GIFT Nifty traded at 20,822, up 469 points or 2.30%, indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Tuesday. Previously, on Monday, the NSE Nifty 50 soared 418.90 points, or 2.07%, to settle at a record high of 20,686.80, while the BSE Sensex jumped 1383.93 points, or 2.05%, to 68,863.93.
“The rally was on expected lines as the ruling party’s strong performance in state elections gave confidence to investors that culminated into a massive upsurge with key benchmarks scaling record highs. India’s strong growth prospects going ahead along with moderating inflation and return of foreign investors should augur well for domestic markets in the run up to the Union Budget in February. Despite overbought technical conditions, the good news is that the short-term technical outlook for Nifty continues to be in favor of the bulls, with support placed at 20,529-20,321 levels and resistance at 20,750-21,051,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
Key things to know before share market opens on December 5, 2023
Wall Street
US stocks ended lower on Monday, interrupting last week’s rally, as investors turned cautious ahead of employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year, reported Reuters. The tech-heavy Nasdaq Composite dropped 0.84% to settle at 14,185.49, the S&P 500 fell 0.54% to 4,569.78, and the Dow Jones Industrial Average slipped 0.11% to 36,204.44.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up 0.08% at 103.62.
Crude Oil
WTI crude prices are trading at $73.28 down 0.33%, while Brent crude prices are trading at $78.19 down 0.24%, on Tuesday morning.
Asian Markets
Shares in the Asia-Pacific region are trading in red on Tuesday morning. The Asia Dow is trading down 1.03%, the benchmark Chinese index Shanghai Composite is down 0.60%, Hong Kong’s Hang Seng index is trading down 1%, and Japan’s Nikkei 225 is down 1.49%.
F&O Ban
The NSE has added Indiabulls Housing Finance, India Cements, Zee Entertainment and Delta Corp to its F&O ban list for December 5, 2023.
FII, DII Data
Foreign institutional investors (FII) purchased shares worth net Rs 2,073.21 crore, while domestic institutional investors (DII) added shares worth net Rs 4,797.15 crore on December 4, 2023, according to the provisional data available on the NSE.
Technical Outlook
Commenting on the technical outlook of the NSE Nifty 50, Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said, “The Nifty opened with a huge gap up and after consolidating during the first half it witnessed a fresh round of buying interest which helped the Nifty close around the highs for the day. It closed around the highs for the day up 417 points. On the daily charts we can observe that after breaking and closing above the previous swing high of 20,222, Nifty today has witnessed follow-through buying interest. The Nifty managed to hold on to the gains and also built upon it which indicates that there is more steam left in the rally. On the upside we expect it to stretch higher till 21,500. Daily momentum indicator has a positive crossover and thus in case of a dip/consolidation towards the support zone of 20,550 – 20,500, it should be used as a buying opportunity.”
Bank Nifty Outlook
“The Bank Nifty bulls made a strong comeback, surpassing the all-time high levels and dispelling the bearish sentiment. The momentum is anticipated to persist, with robust support identified at the 46,000-45,800 zone, serving as a cushion for the bulls. The ongoing momentum rally has the potential to propel the index higher towards the levels of 47,000/48,000,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.