Sensex Gain 110 Points, Nifty at 24,467; Tomorrow Nifty Prediction
Tomorrow Nifty Prediction
Market Overview: After Two Days of Gains, Indian Stock Market Trades in Limited Range – What’s Next for December 5?
After experiencing two consecutive days of upward momentum, the Indian stock market entered a phase of consolidation on December 4, remaining within a narrow trading range.
Despite this pause, the overall sentiment continues to lean towards positivity, fueled by the resilience shown by certain sectors and the strong performance of midcap and smallcap stocks.
The day’s market behavior was typified by a spinning top candlestick pattern, which indicates a fierce tug-of-war between bulls and bears, leading to indecisiveness.
This pattern often signals a period of consolidation or a potential reversal, but given the broader bullish trend, the market is expected to maintain its positive trajectory barring any significant negative news or technical breakdowns.
Stock Market Performance on December 4:
Indian markets closed with moderate gains on December 4, capping a volatile trading session. This marks the fourth consecutive day of upward movement for the Indian indices, indicating that the broader market sentiment is still largely positive.
The Nifty index remained around 24,450, though it faced some resistance as it approached the 24,550 level.
The Sensex, India’s benchmark index, moved similarly, staying in a tight range before finishing with a modest gain.
The Nifty index opened flat but witnessed buying interest at lower levels, enabling it to cross the 24,550 mark in the early part of the session.
However, as the session progressed, the market lost its momentum, and by mid-afternoon, it traded in a narrow band until the closing bell.
The Sensex ended the day with a gain of 110.58 points, or 0.14%, closing at 80,956.33, while the Nifty gained 10.30 points, or 0.04%, settling at 24,467.45.
This indicates that while there was some positive movement, the market was unable to sustain a strong bullish trend.
The day’s session was characterized by sectoral divergence. Realty and financial stocks were the key contributors to the day’s gains, helping push the indices higher despite the overall limited range.
On the other hand, sectors such as auto and FMCG struggled, with both experiencing a decline of approximately 0.7%.
IT and media stocks, however, managed modest gains, with both sectors rising by around 0.5%. PSU banks and realty stocks were notable outperformers, with both sectors closing with a robust gain of over 2%.
Among the major Nifty gainers, stocks like HDFC Life, HDFC Bank, Apollo Hospitals, NTPC, and Bajaj Finserv led the way, benefiting from sector-specific rallies.
Conversely, Bharti Airtel, Cipla, Bajaj Auto, Tata Motors, and Adani Ports were among the top losers, reflecting the broad-based pullback in select blue-chip stocks.
Sectoral Performance on December 4:
The realty sector continued to show strength, buoyed by strong performance from stocks like DLF, Godrej Properties, and Oberoi Realty, which helped maintain the overall positive trend.
Likewise, financials, particularly the banking segment, benefited from buying interest in stocks such as HDFC Bank and ICICI Bank, which saw healthy gains during the session.
On the downside, the auto and FMCG sectors faced headwinds. The auto sector, weighed down by challenges such as rising input costs and lower demand, fell by 0.7%, with stocks like Bajaj Auto and Tata Motors seeing declines.
Similarly, the FMCG sector, which has been a strong performer this year, showed weakness, declining by 0.7% due to profit-taking in large-cap stocks such as Hindustan Unilever and Nestlé India.
The Broader Market and Smallcaps:
The broader market, however, exhibited strong resilience. Midcap and smallcap indices outperformed the large-cap indices, reflecting a growing appetite for stocks outside the Nifty and Sensex.
The Midcap 100 index gained around 1.05%, while the Smallcap 100 index rose 0.89%, continuing the positive trend seen in recent days.
This suggests that market participants are shifting their focus to mid and small-cap stocks, which may offer better growth potential amid ongoing market consolidation.
Market Prediction for December 5:
According to market experts, the market’s behavior on December 4 is a natural consequence of the recent strong rally.
The recent upward momentum has now entered a phase of consolidation, a common pattern observed in markets after an extended period of gains.
Ajit Mishra, Vice President of Religare Broking, observed that the session witnessed significant volatility, and while the broader market sentiment remains optimistic, profit booking in certain large-cap stocks hindered the uptrend.
Mishra pointed out that sectors like banking and real estate remained strong, while sectors like energy, auto, and FMCG faced pressure.
Despite the consolidation, Mishra remained positive on the market’s overall outlook, predicting that the bullish sentiment will likely persist in the medium term.
He advised traders to focus on stock-specific strategies, with an emphasis on identifying quality stocks during any market corrections.
In his view, such corrections present an opportunity for long-term investors to accumulate shares at attractive valuations.
Aditya Gaggar, Director at Progressive Shares, echoed similar sentiments, noting that while the market had a volatile session, the recovery led by PSU banks was encouraging. Gaggar highlighted that the market had been unable to sustain higher levels and closed flat, but the broader market remained bullish, especially in midcaps and smallcaps.
He also mentioned that sectors like public sector banks, realty, and the Bank Nifty outperformed the broader market, while FMCG and energy stocks were the biggest laggards.
Technical Outlook and Support/Resistance Levels:
The spinning top candlestick pattern that formed today suggests indecision, with neither the bulls nor the bears able to gain a decisive upper hand.
However, the overall market sentiment remains bullish, as indicated by the broader positive trend. In the near term, traders should be mindful of the key support and resistance levels.
The immediate resistance level for the Nifty stands at 24,660, which has proven to be a significant barrier over the past few sessions.
If the Nifty breaches this level with conviction, it could pave the way for a further upward move towards 24,800. On the downside, 24,350 remains a strong support level, and a breach below this level could lead to further consolidation or a potential downward correction.
Final Remarks:
The market’s move into a narrow range after two days of gains is a typical phase of consolidation after a strong rally.
While there was some volatility in the session on December 4, the underlying sentiment remains positive, with specific sectors such as banking and real estate continuing to perform well.
The broader market, led by midcaps and smallcaps, is also showing strong momentum, reflecting investor optimism beyond the large-cap stocks.
As the market moves into December 5, consolidation is expected to continue, with traders advised to focus on quality stocks and monitor any corrections for potential buying opportunities.
The key technical levels for Nifty are at 24,350 for support and 24,660 for resistance, and these will be crucial in determining the market’s next move.
Overall, the outlook remains cautiously optimistic, with the market likely to stay in a bullish trend barring any significant negative surprises.
