Yesterday Indian Equities reversed their course following recovery in global markets and strong domestic GDP data, the 30-share pack Sensex rose 619.92 points or 1.09 percent to close at 57,684.79. Its broader peer NSE Nifty gained 183.70 points or 1.08 percent to 17,166.90. Autos climbed on better-than-expected November sales data, Tega Industries IPO fully subscribed on the first day of bidding.
Yesterday after a gap-up opening, the index made an intraday high & low at 17213.05 & 17064.25 levels respectively, and managed to close on a green note at 17166.90 levels with a gain of 183.70 points. While Bank Nifty closed the session at 36364.90 levels with a gain of 669.60 points; Bank Nifty outperformed the Nifty by 0.80% with both the indices closing around intraday highs.
IPO of Tega Industries, the second-largest producer of polymer-based mill-liners, has garnered bids for 3.11 crore equity shares against issue size of 95.68 lakhs, subscribing 3.25 times on December 1, the first day of bidding.
While IPO of Star Health and Allied Insurance Company has so far received a lukewarm response from investors with subscription at 16%, garnering bids for 70.48 lakh equity shares against issue size of 4.49 crore, on December 1, the second day of bidding.
On the sectoral front,
Except for Pharma (down 1.50%), all other sectoral indices ended in the green with Nifty Metal (up 2.32), Nifty PSU (up 2.66) & Nifty Auto (up 1.72%) were among the top gaining sectors.
FII sold equities worth Rs 2766 crores. While DII bought equities worth Rs 3467 crores during yesterday.
Major Gainer and Loser of Nifty 50
INDUSINDBK (up 5.83%), JSWSTEEL (up 4.99%) & TATA MOTORS (up 4.23%) were among the Top gainers yesterday.
CIPLA (down 4.42%), ULTRACEMCO (down 1.53%) & DRREDDY (down 1.51%) were among the Top losers in yesterday’s trading session.
Now, what’s next??
Markets managed to settle with the gain of over a percent amid volatility, tracking favorable local cues. Participants reacted positively to the GDP numbers in early trade but the mixed trend across sectors and feeble global cues capped the movement thereafter.
Global markets are still rattling in fear due to the new COVID variant and it may continue in near future. At the same time, favorable domestic data may result in some intermediate relief but the possibility of any major directional move seems unlikely. Keeping all in mind, it’s prudent to stay cautious and wait for further clarity.
Technical View on Nifty and Bank Nifty
Since morning Index has traded sideways. In the second half of the day, the borders of the sideways trading range were marked on the charts.
The Nifty50 formed a bullish candle on the daily charts. If the index holds above 17,100 we see a good upside momentum in days to come
Technically, the Index continued to trade below a trend line from the last few 15-days which indicates a short-term sideways momentum.
A momentum indicator MACD & Stochastic suggested positive crossover on an Hourly time-frame, which suggests a bounce-back can be seen and 21 HMA which suggests sustained above the same can show upside movement.
Nifty remains below 17250, weakness could continue toward 17000 levels. Whereas the upside hurdle exists at 17250 levels. (Spot level).
On the options front, the Nifty open interest put-call ratio is around 0.84 levels. Maximum call open interest addition was seen in 17500 strike. Whereas maximum put open interest is around 17100 strike. This indicating a range of trading in upcoming sessions.
Nifty Futures strategy for the day
Strategy – Either buy above 17250 for the targets of 17350–17420 or Sell below 17200 levels for the downside targets of 17000.
After a gap-up opened, the Index made an intraday high & low at 36445 & 35800 levels respectively and managed to close on a green note at 36385 levels with a gain of 670 points. (spot level)
On a daily chart, the Index has formed an inside bar kind of candle. A momentum indicator MACD & Stochastic suggested positive crossover on an Hourly time-frame, which suggests a bounce-back can be seen.
Technically, Index continued to trade below all the moving averages and traded in a falling channel pattern as we discussed in the last report which indicated sideways move continued
All the Private and PSU banks ended in green except KOTAK Bank.
Bank Nifty remains below 36500, weakness could continue toward 36000 levels. Whereas the upside hurdle exists at 36800 levels. (Spot level)
On the options front, the Bank Nifty open interest put-call ratio is around 0.96 levels. Maximum call open interest additional was seen in 36800. Whereas the maximum put open interest is around 36000 levels, indicating a range of trading in upcoming sessions.
Bank Nifty Futures strategy for the day
Strategy – Either buy above 36600 for the targets of 36800–37000 or sell below 36300 levels for the downside targets of 36000–35800.
Top Stock Recommendations for today (2nd Dec 2021)
VARDHMAN TEXTILES (NSE Symbol – VART, CASH)
The stock has formed a big bearish candle on the chart and we will expect more downside in this stock from current levels.
Strategy – Traders can go for short on rising around 2020 for the downside target of 1960 and then to 1940 levels for the day. Hurdle and stop-loss above 2080 for the day.
Powergrid Futures Stock, after a strong bullish candle stock is consolidating in a narrow range and also forming a bullish triangle pattern on 15 mins time frame, after a triangle breakout we will expect more upside move-in days to come.
Strategy – Traders can grab it above 203.50 for the target of 206.50 and then 208 in the coming days. Support and stop loss will be below 200 on a closing basis.
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