By S Jha
New Delhi, December 20: The bulls in yesterday’s session had shown that they hadn’t withdrawn from the ring as indices made smart recoveries in the post-noon session. The indices are set for gap-up opening on the back of a nine-day winning streak of the US equity market.
The gap up opening in the Nifty is likely to clear the ongestion zone of the index between 21500-600, as per chartists. The market participants are betting on Nifty racing to the level of 21800 level in the near future.
The US equity markets are trending up on the assertive assessments that the Federal Reserve will not only cut the rates early next year but there could be at least three rate cuts in 2024. This is on the back of inflation numbers significantly cooling down to take the proverbial monkey off the back of the US Federal Reserve. With the rate cuts dominating the discourse, the equity markets as per market participants may continue trending up in the near future unless new negative cues emerge on the street. NASDAQ has also given a close at a record high level.
This may augur will for the IT stocks which are leading the fresh lef of the rally on the Dalal Street. There was a slight turnaround in the frontline IT stocks yesterday in the late session as they had covered their losses after a short spell of bullish spurt. The rate cut hope driven rally as per market participants deepen the possibilities of the IT stocks finally turning bullish after a long gap.
The markets found strength in the yesterday’s session from two heavyweight scrops. Reliance Industries gained to give Sensex and Nifty stability. The State Bank of India extended its bullish run to give strength to the Bank Nifty. The market participants are betting on the possibilities of the frontline IT stocks giving a fresh momentum to the Nifty while the likes of IndusInd Bank and ICICI Bank are being watched out by the traders to give a lift to the Bank Nifty.
The FMCG stocks held ground in the yesterday’s session as Nestle went trending up on the back of the news break of the January 5 record date for the split of the stock. Tata Consumer and ITC were also trending in the session yesterday. NTPC and Coal India showed strong momemtum yesterday and the market participants are claiming that they aretrading in bullish zones.
(Disclaimer: There is no suggestion here given for buy or sale of equities or derivatives, and one must consult financial advisors registered with SEBI before making an investment or trading decision).
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