- Sensex and Nifty show strong recovery with notable gains in Adani stocks.
- Positive sectoral movement, particularly in banking, metals, and capital goods.
- Analysts recommend “buy on dips” strategy while cautioning against key resistance levels.
On November 27, 2024, the Indian stock market showed a promising recovery. Both the Sensex and Nifty gained ground, supported by a rally in key sectors like banking, metals, and capital goods. The resurgence of Adani Group stocks, particularly Adani Ports and Adani Power, played a pivotal role in driving sentiment upwards.
Despite the positive movement, analysts remain cautious about the market’s short-term outlook. Resistance levels, particularly around 24,420, are seen as critical hurdles. Experts suggest a “buy on dips” strategy, advising investors to look for opportunities after any minor pullbacks.
Nifty 50 and Sensex Rally: Adani Stocks and Banking Lead Market Recovery
The stock market on November 27, 2024, closed higher, driven by strong performances across multiple sectors. The Sensex rose by 230 points to 80,004, and the Nifty added 80 points to close at 24,194. This growth was particularly supported by gains in Adani stocks, such as Adani Power and Adani Total Gas, which surged 16-17% after positive developments surrounding the group.
Sectoral indices mirrored the strong performance of the broader market, with banking and capital goods stocks leading the way. The BSE Bankex rose by 205 points, while the BSE Capital Goods Index surged by 784 points. This market rally also benefited midcap and smallcap stocks, which saw upward movement, highlighting broader market participation.
Analysts predict more upside potential for the Nifty 50, with the next resistance point at 24,420. While there is optimism, the path ahead is not without challenges. Experts suggest that any pullbacks to lower levels could present buying opportunities, with a medium-term target of 25,262 if momentum holds. Investors should remain cautious about broader economic conditions, which continue to exert pressure.
Brokerage firms, including InCred Equities, have revised their Nifty target upward to 25,327, citing strong earnings expectations and the delay in repo rate cuts by the RBI. The current market correction, which began in September, is expected to persist in the near term as investors adjust to the evolving macroeconomic landscape, which may limit momentum in earnings growth.
The stock market has shown promising signs of recovery, but challenges remain with key resistance levels in play. Cautious optimism prevails as investors navigate the evolving macroeconomic landscape.
“The market correction, expected to persist for several months, is tied to a challenging macroeconomic environment.” – InCred Equities
