GIFT Nifty traded up 279 points or 1.37% at 20,632, indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously, on Friday, the NSE Nifty 50 advanced 0.67% to settle at 20,267.90, while the BSE Sensex added as much as 492.75 points to 67,481.19.
“The market soared to new heights last week, decisively breaching the key resistance level and closing strongly above 20,000 levels. Global markets witnessed a bullish trend, buoyed by expectations that the ECB has concluded its rate-hiking cycle amid a backdrop of easing inflation. The Indian economy received a substantial boost from strong Q2FY24 GDP figures and a notable surge in manufacturing activity, significantly enhancing the growth outlook. The IPO market maintained its vibrancy, highlighted by Tata Technology’s monumental listing, fostering increased investor confidence in riskier assets,” said Vinod Nair, Head of Research at Geojit Financial.
Key things to know before share market opens on December 4, 2023
Wall Street
Wall Street major indices ended higher on Friday. The benchmark S&P 500 index closed at its highest level of the year on Friday amid growing optimism the Federal Reserve was done raising US interest rates and could begin to cut them next year as inflation cools, reported Reuters. The S&P 500 advanced 0.59% to 4,594.63, the tech-heavy Nasdaq Composite added 78.81 points or 0.55% to settle at 14,305.03, and the Dow Jones Industrial Average surged 294.61 points to 36,245.50.
US Dollar
The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up 0.02% at 103.28.
Crude Oil
WTI crude prices are trading at $73.91 down 0.22%, while Brent crude prices are trading at $78.63 down 0.32%, on Monday morning.
State-Assembly Elections
In the assembly elections held in the four states, the Bharatiya Janata Party (BJP) won Rajasthan, Chhattisgarh, and Madhya Pradesh, while the Congress party emerged victorious in Telangana.
Asian Markets
Shares in the Asia-Pacific region are trading broadly in green on Monday morning. The Asia Dow is trading up 0.04%, the benchmark Chinese index Shanghai Composite is up 0.11% and Hong Kong’s Hang Seng index is trading up 0.49%, while Japan’s Nikkei 225 is down 0.48%.
FII, DII Data
Foreign institutional investors (FII) purchased shares worth net Rs 1,589.61 crore, while domestic institutional investors (DII) added shares worth net Rs 1,448.08 crore on December 1, 2023, according to the provisional data available on the NSE.
F&O Ban
The NSE has added Delta Corp to its F&O ban list for December 4, 2023.
Technical View
Commenting on the Technical Outlook of Nifty 50, Rupak De, Senior Technical analyst at LKP Securities, said,” The Nifty continues to ascend as the bulls maintain control. A consolidation breakout on the weekly time frame seems probable, paving the way for a further rally in the index. The sentiment remains upbeat, marked by a bullish crossover in the weekly RSI. At the lower end, support stands firm at 20,200; any declines could be seen as buying opportunities as long as it holds above this level. On the higher end, resistance is anticipated around 20,450-20,500 “
Bank Nifty Outlook
Bank Nifty index added 332.45 points to settle at 44,814.20 on Monday. “The Bank Nifty index maintained its robust bullish momentum, breaching the resistance level of 44,700. The immediate hurdle on the upside is positioned at 45,000, marked by the highest open interest on the call side. On the downside, a substantial support level rests at 44,300, serving as a protective buffer for the bulls. Any retracement towards this support presents an opportune moment for investors to initiate long positions,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
