Experts highlighted that the markets have recovered about 50% since October and November fall. However, the markets will now remain in a stable position before marching towards a rally. Ajay Bugga, banking and market expert, told ANI, “Indian markets have recovered more than 50 per cent of their post September fall.
We expect the markets to stabilize for some time and then resume their upward trend. The weather and the flow are in favor of market advance. Global events this week include a US CPI print that is expected to be in line with last month’s advance rate.
Overall markets are factoring in a 25 bps rate cut by the US Fed next week on the 18th. Sectoral indices on the NSE saw a mixed trend during the opening session, with Nifty Bank, Nifty Financials, Nifty Metals, and Nifty Realty rising, while other sectors including Nifty IT declined marginally. Of the 50 stocks listed at the time of filing the report, 22 shares advanced, while 28 declined.
“Friday’s decline in the Nifty traced a small-sized bar within Thursday’s longer range, creating a so-called “intraday”. This represents volatility compression but since volatility is cyclical , so should expect trending soon. At current prices, Nifty is facing resistance from 50- and 100-day moving averages and an Ichimoku barrier, so 24800 – 24900 area is strong.
Support is at 24,445 and 24,360,” said Akshay Chinchalkar, head of research, Axis Securities. L&T, Bajaj Finance, SBI Life, HDFC Bank, and Shriram Finance emerged as the top gainers at the start of the Nifty 50, While India’s Unilever, Tata Consumm, and Britannia opened as top losers in Nifty 50 Week, foreign investors made a strong return to Indian equity markets, with net purchases of over Rs 24,400 crore in the first week of December.
According to National Securities Depository Ltd (NSDL) data, foreign portfolio investors (FPIs) invested Rs 24,453 crore in equities between December 2 and December 6. bought equity worth Rs 9,489 crore, marking its highest investment for the week.
“Markets are poised for a breakout in the coming days as we have seen the Nifty hit back-to-back Crucial resistance. The outperformance of the Nifty 50 this week, a gain of +546 points, a strong reversal in the sector and a bullish trend. This week, the Nifty 50 started well with back-to-back bullish candles, indicating strong buyer interest in the sector is,” said Sunil Gurjar (CMT, CFTE), SEBI Registered Research Analyst, Founder- Alfamojo Financial Services Pvt.
In other Asian markets, South Korea’s KOSPI index continued to decline amid political uncertainty. Hong Kong’s Hang Seng Index was down 0.33 percent. Japan’s Nikkei 225 index rose 0.27 percent, while the Taiwan-weighted index rose 0.10 percent.