By theindianinvestor 
25 November 2024
time : 8:15 am IST
Market Insights :
- Let us first understand what happened on Friday. Nifty gained 557 points, primarily due to short covering. It seems that big players closed their short positions ahead of the election counting day in Maharashtra and Jharkhand.
- The euphoria around the Adani bribery case is diminishing. The markets seem confident that if it does have an impact, it will only affect Adani Green. This sentiment might have also contributed to Nifty’s gain on Friday.
- We recently discussed the importance of the market closing above 23,500. Now, it’s a bonus that the market also closed above the resistance level, indicating strong bullish momentum. However, we should wait and observe today to see if the market closes above 23,800.
- On Friday, FIIs sold shares worth ₹1,278 crores, while DIIs bought shares worth ₹1,722 crores.
- The BJP-led Mahayuti alliance swept over 220 seats in Maharashtra, securing a huge victory. It appears the market anticipated this outcome on Friday, leading to the short-covering rally. Thus, this news might already be factored into the market.
- Today is Day 2 to apply for the IPO of Enviro Infra Engineers Ltd. The price band is ₹140-148, and the GMP is around ₹550, indicating potential returns of 25-30% on listing day.
- Now, coming to today’s insights:
- US markets closed in green on Friday, and as of now, Dow futures are also trading higher.
- Asian markets are in green, with Japan’s index up by about 1.5%.
- The dollar index is stabilizing. While a rising dollar index benefits Indian exports and IT-related stocks, it is not favorable for broader markets.
- Brent crude rose by 5-6% last week, and futures are trading higher, reflecting uncertainty involving the West, Russia, and Iran.
- SGX Nifty indicates a 1% gap-up opening for Indian markets.
- Closing above 23,800 is crucial today. Only then can we confirm the market’s strength.
- Significant open interest has been added to the 24,500 CE and 25,000 CE for the November expiry, indicating resistance levels based on OI data.
- For today, support is expected around 23,800, while resistance lies in the 23,950-24,000 zone. If the pre-market opening crosses 24,000, wait for a one-hour candle to close above this level to confirm strong bullishness.
- Nifty support is at 23,800, and resistance is at 24,000.
- Lastly, today’s FII activity will be interesting to watch.