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Below Post-market comment by Mandar Bhojane, Research Analyst, Choice Broking 

Closing Market Summary 04^th Dec 2023

On December 4, benchmark indices reached new record highs, with the Nifty surpassing 20,650 and Banknifty achieving a record high, gaining 1617.20 points. The Nifty closed the day with a substantial gain of 418.9 points or 2.07 percent, settling at 20,686.80.

At the close, the Sensex experienced a significant surge, rising by 1383.93 points or 2.05 percent, reaching 68,865.12. This positive market momentum reflected an overall sense of optimism and confidence in the financial markets.

Bulls demonstrated strong dominance in today's trade, propelling the index higher right from the beginning. Except for the Media and Pharma sectors, all others concluded the day with gains, with Banking and Energy emerging as the top performers. However, mid and smallcap indices underperformed as buying was concentrated in index-based stocks.

On the daily chart, the Nifty sustained its upward momentum after a gap-up opening of 300 points, forming a robust bullish candle indicative of a strong uptrend. However, a closer examination of lower time frames, particularly the hourly charts, revealed an extremely overbought condition. A correction, either in terms of time or price, seems warranted, suggesting that one should consider entering positions on dips for a more favorable risk-reward profile.

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