Market Outlook for 06 December 2023

The benchmark index continued the upward move consecutively second day in a raw. Both the indices hit fresh record high on Tuesday session and closed positively. Nifty index added 168 points gain while banknifty inched up by 580 points in a day. Nifty Metal & Energy were the top gainers, contributed more than 3% gains for the day, Midcap index also witnessed pullback move in the second half of the session. However, it is trading in the overbought zone and finding resistance at 161.8% retracement levels around 44219 levels. 

Nifty Today:

On the stock front, Adani group of companies stocks were on top followed by others like POWERGRID, NTPC & MCX while prime losers were ICICIPRULI, M&MFIN & MUTHOOTFIN etc. 
On the derivatives front, highest call options open interest witnessed at 21000 strike price followed by 20900 while, highest put options open interest observed at 20700 strike price followed by 20500. Technically, the nifty index is already trading in the bullish momentum with positive bias and crossover in the RSI that suggest bullish trend for the near term. Hence, we are expecting that the momentum may continue in the index with high volatility. 

Nifty hit fresh record high, settled at 20855 mark

So traders are advised to buy on dips and should focus on large cap stocks as that could be the next leaders in the market to take the index to the new milestones. One should also keep an eye on Metal, FMCG and banking stocks for the short to medium term.  

The supports on the lower time frame chart for Nifty are placed at 20700 followed by 20550 while on the flipside, a resistance at around 21000 followed by 21080 levels.  
 

Nifty, Bank Nifty Levels and  FINNIFTY Levels: