Dear
Trader…
The benchmark S&P BSE Sensex gained 110.58 points or
0.14% to settle at 80,956, while the broader Nifty Future index closed at
24,561, higher by 14 points or 0.06%.
The country’s central bank is expected to hold rates steady
at its policy meeting on Friday due to elevated inflation. Meanwhile, a
potential cut in the in cash reserve ratio (CRR) could provide margin support
for banks.
The bets of a cut in CRR helped financials rise 1%, with
top-weighted HDFC Bank gaining 1.6%. HDFC Bank was one of the biggest gainers
in Nifty and Sensex.
State-owned lenders also advanced, with the Nifty PSU Bank
index rising 2.2%, led by a 13% rally in UCO Bank.Newly-listed Swiggy shares
gained 3.4% after brokerages remained positive on the online food delivery
platform’s future earnings outlook.
The benchmark S&P BSE Sensex gained 597 points or 0.74%
to settle at 80,845, while the broader Nifty Future index closed at 24,547,
higher by 118 points or 0.49%.
High-weightage financial stocks added 1%, led by a 1.2% gain
in HDFC Bank. Public sector banks climbed 2.6%, with State Bank of India,
Punjab National Bank and Bank of Baroda adding gains between 2% and 3.3%.
Heavyweight Reliance Industries, which has gained 3% in the
last two sessions, added 1.2% on the day.
Global
Markets – Global shares traded mixed on Wednesday as
markets digested political turmoil in South Korea, where martial law was
imposed and then lifted hours later. Meanwhile, investors are hoping for more
cues to gauge the policy path the U.S. Federal Reserve will likely take next
year, with a much-anticipated November employment report due on Friday.
The political crisis in South Korea left the benchmark KOSPI
index down 1.4%, taking its year-to-date losses to over 7%. In turn, MSCI’s
broadest index of Asia-Pacific shares outside Japan, which counts Samsung
Electronics as one of its top constituents, was mostly flat.Most Asian markets
aside from South Korea rose.
Global markets are now awaiting the upcoming speech by the
U.S. Fed Chair Jerome Powell, who will give on Wednesday what are expected to
be his last public remarks ahead of the Fed meeting.
Forex
– The Indian rupee ended Wednesday at record
closing low of 84.74 per U.S. dollar, down 0.06%, pressured by a lingering
deprecation bias and broad-based dollar bids. Meanwhile, the dollar index,
which measures the U.S. currency against six rivals, was up 0.2% at 106.5.
Crude
Oil – Oil prices edged slightly higher
on Wednesday, with traders expecting OPEC+ to announce an extension to supply
cuts this week while heightened geopolitical tensions continue to dominate
market sentiment.
Brent crude futures were up 19 cents, or 0.26%, at $73.81 a
barrel by 0916 GMT.On December 3, Foreign institutional investors (FIIs) were
net buyers, adding equities worth over Rs 3,600 crore. In contrast, domestic
institutional investors (DIIs) were net sellers, offloading Rs 250.99 crore
worth of equities.
Nifty futures opened at 24549 points against the previous
close of 24547 and opened at a low 24440 points. Nifty Future closed with an
average movement of 220 points and rise of around 14 points and closed 24561 points…!!
Meanwhile, despite some volatility stemming from mixed sentiments in
Asian markets due to the situation in South Korea, adding that the broader
indices showed strong performance, with the banking and financial sectors
continuing to excel.
Conversely, auto stocks were impacted by mixed November sales
results. The upcoming speech by the FED Chair could sway market sentiments, as
recent FED minutes have shown confidence in the easing of inflation. Although
the effects of US policies under the new administration remain uncertain, the
minutes suggest a probable continuation of the rate easing cycle.
Technically, the
important key resistances are placed in Nifty future are at 24561 levels, which
could offer for the market on the higher side. stainability above this zone
would signal opens the door for a directional up move with immediate
resistances seen at 24606 – 24707 levels. Immediate support is placed at 24404 –
24240 levels.
Past Performance is not an Indicator of Future Returns. The
securities quoted are for illustration only and are not recommendatory. Investment
in securities market are subject to market risks. Read Disclaimer and related
all the documents carefully before investing, mentioned on www.nikhilbhatt.in
