash via open market route,” IEX said.

SEBI introduces framework to address technical glitches

“Bulls dominated Dalal Street, with the indices parked near record highs, supported by favourable triggers like FII buying, a drop in crude prices, a falling dollar index, and declining bond yields. The FOMC meeting minutes hinted that the rate hike cycle may be slowing down. Crude oil prices dropped over talks of a possible price cap on Russian oil and a rise in US product stockpiles. However, the tight COVID lockdown in China has negatively impacted the global growth forecast. Going ahead, the lack of strong fundamental triggers will limit the upside, keeping the market volatile in the short term. The Fed Chair’s speech, which is scheduled for next week, and the release of other significant macroeconomic data will influence the market’s future trajectory.”

– Vinod Nair, Head of Research at Geojit Financial services

Forex kitty grows for 2nd consecutive week; rises $2.54 bn to $547.25 bn

In the second consecutive week of an increase in the kitty, India’s forex reserves have grown by USD 2.537 billion to USD 547.252 billion for the week ended November 18, the RBI said on Friday. In the previous reporting week, the overall kitty had swelled by USD 14.721 billion in the highest weekly rise since August 2021 to USD 544.715 billion.It can be noted that in October 2021, the country’s forex kitty had reached an all-time high of USD 645 billion. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused by global developments.

The Bank Nifty index after a spectacular rally witnessed some profit booking on the last day of the week. The index undertone remains bullish and one should keep a buy-on-dip approach with 42,800-42,500 as a strong support zone. The upside resistance is seen at 43,500 and once breached will see a sharp short covering towards 44,000-44,300 levels.

– Kunal Shah, Senior Technical Analyst at LKP Securities

The index has posted a muted close after a sideward trading session. On the daily chart, the Nifty has reached the rising trend line found by joining the preceding peaks. The momentum indicator has reached the falling trendline on the daily timeframe. Based on the price chart and momentum indicator setup we can infer that the index is on the verge of strong directional movement over the short term. On the lower end, a fall below 18,450 may trigger a correction towards 18,100-18,000; whereas, on the higher end, a rise above 18,605 may induce a decent rally in the market.

– Rupak De, Senior Technical Analyst at LKP Securities

After clocking record highs in the previous session, domestic indices traded with volatility amidst mixed global cues and rising crude prices. While FIIs turning net buyers is a positive, the lack of fundamental triggers will limit the upside, keeping the market volatile in the short term. Rising COVID restrictions in China continue to negatively impact the global growth forecast.

– Vinod Nair,…



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