Synopsis: The Indian stock market opened flat with early buying activity seen in the PSU bank sector. Sensex rose marginally by 0.13%, and Nifty gained 0.11% as market resilience remained intact. Positive sentiment centered on expectations of a CRR cut to boost banking sector profitability.
Indian Stock Market Opens Flat Amid PSU Bank Gains:
The Indian stock market started on a steady note on Tuesday, with early trade witnessing buying interest in the PSU banking sector.
At 9:46 am, the Sensex stood at 80,349.11, up by 101.03 points (0.13%), while the Nifty climbed to 24,302.85, gaining 26.80 points (0.11%).
Market sentiment remained positive as 1,864 stocks traded in the green and 421 stocks traded in the red on the National Stock Exchange (NSE).
Experts highlighted the market's resilience, emphasizing its focus on potential policy measures rather than concerns over GDP slowdown.
Sectoral Insights and Key Movers:
The Nifty Bank index rose by 337.30 points (0.65%), closing at 52,446.30, while the Nifty Midcap 100 index advanced by 352.80 points (0.62%) to reach 57,353.65.
Similarly, the Nifty Smallcap 100 index gained 174.25 points (0.92%) to settle at 19,019.30.
Banking stocks were buoyed by expectations of a potential Cash Reserve Ratio (CRR) cut later in the week, which analysts believe could enhance banks' profitability.
Stocks like Adani Ports, SBI, HDFC Bank, JSW Steel, and Bajaj Finance emerged as top gainers, while ITC, Bharti Airtel, and Sun Pharma lagged.
Technical Outlook:
Akshay Chinchalkar, Head of Research at Axis Securities, noted that the Nifty’s two-day upward trend could confirm a potential head-and-shoulders bottom pattern.
He identified 24,315 as a critical resistance level, with a possible upside target near 24,800 and 25,500.
However, he cautioned that a drop below 23,873 could invalidate this bullish outlook.
Global Market Overview:
Asian markets reflected positive momentum, with indices in Seoul, Japan, China, Hong Kong, Bangkok, and Jakarta trading in the green.
In contrast, the US markets ended with mixed results.
While the S&P 500 and Nasdaq Composite rose by 0.24% and 0.97%, respectively, the Dow Jones Industrial Average dipped by 0.29%.
Institutional Activity:
On December 2, Foreign Institutional Investors (FIIs) sold equities worth Rs 238 crore, while Domestic Institutional Investors (DIIs) emerged as net buyers, investing Rs 3,588 crore, further reflecting confidence in the domestic market.
In conclusion, Tuesday’s market activity highlighted investor optimism fuelled by anticipated policy measures and banking sector recovery.
While the broader market maintained its resilience, technical indicators suggest potential upside with critical resistance levels in play.
Investors are advised to monitor macroeconomic developments, including the expected CRR cut, which could influence short-term trends.
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