Indian markets open flat amid mixed global cues

• Indian benchmark indices Nifty50 and Sensex opened on a flat note on Wednesday, amid mixed global cues.
• The Russia-Ukraine war is in focus with the G20 summit underway in Bali, Indonesia.
• Metal stocks were under pressure, accounting for three out of five top losers in the first hour of trade.

A day after Sensex hit its all time high, the index, along with Nifty50 opened on a flat note on Wednesday. The global markets provided mixed cues especially after US President Joe Biden’s comments on a blast in Poland that saw markets fluctuate.

In the previous ten sessions, Nifty50 has gained 1.5% while Sensex rose 1.4%.

As of 10 am, Nifty50 fell 24 points to 18,380, while Sensex shed 58 points to 61,815. Notably, Nifty50’s close on Tuesday was its third-highest, while Sensex recorded a new all-time high, aided by banking, financial services and insurance (BFSI) and auto stocks.

Both the benchmark indices recovered from the initial declines in the first hour of trade.

“More than a correction, we can consider this price action merely as a continuation of Monday’s consolidation phase,” said Sameet Chavan, chief analyst, technical and derivatives, Angel One.

The Russia-Ukraine war is in focus with the G20 summit underway in Bali, Indonesia.

“Indian markets are likely to open on a negative note today tracking mixed global cues after the Sensex closed at a record high yesterday. Despite encouraging inflation data, investors will remain cautious due to the Russia-Ukraine war situation,” said a report by ICICI Direct Research.

Asian markets had mixed reactions, with Japan’s Nikkei 225 gaining 0.08%, while Hong Kong’s Hang Seng index declined 1.14%. South Korea’s KOSPI shed 0.41%, and China’s Shanghai Composite declined 0.22%.

Metal stocks were under pressure, accounting for three out of five top losers in the first hour of trade.


Source: NSE, as at 10 a.m., November 16, 2022

Reliance Industries, ICICI Bank, Bajaj Finance, Adani Ports and HDFC were amongst the most active stocks in the first hour of trade.

Brent crude fell 0.59% to $93.34 per barrel after a spurt of Covid-19 cases in China, washing away hopes of the country reopening its economy.

Analysts suggest more upside potential on the cards

In spite of the rapid stock market movements, analysts say that there are multiple positive indicators that could result in a year-end rally.

“While the undertone of the market remains cautious to intra-day volatility, cooling US inflation, sluggish crude oil price, expectations of the slow pace of rate hikes by the US Fed, and hopes of easing coronavirus restrictions by China could further boost investors' confidence,” said Prashanth Tapse, research analyst, senior VP (research), Mehta Equities. He added that Nifty50 could touch the 19,000 mark this year in the final stretch of the year-end rally.

The markets have been volatile for the last two months with spurts and falls, due to mixed signals from global markets, and macroeconomic data.

“The bounces after small falls indicate that the high of Nifty in the recent up move is yet to be made. Nifty could now face resistance in the 18,458-18,543 band while the 18,259-18,282 band could offer support in the near term,” said Deepak Jasani, head of retail research, HDFC Securities.

Morning Market Technical Update:$NIFTY50.NSE had closed with positive sentiments yesterday as it recovered almost 80 points in last 30 mins and managed to have a positive candle. Though still we haven’t moved significantly on daily charts to give fresh breakouts but channel is still intact and trailing stop loss for our cf longs are getting higher and higher which is safe. For today, we have trailing SL at 18204 while target still remains at 18550. And remember at 18204 we just close our longs but wont go short because 18000-18200 is now No man’s land.

— (@Kushghodasara) November 16, 2022

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