Nifty Hits One-Month High: Is Nifty on the Verge of a Major Breakout? The Market’s Stunning Recovery Revealed!

At the close, the Nifty 50 was at 24,276.05 up by 0.60%

Today, the market seemed to defy expectations. It began in the red, but then something unexpected happened—by the closing bell, the NSE Nifty 50 surged 0.60%, pushing the index above 24,250. Could this be the beginning of something bigger? Investors’ wealth skyrocketed by a staggering Rs 3.25 lakh crore, as the market capitalization of BSE-listed companies hit Rs 449.72 lakh crore—a notable rise from the previous day’s Rs 446.47 lakh crore.

“The Market Just Hit a One-Month High—Is This the Calm Before a Bigger Storm?”

The Indian equity indices finished on a high note, with Nifty breaking through 24,300 and ending at 24,276.05, marking a 144.95-point gain. But the story isn’t as simple as it seems. While realty, media, and metals sectors led the charge, the real question remains—will this momentum last?

After a slow and somewhat flat start to the day, the market found its rhythm in the second half, powering through some initial weaknesses. Mid and small caps outpaced the benchmarks, suggesting that there might be more upside for nimble investors. But is this just a temporary relief, or is the market gearing up for something more?

“Will Nifty Break Above 24,350? Here’s What You Need to Know”

As Nifty approaches the neckline of an Inverted Head & Shoulder pattern at 24,350, all eyes are on this crucial level. If it breaks above this resistance, we could see a rally pushing towards 24,770. But be cautious— support is seen at 24,100, and a dip below this could signal trouble.

The daily chart hints at a bullish crossover, with Nifty maintaining its position above key short-term moving averages. The momentum indicator, RSI, is flashing green, indicating that the upward trend is strong.

“India’s Economic Growth Slips—But Will It Derail the Market?”

Despite this surge, some shadows loom on the horizon. Recent data showed India’s GDP growth slowed to just 5.4% in Q2, significantly below expectations. The market absorbed the shock for now, but will this weakness in growth lead to a tightening of the monetary policy?

And there’s more—concerns over US tariffs and the global slowdown are starting to bubble up, yet the market is showing surprising resilience. Auto and pharma stocks, along with select heavyweights, provided a cushion, but as the RBI’s policy meeting approaches, market sentiment could shift. Could a rate cut be on the way?

“What’s Next for the Market—Is the Storm Over or Just Beginning?”

For now, the Nifty is riding high, but investors are staying cautious. The upcoming days will provide clearer signals. The core sector’s recovery is a positive sign, but will inflation concerns keep the RBI from cutting rates? With mid and small caps showing a comeback, many are asking: Are we truly in a bull market, or is this just a temporary rally?

As the market breathes new life, investors are on edge. Can Nifty hold above 24,350? Will it break out and head towards 24,770, or will external factors derail the momentum? Keep your eyes on the charts—the answers lie just ahead.

Important Key Takeaways:

• Nifty above 24,250: A strong finish after initial weakness.
• Rs 3.25 lakh crore gained in investors’ wealth.
• Realty, media, and metals sectors lead the way.
• Nifty approaching 24,350—the next big resistance.
• GDP growth slump—can the market shrug it off?

Bank Nifty: Up by 0.10%

Bank Nifty started the day on a positive note, opening in the green, but faced a brief dip before managing to end the session with a 0.10% gain. It closed at 52,109.00, showing resilience in the face of early market fluctuations. Similarly, the BSE Sensex followed suit, rising by 0.56% and closing at a strong 80,248.08, marking a positive finish to the day.

In the sectorial front, the Real Estate sector has shown a remarkable upward trend, gaining a solid 3.04%. This surge is led by prominent players such as Godrej Properties Ltd., which saw an impressive increase of 4.64%, and Oberoi Realty Ltd., which posted a healthy gain of 3.57%. 

On the flip side, the FMCG (Fast-Moving Consumer Goods) sector, which usually holds steady, has experienced a slight downturn of 0.05%. Within this category, Radico Khaitan Ltd. faced a decline of 1.54%, while Godrej Consumer Products Ltd. followed suit with a decrease of 1.50%.

FII/FPI recorded a net outflow of Rs. 238.28 crore, with buying valued at Rs. 13,605.12 crore and selling at Rs. 13,843.40 crore.

DII has remained more optimistic, with a net inflow of Rs. 3,588.66 crore. They bought Rs. 12,456.43 crore worth of stocks, while selling Rs. 8,867.77 crore, reflecting a more bullish outlook from domestic players.

Bank Nifty

The Nifty Banking sector had some gainers and some losers for the day.

The gainers included HDFC Bank with a 0.55% increase, IDFC First Bank with a 0.50% increase, ICICI Bank with a 0.26% increase, Punjab National Bank with a 0.13% increase, and Bank of Baroda with a 0.04% increase.

On the other hand, the biggest losers in the sector included Federal Bank with a 0.66% decline, Kotak Bank with a 0.54% decline, IndusInd Bank with a 0.49% decline, Canara Bank with a 0.25% decline, and State Bank of India with a 0.23% decline. These results suggest that some of the banking stocks performed better for the day.

Gold and Silver Rate (INR) 2nd December, 2024

Is India’s Currency in Freefall? What’s Behind the Rupee’s New Record Low?

The Indian Rupee has fallen to a new all-time low, sending shockwaves through the market. It dipped by 0.2% to 84.6637 per dollar after troubling data revealed a sharp slowdown in economic growth, marking the slowest pace in almost two years. But what’s causing this unexpected dive?

A stronger US dollar is playing a major role, spurred by US President-elect Donald Trump’s demand that the BRICS nations commit to using the greenback in transactions. This move has weighed heavily on emerging-market assets, and the rupee is feeling the brunt.

But there’s more. Analysts believe the disappointing GDP growth data for India could signal that the Reserve Bank of India (RBI) might hold back on aggressive interventions. According to Michael Wan, senior currency analyst at MUFG Bank, “The meaningful miss in GDP for India increases the chance that RBI will intervene less aggressively and allow USD/INR to move higher over time in an orderly fashion.”

Meanwhile, there’s a surprising twist in the bond market. Despite the rupee’s decline, Indian bonds have extended their gains, with India’s five-year bond yield dropping by nearly six basis points, reaching 6.62%. Traders are betting that the RBI might cut interest rates sooner than expected, with the next rate decision looming on December 6.

Will the rupee continue its downward spiral, or is this a short-term setback? And with inflation concerns, will the RBI deliver the rate cut that traders are hoping for? The stakes are high, and the answers remain uncertain—leaving investors on edge.

Stocks Highlights

UltraTech Cement Ltd. made a remarkable move today, with its share price climbing by 3.82% from the previous close of Rs 11,202.15 to Rs 11,630.20. But the story isn’t entirely smooth sailing. Despite this surge, the company reported a 13.05% QoQ revenue decline, marking its weakest performance in the last three years. So, what’s really driving this stock? Over the past three years, UltraTech has outperformed the Nifty 100, with a return of 52.97% compared to Nifty’s 45.07%. However, it still lags behind the Nifty Infrastructure Index, which posted a stronger return of 76.12%.

Additionally, the company spent 1.37% of its operating revenues on interest expenses and 4.28% on employee costs for the year ending March 31, 2024.

HDFC Life Insurance Ltd. is seeing a significant downturn, with its share price dropping by -2.67%, falling from Rs 657.75 to Rs 640.20. Despite this drop, the company posted impressive annual revenue growth of 42.38%, far surpassing its 3-year CAGR of 12.22%. Yet, its 3-year return of -6.74% is a concerning figure, especially when compared to the Nifty 100’s 45.07% return over the same period. Even more troubling, it lags behind the Nifty Financial Services Index, which generated a 36.93% return over three years.

With less than 1% of operating revenue spent on interest expenses and 3.22% on employee costs for the year ending March 31, 2024, HDFC Life seems to be managing its operational expenses well.

Advance Decline Ratio

Today, the advance-decline ratio was 1.70 and the market breadth was positive. The volatility index India Vix decreased by 1.90 to settle at 14.70 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1782
Decliners – 1047
52Wk High – 114
52Wk Low – 18
High Band Hitters – 196
Low Band Hitters – 50
200d SMA – 23660
50d SMA – 24644
20d SMA – 23985

Top Gainers and Losers Stocks

The top gainers were UltraTech Cement (+3.82%), Apollo Hospitals (+3.45%), Grasim (+3.06%), Shriram Finance (+2.56%), and JSW Steel (+2.53%).

The top losers were HDFC Life (-2.67%), NTPC (-1.46%), Cipla (-1.36%), SBI Life (-1.06%), and Hindustan Unilever (-0.69%).

Top Gainers and Losers Sectors

The top gainer sectors were Realty (+3.04%), Consumer Durables (+2.08%), Metal (+1.10%), Media (+1.02%), and Auto (+0.99%).

The top losers sectors were FMCG (-0.05%).

SECTORS – NOTABLE ACTION
REALTY +3.04%
CONSUMER DURABLES +2.08%
METAL +1.10%
FMCG -0.05%

Stocks Ban List

No stocks are included in SEBI’s F&O ban list today.

A stock enters the Ban List if its MWPL is above 95%. Implying that, Ban List shows the Futures and Options (FnO) stocks whose combined open interest in all FnO contracts for a given period crosses 95% of Market-Wide Position Limit.

Daily Pivots

As per the above pivots data, 23900 to 24500 is the Nifty 50 trading range.  

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This article is only for educational purposes and is not an investment advice.