Stock Markets Today, Dec 4: The strength in the 3-day rally of - the BSE Sensex and the NSE Nifty - may be tested on Wednesday amid tepid cues from global peers.
That apart, the key focus will be on the Reserve Bank of India's (RBI's) six-member Monetary Policy Committee (MPC) which starts today even as there is no clarity on whether Governor Shaktikanta Das, the chair of the panel, will continue in office after his term ends this month. The RBI Policy decision will be announced on Friday.
The December meeting is significant against the backdrop of slowest growth in gross domestic product (GDP) in seven quarters - 5.4 per cent in July-September, much lower than the central bank's projection of 7 per cent.
READ MORE At 7:00 AM, GIFT Nifty futures quoted around 24,502 levels - hinting at a likely 50-odd point gap-down start to the day's trading action.
Over the last three days, the benchmark indices have logged strong gains with Sensex up 1,800 points or 2.2 per cent and the NSE Nifty rallying nearly 550 points. Broader indices were seen outperforming the benchmark indices.
On the charts, the Nifty shows a bullish outlook as it holds above the 40-EMA and inches closer to the 50-EMA. The support remains at 24,280, while resistance is placed at 24,600, followed by 24,650. The prevailing trend has shifted from "sell on the rise" to "buy on a dips”, said Om Mehra, Technical Analyst at SAMCO Securities.
Technically, the Nifty has witnessed a breakout of an inverted head and shoulder pattern, indicating strength. Furthermore, the index crossed both the 100-Days exponential moving average (DEMA) hurdle (24,310) as well as 50-DEMA hurdle (24,370) and closed above them, indicating strength, explained Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates.
On the upside, 24,550 will act as immediate resistance for the Nifty. If the index sustains above 24,550, then upmove could extend towards 24,700-24,800 levels. As long as the Nifty remains above 24,300, traders should adopt buy on dips strategy, adds Hrishikesh.
Amid the current market pull-back, the
market capitalisation-to-GDP ratio has jumped to 147.50 per cent. The ratio had hit an all-time high of 154 per cent at the end of September. On the long-term average, the ratio stands almost 56 per cent higher when compared to the 10-year average of 94 per cent.
IPO Market Update Nisus Finance Services Rs 114 crore IPO will open for subscription today in the price band of Rs 170 - Rs 180 per share. Whereas, Property Share Platina SM-REITS IPO will close on Wednesday.
Abha Power and Apex Eco SME IPOs to be listed on the NSE today.
Meanwhile, the Securities and Exchange Board of India (Sebi) has directed Trafiksol ITS Technologies to refund the money paid by investors who had been allotted shares in the initial public offering (IPO) following complaints of alleged false financial statements.
The Rs 45 crore IPO of the software provider for traffic systems was halted amid complaints around use of issue proceeds and wrongful disclosures. The issue had garnered 345 times oversubscription.
FII, DII On the institutional front, FIIs were net buyers of stocks worth Rs 3,664.67 crore on Tuesday. On the other hand, DIIs net sold shares to the tune of Rs 250.99 crore.
Stocks to Watch Banks: Shares of banks are likely to be in focus today after the
Lok Sabha approved the Banking Laws (Amendment) Bill, 2024, with Union Finance Minister Nirmala Sitharaman outlining measures to bolster investor protection, enhance customer convenience, and improve governance standards in banks. The bill proposes 19 amendments to banking laws.
Hindustan Unilever: The company's
Vim brand, which leads the market in the dishwashing space, is expected to cross the Rs 3,000 crore mark soon in sales. The company has now entered the floor cleaning category with the same brand. It currently has 19 brands with revenue of over Rs 1,000 crore.
Swiggy: The food and grocery delivery firm narrowed its
consolidated net loss in the second quarter of financial year 2025 (Q2FY25) to Rs 625.5 crore from Rs 657 crore a year ago. But sequentially, the loss was up as the firm had reported a consolidated loss of Rs 611 crore in the first quarter of FY25.
PB Fintech: The parent company of Policybazaar board has given approval to incorporate a healthcare subsidiary which will undertake healthcare and allied services.
Global cues Equity markets in the Asia-Pacific region exhibited a mxied trend this morning. Nikkei was down 0.2 per cent. Kospi had plunged 1.6 per cent. Whereas, Taiwan gained 0.5 per cent and Straits Times was up 0.3 per cent.
Overnight in the US, the S&P and the NASDAQ clinched new record highs even as the indices eked marginal gains. Dow Jones, however, was down for the second straight day ahead of Powell's comments and payroll data.
Commodity check Crude oil prices rose in trades on Tuesday. Crude Oil futures were seen quoting around $70 per barrel, while Brent Crude tested levels of $73.50 levels.
Gold futures, however, continued to remain steady around $2,662 per ounce.
 "Markets Today: GIFT Nifty, IPOs, RBI Policy, MPC meeting, FIIs; HUL, Swiggy")
