Trade Setup: Top 12 things to know before market opens on November 11, 2022

Indian equity benchmarks ended lower on Thursday for the third session in a row. The falling Indian rupee also pressurized domestic equity markets. Traders were cautious of the proposed cap on oil prices, under discussion globally, which moved oil and gas companies to stock up their volumes. This is exerting pressure on India’s balance of payments.

Normally, a high wave candle formations after a reasonable weakness call for an upside bounce from the lows post confirmation, Nagaraj Shetti, Technical Research Analyst at HDFC Securities said. 

A sustainable move above 18,100 levels could confirm a higher bottom reversal and that could open another round of upside bounce, and immediate support is placed at 17,950 levels, the market expert said. 

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Indian Indices

The Sensex declined 419.85 or 0.69% to 60,613.70 while the Nifty fell 128.80 or 0.71% to 18,028.20 at the end of the trading session on Thursday. The Sensex moved in a high-low band of 60,848.73 and 60,425.47. There were 6 stocks advancing against 24 stocks declining on the index. The Nifty traded in a range of 18,103.10 and 17,969.40. There were 11 stocks advancing against 39 stocks declining on the index.

Broader Indices

The broader indices ended red with the BSE MidCap index down by 1.02% while the SmallCap index was down by 1.05%. The top losing sectoral indices on the BSE were Auto down by 2.06%, Consumer Durables 1.36%, Commodities 1.35%, Consumer Discretionary 1.35%, and Metal 0.94%. While there were no gaining sectoral indices on BSE.

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India VIX Index

Nifty or India VIX, a gauge of the market’s expected volatility over the near term, tumbled 2.18% to 15.57 on Thursday.

SGX Nifty

The trends on SGX Nifty indicate a positive opening for the index in India with 332 points gain. The Nifty futures were trading at 18,429.50 on the Singaporean Exchange at around 08:18 hours IST.

Support and Resistance level

The key support level for the Nifty is placed at 17,982, followed by 17,951 & 17,900. If the index moves up, the key resistance levels to watch out for are 18,085 followed by 18,116 and 18,167, according to pivot charts.

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US Markets 

The S&P 500 rose 207.80 points, or 5.54%, to 3,956.37 on Thursday.

The Dow Jones Industrial Average rose 1,201.43 points, or 3.70%, to 33,715.43.

The Nasdaq rose 760.97 points, or 7.35%, to 11,114.15.

The Russell 2000 index of smaller companies fell 107.53 points, or 6.11%, to 1,867.93.

Asian Markets

Asian markets ended lower on Thursday with the KOSPI Composite down by 0.91%, the Nikkei 225 down by 0.98%, Shanghai Composite down by 0.39%, and the Hang Seng down by 1.70%.

European Markets

European markets ended higher on Thursday. UK’s FTSE 100 rose 1.08%, France’s CAC rose 1.96% and Germany’s DAX advanced 3.51%.

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Major Headlines

US inflation falls to 7.7% in October, lower than expectations

Inflation in the United States eased to 7.7% in October on a yearly basis from 8.2% in the previous month, easing some pressure on households and the economy. The consumer price index (CPI) is at its lowest since January and below market forecasts of 8%.  In August the annual price rise was at 8.3%.

The broad-based measure of goods and services costs, rose just 0.4% for the month. Excluding volatile food and energy prices, so-called core CPI rose 0.3% for the month and 6.3% on a yearly basis, also less than expected, the US Bureau of Labor Statistics reported today. It posted monthly increases of 0.6% in both August and September.

A 2.4% decline in used vehicle prices helped curb the inflation numbers. Clothing prices fell 0.7% and medical care services were down by 0.6%.

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Bulk Deal data

Lighthouse India Fund III Limited sold 96,89,240 shares in FSN E-Commerce Ventures at Rs 171.75 per share on the NSE.

Mala Gopal Gaonkar sold 40,00,000 shares in FSN E-Commerce Ventures at Rs 172.04 per share on the NSE.

Segantii India Mauritius bought 37,92,489 shares in FSN E-Commerce Ventures at Rs 171.75 per share on the NSE.

Mathew Elizabeth bought 21,50,000 shares in Hindustan Media Vent Ltd at Rs 51.06 per share on the NSE.

Steinberg India Emerging Opportunities Fund Limited sold 21,22,780 shares in Hindustan Media Vent Ltd at Rs 51 per share on the NSE.

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DII and FII data

Foreign institutional investors (FIIs) have bought shares worth a net of Rs 36.06 crore, whereas domestic institutional investors (DIIs) sold shares worth a net of Rs 967.13 crore on November 10, as per data available on the NSE.

NSE F&O Ban

Punjab National Bank securities have been placed under the F&O ban for November 11. Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.