Market Ahead, Dec 5: All you need to know before the Opening Bell

Investors will await the RBI monetary policy decision today amid high expectations of another round of reduction in the key policy rate to revive the sagging economy. If the RBI cuts the repo rate today, it would be the sixth reduction in the short-term lending rate this year.

Markets will also react to some developments in the telecom sector. First, Bharti Airtel has announced a $3-billion fund raising, including through QIPs, mainly to pay dues linked to the AGR as directed by the Supreme Court recently.

Secondly, Jio has followed Voda Idea and Airtel in raising tariff. Jio's updated tariff plans will be applicable from December 6.

In a crucial development yesterday, the Union Cabinet approved the launch of India’s first bond ETF which can be bought and sold like any listed security on the bourses.

Beside these, investors will continue to monitor Rupee's trajectory against the dollar, oil price movement, and foreign fund flow for further cues.

The overall market sentiment is likely to get a boost from US President Donald Trump’s remarks that talks with China on an interim trade deal were going “very well.” Moreover, a Bloomberg report said that the world’s two largest economies were closer to agreeing how many tariffs would be rolled back in a “phase one” trade deal.

As a result, Wall Street rebounded on Wednesday. The Dow Jones Industrial Average, the S&P 500, and and the Nasdaq Composite all closed over 0.5 per cent higher. Asian stocks edged up on Thursday. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent. Australian shares were up 0.9 per cent, while Japan's Nikkei stock index rose 0.81 per cent.

Oil prices surged more than 3 per cent on Wednesday ahead of the meet of OPEC, Russia and other allies, known as OPEC+ slated for today and tomorrow. As a result, Brent crude futures ended the session up $2.18 at $63 a barrel.

Yesterday, buying in the final hour dragged domestic indices to a higher close. Sensex climbed 0.43 per cent to close at 40,850, while Nifty reclaimed the psychological mark of 12,000 and closed 0.41 per cent higher at 12,043.

Going forward, analysts say the action of optimism for fresh buys are visible in sectors like metals, consumer durables, IT and banking stocks.

In the end, we will leave with a trading idea by CapitalVia Global Research which recommends buying NMDC Limited above Rs 115 for the target of Rs 130 with a stop-loss at Rs 106.