Share Market Highlights: Nifty settles above 20950, Sensex over 69800; Bank Nifty gains more than 400 points

Bank Nifty Index gained over 200 points, trade above 47,000 mark as RBI keeps repo rate unchanged at 6.5%

JSE Steel, HCL Tech, NTPC, UPL and Larsen & Toubro are leading the gains on the NSE Nifty 50.

RBI Governor Shaktikanta Das announced that MPC has decided to keep the repo rate unchanged at 6.50%. 

The benchmark domestic indices, NSE Nifty 50, advanced 0.49% to rise above the 21,000 milestone at 21,005.05 after the RBI MPC decided to keep the interest rates unchanged.

The stock price of Container Corporation of India surged 2.18% to hit a fresh 52-week high of Rs 860.75 following the news that the company has signed a Memorandum of Understanding (MoU) with NTPC Vidyut Vyapar Nigam to explore the possibility of setting up PV Solar renewable energy projects in CONCOR terminals.

The benchmark domestic indices NSE Nifty 50 advanced 0.34% to hit a fresh high of 20,972.75 during the early trade on Friday.

JSW Steel, UPL, HCL Tech, LTIMindtree and Hindalco are leading the gains on the NSE Nifty 50 during the early trade on Friday.

“Nifty weekly contract has highest open interest at 20,900 for Calls and 20,900 for Puts while monthly contracts have highest open interest at 21,000 for Calls and 19,000 for Puts. Highest new OI addition was seen at 20,900 for Calls and 20,900 for Puts in weekly and at 21,000 for Calls and 20,900 for Puts in monthly contracts. FIIs increased their future index long position holdings by 4.15%, decreased future index shorts by 2.98% and in index options by 23.38% decrease in Call longs, 20.00% decrease in Call short, 14.01% decrease in Put longs and 6.86% decrease in Put shorts,” said Anand James, Chief Market Strategist at Geojit Financial Services.

The NSE Nifty 50 opened at 20,934.10 up 0.15%, while BSE Sensex opened at 69,666.38 up 144.69 points.

“The USD/INR 27th December futures contract exhibited a narrow trading range. Based on the daily technical chart analysis, the pair is currently trading above its moving average trend-line support at 83.35, and the RSI remains above the 50-level mark. Despite these positive indicators, the MACD signals negative divergence, suggesting a potential range-bound movement. On the daily technical chart, the pair finds support in the range of 83.30-83.15, while resistance is positioned at 83.55-83.70. The pair has been consolidating within a tight range for an extended period and is anticipated to continue trading within the boundaries of 83.15-83.70 in today’s session. To navigate potential trading opportunities, we recommend vigilant monitoring of the levels between 83.20-83.50. An eventual breakout on either side of this range could provide clearer directional cues for the pair. Traders are advised to exercise caution and consider market developments before initiating any positions,” said Rahul Kalantri, VP Commodities, Mehta Equities.

“The market is likely to remain in a range in the near-term. A consolidation around the present levels is likely before the next phase of the rally begins. The undercurrents in the economy indicate a robust economy capable of sustaining the current trend of earnings growth into FY 25. Leading indicators like power demand, housing demand, credit growth and revival of rural demand suggest a resilient economy which can keep the market buoyant, restrained only by valuations. Fairly valued segments like banking may be accumulated on dips. Falling crude is positive for paints, tyres and aviation where demand continues to be robust,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“In early trading, Gift Nifty remains above key levels, and the focus is on sustaining bullish momentum through December amid hopes for Fed rate cuts. Today’s highlights include the RBI’s likely unchanged interest rates decision and Friday’s influential US Nonfarm Payrolls report. Positive news includes WTI Oil hitting a 5-month low and 10-year US Treasury yields at August lows. Nifty bulls aim for uncharted territories, with a dovish RBI Governor potentially pushing Nifty toward 21,000. Recommended trades: Buy Nifty (20901) in the 20775-20800 zone, and Bank Nifty (46,841) in the 46,100-46,300 zone. Our chart of the day favours ASHOK LEYLAND, COFORGE, POLYCAB, LTTS, BEL, TATA CONSUMER, and PNB. A top pick is POLYCAB at CMP 5420 with targets at 5507/5615 and aggressive targets at 5751 (Interweek Strategy), driven by momentum,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

Foreign institutional investors (FII) offloaded shares worth net Rs 1,564.03 crore, while domestic institutional investors (DII) sold shares worth net Rs 9.66 crore on December 7, 2023, according to the provisional data available on the NSE.

WTI crude prices are trading at $70.13 up 1.11%, while Brent crude prices are trading at $74.89 up 1.13%, on Friday morning.

The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up 0.05% at 103.60.

The Reserve Bank of India’s Monetary Policy Committee (MPC) is holding its three-day meeting to decide the central bank’s policy and Governor Shaktikanta Das will announce the MPC’s decision today December 8, at 10 am.

Wall Street’s major indices settled higher on Thursday. The tech-heavy Nasdaq Composite surged 1.37% to settle at 14,339.99. The S&P 500 advanced 0.80% to settle at 4,585.59, and the Dow Jones Industrial Average gained 0.17% to 36,117.38.