• Despite geopolitical tensions, the Indian stock market showed strong performance due to heavy buying in PSU bank shares.
• The Nifty Bank, Nifty Midcap 100, and Nifty Smallcap 100 indices all traded in the green, indicating investor confidence.
• Analyst Hardik Matalia advises caution due to continued selling by foreign institutional investors (FIIs).
• The market's resilience amidst geopolitical tensions highlights the need for vigilance in this volatile environment.

The Indian stock market demonstrated a robust performance on Friday, November 22, despite the prevailing geopolitical tensions. The market's resilience was primarily attributed to the heavy buying observed in the shares of Public Sector Undertaking (PSU) banks.

The Nifty PSU Bank index, a barometer of the performance of PSU banks listed on the National Stock Exchange (NSE), was trading with a significant gain of 2.88 per cent.

The benchmark index, Sensex, was trading at 78,010.82 points around 12:17 p.m., marking an impressive gain of 855.03 points or 1.11 per cent. Concurrently, the Nifty index was trading at 23,620.95 points, having gained 271.05 points or 1.16 per cent. The market sentiment remained largely positive, with a majority of the stocks trading in the green.

Out of the total stocks listed on the NSE, 1725 stocks were trading in green, while 677 stocks were trading in red. This indicates a bullish trend in the market, with more stocks witnessing buying interest than selling pressure.

Market Performance Across Sectors

The Nifty Bank index, which represents the most liquid and large capitalized banking stocks listed on the NSE, was trading at 50,887.85 points, marking a gain of 514.95 points or 1.02 per cent. The Nifty Midcap 100 and Nifty Smallcap 100 indices, representing the medium and small capitalized companies, were also trading in the green.

The Nifty Midcap 100 index was trading at 54,706.65 points after gaining 321.30 points, or 0.59 per cent, while the Nifty Smallcap 100 index was at 17,735.50 points after gaining 138.90 points, or 0.79 per cent.

Among the Sensex pack, the stocks of State Bank of India (SBI), Adani Ports, Ultra Tech Cement, Titan, ICICI Bank, and Bajaj Finance emerged as the top gainers. On the other hand, Axis Bank and Sun Pharma were the top losers, indicating a bearish trend for these stocks.

Analyst's View and Market Advice

Hardik Matalia, a derivatives analyst at Choice Broking, expressed his concerns over the continued selling by foreign institutional investors (FIIs). He stated, On the downside, the 23,200 level is expected to act as critical support.

A break below this level could lead the index to lower to the 23,000 - 22,800 range. Conversely, 23,800 serves as a crucial resistance level, and a sustained close above this mark is essential to reverse the ongoing downtrend. The next resistance is seen at 24,000.

In light of the market's volatility, traders are advised to exercise caution, implement strict stop-loss measures, and avoid holding overnight long positions to effectively manage risk. This advice is particularly relevant given the unpredictable nature of the stock market, which can be influenced by a myriad of factors ranging from geopolitical tensions to economic indicators.

On November 21, FIIs sold equities worth Rs 5,320 crore, while domestic institutional investors (DIIs) bought equities worth Rs 4,200 crore. This indicates a net outflow of funds from the Indian stock market by FIIs and a net inflow of funds by DIIs. The contrasting behavior of FIIs and DIIs is a common phenomenon in the stock market and can be attributed to their differing perceptions of market conditions and investment strategies.