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Below View on Pre-market comment 07^th Dec 2023 By Choice Broking

The benchmark Sensex and Nifty indices are expected to open marginally higher on December 7, as signals from the GIFT Nifty indicate a flat to positive start for the broader index, with an anticipated gain of 10 points.

On Wednesday, U.S. stocks concluded the session in negative territory, influenced by declines in large-cap stocks and energy shares. This decline was triggered by indications of a slowing job market, fueling expectations that the Federal Reserve might implement interest rate cuts in the early months of the upcoming year. Similarly, Asian markets mirrored the trends observed on Wall Street, experiencing declines as investors assessed trade-related information from both China and Australia.

Technical charts suggest that the Nifty is in the overbought zone, indicating a potential correction in the near future. Nifty may find support at 20,850, followed by 20,800. On the upside, 21,000 could serve as immediate resistance, followed by 21,200.

Banknifty, unable to sustain above the 47,000 mark, faces immediate support at 46,300, followed by 46,000. On the flip side, 47,500 acts as an immediate hurdle, followed by 48,000, which holds the highest open interest on the call side.

Foreign institutional investors (FIIs) turned net sellers for the first time in the last 10 consecutive sessions, selling shares worth Rs 79.88 crore. In contrast, domestic institutional investors (DIIs) bought Rs 1,372.18 crore worth of stocks on December 6, according to provisional data from the National Stock Exchange (NSE).

The substantial buying from both FIIs and DIIs, as mentioned above, is expected to provide strong support for the market to move higher in the coming days. Therefore, traders and investors are advised to maintain their long positions with a trailing stop loss set at 20,800 levels.

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