There was great enthusiasm in the stock market on the day of the weekly expiry. At the end of trading, the Sensex, the main index of the Bombay Stock Exchange (BSE), closed at 58,461.29 with a gain of 776.50 points, or 1.35%. On the other hand, the Nifty of the National Stock Exchange (NSE) closed at 17,401.65 with a gain of 234.75 points or 1.37%. Overall market breadth was extremely positive as 47 shares were advancing while 3 were declining on the NSE.
Stock Market Summary
Equity benchmarks prolonged profits for the second consecutive session on Thursday and shrugged off tepid international cues. Also, upbeat monetary records, GST Collection for November month and steady GDP growth in Q2FY22 lifted investors’ sentiments.
Yesterday after a flat opening, both Nifty and Bank Nifty holds its bullish momentum throughout the day. Nifty managed to close above 17400 levels with a gain of 234.75 points. While Bank Nifty closed the session at 36508.25 levels with a gain of just 143.35 points. Nifty outperformed the Bank Nifty by 0.98% with both the indices closing around intraday highs.
On the sectoral front,
All sectoral indices closed in green yesterday. Strong buying was seen in the IT, Metal, and Oil & Gas sectors.
Nifty IT (up 2.04%), Nifty PSE (up 1.85%) & Nifty Metal, Media & Energy indices up around 1.65%.
DII were net buyers of the day, bought shares worth Rs 1373 crores. While FII were net sellers of the day, sold shares worth Rs 910 crores.
Major Gainer and Loser of Nifty 50
ADANIPORTS (up 4.53%), POWERGRID (up 3.76%) & HDFC (up 3.75%) were among the top gainers yesterday.
INFRATEL (down 1.39%), CIPLA (down 0.79%) & ICICIBANK (down 0.58%) were among the top losers in yesterday’s trading session.
Now, what’s next??
Indian benchmark indices witnessed strong gains amid weak global cues. Rising crude prices, firm dollar amid omicron fears can limit the upside move of the market in the short term.
Yesterday two cases of the Omicron variant are detected in Karnataka, so we have to see how market would react to this news in the morning. Keeping all in mind, it’s prudent to stay cautious and wait for further clarity.
Technical View on Nifty and Bank Nifty
The index opened on a flat note, managed to pick up some upside traction and reverse part of recent weakness. Benchmark indices Nifty ended higher for the second consecutive session on weekly expiry.
Technically, Index gives a bullish trendline breakout to resume its positive momentum on weekly expiry which comes from mid-November on an hourly time frame. which also indicated that the bull run continued for the upcoming days.
A recent dip on November 30 had taken support near the hourly lower Bollinger Band. Thereon the index took a leap towards the junction of the 40-hour exponential moving average & the hourly upper Bollinger Band
Nifty remains below 17500, weakness could continue toward 17200 levels. Whereas the upside hurdle exists at 17800 levels. (Spot levels)
On the options front, the Nifty open interest put-call ratio is around 1.37 levels. Maximum call open interest addition was seen at 17500 strike. Whereas maximum put open interest is around 17300 strike. This indicating a range of trading in upcoming sessions.
Nifty Futures strategy for the day
Strategy – Either buy above 17450 for the targets of 17530–17600 or Sell below 17350 levels for the downside targets of 17270–17200.
Bank Nifty opened on a negative note but the aggressive buyers push the Index higher and closed the index in green after such a volatile day.
Technically, on intraday charts, the Index continued to form a higher high and higher lows formation which indicates an uptrend in the shorter time frame.
Index continued to trade in a falling channel pattern for many days which indicated a breakout on either side gives a good momentum in days to come.
AUBANK and ICICIBANK closed in red and didn’t support the Index.
If Bank Nifty remains below 36800, weakness could continue toward 36000 levels. Whereas the upside hurdle exists at 37000 levels. (Spot levels)
On the options front, the Bank Nifty open interest put-call ratio is around 0.91 levels. Maximum call open interest addition was seen at 37000 strike. Whereas the maximum put open interest is around 36500 strike, indicating a range of trading in upcoming sessions.
Bank Nifty Futures strategy for the day
Strategy – Either buy above 36700 for the targets of 36850–37000 or Sell below 36500 levels for the downside targets of 36300–36000.
Top Stock Recommendations for today (3rd Dec 2021)
TECHM Futures stock has given a trendline breakout on the 1-hour time frame and also trading around 52 weeks high, we can expect more upside move-in days to come.
Strategy – Traders can grab it around 1620 for a target of 1655 in the coming days. Support and stop loss will be below 1588 on a closing basis.
Trade safely with given levels only. Cash stock recommendation will provide during market hours to our WhatsApp followers and on our Telegram Channel. To get live updates and levels on WhatsApp. Click on the image given below.
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