Key developments that will drive the markets this week

Let us look at the key developments this week.

Nov 22, 2021 07:11 IST India Infoline News Service

In the last week, the bears took control to dominate and dragged the index lower as weak global cues impacted sentiment. Also, a subdued listing of Paytm added to the pressure as the session progressed. The scheduled weekly expiry further added to the volatility. Finally, the Nifty index ended lower by 0.7% to close at 17,764.

In the coming week, the stock-specific movements will be more prevalent than movements in the market as a whole. As global macros will continue to dominate, investors should observe FII activity to weigh the sentiment and adopt a selective approach rather than venturing in any aggressive trades.

Let us look at the key developments this week.

IPO in focus

Go Fashion IPO subscription will close on November 22. The IPO received bids for 5,55,12,051 shares as against 80,79,491 shares on offer. The issue was subscribed 6.87 times. The retail individual investors category was subscribed 24.64 times. The qualified institutional buyer’s category was subscribed 3.24 times. The non-institutional investors category was subscribed 2.30 times. The issue opened for bidding on Wednesday (November 17, 2021) and it will close on Monday (November 22, 2021). The price band of the IPO is fixed at Rs655-690 per share.

Latent View Analytics will make a stock market debut on the bourses on Tuesday, while, Tarsons Products will take debut place on Friday.

FII & DII updates

FIIs have net sold Rs4,410.9cr worth of shares, while DIIs net purchased Rs3,926.53cr of shares in the week ended November 18. In the current month so far, FIIs have net offloaded nearly Rs10,000cr worth of shares and DIIs almost bought the same amount of shares.

Coronavirus cases in India

India on Sunday has logged 10,488 new Covid cases, which is 186 more than Saturday's figure. The country also reported 313 Covid deaths, which is slightly higher than Saturday's 276 deaths. The active caseload stands at 1,22,714, the lowest in 532 days. Active cases account for less than 1% of total cases, currently at 0.36%, the lowest since March 2020. 116.50 crore vaccine doses have been administered so far under the nationwide vaccination drive.

Technical view

Markets witnessed a big sell-off during the closing part of the week, to close in the red as across the board profit booking weighed in. The index Option gamma writers ran for a cover as the indices witnessed a sharp delta move. On the weekly chart, the Nifty is on a verge of giving a bearish head & shoulder breakdown, which can open up fresh downside for the index.

Gold & Silver Outlook

MCX Gold remained volatile within a narrow range during the week. On the higher end, the price has found resistance around the previous weekly high and closed a bit lower. On the lower end, immediate support is visible at 48000 levels, below which price may correct towards 47400. On the higher end, resistance is visible at 49500/50000.

MCX Silver price remained weak during the week. However, it found support at 20 days exponential moving average. The price remained above the 50EMA as well as 20EMA on the daily chart. Support is seen at 64000/62500 whereas resistance is visible at 67000/68500.

U.S. stocks end the week with mixed note amid COVID-19 jitters

Wall Street stocks struggled on Friday as concerns over a resurgence of Covid-19 weighed on global markets, though tech shares pushed higher.

The Dow Jones Industrial Average fell 268.97 points, or 0.75%, to 35,601.98. The S&P 500 ticked 0.14% lower to 4,697.96, while the Nasdaq Composite advanced 0.40% to 16,057.44.

Further, shares of large technology companies helped deliver a fillip to a stock market otherwise stricken by renewed angst over Covid-19.

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