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Below Quote Daily Market Analysis 03 December 2022 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Marketstook a breather after making a new record high and shed over a percent. The benchmark gradually inched lower amid mixed global cues however selling pressure in the IT majors put further pressure in the final session. Consequently, the benchmark indices, Sensex and Nifty, settled at 62,181.67 and 18,496.60 levels. Most sectors traded in tandem with the benchmark and edged lower however buoyancy in the banking and FMCG majors capped the damage. The broader indices also witnessed profit taking and lost in the range of 0.5%-1%.

The coming week is going to be critical as we have important events and data lined up. On the domestic front, participants will be eyeing IIP, CPI and WPI inflation scheduled during the week. Globally, the US Fed meet and US CPI inflation will also remain on their radar for cues.

We’re trading largely in line with the global trend and indications are in the favour of further consolidation. However, a decline below 18,300 in Nifty could broaden the range with the next crucial support at 18,000. And, to regain strength, it should decisively reclaim the 18,750 zone. Meanwhile, traders should focus on selecting stocks based on the sectoral trend wherein we expect the positive tone to continue in banking and FMCG while pharma and IT may continue to trade lackluster. Besides, it’s prudent to keep the leveraged positions hedged especially the overnight trades citing the scheduled events.  

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