Trade Setup For Dec. 5: Nifty 50 Primed For Upside To 24,900 Level

The stock market is showing positive momentum as traders look to capitalize on upward trends. The NSE Nifty 50 and BSE Sensex have both closed higher for four consecutive sessions, reflecting the strongest rally seen in months.

Market Trends and Technical Analysis

Analysts are noticing bullish chart patterns featuring higher highs and lows on the daily chart of the NSE Nifty 50, suggesting that any dips could present buying opportunities. "The short-term trend for the Nifty remains positive," commented Nandish Shah, a senior derivatives and technical research analyst at HDFC Bank. He added that if there is a decisive move above 24,500, the index could reach approximately 24,900 in the near term, with immediate support at the 24,300 level.

Market participants will be closely watching for comments from US Federal Reserve Chair Jerome Powell and forthcoming US jobs data, which may influence market directions. Siddhartha Khemka from Motilal Oswal Financial Services Ltd. expects the Nifty to continue its gradual rise, bolstered by supportive government initiatives and anticipated liquidity improvements from the Reserve Bank of India’s policy decisions.

In the derivatives sector, open interest trends show significant resistance at the 24,500 and 24,600 levels, with the highest call open interest at these prices. Mandar Bhojane, a research analyst at Choice Broking Pvt., noted that the 24,300 strike commands the highest put open interest, indicating considerable support at that level. A clear breakout above 24,500 may lead to more substantial gains in the following sessions.

Bank Nifty Performance

The Bank Nifty has also demonstrated robust bullish activity with a strong bullish candle, signaling ongoing buying interest from lower levels. A breakout above its daily highs could signal further upward momentum, with immediate support at 53,000 and 52,800, and resistance targets at 53,400 and 53,800, according to Bhojane.

Market Overview

The NSE Nifty 50 concluded the day slightly higher by 10.30 points, or 0.04%, ending at 24,467.45. Similarly, the BSE Sensex increased by 110.58 points, or 0.14%, closing at 80,956.33. Over the last four sessions, the indices have experienced gains of 1.39% and 1.45%, respectively. During the trading day, the Nifty 50 managed to rise as much as 0.47% to 24,573.20, while the Sensex advanced by 0.49% to reach 81,245.39. The Sensex marked its return above the 81,000 mark for the first time in 29 sessions.

Stocks in Focus

Several key stocks were in the spotlight during the trading session:

• Indus Towers: Vodafone Group Plc is set to divest a 3% stake, which involves selling 7.9 crore shares through open market transactions, with proceeds aimed to repay $101 million in loans secured against its Indian assets.

• Mastek: Arun Agarwal has resigned from his role as Global CFO and as a key member of the management team.

• Indraprastha Gas: The company's board plans to consider a proposal for a bonus issue of shares on December 10.

Currency Market Update

The Indian rupee has continued to experience downward pressure, closing lower on Wednesday after two days of record lows. It weakened by four paise to close at 84.73 against the US dollar, having previously closed at 84.69.

Nifty, Market, Trends