IGI Logo

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

Indian equity markets are expected to open flat to slightly negative today, as indicated by GIFT Nifty trading near 24,508.50 earlier this morning. Global and domestic cues suggest a mixed start for the benchmark indices, Sensex and Nifty 50. Investors may need to brace for potential volatility as global and local institutional flows continue to influence market sentiment.

On the technical front, the Nifty has shown strength after breaking out of its recent consolidation range. The formation of a bullish candlestick pattern on the daily chart suggests that the prevailing uptrend could continue. A decisive close above the 24,500 level may pave the way for further gains towards 24,800 and 25,000 in the upcoming sessions. On the downside, support is seen at 24,000 and 23,900, making dips an attractive buying opportunity. The Relative Strength Index (RSI), currently at 55.7 and trending upwards, indicates sustained positive momentum.

The Bank Nifty also broke out of its consolidation and closed above the critical 52,600 mark, signaling a continuation of the uptrend. Immediate support is observed at 52,400, which provides an opportunity for positional buying on dips. If the index sustains above 52,800, it could potentially rally further to test resistance levels at 53,200 and 53,600 in the short term.
 

From a flows perspective, foreign institutional investors (FIIs) were net buyers, adding equities worth over Rs.3,600 crore on December 3. In contrast, domestic institutional investors (DIIs) were net sellers, offloading Rs.250.99 crore worth of equities. This divergence between global and domestic flows underscores a delicate balance, which could contribute to intraday volatility.

Above views are of the author and not of the website kindly read disclaimer