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The Nifty 50 index closed lower on December 9, marking its second consecutive day of losses amid market volatility. A Doji pattern indicates indecision, with the index struggling to surpass the critical 24,700 level, essential for potential gains toward 24,800 and 25,000. Immediate support is noted at 24,500 and 24,200.
Mid- and small-cap indices outperformed broader markets for the third consecutive week, with the BSE Sensex rising 1,906.33 points (2.38%) to 81,709.12 and the Nifty50 adding 546.7 points (2.26%) to close at 24,677.8. The BSE Mid-cap and Small-cap indices increased by 3.5% and 3.3%, respectively, supported by positive cues and net buying from foreign institutional investors. Sectorally, Nifty Realty and PSU Bank indices surged by 5%, while Nifty Metal and Media rose by 4%.
Nifty has extended its rally for the fifth consecutive day, coinciding with the expiry day. IT stocks have shown significant performance, contributing to the overall market momentum. Investors are encouraged to stay updated with relevant content and transaction notifications.
The market remained rangebound ahead of the MPC's interest rate decision on December 6, yet the Nifty index has shown an upward trend for four consecutive days, closing at 24,467. Analysts suggest a potential rise towards 24,550, with crucial resistance at 24,700-24,800, while support is expected around 24,350-24,300. A drop below this level could see the index testing 24,000.
Indian benchmark indices bounced back on November 29 after a steep fall the previous day, with the Nifty starting the December F&O series above 24,100, driven by buying in heavyweights across sectors, except for realty and PSU banks. At the close, the Sensex rose by 759.05 points to 79,802.79, while the Nifty increased by 216.90 points to 24,131.10. A firm start is anticipated for December 2, with GIFT Nifty trading around 24,355.5.
The Nifty 50 made a strong recovery with nearly one percent gains, forming a Bullish Marubozu Opening candlestick pattern. The index faces a critical resistance at 24,350, and sustaining above this level could lead to targets of 24,550 and 24,700, while support is at 23,900.
Dalal Street experienced a nearly 1% gain for the week ending November 29, buoyed by easing geopolitical tensions, a strong BJP victory in Maharashtra, and falling oil prices. The market is expected to remain rangebound with a positive bias, focusing on the upcoming RBI policy, US jobs data, and PMI numbers, while the BSE Sensex rose to 79,803 and the Nifty 50 to 24,131. Stability will hinge on economic data, with investors keenly awaiting the RBI's monetary policy decisions.
As December approaches, the Metal sector is showing potential for a strong bullish run, driven by seasonality analysis. This often-overlooked strategy leverages historical trends to identify opportunities, suggesting that December 2024 could be particularly favorable for metals.
The broader indices continued their rally for a second week, with the BSE Sensex gaining 685.68 points (0.86%) to close at 79,802.79, and the Nifty50 rising 223.85 points (0.93%) to finish at 24,131.10. In November, the Sensex increased by 0.5%, while the Nifty fell by 0.30%. The BSE Midcap, Smallcap, and Largecap indices rose by 2.3%, 5%, and 1.6%, respectively, with notable gains in the Nifty Media (5.5%) and PSU Bank (4.7%) sectors, while Nifty Auto and IT indices declined by 0.5% each.
India's GDP growth for Q2 fell to 5.4%, the slowest in seven quarters, significantly below expectations of 6.5% and the RBI's forecast of 6.8%. This downturn raises concerns about the economy's potential, with central government capex down 15% compared to the previous year, impacting overall growth. The RBI faces pressure to respond during its upcoming monetary policy announcement.
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