Nifty Continues to Consolidate Near All Time Highs

Mr. Vinay Rajani, Senior Technical & Derivative Research Analyst, HDFC Securities

Nifty consolidated for the second straight session, ending with a marginal loss of 12 points at 26,202 after trading in a narrow 100-point band. On a weekly basis, the index extended its winning run for a third week with gains of 0.51%, while for November it delivered a return of 1.86%, even as NSE cash market turnover eased 3% versus the previous session.

Within the Nifty basket, Mahindra & Mahindra , Adani Enterprises and Sun Pharma were among the key outperformers, whereas SBI Life , HDFC Life and Shriram Finance witnessed notable selling pressure. Sector-wise, Auto, Pharma and Healthcare indices led the gains, while Oil & Gas, Financial Services and Realty settled in the red. The broader market also closed lower, with the Nifty Midcap 100 and Nifty Smallcap 100 slipping 0.11% and 0.27%, respectively, as market breadth stayed weak with the BSE advance-decline ratio at 0.95.

On the currency front, the rupee extended its decline for a third consecutive session, pressured by sustained dollar outflows and elevated month-end demand for the greenback, and depreciated by 15 paise to close at 89.46 against the US dollar.

India's GDP growth for the July-September quarter came in at a robust 8.2%, sharply above the consensus estimate of 7.2%, underscoring resilient domestic momentum.

Technically, Nifty remains in a primary uptrend, with a shallow consolidation unfolding near record highs; resistance is placed around 26,500, while strong support is seen in the 26,000-26,050 zone.

Source : Equity Bulls

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Nifty Sensex Smallcap Midcap BSE NSE HDFCSecurities