Market Insight, 04 December 2024

Wednesday, 04 December 2024

Time : 8:15 AM IST

Insights:

Let’s understand yesterday’s market:

1. Nifty gained 181 points and closed at 24,457.
2. Most global markets ended in green yesterday, positively influencing Indian markets.
3. Banks performed well due to the expectations surrounding the RBI MPC.
4. The result of the RBI MPC will be announced on December 6.
5. The Midcap and Smallcap indices gained 0.89% and 0.84% respectively, outperforming the Nifty in recent days.
6. FIIs bought stocks worth over ₹3,600 crores, while DIIs sold stocks worth ₹250 crores. FIIs’ long-to-short positions are currently in the ratio of 36%:64%. FIIs added 6.9K long positions and covered 20K short positions yesterday, ahead of the RBI MPC.
7. Markets are expecting a rate cut or a CRR cut from this RBI MPC. If these measures are not announced, markets might react negatively.
8. The market fell nearly 70 points in the first 15 minutes of trading yesterday, then recovered, breached the resistance at 24,350, and closed significantly higher at 24,457.

Let’s understand today’s cues:

1. US markets closed mixed: the S&P 500 gained 0.05%, the Dow fell by 0.17%, and the Nasdaq rose by 0.4%, indicating that tech stocks are outperforming. Dow Futures are trading in green.
2. European markets ended in green.
3. Asian markets are trading lower after South Korea’s President unexpectedly declared emergency martial law. The KOSPI is down by 2%, while the Singapore, Malaysia, and Taiwan indices are trading in green.
4. GIFT Nifty is indicating a flat start for Indian markets.
5. Crude oil prices rose by more than 2% ahead of the OPEC+ meeting.
6. As per Open Interest (OI) data, significant OI was added to the 24,400 PE and 24,800 CE yesterday. Hence, the support and resistance levels, as per OI data, are at 24,400 and 24,800, respectively.
7. Nifty might take support at 24,150, with resistance at 24,800.