Indian stock markets witnessed profit booking on Friday, 21 November, ending their two-day winning streak as global weakness weighed on sentiment. The benchmark indices closed nearly 0.5% lower, with the Sensex slipping 400.76 points to 85,231.92 and the Nifty 50 declining 124 points to 26,068.15.
Market Performance and Technical Setup
The trading session saw the Nifty 50 pulling back after hitting its 52-week high of 26,246.65 in the previous trade. Broader markets underperformed the benchmarks, with both midcap and smallcap indices declining over 1% each. Banking heavyweights including HDFC Bank, ICICI Bank, SBI, and Bajaj Finance contributed significantly to the downward pressure.
Analysts note that the 26,000 level has emerged as a crucial support zone for the Nifty, with buying on dips remaining the preferred strategy. The Nifty Bank, already at record highs, and Reliance Industries are seen as key drivers for any potential rebound. While metals and financials dragged the index lower, auto stocks showed resilience during the session.
Raja Venkatraman's Stock Recommendations
Raja Venkatraman, co-founder of NeoTrader, has identified three midcap stocks for trading on 24 November. His recommendations combine technical analysis with fundamental insights to provide actionable trading ideas.
TBO Tek: Travel Distribution Platform
With a current market price of ₹1,710, TBO Tek presents a buying opportunity above ₹1,710 with a stop loss at ₹1,650 and target price of ₹1,865. The company operates as a leading global travel distribution platform that connects suppliers and buyers through its technology infrastructure.
Technical analysis indicates that the stock has found strong support around the TS & KS lines following a substantial upward movement supported by volumes. The renewed momentum suggests potential for further upside. Key metrics include a P/E ratio of 402.20, 52-week high of ₹1,844.55, and daily volume of 2.19 million shares.
Investors should note risk factors including supplier and revenue concentration, foreign exchange volatility, and challenges in talent retention. The stock faces resistance at ₹1,950 with support established at ₹1,650.
Godrej Agrovet: Agricultural Business Play
Priced at ₹574.85, Godrej Agro offers an intraday buying opportunity above ₹577 with a stop loss at ₹565 and target of ₹595. The diversified agri-business company, part of the Godrej Group, focuses on enhancing farmer productivity and profitability.
The technical setup reveals strong bullish undercurrents pushing prices higher, with the value area support around ₹550 holding firm. As the negative DI inches lower, bearish sentiment appears to be stepping away, creating conditions for a potential revival. The stock trades at a P/E of 19.06 with a 52-week high of ₹876.30.
Risk considerations include agrochemical sector volatility and valuation concerns. Technical levels show support at ₹555 and resistance at ₹650.
LIC Housing Finance: Housing Finance Specialist
Trading at ₹546.20, LIC Housing Finance suggests a selling opportunity below ₹545 with a stop loss at ₹554 and target price of ₹533. The company, founded in 1989 by Life Insurance Corporation of India, provides housing loans for property purchase, construction, and renovation.
The stock has experienced a sharp decline since October, though every dip into the TS & KS region has attracted buying interest. A strong closing in the previous session indicates potential for upward movement in the coming days. The company maintains a low P/E ratio of 5.46 with a 52-week high of ₹4,494.40.
Key risks include intense competition, asset quality concerns, and regulatory changes. Technical analysis identifies support at ₹520 and resistance at ₹565.
Trading Outlook and Market Perspective
The November expiry began with rollover bullish bias taking a backseat as overseas cues turned soft. Initial rollovers were reported around 75.8%, slightly below the three-month average of 80.6%. The combination of week-end trading and upcoming events prompted profit booking across broader indices.
From a technical perspective, the Nifty is hesitating at the 26,250 level, which analysts view as a cautionary signal heading into an event-driven week. The gap supports highlighted previously continue to provide foundation for the index. Option data suggests the Nifty is at a breakeven stage, with Max Pain moving above 26,000 to 26,050, indicating potential upward movement.
Despite the recent profit booking, the overall bias remains bullish, with analysts recommending buying at current levels and on dips to 25,950 when they emerge. Sector-wise, IT and Auto remained muted while Banking and associated sectors performed well, indicating large-cap dominance in market activity.
Disclaimer: Raja Venkatraman is co-founder of NeoTrader with SEBI registration number INH000016223. Investments in securities are subject to market risks. Readers are advised to consult certified experts before making investment decisions. Registration granted by SEBI and certification from NISM does not guarantee intermediary performance or assure returns to investors.
