GIFT Nifty traded down 50.5 points or 0.24% at 21,046.5, indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex on Thursday. Previously, on Wednesday, the NSE Nifty 50 gained 82.55 points or 0.40% to settle at 20,937.65, while the BSE Sensex advanced 357.59 points or 0.52% to 69,653.75.
“Markets extended gains for the seventh session in a row and rose nearly half a percent. After the initial uptick, Nifty hovered in a range till the end and finally settled around the upper band of the same at 20,937.65 level. A mixed trend continued on the sectoral front wherein IT, energy and FMCG attracted noticeable buying. The broader indices traded largely in sync with the move and gained nearly half a percent each,” said Ajit Mishra, SVP – Technical Research, Religare Broking.
“Noticeable traction in the key sectors is fuelling momentum in the index however we can’t ignore the possibility of some consolidation now. Traders should maintain their focus on stock selection as we are seeing a catch-up move in the sectors and stocks that were on the sidelines in recent months. Also, avoid contrarian bets in anticipation of a major decline,” Ajit Mishra added.
Key things to know before share market opens on December 7, 2023
Wall Street
US stocks ended down on Wednesday, pulled lower by megacaps and energy shares as signs of a cooling jobs market reinforced expectations that the Federal Reserve could start cutting interest rates early next year, reported Reuters. The tech-heavy Nasdaq Composite dropped 0.58% to settle at 14,146.71. The S&P 500 slipped 0.39% to settle at 4,549.34, and the Dow Jones Industrial Average fell 0.19% to 36,054.43.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down 0.04% at 104.11.
Crude Oil
WTI crude prices are trading at $69.69 up 0.45%, while Brent crude prices are trading at $74.55 up 0.34%, on Thursday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in the red on Thursday morning. The benchmark Chinese index Shanghai Composite is down 0.62%. The Asia Dow is trading down 1.14%, Hong Kong’s Hang Seng index is trading down 1.62%, and Japan’s Nikkei 225 is down 1.51%.
FII, DII Data
Foreign institutional investors (FII) offloaded shares worth net Rs 79.88 crore, while domestic institutional investors (DII) added shares worth net Rs 1,372.18 crore on December 6, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Delta Corp, Indiabulls Housing Finance, India Cements, Zee Entertainment and SAIL to its F&O ban list for December 7, 2023.
Technical View
Commenting on the technical outlook of the Nifty 50, Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said, “On the daily charts, we can observe that the bulls have been able to hold on to the gains. It is now trading around the psychological level of 21,000 which can provide some resistance over the next few trading sessions. Also on the hourly charts, the momentum indicator has a negative crossover which indicates a loss of momentum on the upside. Considering the sharp runup in the previous few trading sessions a consolidation is highly likely. On the upside 21,000 – 21,060 shall act as an immediate hurdle zone and 20,800 – 20,730 shall act as a crucial support zone and should also be kept as a trailing stoploss for the longs on the index.”
Bank Nifty Outlook
Bank Nifty index dropped 177.70 points or 0.38% to settle at 46,834.55 on Wednesday. “The Bank Nifty index experienced profit booking at higher levels in anticipation of the upcoming key RBI policy event. Despite this, the overall market sentiment remains bullish. It is advisable to adopt a buy-on-dip strategy, maintaining a positive outlook as long as the index sustains above the critical level of 46,400. The immediate hurdle is positioned at 47,250, and a successful breach beyond this level is anticipated to pave the way for further upside momentum towards the 48,000 level,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
