After The Bell: Volatile Wednesday, Here’s what investors should do on Thursday

Sectorally, the action was seen in realty, metals, consumer durables, and oil & gas stocks, while selling pressure was visible in banks as well as FMCG space.

On the broader markets front, the BSE midcap index was up 0.5 percent, while the smallcap index closed with gains of 0.68 percent.

The Street took cues from the announcement of the vaccine announcement and the outcome of the RBI policy meeting on December 4. The United Kingdom has become the first country to authorise the Pfizer-BioNTech COVID-19 vaccine for use. On December 2, Britain said that the COVID-19 vaccine will be rolled out for use from next week.

“We’re seeing consolidation in the index but the bias is still on the positive side. Going ahead, further updates on COVID vaccines and cues from the global markets will remain in focus,” Ajit Mishra, VP-Research, Religare Broking Ltd told Moneycontrol.

“Besides, on the domestic front, RBI’s monetary policy meet would also be on investors' radar. The MPC is likely to maintain the status quo, however, its commentary on growth and inflation would be critical,” he said.

Here is what experts think that investors should do on December 3:

Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities

The Nifty index formed a Doji candle on a daily scale with a long lower shadow which indicates that any small decline is being bought in the market.

It continued to form higher highs - higher lows from the last three sessions. The Nifty50 has to continue to hold above 12950 zones to witness an up move towards 13250 levels while on the downside major support exists at 12800 zones.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The Nifty continued its momentum amid volatility and closed the day on a flat note. After opening positive, the Nifty slipped into weakness. It recovered sharply from the intraday low in the afternoon and finally closed near the upper end of a range.

The instability around 13,150-13,200 levels could mean an emergence of selling pressure at the highs and a big drop in the index can't be ruled out from the new highs. One needs to be cautious at highs.

The short-term trend of Nifty continues to be positive with range-bound action. The market is expected to face stiff resistance around 13,150 or slightly higher in the coming sessions.

A sustainable move above this area can open some more upside for the market. A lack of strength to sustain around 13,150 is expected to result in another one-day sharp drop in the index. The immediate support is now at 12,980.

Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas.

The Nifty witnessed a tough battle between the bulls & the bears. As a result, the index continues to hover around the recent high of 13145. The level of 13,145, being the high point of a bearish outside bar & an Engulfing Bear candle on the daily chart, is acting as a barrier for the last couple of sessions.

The index can continue to consolidate in the short term unless the high gets taken out on a closing basis. On the downside, 13,000 will act as key support below which the Nifty can slip to 12,800.
Paras Bothra, President, Equity Research, Ashika Stock Broking

Domestic markets remained lacklustre, tracking muted cues from Asian peers and ahead of the outcome of the Reserve Bank of India (RBI) policy review.

Oil extended losses after an OPEC meeting on production policy was delayed and the American Petroleum Institute (API) reported a surprise build in inventories.

Markets recovered from lows after news of the United Kingdom authorising the Pfizer-BioNTech COVID-19 vaccine for use. The vaccine will be rolled out for use from next week.

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