Nagaraj Shetti, Technical Research Analyst, HDFC Securities:
The short term trend of Nifty continues to be positive. The pickup of upside momentum in the later part and the negation of bearish pattern of daily (bearish engulfing) and weekly (doji) timeframe chart is expected to result in further strengthening of upmove in the near term. The upside levels to be watched for the next week is at 13500 levels and the immediate support is placed at 13150.
December 04, 2020 / 04:49 PM IST
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities:
On a weekly basis, the market has followed the bullish continuation formation. Nifty 50 index closed comfortably above the psychological mark of 13000 and Sensex has crossed the level of 45000 on a closing basis. The credit policy has boosted the sentiment heavily. The Bank Nifty closed above the level of 30000 under the leadership of Private as well as PSU banks.
During the week, FIIs bought Rs 7236 crore of equities while domestic institutions sold equities to the tune of Rs 4118 crore in the cash segment. As per data, FIIs are putting more money into Technology and Service sectors. The dollar index has also helped emerging market to perform better than expectations. The dollar Index, which was quoting at 92 has fallen to 90.60. Meanwhile crude price moved to a five month high, which is positive for commodities.
In the coming week, we expect sectoral rotational activity to resume. Along with momentum in commodities and Auto, we can expect bullishness in Financials, Technology and FMCG stocks. In the coming week, Nifty 50 index would face major hurdle at 13350/13400 levels, which is nearby, however, the Bank Nifty should outperform and move to 31000 levels without any major efforts. The Strategy should be to buy on dips with a final stop loss of Nifty 50 index at 13100.
December 04, 2020 / 04:08 PM IST
Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking:
A combination of a weak dollar index, optimism on the vaccine front, renewed round of fiscal stimulus talks in the United States and robust inflows give the rupee a slightly appreciating bias in the near term. However, 73.20 and eventually 73 will be strong hurdles for the rupee to breach given RBI’s intervention is likely to continue in the coming sessions. We are expecting the RBI to mop up dollars in the spot market and simultaneously intervene in forwards to sterilize the liquidity impact.
December 04, 2020 / 04:06 PM IST
Vinod Nair, Head of Research at Geojit Financial services:
RBI’s decision to keep policy rates unchanged and maintain an accommodative stance for the current and upcoming year is well taken by the market. The possibility for a further rate cut in the near term can be ruled out considering the elevated levels of inflation. However, positively RBI has ensured ample liquidity support on a timely basis in the form of Open market operation, TLTRO and reverse repo. Globally, renewed US stimulus negotiation and vaccine roll-out has underpinned optimism, this will help the domestic market to maintain its euphoria.
December 04, 2020 / 04:05 PM IST
Ajit Mishra, VP - Research, Religare Broking:
Markets managed to post decent gains on Friday amid volatility. All eyes were on the RBI policy meeting outcome and the dovish commentary from the RBI and improved growth outlook lifted sentiments. Consequently, the Nifty index ended higher by 1.0% at 13,259 levels. The broader markets too ended with healthy gains of 0.4% and 0.5% respectively. Amongst the sectors, all the indices ended with gains wherein Banking, Telecom and Consumer Durables were top performers.
With all the major events behind us, we feel global cues would dictate the market trend ahead. Besides, news related to COVID vaccines will also be in focus. Mostly rate-sensitive ended on strong footing and we may see follow-up buying next week. Having said that, traders should not get carried away with the prevailing buoyancy and stick to quality names as we can’t ignore the possibility of an intermediate corrective phase.
December 04, 2020 / 03:34 PM IST
Market Close: Benchmark indices rallied a percent and ended at fresh record closing highs after RBI left the key rates unchanged and also maintained its accommodative stance.
At close, the Sensex was up 446.90 points or 1% at 45,079.55, and the Nifty was up 124.60 points or 0.95% at 13,258.50. About 1483 shares have advanced, 1178 shares declined, and 138 shares are unchanged.
Adani Ports, ICICI Bank, Hindalco, UltraTech Cement and Sun Pharma were among major gainers on the Nifty, while losers included Reliance Industries, Bajaj Finserv, HDFC Life, BPCL and HCL Tech.
Except Energy, all other sectoral indices ended in the green with Nifty Bank index rose 2 percent, while Metal, Infra, Pharma and FMCG indices rose 1 percent each. BSE Midcap and Smallcap indices added 0.4 percent each.
December 04, 2020 / 03:30 PM IST
Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities:
Gold traded slightly positive on back of weakening dollar, and hopes of US stimulus package which keep dollar price weak and bullion higher. In Spot old held the levels of $1840 & in MCX 49250. The broad range in Gold in between $1780-1860 & 48000 - 50250 in domestic markets.
December 04, 2020 / 03:26 PM IST
Ashis Biswas, Head of Technical Research, CapitalVia Global Research:
The market continues to witness the resilience and stayed above the Nifty 50 Index level of 13200. As of now, the short-term technical condition of the market shows that the expected range of the market is likely to range between 13090 and 13390. The market breadth to improve further and above the 13200 level. It is expected, once this level is met then the market would gain momentum, that could lead to an upside projection till 13390 level.
December 04, 2020 / 03:24 PM IST
The unanimous decision by MPC members to continue its accommodative stance is likely to keep the overall bond market well behaved around current levels. The steepness of the yield curve is likely to continue with short-term rates (90 day T-bill, three month CP/CDs) may remain around reverse repo level while supply concerns are likely to prevent any major rally in longer tenure yields.