The NSE Nifty 50's trend continues to be supported by bullish hourly charts, reflecting higher highs and higher lows, according to analysts.
The index remains above the key support level of 24,500, while resistance is seen around the 24,770–24,820 range. The Nifty is holding above all key short-term moving averages, signalling sustained strength, according to Om Mehra, technical analyst at Samco Securities.
The India VIX, a measure of market volatility, eased to 13.27, indicating controlled market conditions, Mehra added.
In the derivatives segment, open interest data shows the highest call OI at the 24,800 and 25,000 strike prices for the Nifty, while the 24,500 and 24,000 strikes recorded the highest put OI, marking these as key levels to monitor, according to Mandar Bhojane, research analyst at Choice Broking.
The Bank Nifty, which concluded Wednesday on a marginal negative note at 53,391, has formed a small red candle on its daily chart, according to Hrishikesh Yedve, research analyst at Asit C. Mehta Investment Interrmediates Ltd.
However, the index is still facing short-term resistance near the 53,900–54,000 levels. On the downside, the index will find major support at 52,500, where the recent breakout point is placed, Yedve said. "As long as the index sustains above the 52,500 level, traders are advised to adopt a buy-on-dips strategy in Bank Nifty."
FII, DII Activity
Overseas investors turned net sellers of Indian equities on Wednesday after two consecutive days of selling, while domestic institutional investors remained net buyers for the second consecutive session.
Foreign portfolio investors offloaded stocks worth Rs 1,012.24 crore, while the DIIs mopped up stocks worth Rs 2,007.85 crore, according to provisional data shared by the National Stock Exchange.
Market Recap
The NSE Nifty 50 ended its three-day decline, and the BSE Sensex rose for the second consecutive day on Wednesday, as traders awaited inflation data from the US later in the day and from India the following day.
The Nifty rose 31.75 points, or 0.13%, to close at 24,641.8, while the Sensex gained 16.09 points, or 0.02%, finishing at 81,526.14. Both indices had risen by 0.3% during the day.
Most sectoral indices on the NSE advanced, with FMCG, Auto, and IT sectors leading the gains. The broader markets outperformed, with the BSE MidCap index rising 0.3% and the SmallCap index climbing 0.4%.
Major Stocks In News
Grasim Industries: The company approved the issuance of non-convertible debentures worth up to Rs 2,000 crore in one or more tranches.
Sammaan Capital: The board authorised the fundraising of Rs 2,500 crore via the issue of equity shares through one or more qualified institutions placements.
Yes Bank: The RBI approved appointment of Manish Jain as executive director for three years.
Vedanta: The company will consider fourth interim dividend on Dec. 16.
Global Cues
Stocks in the Asia-Pacific region advanced on Thursday as the latest US inflation reinforced bets that the Federal Reserve will slash rates by a quarter points. Technology stocks powered the rally on Wall Street.
Japan's Nikkei was 686 points, or 1.66% higher at 40,049, while South Korea's Kospi was up 12 points, or 0.5% at 2,454 as of 6:30 a.m. Futures contracts in China and Hong Kong futures were pointed to a steady start.
Stocks in China ended the previous session lower, despite expectations of higher stimulus, even as the country changed its monetary stance to "easing" after 11 years. President Xi Jinping said on Tuesday that Beijing is fully confident in achieving its economic growth target this year, Bloomberg reported.
China’s yuan slid the most in a week after reports that Beijing is considering allowing the currency to weaken next year, as the trade war with US looms with President-elect Donald Trump set to take office in January.
On Thursday, the key data to watch out for are consumer inflation print and industrial production in India. Australia's labour market data will also be among the economic reports released during the day.
Meanwhile, the consumer price index in the US rose 0.3% in November for the fourth straight month. The core CPI—which excludes volatile food and energy costs—also rose by the same 0.3%. Swaps traders are betting on a quarter-point interest rate cut at the Fed’s policy meeting next week, according to Bloomberg.
The dollar index—which tracks the greenback's performance against a basket of 10 leading global currencies—was trading 0.18% lower at 106.52. Bitcoin was trading at $101,033.310.
Wall Street ended the two-day decline as technology giants powered the rally. The Nasdaq 100 rose over 21,700 for the first time. The S&P 500 index and the tech-heavy Nasdaq Composite rose 0.82% and 1.77%, respectively, on Wednesday. The Dow Jones Industrial Average slipped 0.22%.
OPEC cut oil demand growth forecasts for this year and next for a fifth straight month, marking its deepest reduction to the 2024 outlook so far. The Brent crude was trading 0.08% higher at $73.58 a barrel as of 6:45 a.m. IST, and the West Texas Intermediate was up 0.10% at $70.36.
Money Market Update
The Indian rupee closed flat at 84.84 against the US dollar on Wednesday. The currency had weakened by 12 paise to close at a record closing low of 84.85 against the US dollar on Tuesday.
This marks the continuation of a downward trend that began earlier in the week, after the rupee closed at a low of 84.73 against the greenback on Monday.
The RBI may have conducted dollar-rupee buy/sell swaps to curb further depreciation of three-month and six-month tenors, according to Reliance Securities.
Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
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