Dear Trader…
The weakness among the global peers led to a timid opening in our equity market. The benchmark index Nifty50 started the day with a small gap down and hustled in a narrow range at the lower end throughout the session. Amidst the lackluster session, the bulls showed their comeback in the penultimate hour and made a modest recovery to pare down some of the initial losses. The Nifty concluded near the day’s high, shedding nearly 0.30 percent, and settled a tad below the 18650 level.
On the technical front, the support of 18600 once again proved its mettle as bulls firmly retaliated to safeguard the same. We allude to our previous commentary to have the buy on dip and sell on rise approach, which seems perfectly aligned with the current market conditions. As far as levels are concerned, till the time the sacrosanct support of 18600-18500 is firmly withheld, there is no sign of worry for the participants. While on the higher end, a series of resistances could be seen starting from 18700-18750 to 18800-18850 in the comparable period.
Nifty futures opened at 18731.30 points against the previous close of 18817.75 and opened at a low of 18682.40 points. Nifty Future closed with an average movement of 107.60 points and a decline of around 47.25 points and 18770.50 points…!!
On the NSE, the midcap 100 index will decline 0.46% and smallcap 100 index is closing decline 0.16%. Speaking of various sectoral indices, the NSE saw gains in only PSU Bank And FMCG while all other sectoral indices closed lower.
At the start of intra-day trading, February gold opened at Rs.53561 fell from a high of Rs.53920 points to a low of Rs.53513 with a rise of 415 points, a trend of around Rs.53920 and March Silver opened at Rs.65552, fell from a high of Rs.66110 points to a low of Rs.65451, with a rise of 834 points, a trend of around Rs.66020.
Going forward, the index is likely to hover within the mentioned range and meanwhile, one should keep focusing on the stock-specific front for trading opportunities. Simultaneously, all eyes would be on the upcoming RBI policy outcome that might dictate the near-term trend for the market. Hence, we advocate to stay abreast with domestic as well as global developments.
However, key gauges erased losses in early afternoon deals, as traders found some support with Economic Advisory Council member Sanjeev Sanyal’s statement that India is capable of sustaining an economic growth of 9 per cent for many years, even as he asserted that a high sustained GDP growth rate is key for the world to achieve the 2030 Sustainable Development Goals (SDGs). But, markets failed to hold recovery and once again fell sharply in late afternoon session despite the Reserve Bank of India’s (RBI) weekly statistical supplement showed India’s foreign exchange reserves rose for the third straight week, to $550.14 billion in the week through November 25.
Technically, the important key resistances are placed in Nifty future are at 18808 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 18880 – 18909 levels. Immediate support is placed at 18606 – 18474 levels.
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