Weekly Wrap-Up (DEC 4 – DEC 8, 2023)
Market Hits New Milestones Following Strong GDP Data and Aligned RBI Policy
Favorable global as well as domestic cues helped the Indian market to post the biggest weekly gain since July 2022 and also achieved the fresh milestone in the week ended December 8.
Indices Weekly Performance
This week, BSE Sensex rose 3.47 percent to close at 69,825. while Nifty50 surged 3.46 percent to finish at 20,969 On Friday, the Nifty went past the 21,000 mark for the first time when it hit 21,006.10 and the BSE Sensex also touched a new high of 69,893.80.
Indices Analysis
Nifty 50
Nifty 50 indices as we see mentioned in previous weekly reports ; The rally got continued by nifty opening gap up on Monday itself and continued the rally after it . The days were like :-
As Monday, Nifty opened 300 pts gap up by providing a breakout and traded positive by closing in net gains of 418 pts .
As on Tuesday, Nifty opened again 122 pts gap up and closed with net gain of 168 pts .
On Wednesday, Nifty opened flattish green and consolidated above previous day high by trading in sideways and closed forming a sell side hammer in one day time frame
On Thursday, Nifty opened flattish and traded flat during whole day after showing no volume zone and hold of IV in strikes by no theta decay .
On Friday, Nifty opened in green but due to RBI monetary policy during the session indices provided both side volatility. Now , if we observe Nifty on daily time frame has formed a sell side hammer on Wednesday which indicates that it might correct and show a downside direction upto 20,200pts
Bank Nifty
BANK NIFTY as same followed by nifty structure and provided a rally of almost 2000 pts last week .
As on Monday, BN opened 800 pts gap up and provided a rally of another 800 pts during the day by closing in 1600 pts of net gains and providing
As on Tuesday, BN opened gap up 430 pts gap up and and provided both side volatility
On Wednesday BN opened flat and traded under sell pressure by closing in net loss of -177 pts
As on Thursday BN opened under selling pressure but sustained above 46,700 pts .
On Friday BN continued the positive upside move by gaining the Wednesday’s loss and closing in gains of 420 pts . Now overall Bank nifty has performed as mentioned in reports that the rally may continue. Now the structure of banknifty is forming a consolidation zone here . If Indices break and give any close below 46,374 pts then there will be a probability of BN correction till 45,000.
Nifty Chart
The benchmark Nifty was back to its record-breaking ways after taking a breather in the previous session, topping the 21,000 mark for the first time on December 8. The Nifty hit a high as the Reserve Bank of India (RBI) announced its decision to keep the repo rate unchanged at 6.5 percent for the fifth time in a row. The move was in line with market expectations.
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INDIA VIX
A Positive change of 12.47 suggests an Increase in volatility compared to the previous week
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Sectoral Performance
Among sectors, BSE Power index rose 13.07 percent, BSE Oil & GAs index added 7.66 percent, and BSE Bank index rose 5.31 percent and BSE Energy index up 5.21 percent. However, BSE FMCG index fell 0.3 percent.
FII & DII Weekly Activity
Overall FII’s have been positive in cash markets while DII’s are also positive by being net buyers this week.
Global Market
GIFT Nifty :- Gift Nifty has closed with a gains of 740 pts
Dow Jones :- DJI has closed with a gains a 2.37 pts
Nasdaq :- Nasdaq has closed with gains 87.11 pts
S&P 500:- SPX has closed with gains of 9.72 pts
Overall globals have ended in a net gain forming a positive market this week
Currency Indices
Indian rupee touched a fresh record low of 83.58 against the US dollar during the week. However, domestic currency lost 9 paise to close at 83.40 in the week ended December 8 versus December 1 closing at 83.29.
Poll of the week
Last week’s poll
Q1 What is the purpose of the SEBI mandate regarding the nomination of beneficiaries for demat accounts ?
a) To freeze demat accounts
b) To make it harder for investors to pass on their assets
c) To secure assets and facilitate their transfer to legal heirs
d) To simplify the documentation requirements for investors
Last week’s poll answer: c) To secure assets and facilitate their transfer to legal heirs
Commodity Market
After the consolidation range of 6332-6540 over the six trading sessions, crude oil is showing a strong downward movement with gap-down openings in all these days this week. This is amid signs of increasing global supplies and weakening demand. The current R1 is placed at 6000, and S1 is placed at 5700.
Natural gas continues its downward trend. natural gas formed a bullish doji candle, indicating indecision in the market trend. Weather factors remain the primary drivers of gas pricing, with importance increasing as winter officially arrives in a couple of weeks. The current R1 is placed at 220, and S1 is placed at 208
Blog of the week
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