Market Insight, 05 December 2024

Thursday , 05 December 2024

Time : 8 AM IST

Insights :

Let’s Understand Yesterday’s Market

1. Nifty closed almost flat, up by just 10 points, amidst high volatility.
2. The banking sector led Nifty to close in the green, with HDFC Bank alone contributing nearly 50 points.
3. Once again, the midcap and small-cap indices closed in the green, gaining 1% and 0.9%, respectively.
4. China banned exports of key microchip elements to the US in retaliation for US restrictions on China. This move might benefit Indian companies.
5. FIIs bought shares worth ₹1,797 crores yesterday, while DIIs sold shares worth ₹900 crores.

Let’s Understand Today’s Cues

6. US markets closed in the green:
   • Dow Jones rose by 0.69%.
   • Nasdaq surged by 1.3%.
     Jerome Powell, the US Federal Reserve Chairman, commented that the economy is strong enough for the central bank to proceed cautiously on rate cuts. Markets are now pricing in a 76% chance of a 25 basis point rate cut at the Fed’s December 17-18 meeting.
7. The French government collapsed on Wednesday after losing a no-confidence vote. However, this is unlikely to impact Indian markets significantly.
8. Asian markets are trading mixed.
9. The OPEC+ meeting is scheduled for later today, with investors awaiting updates on potential supply cuts. Yesterday, crude oil prices fell by 1.5%.
10. GIFT Nifty is indicating a flat-to-negative start for Indian markets.

Insights for Today’s Session

11. Volatility is expected to continue, as the RBI MPC results will be announced tomorrow at 11 AM. Markets are anticipating either a Repo Rate cut or a CRR cut to boost liquidity.

• CRR cut beneficiaries: HDFC Bank, Axis Bank, Federal Bank, and Bank of Baroda.
• Repo rate cut beneficiaries: LIC, Bajaj Finance, and L&T Housing Finance.

12. Key Levels for Nifty:

Support: 24,350 (the recent resistance).

Resistance: 24,500.