Today’s Market Summarised

Indian markets break the extreme volatile trend of this week and move up.

NIFTY opened the day at 17,105 and moved up. Mostly there was consolidation seen in a wide zone. After 1:30 PM, sudden volatile movements pulled down the index to day-low then pushed it back up again. NIFTY closed the day at 17,167, up by 184 points or 1.08%.

BANK NIFTY opened the day 35,834 and was bullish through the day. Even though resistance was found near 36,200, this level was eventually broken Just like NIFTY, a fall was seen from the top to even below 36k. After consolidation, BANK NIFTY closed the day at 36,365, up 669 points or 1.88%. 

NIFTY METAL(+2.3%) and NIFTY PSU BANK(+2.6%) closed more than 2% in the green. NIFTY PHARMA(-1.6%) saw profit booking and FMCG(+0.19%) remained flat and all other indices gained more than 1%.

All major Asian markets closed in the green today. All European markets are trading in the green currently.   

News Picks

IndusInd Bank(+5.7%) saw buying after an 8-day losing streak and closed as the top-gainer in NIFTY. The stock is still 25% down from its November high. SBIN(+3.2%) and Axis Bank(+3.6%) also featured in the gainers’ list.

Financial stocks generally showed bullishness; 18 out of 20 stocks from FIN NIFTY(+1.2%) closed in green.

Metal stocks closed mostly in green after falling heavily yesterday. JSW Steel(+4.7%) and Hindalco(+2.9%) closed in the top-gainers list. NMDC(+3.5%), SAIL(+2.5%) and Hind Copper(+3.5%) also gained.

Auto stocks also bounced back with mostly positive auto sales data coming out. Tata Motors(+3.6%), Maruti(+2.9%) and Eicher(+2.8%) gained.

There were reports that a decision on one-time spectrum charges is possible, it will be beneficial for Airtel and IDEA. Airtel(-0.84%) stayed flat while Idea(+15.8%) flew up towards closing.

GRSE(+6.3%) inaugurated a Dry Dock unit in Kolkata today and moved up.

Pharma stocks generally closed in the red today. CIPLA(-4.4%), Divis Lab(-2.5%), Dr Reddy(-1.4%) and SunPharma(-1%) closed among the top-losers of NIFTY 50. Glenmark(-4.2%), Alkem(-4.2%), Pfizer(-3.3%) and Cadila(-2.3%) also fell among others.

Biocon(+2.8%) moved up, breaking the pharma sector’s downtrend after entering Dow Jones Sustainability Emerging Markets Index.

BHEL(+1.9%) and HAL(+2.5%) moved up from the defence stocks.

Tata Power(+3.8%) moved up after receiving India’s largest solar and battery storage project worth Rs 945 crores.

Markets Ahead

A rather calm Wednesday compared to the last two days of the week. India’s November Manufacturing PMI came out at 57.6 vs 55.9 last month, showing expansion at a higher pace.

Also, India’s November gross GST revenue collection is Rs 1.32 lakh crores, up 25% (YoY). This could have given the market some positivity.

NIFTY has started the week in green, along with other global markets. However, NIFTY and BANK NIFTY are still trading below yesterday’s high. So currently, we cannot say that there is bullishness yet in the market.

Options data suggests that there is lesser fear of a fall in the market for the first weekly expiry of December. 

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