IGI Logo

Market Update

Nifty : 26,215.55 +10.25 (+0.04%)

Sensex : 85,720.38 +110.87 (+0.13%)

* After briefly surpassing new lifetime highs—Sensex above 86,000 and Nifty above 26,300—both indices ended the session flat due to profit booking. The Nifty closed just 10 points higher at 26,215 after hitting a fresh peak of 26,310, breaking its previous record of 26,277 after 289 sessions. The Sensex gained 110 points, or 0.1%, to settle at 85,720, having touched an all-time high of 86,055 earlier in the day—the first such peak in 60 weeks.

* The move into uncharted territory highlights the continued strength of the domestic bull market, supported by upbeat global cues, strong FII inflows, rising expectations of a Federal Reserve rate cut at the December 10 meeting, robust quarterly earnings, and optimism surrounding a possible RBI rate reduction on December 5. However, investors opted to lock in gains at record levels ahead of key domestic GDP and IIP data due tomorrow, as well as the closure of US markets for the Thanksgiving holiday.

* Sectorally, auto, banking, metal, real estate, and IT stocks ended flat after retreating from their intraday highs. Notably, Ashok Leyland soared 7% to a record close following news that the company approved the merger of its subsidiary Hinduja Leyland Finance with NDL Ventures.

* Globally, US markets ended 1% higher overnight, while Asian markets also advanced on expectations of a Fed rate cut on December 10.

Technical Outlook:

* Nifty index opened on a positive note and, right after the open, surpassed its previous lifetime high of 26277 after 289 sessions, marking a new peak at 26310. After this initial breakout, momentum cooled off slightly as the index witnessed some profit booking from record levels. Despite the intraday dip, the overall sentiment remains bullish, with bulls holding their ground comfortably.

* Nifty formed a small-bodied candle on the daily chart and continues to create higher highs on smaller time frames, indicating that the upward structure is still intact. 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 positive with gains of 1.28% at 26390 levels. Positive setup seen in Ashok Leyland, Samvardhana Motherson , Coforge, Shriram Finance, MCX, Vedanta, Cummins India, BSE, ICICI Bank and Hindalco while weakness in Adani Enterprise, Kaynes Technology, ONGC, OIL, Marico, Bandhan Bank, Godrej CP, RVNL, DLF and Trent.

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

Global Market Update

* Asian Market - Asian shares advanced for a fourth day, as technology companies staged a rebound from a big selloff earlier this week on easing concerns about stretched valuations and hope of rate cut by US Fed. Japan Index gained 1.2%. Both South Korea and Taiwan Index gained 0.4% and 0.8% respectively.

* European Market - European markets steady as markets pause after rally in the previous day. UK, Germany and France Index are trading flat to positive while U.S. markets remain closed for Thanksgiving Day. The German 10-year Bund yield was flat at 2.674%, and the yield on the 10-year U.S. Treasury held steady at 3.999%.

* US Data - US market closed today.

* Commodity - Oil fell marginally to 1-month low at $62/bbl as investors tracked US-led efforts to end the war in Ukraine, while looking ahead to an OPEC+ gathering this weekend

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412