Stock market recap: Indian equities ended their two-day winning run and closed 0.5% lower on Friday, 21 November, pressured by losses in key index finance heavyweights such as HDFC Bank, ICICI Bank, SBI, and Bajaj Finance amid weak global cues.
The Nifty 50 pulled back in during the session after hitting its 52-week high of 26,246.65 in the previous trade on 20 November. The Sensex slipped 400.76 points, or 0.47%, to close at 85,231.92, while the Nifty 50 ended 124 points, or 0.47%, lower at 26,068.15.
Broader markets were also under pressure, with mid- and small-cap indices underperforming the benchmarks. The NSE Midcap index and Smallcap index declined over 1% each.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
TBO Tek (market price ₹1710) – Buy above ₹1710, stop loss ₹1650, target price ₹1865 (Multiday)
- Why it’s recommended: TBO Tek Ltd is a leading global travel distribution platform that simplifies the business of travel for suppliers and buyers (such as travel agents) through its two-sided technology platform. On the daily charts we note that the prices have taken strong support around the TS & KS lines for a while after a strong upward drive fuelled by volumes. Now, with a surge of renewed momentum consider going long.
- Key metrics:
- P/E: 402.20,
- 52-week high: ₹1844.55,
- Volume: 2.19M.
- Technical analysis: Support at ₹1650, resistance at ₹1950.
- Risk factors: Supplier and revenue concentration, foreign exchange (forex) risk and inability to attract/retain talent.
- Buy : above ₹1710.
- Target price: ₹1865 in 2 months.
- Stop loss: ₹1650.
Godrej Agro (market price ₹574.85) – Buy above ₹577, stop loss ₹565, target price ₹595 (Intraday)
- Why it’s recommended: Godrej Agrovet Ltd is a diversified agri-business company and a subsidiary of the Godrej Group, focused on improving the productivity and profitability of Indian farmers. Strong bullish undercurrent in this counter continues to push the prices higher. With the recent value area support around 550 being held possibility of a revival can be seen here with intraday momentum working towards a revival. As the negative DI inches lower, we can look for some revival as bearish sentiment steps away in the next few days.
- Key metrics:
- P/E: 19.06,
- 52-week high: ₹876.30
- Volume: 376.13K.
- Technical analysis: Support at ₹555, resistance at ₹650.
- Risk factors: Agrochemical sectot volatility, valuation concerns.
- Buy : above ₹577.
- Target price: ₹595.
Stop loss: ₹565.
LIC Housing Finance (market price ₹546.20) – Sell below ₹545, stop ₹554 target ₹533 (Intraday)
- Why it’s recommended: LIC Housing Finance Ltd is a leading Indian housing finance company that provides loans for purchasing, constructing, and renovating residential properties, founded in 1989 by the Life Insurance Corporation of India. The stock has been on a sharp decline since October and every dip into the TS & KS region has found some steady buying interest. With all engineering stocks showing some strong upward traction after spending time between TS & KS , we could now see some upward drive in the next few days. A strong closing seen yesterday can lead to a run in today’s session. Go long.
- Key metrics:
- P/E: 5.46,
- 52-week high: ₹4494.40,
- volume: 941.18K.
- Technical analysis: Support at ₹520, resistance at ₹565.
- Risk factors: Intense competition, asset quality concerns and regulatory changes.
- Sell : below ₹545.
- Target price: ₹533.
- Stop loss: ₹554.
Stock market performance on 21 November
On 21 November, the Nifty opened lower at 26,131.20 staying about 61 points away from its recent highs, as global weakness weighed on sentiment. The 26,000 level has emerged as a crucial support zone. Analysts continue to advise buying dips, pointing to Nifty Bank—already at record highs—and Reliance Industries as key drivers for any rebound.
Indian IT stocks remained in focus, tracking the sharp sell-off in global tech, though long-term themes such as TCS’s new data centre investments provided some support. Metals and financials dragged the index, while auto stocks showed resilience. Broader markets, which were the first to reverse in Thursday’s session, remain important to watch for early trend signals. With Wall Street’s overnight slump spilling into Asian markets, traders are cautious, but the overall tone suggests that holding above 26,000 could set the stage for another push toward new highs.
Trading outlook
Rollover bullish bias took a back seat as we began the November expiry as the overseas cues turned soft at the market open draining the bullish enthusiasm seen last month. Initial rollovers at the start of November were reported around 75.8%, which was slightly below the three-month average (around 80.6%). The last trading day of the week coupled with an event due next week caused the broader indices to enter into a profit booking scenario.
As the ranging action continues to hold the market sentiment the stock specific moves dominated the trading activity. Banks faced some profit booking as we had anticipated yesterday and the decline got restored by end of the day as there is still no clue about the future course of action. Nifty and Nifty IT too are trading at resistance zones thus calling for a range bound action initially till a new high is flashed.
IT and Auto were muted while the Banking sector along with its associated sectors performed quite well indicating that the large caps were in action. With a pro-infrastructure budget proposed this year Energy sector is also seen showing some steady uptick.
Moving to the technical setup we note that the Nifty is hesitating at 26250 which was a level mentioned in the last weeks letter and this should be considered as a sign of caution as we move into an event driven week. The gap supports highlighted last week continues to keep Nifty in the hunt. For traders the Nifty is still struggling to go beyond the 26250 mark while Bank Nifty is holding beyond 58500. The bias remains bullish and we should continue to buy at current levels and on dips to 25950 when it emerges.
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Further, cues from the option data is now standing at an interesting point, hinting that Nifty is now at the breakeven stage and one should also factor in a dip buy zone to buy into. The Max Pain has also now moved above 26000 levels to 26050 indicating a possible upward march. One should continue to retain the bullish bias despite some profit booking seen.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
