The market is taking a breather after a record breaking run took the Nifty 50 to newer highs this week. Although the Nifty 50 snapped a seven-day winning streak on Thursday, it managed to close above the 20,900 mark. For the week, the index is up over 3%.
A weekly gain of over 3% would make it the first such instance for the Nifty 50 in 2023 and also mark its best week since July 2022. The index is also up for six weeks in a row. The last time it gained six weeks at a stretch was back in November-December of 2020.
All eyes will be on the Reserve Bank of India’s Monetary Policy Committee and their interest rate decision on Friday, which may give further direction to the market.
Market veteran Raamdeo Agrawal of Motilal Oswal Financial Services also expects the markets to take a breather. “It is scary to see at what pace market has moved from 20,000 to 21,000 – it has been just a few days. So I don’t think we can maintain this pace. We need calibration otherwise, wrong things start happening, wrong kind of trades start happening, wrong kind of money starts coming in. So I think we need a breather,” he told CNBC-TV18 on the special occassion of the channel entering its 25th year.
“I think Indian stock market is sone ki chidiya. Lots of wonderful things can happen, oil can fall to $50 per barrel, rupee can strengthen, we can have a component growth of 7-8% for many years to come. So it is India’s decade, maybe India’s few decades,” he added.
Kotak Securities’ Shrikant Chouhan has observed that the Nifty, on the daily charts, has formed a small candle, indicating rangebound activity in the future. He expects 20,800 – 20,750 to be a key support for the index, while 21,000 – 21,050 will continue to act as a resistance.
The huge upside gap between 20,507 – 20,291 is still open on the Nifty indicating that the market is in the middle of a sharp uptrend with breakaway gaps, observed Nagaraj Shetti of HDFC Securities. Immediate resistance for the index is at 20,950, while a break above that can take the index to 21,550. Downside support is at 20,830, he said.
Rupak De of LKP Securities said that the near-term trend on the Nifty will remain sideways as long as it remains below the 21,000 mark. A decisive breakout above that level might resume the uptrend, he added.
The Nifty Bank continued to face resistance at the 47,000 mark, but also managed to take support at 46,500 on the downside, creating a 500-point range for the index. For the week, the index is up 4.5%, which will also turn out to be its best week since July 2022 in case it manages to end above or at these levels on Friday.
Kunal Shah of LKP Securities said that the Nifty Bank has a lower-end support at the 46,500 – 46,400 mark and as long as it remains above these levels, the stance should remain buying the dip. On the upside, 47,000 is a resistance, above which, the index can surge back towards 47,500.
What Are The F&O Cues Indicating?
These stocks added fresh long positions on Thursday, meaning an increase in both price and Open Interest:
| Stock | Price Change | OI Change |
| CONCOR | 6.38% | 26.92% |
| Mahanagar Gas | 4.88% | 14.19% |
| SBI Card | 2.93% | 12.48% |
| MCX | 4.57% | 12.29% |
| Tata Power | 10.99% | 11.61% |
These stocks added fresh short positions on Thursday, meaning a decrease in price but increase in Open Interest:
| Stock | Price Change | OI Change |
| Balrampur Chini | -6.72% | 54.32% |
| Apollo Tyres | -0.45% | 21.27% |
| Aditya Birla Capital | -3.74% | 16.61% |
| Hindustan Unilever | -1.98% | 13.98% |
| Piramal Enterprises | -1.55% | 12.12% |
These are the stocks likely to be in focus ahead of Friday’s trading session:
First Published: Dec 7, 2023 6:12 PM IST
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
