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Stock Market Daily Updates: 3 Dec 2020

The market will keep an eye on the attitude of foreign institutional investors, crude oil prices, the rupee's move and the services PMI, which will be released on Thursday, December 3, 2020.

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Dear Trader…

The Index continued its momentum amid volatility, after opening positive, the Nifty slipped into weakness than recovered sharply from the intraday low and finally rallied on the back of positive-than-expected global recovery in China's economy.

At home, the September quarter GDP growth -7.5% and GST collection figures also crossed Rs 1 lac crore for the second time this year, the market sentiment turned positive. However, amid the November manufacturing PMI declining compared to October.

Sentiments were boosted as US lawmakers proposed a $908 bln COVID relief bill while China's November factory activity growth touched decade high. On the domestic side, nifty future fell over half percent to intra-day low on account of profit booking in Banking, Tech, Cement, NBFC and FMCG stocks.

Global cues were positive as traders expect a COVID-19 vaccine soon and speedy economic recovery. Pfizer and Germany's Biotech sought emergency approval of their vaccine from the European regulator while their competitor Moderna too applied for emergency approval.

The government of UK approved the Pfizer corona virus vaccine for use 'from next week' becoming the first country to begin vaccinating its population as it tries to curb the deadliest COVID-19 outbreak. 

The pace of growth of the country’s manufacturing activities has slowed down again. The country's manufacturing activity hit a three-month low in November on the back of declining factory orders, exports and purchases. IHS Market India's Manufacturing Procurement Managers' Index fell to 56.3 in November from 58.9 in October. This is at a three-month low. It is also important to be vigilant in view of the broader bullish storm seen in small and mid cap stocks over the last few days. Along with this it will keep an eye on the results of the RBI meeting this week, daily cases of corona virus infection and news of corona vaccine.

We’re seeing consolidation in the index but the bias is still on the positive side. Going ahead, further updates on COVID vaccines and cues from the global markets will remain in focus, besides, on the domestic front, RBI’s monetary policy meet would also be on trader’s radar. The MPC is likely to maintain the status quo, however, its commentary on growth and inflation would be critical.

The market will keep an eye on the attitude of foreign institutional investors, crude oil prices, the rupee's move and the services PMI, which will be released on Thursday, December 3, 2020.

On the international front, the US, Euro zone Manufacturing PMI for November 2020 will be monitored by the Indian stock market along with global markets.

However, intermittent profit booking cannot be ruled out given the sharp rally in the past few weeks. Technically, Nifty future has to hold above 13003 levels to witness an up move towards 13202 - 13272 levels while on the downside major support exists at 12808 levels.

  • INDEX MOVEMENT for the 3rd December 2020
  • Nifty Future closed @ 13162 as on 02.12.2020..!!

Nifty Future has resistance at 13188 – 13202 Point; above which other resistance levels are at 13232 – 13272 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 13133 – 13103 Point; below13103 Point, other support levels are at 13073 – 13003 Point.

I am positive for the next bullish trend only above @ 13272 Point but be with the trend. Let the market decide further moves.

As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario...!!!

Regarding Long term positions, it is preferable to remain cautious now.

If Nifty Future crosses @ 13272 Point, again then the upper side target is quite high and it may touch @ 13303 Point in the short term

Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in

  • Bank Nifty Future closed @ 29603 as on 02.12.2020..!!

Bank Nifty Future has resistance at 29676 – 29777 Point; above which other resistance levels are at 29808 – 29930 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 29533– 29474 Point; below29474 Point, other support levels are at 29290 – 29090 Point.

I am positive for the next bullish trend only above @ 29930 Point but be with the trend. Let the market decide further moves. 

As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario...!!!

Regarding Long term positions, it is preferable to remain cautious now.

If Bank Nifty Future crosses @ 29930 Point, again then the upper side target is quite high and it may touch @ 30033 Point in the short term.

Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.


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Nikhil Bhatt | Research Analyst - SEBI

The author is a well established entrepreneur having a more than 16 years of experience in the field of stock market and financial management.

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