Markets on 22 Nov - Nifty Bounces Back

Nifty bounced back strongly to regain level of 6000. After a slightly positive opening, market traded nervously around 5930 for 2-3 hours before gaining strength and momentum as the day progressed. The second half was particularly convincing for bulls as Nifty moved past 5960 and then 6000. Recovery was led by IT, Autos and Banking stocks and later it spread to almost all sectors. Fertilizer stocks however were under pressure and were amongst the biggest losers. S Kumar’s was the biggest gainer amongst the derivative stocks as it zoomed up by more than 12%. Other major gainers were Uco bank, Triveni, Havells, Ruchi Soya, Indusind bank, Srei Infra, KFA, IDFC, Dena Bank, Escorts, Wipro, JP and Kotak bank. 
 

Nifty came close to 5900 during the day but managed to sustain above that and staged a smart recovery to close more than 2% higher at 6010. 5930-5950 again becomes a crucial and significant support in the short term. Market has been making these one day kind of moves and it would be difficult to call a bottom for now but probability is on higher side that we may have hit a credible bottom on Friday. 6040-50 is the next level to watch out for as it did provide resistance last time around. So, broadly we are looking at 5930 as a support on the downside while watching out for 6050 to provide some resistance. Sustained move past 6050 would further confirm the analyses that uptrend has indeed resumed. Tata Steel looks bullish above 625 and might challenge the resistance at 650-55 again. In number of stocks 3-day bullish set-ups are in place now and would be confirmed over next couple of days. The list includes Havells, KFA, Indisind Bank, Escorts, REC( above 366), Jain Irrigation( above 220), Exide( above 170) and Can Bank.

 Nifty has support around 5960-70 and then around 5925-30 while fresh momentum is likely above 6050.