Nifty 50 on 5 December: Recap
The market is closely watching Reserve Bank of India (RBI) governor Shaktikanta Das and the Monetary Policy Committee (MPC) for signals of a potential liquidity boost, particularly through a repo rate or cash reserve ratio (CRR) cut, as economic slowdown concerns loom.
Indian equity markets are bracing for the RBI’s bi-monthly monetary policy announcement scheduled for Friday, 6 December, with heightened anticipation following the recent surge in Sensex and Nifty.
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As investors eye possible liquidity measures, market trends suggest preparation for volatility, with movements likely in either direction depending on the policy outcome.
Indian stock markets: Way forward
The resistance around 24,500 on the daily chart has been decisively surpassed, keeping the bulls firmly in control. After a sustained rise over the past three sessions, the possibility of a market reaction today cannot be ruled out. The next key resistance lies at the 25,000 zone, which may act as a barrier to further upside.
For pullbacks, the cloud support near 24,500 presents a favourable zone to consider initiating long positions. With the broader market maintaining its “buy-on-dip” trend, capturing any reactions that emerge will be critical. This approach is likely to remain the operative strategy over the coming days.
Three stocks to buy, recommended by NeoTrader’s Raja Venkatraman:
• GREAVESCOT: Buy at ₹199, stop ₹192, target ₹220
Greaves Cotton has announced that its subsidiary, Greaves Electric Mobility Ltd, has approved plans to launch an initial public offering (IPO). The stock, after some positive news, has been consolidating forming rounding patterns and issued a strong breakout after facing some resistance around the ₹197 mark.
• MPSLTD: Buy at ₹2,255, stop ₹2,180, target ₹2,375
MPS Ltd is a leading global provider of platforms and content solutions for the digital world. Following some consolidation in the ₹2,000-2,200 range, the breakout on Friday showed some renewed momentum. With a crossover of trends as per Ichimoku trends are inviting some fresh buying.
• FACT Ltd: Buy at ₹1028, stop ₹950 target ₹1135
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The chemical services sector is once again attracting attention. Over the last few days, shares of FACT Ltd have been doing well and also outperforming the sector. The move in the last few days has been a series of revival from lower levels. Strong price action after taking help at TS and KS levels is looking to move higher.
Raja Venkatraman is co-founder, NeoTrader.
