NIFTY OUTLOOK FOR 5 DEC 2024

 Market Report – December 4, 2024

The Indian equity markets extended their gains for the fourth consecutive session on December 4, driven by strength in banking and realty stocks. Despite intraday volatility and mixed global cues, the markets maintained a positive trajectory, signaling resilience ahead of the Reserve Bank of India’s (RBI) monetary policy announcement.

Key Indices Performance

• Sensex: Gained 110.58 points (+0.14%) to close at 80,956.33.
• Nifty 50: Rose by 10.30 points (+0.04%) to end at 24,467.45.

Market Highlights

1. Nifty Overview:

   • The Nifty remained choppy throughout the session, reflecting caution among investors.
   • Immediate resistance is seen at 24,660, with 24,350 acting as a crucial support level.

2. Sectoral Performance:

   • Top Gainers: PSU Banks (+2.1%) and Realty (+2.3%) sectors led the rally.
   • Underperformers: FMCG (-0.7%) and Auto (-0.7%) sectors faced pressure.
   • IT & Media: Moderate gains of 0.5% each.

3. Broader Markets:

   • Midcap Index: Advanced by 1.05%.
   • Smallcap Index: Rose 0.89%.

4. Top Gainers & Losers:

   • Gainers: HDFC Life, HDFC Bank, Apollo Hospitals, NTPC, and Bajaj Finserv.
   • Losers: Bharti Airtel, Cipla, Bajaj Auto, Tata Motors, and Adani Ports.

Technical Insights

• A Spinning Top candlestick pattern on the charts highlights indecision among market participants.
• Broader market sentiment remains positive, suggesting any dip may be seen as a buying opportunity.
• Immediate Levels:
  • Resistance: 24,660 to 24,700.
  • Support: 24,350.

Factors Influencing the Market

1. Domestic Momentum:

   • Strength in PSU Banks and Realty sectors.
   • Continued confidence in broader markets, as evidenced by midcap and smallcap gains.

2. Global Sentiments:

   • Mixed cues from Asian markets due to geopolitical concerns in South Korea.
   • Anticipation of the Federal Reserve Chair's upcoming speech, as recent FED minutes indicate easing inflation.

3. Macroeconomic Expectations:

   • Caution ahead of the RBI policy announcement.
   • Speculation on the continuation of the US rate-easing cycle, which could impact foreign inflows.

Outlook for December 5, 2024

• The market is expected to consolidate after recent gains, with a focus on stock-specific movements.
• Positive sentiment is likely to persist, but traders should remain cautious of resistance at higher levels.
• Sectors like banking and financials may continue to drive momentum, while profit-booking could limit the upside.

Advice for Traders

• Adopt a stock-specific approach and accumulate quality stocks during dips.
• Monitor key levels of 24,660 and 24,350 for directional cues.
• Keep an eye on global events, including US Federal Reserve updates and geopolitical developments, for potential market impacts.