Trade Setup For Dec. 5: Nifty 50 Prime For Upside To 24,900 Level

The market situation on December 5 shows that the NSE Nifty 50 and BSE Sensex have closed higher for the fourth straight session, marking the best performance in months. Analysts suggest that the bullish chart patterns for the Nifty 50, characterized by higher highs and higher lows, remain intact on the daily chart. They believe that any dips could serve as buying opportunities.

Positive Market Indicators

Nandish Shah, a senior analyst at HDFC Securities, noted that the short-term trend for the Nifty remains positive. He indicated that a significant move above 24,500 could lead the index to the next target of around 24,900 in the near term. Meanwhile, immediate support is identified at the 24,300 level.

The market is expected to keep a close eye on the statements from US Federal Reserve Chair Jerome Powell, along with upcoming US jobs data, as said by Siddhartha Khemka from Motilal Oswal Financial Services. Khemka believes that the Nifty is likely to experience a continued gradual uptrend, bolstered by favorable government policies and potential liquidity injections resulting from the Reserve Bank of India's forthcoming policy decisions.

In the derivatives market, open-interest data shows significant resistance at the 24,500 and 24,600 levels, where the highest call open interest has been recorded. Mandar Bhojane, a research analyst at Choice Broking, indicated that the 24,300 strike has the highest put open interest, showing strong support. Therefore, a clear breakout above 24,500 could lead to more gains in the subsequent sessions.

Bank Nifty Outlook

The Bank Nifty has also shown a robust bullish indication, as reflected by a strong bullish candle, suggesting sustained buying interest from lower levels. According to Bhojane, a breakout above the daily high could initiate further upward momentum, with immediate support levels seen at 53,000 and 52,800, while resistance is anticipated at 53,400 and 53,800.

Market Recap

On Wednesday, the NSE Nifty 50 closed at 24,467.45, up by 10.30 points or 0.04%. Simultaneously, the BSE Sensex finished at 80,956.33, which reflects an increase of 110.58 points or 0.14%. Over the last four sessions, both indices have gained approximately 1.39% and 1.45%, respectively. The Nifty 50 even reached a high of 24,573.20 during the day, and the Sensex advanced to 81,245.39, surpassing the 81,000 mark for the first time in 29 sessions since October 21.

Key Stock Movements

Several stocks made headlines, including:

• Indus Towers: Vodafone Group Plc is divesting its 3% stake by selling 7.9 crore shares through open market transactions, with the proceeds aimed at repaying $101 million in outstanding loans secured against Vodafone's Indian assets.

• Mastek: Arun Agarwal has resigned from his position as the Global CFO and key managerial personnel.

• Indraprastha Gas: The board plans to discuss a proposal for a bonus issue of shares on December 10.

Currency Situation

The Indian rupee has been under pressure and ended lower on Wednesday after experiencing two days at record lows ahead of the Reserve Bank of India's important interest rate decision planned for this week. The rupee weakened by four paise, closing at 84.73 against the US dollar, compared to 84.69 on Tuesday.

Trade, Nifty, Market