Closing Bell: Sensex, Nifty end flat amid volatility; PSU banks outshine

Taking Stock | Profit-booking pulls market down from record highs, PSU banks gain

Maruti Suzuki, ONGC, NTPC, Asian Paints and Hindalco were among major Nifty gainers, while losers included SBI Life Insurance, HDFC Bank, TCS, Infosys and Bajaj Auto.... Read More

Gold gained 1% this afternoon, continuing its rally from the last three sessions, making a three white soldier pattern in daily candle, which indicates that it will be more bullish ahead. International gold prices are trading flat to marginally higher this early Thursday afternoon trade as the U.S. Dollar continues to struggle near its 21/2 year low amid talks of a U.S. stimulus aid package from the U.S.

Technically, Gold spot took a gap up opening with breaking a resistance of 49100, and now trading near 49400 with maintaining a next level of 49500, if it breaks and sustains above then may lead to 49750-50000 soon. 20 SMA also crosses on the level of 49200, after that trading above this level till now. Gold climbed as the dollar dropped on hopes that coronavirus vaccines will be rolled out soon and cautious investor optimism over a U.S. stimulus deal.

Markets remained in a range for yet another session and settled with marginal gains. The opening was upbeat but profit-taking in select index heavyweights pulled the index lower as the day progressed. Subdued global cues combined with caution ahead of the RBI’s monetary policy outcome was weighing on the sentiment. Amid all, the broader indices continue to outshine the benchmark ended higher by 0.9% and 0.7% respectively. On the sector front, except IT which witnessed some profit-taking, all the other indices ended with gains wherein Metal, Auto, Consumer Durables were the top gainers.

We expect the rate-sensitive pack, especially banking and financials, to be in focus on Friday, thanks to the scheduled outcome of RBI’s MPC meet. The banking index has been witnessing consolidation in line with the benchmark and might see a directional move after the event. Meanwhile, traders should restrict leveraged positions and wait for clarity.

The broad market is continuing its buoyancy led by rally in mid & small cap stocks. This trend can continue given the gap between the pricing of main and broad stocks. Today, large caps are mildly underperforming, in which financial stocks did contributed to the upside, but weakness in HDFC bank post the RBI curbs limited the upside. Hopes are alive that economic recovery will grow wider as fresh covid cases are reducing, adding strength to the momentum.

After a marginal gap up, the Nifty failed to cross 13150 on a closing basis. This is a stiff resistance zone for the index. If we are successful in closing above 13150, we can achieve 13250-13300 which will be the next resistance level where the markets can witness selling pressures.

Benchmark indices ended flat on December 3 after hitting fresh record highs in the early trade.

At close, the Sensex was up 14.61 points or 0.03% at 44,632.65, and the Nifty was up 20.10 points or 0.15% at 13,133.90. About 1950 shares have advanced, 905 shares declined, and 166 shares are unchanged.

Maruti Suzuki, ONGC, NTPC, Asian Paints and Hindalco were among major gainers on the Nifty, while losers were SBI Life Insurance, HDFC Bank, TCS, Infosys and Bajaj Auto.

PSU Bank index rose nearly 5 percent, metal index added 2 percent and auto and energy indices rose 1 percent each. BSE Midcap and Smallcap indices jumped 0.6-0.8 percent.

Putin orders Russia to start Vaccination against Covid-19 from next week. This week only the United Kingdom became the first country in the world to approve Pfizer vaccine to use worldwide. The NHS stands ready to start vaccinating early next week told by health secretary Matt Hancook on other hand Russia has already approved Sputnik V and EpiVacCorona vaccine.

China has already approved the Sinovac and CanSino vaccine. India is in the phase of reviewing it along with some vaccine trials Phase -3 are in place, we expect some positive development on it in next 3-6 months. Moderna Vaccine is in Phase-3 human trials and showed some great results on it. We expect some positive news in the global market from Covid Vaccine in the coming month.

Max Estates, a subsidiary of Max Ventures & Industries Ltd. (MaxVIL), announced leasing of approximately 62,500 sq ft. at its Iconic Max Towers in Noida to Yes Bank, which plans to relocate its offices from the Central Business District to the new location as part of its exercise to rationalize cost.

Gold climbed on Thursday as the dollar dropped on hopes that coronavirus vaccines will be rolled out soon and cautious investor optimism over a U.S. stimulus deal.

Rupee scaled down by on Thursday as RBI intervened continues near 73.65-73.85 zone. With Crude prices also holding the gains rupee traded little weak by 0.15p adding to weakness seen yesterday as it quoted at 73.90 odd levels in afternoon trade. Broad demand remains at 73.55-73.75 & supply at 74.25-74.45.

Gold prices are trading higher from last three trading session due to weakness in the dollar index and increased optimism over fresh stimulus talks in the US. The lawmakers in the US may pass additional debt-fueled pandemic stimulus before they break for the Christmas holiday after Speaker Pelosi late Tuesday sent a new proposal to Treasury Secretary Mnuchin.

Dovish comments from global central banks are also providing support to precious metals. ECB Governing Council member Kazaks said that an expansion of the ECB's emergency bond-buying program by 500 billion euros ($603 billion) would be "reasonable" and that he is ready to support an extension of the program until mid-2022. Meanwhile, BOJ Deputy Governor Amamita said that uncertainty is extremely high with economic risks on the downside, and the BOJ "will firmly continue" with current easing.

Gold prices are likely to find support near 200 days EMA at $1816 per ounce levels while key resistance is seen around 20 days EMA at $1843 and 50 days EMA at $1871 per ounce.

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Oil prices rose on Thursday as producers including Saudi Arabia and Russia locked horns over the need to extend record production cuts set in place in the first wave of the COVID-19 pandemic.