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Below is the Daily Market Commentary 2nd December 2021 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services

Equity markets opened flat but gained momentum throughout the session, despite weak global cues on account of Omicron concern. Domestic sentiments were positive on account of strong GDP data and GST collection. Except PSU Banks and Realty, all other sectoral indices ended in the green.

Global cues were weak as worries mount over spread of Omicron variant to more than 23 countries including US. Hospitalization is on rise across South Africa, where the new variant was first discovered, and omicron is rapidly becoming the dominant variant there.

Going ahead, we expect the market to continue with its volatility given the uncertainty around the new Omicron variant and Fed tapering. However sharp sell-off have made valuations comfortable and the strong domestics economic data points continue to point towards economic recovery thus keeping long term fundamentals intact. We would hence advise investors to buy in this volatility in staggered fashion to build long term portfolio. Technically, Nifty has formed a Bullish candle on daily scale and has been making higher lows from the last three sessions. Now it needs to continue to hold above 17350 zones for an up move towards 17500 and 17777 zones whereas support can be seen at 17150 and 17000 zones.

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