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Daily market commentary 24 November 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Indian equities had a stupendous day on the monthly F&O expiry with key benchmark indices touching record levels. While the Sensex hit its all-time high, Nifty was just 74 points away from its life highs. Nifty hit a fresh 52W high and made a record high on closing basis. Bank Nifty continued to make new highs and closed above 43k for the first time.

Nifty opened positive and gained momentum throughout the session. It witnessed strong rally in the last 30 minutes of the trade to close with gains of 217 points (1.2%) near day’s high at 18514. All sectors ended in green. Value buying was seen in IT stocks on back of attractive valuation and rally in global IT index – Nasdaq. Action was also seen in Financial Service stocks. Few PSU bank hit new 52W high as momentum in these stocks continued.

Global markets rallied as investors welcomed US Federal minutes that suggested that they might tone down its pace of interest rate hike in its next policy meeting. Further, US CBOE Volatility Index fell to 3-month low along with sharp decline in US Dollar Index (below 106) and US Treasury yield (2-year and 10-year).

Going forward we expect the positive momentum in Indian markets to continue buoyed by positive global cues, fall in crude oil prices to 10-month low and 9th consecutive weekly decline in India VIX to 52-week low. Once Nifty is able to cross its previous high of 18,604, we expect the index to gradually inch up towards 19k levels over the next few weeks.

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