Indian benchmark index BSE Sensex closed the session mildly in the negative territory, 33 points at 62,834, while NSE Nifty closed marginally in the green, reclaiming the 18,700 level after a volatile session of trade, as select heavyweights such as Reliance Industries, Infosys and Bharti Airtel dropped sharply. The sectoral indices, meanwhile, were mixed. Nifty Metal and Nifty PSU Banks soared in trade, gaining over 1.2% intraday while Nifty IT and Nifty Auto were the biggest sectoral laggards. “Market continued its profit booking trend from the record high as they exercised prudence ahead of the RBI policy announcement on 7th December. Partially, it was also due to increase in crude prices due to OPEC decision not to cut output target, and ease in China’s covid policy. Market expects a 35 bps rate hike compared to 50 bps in the previous three meets in anticipation of a fall in inflation forecast,” said Vinod Nair, Head of Research, Geojit Financial Services.
Deepak Jasani, Head of Retail Research, HDFC Securities
Mixed global cues resulted in see-saw movement in the Nifty. Smallcap index outperformed the Nifty. Cyclical sectors were in favor while defensives corrected. Global markets were mixed as optimism over easing China Covid restrictions was offset by expected path of US rate policy post the jobs report on Friday. Nifty has formed a hammer like mildly bullish pattern. 18614-18782 could be the band for the Nifty in the near term.
Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One
We have witnessed some tentativeness in the index as the follow-up buying was missing in major heavyweights, and the index made a subdued move throughout the day. Post the hustles, Nifty concluded the day on a flat note with a mere gain of 0.03 percent and settled a tad above 18700 levels. On the technical perspective, the crucial support of the 18600 was firmly safeguarded, implying the resilience of the technical support. However, some tentativeness was evident on the higher grounds, but there has been no significant change in the chart structure as such. The strategy of buy on the decline and sell on rise fits perfectly in the current market scenario. As far as levels are concerned, the 18600-18500 is likely to act as the sacrosanct support zone, and on the higher end, the immediate hurdle could be seen around 18800-18850, followed by the psychological mark of 19000.
Going forward, our market is likely to remain upbeat in the near term, wherein any minor dip could be seen as an opportunity for the bulls to add long bets. We may expect gradual moves in key indices, but individual pockets are performing well. Hence, it’s advisable to keep focusing on such potential movers, which are likely to provide better trading opportunities.