Dear Trader…
Domestic equities started the week on positive note despite feeble global cues on account of sharp rise in covid cases in China. Nifty finally managed to cross its ATH of 18604 though it touched just 10 points higher at 18614; while Sensex and Bank Nifty kept touching new highs. Heavyweight Reliance Industries, IT, banks, oil marketing and gas stocks lifted benchmark of Sensex and Nifty to record high. This was the first time Sensex has scaled the 62,500-mark and Nifty intra-day breached previous record high of 18,604 level.
Nifty despite opening lower, quickly moved into green and gained strength throughout the session; though some profit booking in last half an hour led to Nifty closing at 18563 levels with marginal gains of just 40 points (+0.3%). Broader market again outperformed for the second consecutive day with Nifty Midcap 100/Nifty Smallcap 100 gaining 0.7%/1.2% respectively. Sharp fall in oil prices led to momentum in oil & gas stocks while sharp surge in Baltic dry index led to action in shipping stocks. Apart from this action was seen in tyre, paints, defense and railway names. Overall resilient domestic economy along with Fed’s indication of slower rate hike in December monetary policy meet led to strength in the Indian market.
Nifty futures opened at 18585.00 points against the previous close of 18646.10 and opened at a low of 18566.15 points. Nifty Future closed with an average movement of 176.15 points and a rise of around 43.90 points and 18690.00 points...!!
On the NSE, the midcap 100 index will rise 0.73% and smallcap 100 index is closing rise 1.23%. Speaking of various sectoral indices Metal, FIN Serivce, IT And Media stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, December gold opened at Rs.52421, fell from a high of Rs.52696 points to a low of Rs.52410 with a decline of 7 points, a trend of around Rs.52537 and December Silver opened at Rs.61429, fell from a high of Rs.62000 points to a low of Rs.61180, with a rise of 15 points, a trend of around Rs.61691.
The general sentiment in the market has turned positive after inflation started moderating in the US. While the Fed has maintained their hawkish stance, they will not be hiking the rates as aggressively as they did in the past. Even locally the RBI has indicated that the inflation levels have been easing off which bodes well for us. We have seen the FPIs pumping in close to 32000 crs this month with more to follow.
I continue to be cautiously positive at these levels since we are trading at expensive valuations. With the Russian oil price-cap coming into effect from 5th December, we should anticipate some supply shocks. This can have an impact on the markets. While we don't expect the inflation to go back up again but there will be short term uncertainties to deal with.”
Technically, the important key resistances are placed in Nifty future are at 18737 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 18808 – 18880 levels. Immediate support is placed at 18474 – 18404 levels.
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