Markets opened on a cautious note on Wednesday, November 4, with the Nifty 50 trading at 23,837.25. While technology stocks fell, SBI and ITC led the gainers. Shrikant Chouhan said, “23,500/76,000 and 23,600/76,300 would now act as key support levels.” Many investors watched as the market showed a rotation toward consumption.
Markets opened on a cautious note on Wednesday, November 4, with the Nifty 50 trading at 23,837.25, up 26.40 points or 0.11 per cent from its previous close of 23,810.85, while the Sensex opened at 76,853.11 against its previous close of 76,917.85, and was last seen at 77,071.67, up 153.82 points or 0.20 per cent. The muted start follows a sharp four-session rally that had lifted the Nifty by 370 points in the previous session alone.
SBI, ITC lead gainers; technology stocks drag
Among the top gainers on the Nifty 50, State Bank of India led with its stock trading at ₹980.55, up 1.06 per cent from its previous close of ₹970.25, on volumes of 10.41 lakh shares worth ₹101.56 crore. ITC followed, gaining 1.02 per cent to ₹276.70 from ₹273.90, with 16.83 lakh shares changing hands for ₹46.29 crore. Apollo Hospitals rose 0.82 per cent to ₹8,509 from ₹8,440, while Nestle India gained 0.80 per cent to ₹1,258.40 from ₹1,248.40. Max Healthcare rounded out the top five gainers, adding 0.78 per cent to trade at ₹902.50, up from ₹895.50.
On the losing side, HCL Technologies was the biggest drag, falling 1.45 per cent to ₹1,418.20 from its previous close of ₹1,439.10 on volumes of 41,070 shares worth ₹5.85 crore. Infosys slipped 1.39 per cent to ₹1,132.10 from ₹1,148.10, with 1.82 lakh shares traded for ₹20.74 crore. BSE Ltd declined 1.38 per cent to ₹3,615 from ₹3,665.70, while TCS dropped 1.27 per cent to ₹2,467.30 from ₹2,499.10 on volumes of 67,440 shares worth ₹16.70 crore. NTPC shed 0.95 per cent to ₹318.50 from ₹321.55.
Market rotation favours consumption and healthcare
The pattern underscores a rotation away from technology and into consumption and healthcare. Shrikant Chouhan, Head of Equity Research at Kotak Neo, noted that the previous session saw the Capital Market index rally over 4.5 per cent, while the PSU Bank index declined the most, shedding 1.25 per cent. He said the market had formed a bullish candle on daily charts and that “23,500/76,000 and 23,600/76,300 would now act as key support levels... on the upside, it could rally towards 23,950–24,000/77,500–77,800.”
FII buying supports market sentiment
The buying in banking and FMCG names comes on the back of continued foreign institutional investor activity. FIIs recorded net equity purchases of ₹6,836 crore on November 3, their third consecutive session of buying, having purchased stocks worth ₹18,661 crore over five of the last six trading sessions. DIIs, however, extended their selling streak to three straight sessions, with net outflows of ₹3,678 crore. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said the reversal in FII stance is a “principal factor that has changed the market mood” and that “leading financials have more room to move up.”
Nifty technical indicators point to consolidation
Technically, the Nifty sits above its 50-day EMA near 23,196 with RSI at 66.59. The 200-day EMA at approximately 23,904 remains an intermediate resistance. Deepesh Sarawagi of Choice Broking cautioned that “Bank Nifty’s inability to clear its moving-average hurdles and the possibility of profit booking in Nifty warrant some caution... traders may look for fresh buying confirmation before expecting another sustained upward leg.”
Global cues and US midterm results in focus
Globally, Asian markets opened lower on Wednesday amid pressure on technology stocks, while the S&P 500 and Nasdaq closed higher overnight. Brent crude was last at $104.80 a barrel, the dollar index (DXY) stood at 101.5, and the US 10-year yield was at 4.92 per cent. The rupee was at 94.74 against the dollar. Gift Nifty was down 0.20 per cent, pointing to continued caution at the open.
On the macro front, US job openings rose to 7.5 million in the latest JOLTS report, above expectations of 7.15 million. In contrast, factory orders rose 1.8 per cent, beating the forecast of 1.2 per cent. Markets are also closely tracking US midterm election results. Vijayakumar noted that “if the Democrats win both the House and the Senate, Trump will become a lame duck president... this can create even a constitutional crisis with bad consequences for the US market. Perhaps India might gain from this confusion.”
Analysts favour buy-on-dips amid profit-booking risks
Ponmudi R, CEO of Enrich Money, said that “softer crude oil prices and signs of improving foreign investor participation are providing a more supportive backdrop.” However, he added that markets “may remain selective and vulnerable to bouts of profit-booking” after the recent advance. The near-term consensus across analysts points to consolidation, with a buy-on-dips strategy favoured unless the Nifty breaks decisively below 23,500.