The Nifty 50's pattern on the daily chart shows a clear range has formed, with the support level moving higher to the 24,000–23,900 zone, according to Rajesh Bhosale, equity technical analyst at Angel One.
On the upside, the 50 double exponential moving average (DEMA) and 89 DEMA continue to serve as strong resistance around the 24,350–24,400 zone. A breakout above the 23,900–24,400 range will likely dictate the next directional move, Bhosale said.
"Until the upper boundary is breached, bulls should remain cautious and avoid aggressive positions. A break below the lower end could signal a resumption of the downtrend, potentially retesting recent lows," he said.
For Bank Nifty, 50 day simple moving average or 51,800 would be the key level to watch out, said Amol Athawale, VP-technical research at Kotak Securities Ltd.
"Above 51,800, it could move till 52,500-52,800. However, below 51800 it could retest the level of 20 day SMA or 51,500 and 51,300," the analyst said.
Monday's trade is also expected to be hit with negative sentiments around the health of the Indian economy after the second quarter GDP print came a lower-than-expected 5.4%.
"Investor sentiments going forward will be directed by geo-political developments and FII activity. We expect the market to remain range-bound amidst mixed global cues and lack of domestic triggers," said Siddhartha Khemka, head of research of wealth management at Motilal Oswal Financial Services Ltd.
FII/ DII Activity
Overseas investors remained net sellers of Indian equities for the second consecutive day on Friday, while the domestic institutional investors remained net buyers for the third consecutive session.
The FPIs offloaded stocks worth approximately Rs 4,383.55 crore, and DIIs bought shares worth approximately Rs 5,723.34 crore, according to provisional data by the NSE.
In November, FPIs sold stocks worth Rs 45,974.12 crore, whereas DIIs mopped up stocks worth Rs 44,483.86 crore.
F&O Cues
The Nifty November futures were down by 0.84% to 24,318 at a premium of 187 points, with the open interest down by 2%.
The open interest distribution for the Nifty 50 Dec. 5 expiry series indicated most activity at 26,000 call strikes, with the 23,500 put strikes having maximum open interest.
Market Recap
Benchmark equity indices gained for a second consecutive week adding nearly 3% in two weeks. On Friday, both the indices recovered from their steep falls in the previous session as Bharti Airtel Ltd. and Reliance Industries Ltd. shares contributed the most.
The Nifty ended 0.91% or 216.95 points higher at 24,131.10 and Sensex closed 0.96%, or 759.05 points up at 79,802.79.
Major Stocks In News
Aster DM Healthcare: The company and Blackstone- and TPG-backed Quality Care India Ltd. will merge through a share swap agreement to become India's numbe 3 hospital operator. Based on the agreed swap ratio, Aster shareholders will hold 57.3%, and QCIL shareholders will hold 42.7% in the merged entity, which will be named Aster DM Quality Care Ltd. and led by the Moopen family.
Ashoka Buildcon: The company signed an agreement with Bangalore International Airport for project worth Rs 1,055 crore for the construction of elevated western crossfield taxiways.
Cipla: Promoters Samina Hamied and Rumana Hamied will exit the pharmaceutical company and offload stakes worth Rs 2,004 crore through a block deal on Monday. The equity shares will be sold at Rs 1,442 per share, according to the term sheet viewed by NDTV Profit.
GP Petroleums: The company bagged a supply order for Bulk Bitumen from Hindustan Petroleum Corp worth Rs 223 crore.
RBL Bank: The bank and Bajaj Finance mutually agree to stop issuance of new co-branded cards, although it will continue to service existing cardholders. The lender expects to cover the shortfall in issuances in 2-3 months with other partners.
Global Cues
Stocks in the Asia-Pacific region gained on Monday's early session following a record monthly closing on Wall Street. Emerging economies' currencies will be in focus after US President-elect Donald Trump demanded a commitment from the BRICS nations on using the Dollar.
Equity benchmarks in South Korea and Japan led to gains during the session's opening. The Nikkei was 186 points, or 0.48%, higher at 38,325, while the S&P ASX 200 was up 28 points, or 0.34%, at 8,465 as of 5:38 a.m. Future contracts in Hong Kong and mainland China point to early gains.
The dollar index—which tracks the greenback's performance against a basket of 10 leading global currencies—was trading 0.27% higher at 106.02. Emerging currencies will be under pressure on Monday from the latest warning by the US President-elect.
Stocks on Wall Street gained on Friday to cap its best month this year. The S&P 500 index and the tech-heavy Nasdaq Composite rose 0.56% and 0.83%, respectively, on Wednesday. The Dow Jones Industrial Average climbed 0.42%.
Crude oil prices edged higher after of OPEC+ meeting on production later in the week. The Brent crude was trading 0.35% higher at $72.09 a barrel as of 6:00 a.m. IST, and the West Texas Intermediate was up 0.38% at $68.26.
Key Levels
US Dollar Index at 106.11
US 10-year bond yield at 4.21%.
Brent crude up 0.36% at $72.10 per barrel.
Bitcoin was down 0.27% at $97,555.31
Gold spot was up 0.01% at $2,643.48
Money Market
The Indian rupee closed flat against the US dollar on Friday at 84.49. The domestic currency had hit a fresh low of 84.5038 during the day on Thursday, reflecting ongoing volatility in the foreign exchange market.
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