Broader market outperformed with both midcap and smallcap indices gaining more than 1% each.
Nifty, meanwhile, climbed back to 24,250, led by Reliance Industries, Infosys and HDFC Bank. If the index sustains above 24,350, the index is expected to form higher highs and higher lows on the hourly chart, maintaining a positive short-term trend.
Last week, the Nifty made four attempts to surpass 24,350 but failed each time.
A pivotal support level of 24,000 played a crucial role in cushioning the decline, leading to a decent recovery in Monday’s trading session. By the second half of the day, a surge in buying activity improved the market’s undertone, and the Nifty closed the first day of December on a positive note at around 24,300, rising 0.60%.
Shares of Cipla fell 2% and were among the top Nifty losers following block deals involving 1.72% of its equity. Prompters Samina Hamied and Runiana Hamied offloaded 1.72% stake of the company for ₹2,111 crore, at an average price of ₹1,518.75 per share.
Foreign institutions remained net sellers in the cash market on Monday, while domestic institutions were net buyers.
Going ahead, Siddhartha Khemka of Motilal Oswal expects EV sector to be in focus after reported stated that the government is likely to evaluate a ₹9,000-crore initiative to boost the production of key battery components in India.
What do the Nifty 50 charts indicate?
Following a sustainable upside bounce from the lows on Friday, Nifty continued its upside momentum amidst a range movement on Monday and closed the day with decent gains of 144 points.
The Nifty opened on a slightly positive note but quickly slipped into weakness after the opening. A sharp intraday recovery emerged from the lows near the 24,000 mark, with the market sustaining its gains through the mid to later part of the session.
Nagaraj Shetti of HDFC Securities said that a decisive move above the hurdle of 24,250 could not only confirm the higher bottom reversal pattern at 23,873 levels (November 28), but also signal important trend reversal in Nifty on the upside. The said, the upside breakout is likely to result in sharp follow-through upmove towards 24,700-24,900 mark. Nifty on the daily timeframe has sustained above 10 and 20 period EMAs and closed higher on Monday.
Shetti believes the short term trend of Nifty remains positive. A sharp upside breakout is expected above 24,350-24,400 levels in the next couple of sessions and that could open more upside towards the next resistance zone of 24700-24900 levels in quick period of time. Immediate support is at 24100.
LKP Securities’ Rupak De said the Nifty moved up after absorbing the initial weakness, as the index surpassed 24,200. It formed a green candle following a bullish harami pattern on the daily timeframe. The RSI has broken out of its recent consolidation and is in a bullish crossover.
Additionally, the index continues to sustain above the 21 EMA. In the short term, 24,420 remains a tough hurdle. A decisive move above this level could trigger a rally towards 24,770. On the lower end, support is placed at 24,100 and 24,000, De added.
According to Osho Krishnan of Angel One, the recent uptick in market participation, along with an increase in buying activity among index-heavyweight stocks, has significantly lifted investor sentiment.
From a technical perspective, Krishnan said the Nifty index is now approaching a formidable resistance level at 24,350, where the 89-day and 100-day EMA confluence. Additionally, the resilience exhibited by the market last week reinforces a cautiously optimistic outlook for the benchmark index. On the lower end, the 20 DEMA placed around 24,100 is likely to cushion any upcoming blips while 24,000 remains sacrosanct support in the comparable period.
What do the Bank Nifty charts indicate?
The Nifty Bank index settled at 51,109, gaining 0.10% for the session.
The index exhibited a hammer-like candlestick pattern near the 52,000 level, signalling a potential improvement in the short-term trend. The index sustained levels above the 20-day and 50-day EMAs, reflecting underlying strength. A decisive close above 52,500 could strengthen the trend, with 52,000 would be acting as crucial support, said Om Mehra of SAMCO Securities.
“This could pave the way for a potential move towards the next resistance level, 52,800. Additionally, the rising trendline supports the positive outlook, with the immediate support remains at 51,750,” Mehra said.
Here are the stocks to watch ahead of Tuesday’s trading session:
BPCL signs MoU with Coal India for setting up a coal to synthetic natural gas project at Western coalfields through surface coal gasification.
Cipla founders Samina Hamied and Rumana Hamied sold 1.72% stake in the company for ₹2,111 crore, at an average price of ₹1,518.75 per share.
Intel Corporation: CEO Pat Gelsinger retires from the company, with effect from December 1, 2024, names David Zinsner and Michelle (MJ) Johnston Holthaus as interim co-chief executive officers.
KPI Green has secured an order worth ₹1,311 crore from Coal India.
Torrent Power opens QIP today, sets floor price at ₹1,555.75 per share.
Solar Industries bags export order worth ₹2,039 crore for supply of defence products.
KEC International: Bangladesh Tax Tribunal dismisses company’s appeal against VAT DEMAND. The company will challenge the VAT order in the Bangladesh High Court.
Muthoot Capital to consider issuance of NCDs of up to ₹90 crore on private placement basis on December 5.
