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India's trade deficit reached a record $37.84 billion in November, driven by high gold imports, raising concerns about the economy. The stock market has faced significant pressure, with the Sensex dropping 2,000 points over three days, influenced by a weak rupee and foreign capital outflows amid cautious market sentiment ahead of the US Federal Reserve's policy meeting.
The Nifty 50 index is currently consolidating, closing at 24,619 after minor profit booking. A rally is possible if it holds above 24,500, with resistance at 24,700 and 25,000. Conversely, a drop below 24,450 may prompt traders to exit long positions, with support at 24,200 and 24,000.
Gold prices faced pressure last week despite a drop in US treasury yields, influenced by strong economic data, including a solid jobs report. Traders anticipate a 25-bps rate cut by the Fed in December, which may support gold at around $2,600 per ounce, while silver shows potential for gains if it breaks above $31.50.
The Nifty 50 experienced consolidation on December 6, closing at 24,678, down 31 points, after a significant rise of nearly 1,000 points over the previous five sessions. Following the RBI's decision to cut the cash reserve ratio, the index is expected to face resistance between 24,900 and 25,000, with key support levels at 24,500 and 24,300. Analysts suggest a bullish market texture, recommending a strategy of buying on dips and selling on rallies amid temporary overbought conditions.
The Nifty 50 surged 1% to close at 24,708, marking a one-and-a-half-month high, as traders anticipate a dovish RBI policy. Holding above 24,700 is crucial for further gains, with support at 24,500 and a potential target of 25,000 if the bullish trend continues.
BJP's decisive victory in Maharashtra is expected to provide a short-term boost to market sentiment, though concerns over high valuations and potential earnings downgrades remain. Analysts highlight the importance of execution in the wake of this political stability, with anticipated growth in sectors like infrastructure and manufacturing aligned with BJP policies.
After a volatile start to the week, commodity markets closed higher as traders responded to geopolitical risks and economic data. The US economy showed resilience with a Composite PMI of 55.3, while the Eurozone's slipped to 48.1, leading to a decline in the euro. Diverging views among Federal Reserve officials have left markets uncertain about potential rate cuts in December.
Shoonya has announced the end of its zero-brokerage model, introducing a new fee structure effective from December 2, 2024. Users will face an annual maintenance fee of Rs 499 and a trading fee of Rs 5 per order for intraday and derivatives trades, while maintaining zero brokerage on delivery trades, ETFs, bonds, IPOs, and mutual funds. This change follows Kotak Neo's recent introduction of a Rs 10-per-order brokerage for intraday trades, highlighting the increasing pressure on discount brokerages to ensure sustainable operations.
US policy uncertainty is expected to cause volatility in commodity markets, as traders react to cabinet picks and Fed Chair Jerome Powell's comments. The dollar reached a one-year high, while gold prices fell to a two-month low amid shifting expectations for rate cuts, closing down over 4%. Silver also declined by 3%, reflecting weakness in base metals.
Market volatility is expected to continue as traders react to key US data and election uncertainties. The US dollar reached a three-month high, while gold surged to a record $2,772.60 per ounce, driven by safe-haven demand amid rising budget deficit concerns and a dip in Treasury yields. The S&P 500 and Dow Jones fell after a six-week rally, contrasting with the Nasdaq's all-time high, fueled by strong tech earnings.
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The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
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