Daily Markets Wrap - Dec 5, 2023 - HDFC Securities
Posted On:
2023-12-05 18:53:04 (Time Zone: IST)
Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty ended higher for the sixth consecutive session on December 5. At close, Nifty was up 0.81% or 168.3 points at 20855.1. Cash volumes on the NSE crossed Rs.1.2 lakh crore amidst increased activity from institutions including FPIs. Broad market indices rose less than the Nifty even as the advance decline ratio fell to 0.91:1.
Asian stocks slipped to three-week lows and Hong Kong's Hang Seng index slumped to a one-year trough on Tuesday as investors tempered expectations for cuts to U.S. interest rates. Emerging-market equities fell more than 1% after Moody's Investors Service cut its sovereign debt outlook for China to negative reflecting concern that the country's property crisis is spilling into its local government and private financing.
European stocks inched lower on Tuesday as investors maintained caution ahead of key economic data due later in the day while assessing the outlook for central bank interest rate cuts. ECB's Isabel Schnabel told Reuters that further interest rate hikes are unlikely.
India's services sector expanded at its slowest pace in a year in November, a private survey showed. Despite falling from 58.4 in October to a one-year low of 56.9 in November, the seasonally adjusted S&P Global India Services Business Activity Index pointed to a rise in output across the sector. Composite PMI also fell from 58.4 in October to 57.4 in November-the lowest in a year.
Nifty rose on Dec 05 with another (though smaller) upgap showing the strength of fund-based buying. It made a near hanging man pattern that could portend a correction in the near term. We will watch as to whether the successive upgaps get filled in the next few sessions. If not, then the upmove could continue towards 20910. A break of this level could take the Nifty to 21558 over the next few weeks. On falls, the gap level of 20508 could offer support. Nifty could in all likelihood start to correct mildly on and from Dec 07.
