Market Outlook for 15 December 2023

Our markets started trading with a gap up opening on Thursday as FED’s commentary which hinted at end to the rate hike cycle and probable three quarter-point rate cuts in 2024 led to a sharp rally in the global equities. Nifty marked another record high over 21200 and ended just below it with gains of over a percent.

Nifty Today:

The global markets gave a thumbs-up to UD Federal Reserve commentary on probable interest rate cuts in the coming year. This boosted sentiment across the global equity markets and thus, our markets too rallied higher. The upmove was supported by a broad market participation (led by IT and Realty) as all the sectoral indices (except Media) ended in the green. The data remains optimistic since last few days as the FII’s have more long positions in the index futures segment and they been buying in the cash segment too. Hence, although the RSI readings are in overbought zone the index is continuing its rally which is usually seen in a strong trended phase. Traders are advised to trade with the trend and look for stock specific buying opportunities. The immediate supports for Nifty are placed around 21050 and  20950 while the resistance are per the retracement will be seen around 21370. 

Markets give thumbs up to FED’s commentary; new highs for benchmark

The IT stocks rallied higher as the US interest rate cuts going ahead could lead to better business outlook for the Indian IT companies. This sector has also relatively underperformed the market in the recent past and thus, we could see a continuation of the positive momentum in the short to medium term.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: