Daily Markets - Dec 1, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian Benchmark equity indices started a fresh week on the strong note boosted by encouraging Q2 GDP data. Nifty opened higher and kept rising gradually through the day with minimal correction. At close the Nifty was up 140 points or 1.08% at 13,109.

Volumes on the NSE were a little below recent average. Among sectors, Realty and PSU Banks rose the most followed by IT, Pharma, Media and Metals indices.

Meanwhile in the Asia-Pacific markets, shares were higher in Tuesday trade as investors reacted to the release of a private survey of China's manufacturing activity. The Caixin/Markit manufacturing Purchasing Managers' Index for November came in at 54.9 - its highest reading in a decade. European equities started December on a bright note, following a record November, after encouraging Chinese factory data prompted investors to look ahead to a global economic recovery.

India's PMI Manufacturing index for November fell to its lowest in three months, reflecting the slower increase in sales and production. The index eased to 56.3 in November from 58.9 in October-a decadal high. Although the slowest for three months, the rate of expansion in output was sharp and outpaced its long-run average.

India's GST collections for November remained above the Rs 1-lakh-crore-mark for the second consecutive month as consumption picked up amid the festive season after India lifted lockdown restrictions. GST revenue for October, collected in November, stood at Rs 1.05 lakh crore. That was largely unchanged compared to the previous month and 1.4% higher than that in Oct 2019.

Nifty is not very far from its recent all-time high of 13146 and going by the recent momentum it does not look tough for the Nifty to touch/breach it. On falls 12987 could provide support. We are seeing stocks that have underperformed so far coming into favour and this rotation continues.

Source : Equity Bulls

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