In-depth Analysis on Choppy Market
1. Nifty’s latest move watch
The December futures and options (F&O) series started on a positive note, with the market gaining nearly 1%. On November 29, the Nifty jumped 217 points, marking a strong comeback after the decline of the last few days.
2. Broader Market and Nifty Performance
- Mid-cap and Small-cap performance:
- Mid-cap stocks performed limited.
- Small-cap stocks remained in sync with the Nifty.
- Pharma sector rising trend:
- Cipla, Sun Pharma, and Divi’s Labs were among the top gainers.
3. Adani Green’s stellar performance
Adani Green Energy joined the F&O segment on November 29.
- Key Points:
- 23% jump on day 1.
- 10% upper circuit for two consecutive days.
- Largely recovered from last week’s 29% drop.
4. Weak GDP data impacts market
Q2 GDP data was lower than expected (5.4% vs 6.5%).
- International factors:
- China’s manufacturing PMI stood at 50.3, which is a positive sign.
5. Technical analysis: What are Nifty charts indicating?
Analysis of important levels
- Support: Strong support at 23,900. – Resistance: Challenged at 24,350.
Experts Opinion
- Nagaraj Shetti (HDFC):
- Friday’s recovery indicated the return of the bulls.
- Crossing the 24,350 level is important.
- Rajesh Bhosale (Angel One):
- Nifty remains confined in the range of 23,900–24,400.
- Range breakout will determine the next trend.
6. Bank Nifty: A period of uncertainty
Technical Patterns:
- Spinning Top candlestick (on daily chart) shows uncertainty.
- Doji candle (weekly chart) indicates cautiousness in the market.
Key Levels:
- Support: at 51,750.
- Resistance: at 52,600.
7. Signals from F&O data
Put-Call Ratio (PCR):
- increased from 0.95 to 1.08, indicating stability in the market.
Long Positions:
- Examples: Indraprastha Gas, Divi’s Labs.
- Keywords: Rise in price and open interest.
Short Positions:
- Examples: Apollo Hospitals, Chola Finance.
- Keywords: Rise in price and open interest.
8. Key stocks to watch
- Cochin Shipyard: Contract with Ministry of Defence worth Rs 1,000 crore.
- KEC International: New orders worth Rs 1,040 crore.
- Adani Enterprises: Acquisition of new assets.
9. Tips for investors
Be cautious:
- Avoid aggressive trades till breakout above 24,400.
- Keep a strong support level in mind.
Build a strategy:
- Set a stop loss.
- Wait for range-breakout.
- Keep an eye on international cues.
10. Impact of international cues
- Major contribution of FII and DII activities.
- Dependence on geopolitical events.
11. Upcoming market trend
- Market may remain sideways-to-positive till next week.
- Important: Nifty crossing 24,400 level.
12. Trading tips
- Buy on dips:
- Focus on strong stocks.
- Keep an eye on pharma and energy sectors.
- Profit booking:
- Do not forget to take profits in any uptrend.
13. Will the volatility in the market continue?
Signs of uncertainty remain in the market. Both Nifty and Bank Nifty are struggling at key levels.
14. Conclusion for investors
The current market scenario is testing the patience of investors. Profit is possible only with the right strategy and discipline.
15. Prepare for the future
The market may get stability and clarity in the coming days. Investors should remain cautious and invest in a planned manner.
Conclusion
The movement and direction of the market will depend on geopolitical signals, FII activities, and technical levels. Taking the right step at the right time is the key to success.
FAQs
1. What are the key support levels for Nifty?
The levels of 23,900 and 24,000 have emerged as key supports.
2. What is the key range in Bank Nifty?
The range between 51,750 to 52,600 is important.
3. Which sectors should investors focus on?
Give priority to pharma, energy, and infrastructure sectors.
4. Will the market boom continue?
A bullish trend is possible if there is a breakout above 24,400 level.
5. Should new investors enter the market now?
New investors should start cautiously and with a small amount