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Market Update

Nifty : 26,175.75 -27.20 (-0.10%)

Sensex : 85,641.90 -64.77 (-0.08%)

* Equity benchmark Nifty ended marginally lower but held firmly above the 26,150 mark after briefly touching a new record high, supported by strong GDP growth data.

* The index saw mild profit booking from peak levels ahead of this week’s RBI Credit Policy and due to softness in US futures ahead of the Federal Reserve meeting on December 10. Nifty slipped just 0.1% or 27 points to close at 26,175 after hitting an all-time high of 26,325.

* Despite the slight decline, overall market sentiment remained positive as Nifty Auto and Metal indices gained nearly 1% .

* The Auto index outperformed today gaining nearly 1% after Maruti Suzuki, TVS Motor, Tata Motors and Ashok Leyland reported over 20% year-on-year growth in November sales; TVS Motor jumped 3.4% to Rs.3,650, while Hero MotoCorp, Tata Motors, Ashok Leyland and Maruti Suzuki gained 1–2%.

* The Metal index also traded firm on the back of rising LME base metal prices, with Hindustan Copper surging 3.5% to Rs.338.8 and other names such as Hindustan Zinc, NMDC, National Aluminium and Vedanta advancing 1–3%.

Technical Outlook:

* Nifty index opened positive and touched a fresh life high of 26325 zones in the first tick but witnessed profit taking thereafter. It broke its previous day’s lower levels but dips are positioning as opportunity to buy in the overall uptrend.

* It formed a bearish belt hold sort of candlestick pattern on the daily frame as it failed to cross its opening highs for the rest of the day. Now it has to hold above 26100 zones for momentum to extend towards 26250 then 26325 zones while supports are shifting higher to 26100 and then 26000.

Derivative Outlook:

* Nifty future closed negative with losses of 0.22% at 26330 levels. Positive setup seen in Hindustan zinc, Paytm, Hero Motocorp, Kotak Bank, BEL, MCX, HCL Tech, IIFL, NBCC and Vedanta while weakness in Delhivery, Kaynes Technology, Max Healthcare, DLF, INOX wind, BPCL, Colpal, IRFC, Trent and Fortis.

* On option front, Maximum Call OI is at 26300 then 26200 strike while Maximum Put OI is at 26000 then 26100 strike. Call writing is seen at 26300 then 26200 strike while Put writing is seen at 26150 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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