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Below the Pre Market Comment by Mandar Bhojane, Research Analyst, Choice Broking

The Sensex and Nifty indices indicate a 300-point gap-up start as the BJP secures victories in key states. The S&P 500 index closed at its highest level of the year, driven by optimism about the Federal Reserve potentially cutting U.S. interest rates next year amid cooling inflation. The BJP, led by Narendra Modi, won in Madhya Pradesh, Rajasthan, and Chhattisgarh.

Current market data reveals Nifty December futures trading at a premium of 107.25 points compared to the Nifty 50 spot price. In options, the Open Interest (OI) distribution for Nifty Put options shows a concentration at the 20,000 level, suggesting potential support. On the Call side, notable OI concentrations are seen at the 20,400 and 20,500 strike prices, indicating possible resistance levels for the current expiry.

Further market analysis reveals that the Relative Strength Index (RSI) momentum indicator suggests robust momentum, hovering around the 74 level. On Friday, all sectoral indices, except for Auto, closed in the green, with gains in Capital Goods, FMCG, Metal, Power, and Realty ranging from 1-1.5 percent each.

Positive global cues and the BJP's electoral success, coupled with the performance of the US markets, contribute to overall market optimism. Therefore, a recommended strategy is to "buy on dips," emphasizing strategic stock selection amidst the positive market sentiment.

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