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  Business   Market  05 Dec 2019  Nifty forms a bullish candle

Nifty forms a bullish candle

THE ASIAN AGE. | ASHWIN J PUNNEN
Published : Dec 5, 2019, 1:49 am IST
Updated : Dec 5, 2019, 1:49 am IST

The Sensex closed at 40,850.29 up by 174.84 points or 0.43 per cent, while the Nifty rose by 43.10 points or 0.36 per cent to end at 12,037.30.

The BSE mid-cap index advanced 0.52 per cent while small-cap rose by 0.33 per cen (Photo: File)
 The BSE mid-cap index advanced 0.52 per cent while small-cap rose by 0.33 per cen (Photo: File)

The market on Wednesday closed higher by around 175 points in a volatile session,  driven by buying in banking, auto and select IT stocks.

The Sensex closed at 40,850.29 up by 174.84 points or 0.43 per cent, while the Nifty rose by 43.10 points or 0.36 per cent to end at 12,037.30.

According to analysts, the market is cautiously awaiting RBI monetary policy to be held on Thursday where it expects the Central Bank to deliver its sixth rate cut of the year despite higher inflation. The market has 25bps rate cut is already factored in by the market and thus investors would watch out for any surprise on that front and the commentary on future path. Globally, sentiments have turned positive with US-China inching close towards the trade deal and investors would watch out for further development on that front which would decide the market trend.

Technical View
“Technically, Nifty formed bullish candle similar to Bullish Piercing Line pattern on daily scale. It took support around lower end of the channel and 20 EMA on daily chart for second consecutive session. Now it has to hold above 12000 zones to witness an up-move towards 12158 then 12250 levels. On the flipside, strong support for Nifty is placed at 11935-11950 then 11880 levels,” Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

Among index stocks Tata Motors rose  7.1 per cent, ICICI Bank gained 4 per cent and Yes Bank rose nearly 6 per cent while State Bank of India advanced 1.7 per cent.

The BSE mid-cap index advanced 0.52 per cent while small-cap rose by 0.33 per cent.

Market View
“We continued with our ‘Buy on declines’ strategy and as expected, the market was setting up around key support of 11950 to unfold the next leg of the rally. Today’s (Wednesday) late surge certainly validates this point and the way both (Nifty and Bank Nifty) key indices are shaped up now, we will not be surprised to see decent moves in next couple of days.

“Going ahead, the Nifty is likely to continue its march towards 12090 – 12140 and on the downside, 12000 followed by 11930 has now become a sacrosanct support zone,” Sameet Chavan Chief Analyst-Technical and Derivatives, Angel Broking said.

Tags: sensex