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Nifty snaps two day losing streak on Tuesday

21 Nov 2023 Evaluate

Nifty closed Tuesday’s session in green after ending lower for two day in row. India VIX was up by 0.69%. After making a positive start, market remained in green tracking overnight gains on Wall Street as well as a dip in US Treasury yields. Traders were expecting that the Federal Reserve may be done hiking interest rates. Investors overlooked data showing that retail inflation for agricultural labourers and rural workers rose marginally to 7.08 per cent and 6.92 per cent in October, respectively, from 6.70 per cent and 6.55 per cent respectively in September 2023 due to higher prices of certain food items. 

In afternoon session, index added more points to touch high level, as some support came after the Retirement fund body, Employees' Provident Fund Organisation (EPFO) in its latest ‘Provisional Estimate of Net Payroll’ data report has showed that India created 1720615 new jobs in the month of September 2023 as against revised figure of 1497410 in August 2023. Traders took note of Moody's Investors Service’s statement that the RBI's decision to tighten norms for unsecured personal loans is credit positive because lenders will need to allocate higher capital for such loans, thus improving their loss-absorbing buffers. Finally, Nifty ended above its crucial 19,750 level.

Most of the sectorial indices ended in green except FMCG, IT and PSU Bank. The top gainers from the F&O segment were SBI Life Insurance Company, HDFC Life Insurance Company and Adani Enterprises. On the other hand, the top losers were LTIMindtree, Tech Mahindra and BPCL. In the index option segment, maximum OI continues to be seen in the 19900 - 20100 calls and 18900 - 19100 puts indicating this is the trading range expectation.

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