With Monday’s Nifty futures closing at 24,694, the gift Nifty’s 24,720 suggests a flat to positive opening on Tuesday. Analysts expect the market to remain in consolidation mode. They say benchmark performance will continue to be lackluster and some stock-specific activity will pick up in the market.
“After the S&P 500 and Nasdaq Composite closed at record levels last week, investors are looking forward to Wednesday’s release of the Consumer Price Index. “As a result, U.S. stocks ended lower on Monday.” This is the final wild card that could upset expectations that the Federal Reserve will cut interest rates in December. U.S. stocks fell after a rally that put the market on pace for its fastest pace since 2019 as traders awaited key inflation data that will help shape the Federal Reserve’s interest rate outlook.
“Asian stocks rose after Chinese leaders signaled bolder stimulus measures next year to revive the world’s second-largest economy,” he added.
Investors will be keeping an eye on India’s IIP and inflation numbers this week, which will be a key factor influencing the RBI in deciding to cut interest rates, he said. “Nifty’s short-term trend remains bullish as it remains above 5-day, 10-day and 20-day EMA. Short-term support for Nifty is at 24550, while resistance for the same is seen at 24857,” he added. .
Chola Securities said it is cautious on Indian equities from a short to medium term perspective given rising valuations and market capitalization-to-GDP ratio. “However, a significant correction would be an opportunity to accumulate high-quality companies at lower levels.”
Meanwhile, FPIs remain buyers in the Indian stock market.
Rajesh Bhosale, technical analyst at Angel One Ltd, said, “Traders should monitor the 24,400 to 24,800 range during this consolidation phase with a strategy of “buying on the dip and locking in profits in the higher range.” He said that. He added that individual stocks continue to show promise and that not all sectors are participating equally, so traders should focus on selective but stock-specific behavior.
