The domestic equity benchmarks Sensex and Nifty were lacklustre but ended with marginal gains on December 13 ahead of the US Federal Reserve's policy outcome later tonight. The 30-share BSE benchmark Sensex was up 34 points or 0.05% to close at 69,584, while the broader NSE Nifty rose 20 points or 0.10% to settle at 20,926.
Power stocks witnessed a strong buzz after electricity generation rose by 20.4% for October. Strong Mining output growth of 13.1% for the month of October led to a rally in mining stocks.
Around 69 lakh shares or a 4.75% equity in the company changed hands on the exchanges at an average floor price of ₹482 apiece. The floor price of the deal comes at an over 3% discount to the stock's closing price of ₹499.45 yesterday.
What Are The Experts Saying?
Siddhartha Khemka, Head - Retail Research at Motilal Oswal said that the market has been consolidating at higher levels for the past few sessions after the recent run-up. "All eyes are on the US central bank's policy outcome to be released later today, where the focus will be more on Powell’s commentary for any hint on the rate cut next year."
Overall, Khemka expects the market momentum to continue on higher side supported by lower than expected inflation data, 16-month high IIP data, fall in crude oil price to seven-month low and FIIs buying.
Shiv Sehgal of Nuvama told CNBC-TV18 in an exclusive interaction that he expects some consolidation ahead as the market will likely go into a lean period in the next sessions. Sehgal said not much activity will start happening from next Monday onwards.
"In the next week, we have the Fed and the ECB, which will be very key important data points and what they say but at the moment I do feel that we are going into lean period but having said from India perspective we have historically seen that domestic flows are so strong we could still see a ramp up going into year-end rally as well," Sehgal said.
Ajit Mishra of Religare Broking advised participants to maintain their focus on stock selection and overnight risk management. "We feel the performance of the US markets would play a critical role in setting the next leg of the directional move so keep a close eye on them for cues."
According to Vinod Nair of Geojit Financial Services, the market's focus now shifts to the upcoming FOMC meeting. "And the recent global upside is getting far stretched in anticipation of a rapid fall in the US Fed rate in CY2024," Nair said.
What Do The Nifty 50 Charts Indicate?
The Nifty50 index remained in the negative territory for most part of the day but buying in the final hour helped indices to settle in the green.
"After a brief dip, the bulls demonstrated strength by defending the crucial support level of 20800. The index witnessed a sharp recovery from the day's low to the high point. The overall market sentiment remains bullish, and considering the current levels, traders are advised to initiate fresh long positions. A stop-loss can be set at 20800, targeting potential upside levels of 21400/21500 in the near term," said Kunal Shah, Senior Technical and Derivative analyst at LKP Securities.
Jay Thakkar of Sharekhan expects Nifty to remain sideways for a couple of trading sessions and trade within a range of 21,000-20,700 — broadly 300 points range on Nifty.
"Nifty formed a long legged doji after a fall. This suggests possibility of some bounce in the markets. Nifty could now rise towards the previous high of 21037 while 20770 could offer support. The outcome of US Fed meet in the evening could influence the trend of markets globally in the near term," said Deepak Jasani, Head of Retail Research at HDFC Securities.
Nagaraj Shetti of HDFC Securities said that the Nifty sustained an immediate support of 20850 levels after violating it in intraday. "The market has recovered from another key support of 10-day EMA around 20720 levels on Wednesday."
"The upside recovery of Wednesday from the immediate supports signal chances of further upside for the Nifty in the short term. There is a higher possibility of Nifty moving again into all-time highs of 21040+ levels in the near term. Immediate support is placed at 20770," the analyst said.
Bank Nifty: Support seen at 46,800
The Bank Nifty initiated Wednesday's session with a slight positive trend. However, mirroring the previous session, prices encountered profit booking right from the start. Fortunately, there was no significant follow-up selling. After a modest recovery, prices traded within a range for the majority of the session. Eventually, Bank Nifty concluded the weekly expiry session on a flat note, just below the 47100 mark.
"Upon examining the daily chart, prices are observed to be trading within a defined range, indicating a current correction in terms of time-wise after the remarkable run over the past couple of weeks. This suggests that prices are awaiting a trigger for the next directional move, and there might be some momentum following the outcome of the FED Meeting," said Rajesh Bhoasle, Technical Analyst at AngelOne.
Bhoasle said the overall sentiment remains positive, with immediate support identified around 46800 - 46500. "The 46500 - 46300 zone functions as a strong support area, aligning with previous breakout levels. Any decline into this zone should be considered a buying opportunity from a positional standpoint. On the flip side, the 47500 - 47800 range is likely to persist as immediate resistance. Traders are advised to closely monitor these levels and shape their trading strategies accordingly."
Thakkar said that Bank Nifty has recovered quite sharply today and he believes that expiry is likely to happen below 47,000 but on the upside 47,500 is the very crucial resistance on the immediate basis. So the range for Bank Nifty is 47,500-4,7000 that too is likely to remain in the range.
"Despite initial concerns, the Bank Nifty index displayed strength by not breaching the crucial support of 46800 and instead witnessed a sharp rebound from lower levels. To sustain and further advance the upward momentum, the index needs to maintain levels above 47200. A decisive close above 47500, where call writers are active, could pave the way for additional gains, targeting levels of 48000/48500 in the upcoming," said said Kunal Shah of LKP Securities.
Here are the stocks to watch ahead of Thursday's trading session:
Fusion Micro Finance block deal alert: Honey Rose Investment to sell 9.25% stake; floor price at ₹535 per share.
NBCC gets work order worth ₹1,500 crore from National Cooperative Development Corporation.
SBI signs €70 milllion KfW (German Development Bank) line of credit for solar projects in India.
Religare Enterprises: SEBI suspends registration certificate of arm Religare Commodities as a commodities derivatives broker for three months
Escorts Kubota: Harish Lalchandani has resigned as the Chief Officer – Agri Machinery Business Division of Escorts Kubota with effect from February 28, 2024.
First Published: Dec 13, 2023 9:16 PM IST
Trade Setup for December 14: Can the Nifty 50 climb back to its all-time high levels? Support seen at 20770 - CNBCTV18
Read More
No comments:
Post a Comment