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Market Update

Nifty : 26,202.95 -12.60 (-0.05%)

Sensex : 85,706.67 -13.71 (-0.02%)

* Equity benchmark Nifty ended flat, moving within a narrow range of less than half a percent ahead of the IIP and GDP data due later today. Global markets also traded flat, with the US market closed for Thanksgiving yesterday and operating a half-day today. Nifty ended flat and settled at 26,202 after hitting an intraday high of 26,280 and a low of 26,172. Nifty 500 stocks advance decline ratio was 2:3.

* Sector-wise, Nifty Pharma and Auto were the notable gainers. Nifty Pharma rose 0.6% supported by strong quarterly earnings, with stocks such as Ipca Labs, Laurus Labs, and Ajanta Pharma advancing 1–3%. Nifty Auto also gained 0.6% on expectations of a rate cut on 5th December, following a Reuters poll indicating the RBI may lower interest rates by 25 bps.

Technical Outlook:

* Nifty index opened on a flattish note and traded in a choppy, directionless manner after the initial move, with momentum missing on both sides for the rest of the session. Despite the lack of intraday follow-through, the index continues to hold its gains in all-time-high territory, underscoring inherent strength in the benchmark. On the daily chart, Nifty formed an inside-bar pattern, while on the weekly scale it delivered its highest close ever, reaffirming the firm grip of the bulls.

* The index also wrapped up the November month with gains of nearly 2% and the continued higher-high structure on the larger time frame indicates that the market may be gearing up for fresh record highs in December. Now it has to hold above 26150 zones for a momentum to extend towards 26310 and then 26500 zones while supports are shifting higher to 26100 and then 26000.

Derivative Outlook:

* Nifty future closed flattish at 26396 levels. Positive setup seen in Hindustan zinc, Paytm, Laurus Lab, VBL, AB Capital, GMR Airport, M&M, IIFL, Sun Pharma and Hero Motocorp while weakness in HFCL, Kaynes Technology, Hindpetro, Marico, IOC, CG Power, NMDC, Naukri, Eternal and IEX.

* On option front, Maximum Call OI is at 26300 then 26500 strike while Maximum Put OI is at 26000 then 26200 strike. Call writing is seen at 26300 then 26250 strike while Put writing is seen at 26200 then 26100 strike. Option data suggests a broader trading range in between 25700 to 26600 zones while an immediate range between 26000 to 26400 levels.

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