Sensex Gain 598 Points, Nifty at 24,457; Tomorrow Nifty Prediction
Tomorrow Nifty Prediction
Nifty Surpasses 24,450, Sensex Jumps by 598 Points: What to Expect in the Market on December 4
In a remarkable display of bullish momentum, Indian stock markets saw continued gains on December 3, 2024, with the Nifty index breaching the 24,450 mark, and the Sensex surging by 598 points.
This marks the third consecutive day of positive movement for the benchmark indices, as investor confidence continues to build amidst favorable global cues and domestic sectoral strength.
The day’s trading opened on a positive note, buoyed by a strong performance in global equity markets, which set the stage for buying across most sectors, with the notable exception of FMCG (Fast-Moving Consumer Goods).
As a result, Nifty and Sensex both saw impressive intraday rallies, with Nifty crossing 24,500, and the Sensex reaching 81,000.
By the close of the trading session, the Sensex ended at 80,845.75, a gain of 597.67 points, or 0.74%. Nifty finished at 24,457.15, up by 181.10 points, or 0.75%.
Market Capitalization Soars, Investor Wealth Grows
The robust market gains also translated into an increase in investor wealth. On December 3, the market capitalization of BSE-listed companies surged to a record high of Rs 453.41 lakh crore, up from Rs 449.72 lakh crore on the previous day.
This increase of Rs 3.69 lakh crore in market value reflects not only the upward movement in stock prices but also growing investor confidence in the broader economic outlook.
The increase in market capitalization is a positive indicator of investor sentiment and a testament to the market’s resilience in the face of global uncertainties.
Sector Performance: Media and PSU Banks Lead the Charge
The day saw broad-based buying, with most sectors participating in the rally. The PSU banks and media sectors emerged as the biggest winners, with major stocks in these segments driving much of the market’s strength.
Media stocks benefitted from increased investor optimism, fueled by a combination of favorable earnings reports and a positive outlook for advertising revenues.
PSU banks also saw strong inflows, as investor confidence grew amid the government’s continued efforts to recapitalize public sector banks and improve their balance sheets.
However, not all sectors were in the green. The FMCG sector, which tends to be more defensive, lagged behind due to concerns over rural demand and the rising cost of raw materials.
Similarly, the pharmaceutical sector also faced some headwinds, with profit-taking seen in certain stocks, especially after strong rallies in recent months.
Top Gainers and Losers: A Mixed Bag
On the individual stock front, the top gainers in the Nifty index included Adani Ports, NTPC, Adani Enterprises, Axis Bank, and State Bank of India (SBI).
These stocks benefited from sector-specific rallies, with financial and infrastructure stocks taking the lead as market sentiment turned positive.
Banking stocks, in particular, saw increased interest as investors anticipated continued improvements in credit growth and the broader economy.
On the other hand, some stocks faced headwinds, including Bharti Airtel, ITC, Hero MotoCorp, HDFC Life, and Sun Pharma.
These stocks saw selling pressure as investors rotated out of defensive plays in favor of more cyclical and growth-oriented sectors.
Market Prediction for December 4: Expert Opinions
As we look ahead to December 4, the market sentiment appears broadly positive, but expert opinions suggest that investors should closely monitor key technical levels and sectoral performance to gauge the sustainability of the rally.
Two key analysts, Aditya Gaggar of Progressive Shares and Rupak Dey of LKP Securities, shared their insights on the Nifty’s potential movement and what investors can expect in the near term.
Aditya Gaggar of Progressive Shares: A Bullish Outlook with Key Resistance and Support Levels
Aditya Gaggar, a well-known market expert at Progressive Shares, remains bullish on the Nifty for December 4.
He noted that the index extended its gains throughout the day on December 3, driven primarily by a surge in banking stocks, particularly PSU banks.
After overcoming the significant resistance level of 24,350, Nifty closed at 24,457.15, up by 181.10 points.
Gaggar pointed out that the breakout from the inverted head-and-shoulders pattern on the daily chart indicated a trend reversal, signaling that the market had shifted from a bearish to a bullish phase.
This pattern is often considered a reliable indicator of a change in market direction. Based on this technical analysis, Gaggar set a target of 25,440 for Nifty, provided the index maintains its upward trajectory.
For December 4, Gaggar identified immediate resistance at 24,660, a level that could pose a challenge for the index in the short term.
However, if Nifty surpasses this level, it could open the door for further gains. On the downside, the new support level for Nifty has shifted to 24,300, and as long as the index remains above this level, the market is likely to maintain its positive momentum.
Rupak Dey of LKP Securities: Strength in Fibonacci and Moving Averages
Rupak Dey of LKP Securities also offered an optimistic view on the market’s near-term prospects. Dey highlighted that Nifty had moved above the crucial 38.20% Fibonacci retracement level from its previous decline (from 26,277 to 23,263), which is often seen as a key technical indicator of a bullish trend.
The fact that Nifty is now above this retracement level suggests that the index has exited its consolidation phase and could continue its upward momentum.
Additionally, Dey pointed out that Nifty is currently trading above its important 21-day exponential moving average (21EMA), which further supports the bullish sentiment.
The 21EMA is a widely followed technical indicator that helps traders assess the market’s short-term trend.
As long as Nifty stays above 24,400, Dey believes the index has the potential to move toward the 24,600-24,700 range.
However, Dey also cautioned that if Nifty slips below the 24,400 level, it could face a pullback to lower levels, with potential support around 24,150.
Investors should watch this level closely to assess the strength of the rally and the potential for further gains.
Final Remarks: A Bullish Sentiment Prevails, but Key Levels to Watch
As we head into December 4, the market sentiment remains broadly positive, with the Nifty and Sensex continuing to benefit from broad-based sectoral gains and improved investor sentiment.
Key sectors such as banking, media, and infrastructure are likely to remain in focus, with strong performance expected from PSU banks and other cyclical stocks.
Technically, both Aditya Gaggar and Rupak Dey have a bullish outlook for Nifty, with resistance levels at 24,660 and 24,700 being key hurdles.
However, investors should remain vigilant of potential pullbacks, especially if the index slips below 24,400.
The next few sessions will be crucial in determining whether the current uptrend is sustainable, and investors should keep a close eye on key support and resistance levels as well as sectoral developments.
In summary, December 4 could see the continuation of the uptrend if Nifty holds above critical levels, with the possibility of reaching higher targets in the short term.
However, market participants should stay cautious and monitor price action closely for any signs of reversal.
