Daily Market Wrap - Dec 3, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty broke a two day winning streak on Dec 03 and ended lower. Nifty gained in the first few minutes of trade but soon gave up those gains and later went into negative territory. Bounces were few and did not last long. At close, Nifty was down 1.18% or 205 points at 17196.7. In the process India was the worst performing market in the Asian region.

On a day when the volumes on the NSE were a bit higher than the previous two sessions, Capital Goods was the main gainer while Oil & Gas, Banks, Auto, IT, Healthcare and FMCG indices lost the most. BSE Midcap index ended flat while Smallcap index was up 0.33%.

Stocks were mostly higher in Asia on Friday after a broad rally on Wall Street as investors kept an eye on the spread of the new coronavirus variant and measures governments are taking to restrain it. European shares opened firmer on Friday, shrugging off mixed trend in Asia as markets appeared to be slowly accepting the possibility of more COVID-linked activity curbs and an accelerated pace of stimulus tapering by the U.S. Federal Reserve. Traders awaited a key jobs report (Nonfarm payrolls for November in the US) that could stoke expectations for a quicker reduction in Federal Reserve stimulus.

India's November Services Purchasing Managers' Index (PMI) stood at 58.1 against 58.4 in October 2021 and Composite PMI was at 59.2 versus 58.7, MoM. This resulted in second-fastest rise in business activity in nearly ten-and-a-half years.

Nifty corrected after rising for two days, going against the global trend. Advance decline ratio however remained in the positive. While sell on rallies (especially in largecaps) continues, the broader market seems to have done well. On a weekly basis, Nifty gained 1% after two weeks of losses. On weekly charts a doji like formation suggests that the recent downmove may not continue and we may see some consolidation/upward bounce for the next few sessions. On upmoves 17536-17613 could act as a resistance while 16722-16782 could act as a support on a weekly basis.

Nifty nicely build on the gains made on the previous day on Dec 02 and crossed the crucial 17355 level. Now the next resistance for Nifty is at 17536 while support could come in at 17213.

Source : Equity Bulls

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