Week Ending 1st December 2023

Dear patrons, the markets were in a buoyant mood over the last week, ending a streak of lull of a week or so. Nifty scaled a new All Time High as predicted in our previous blog (you may read it here Weekly Market Update: Week Ending 24th November 2023 (amitbajare.blogspot.com)). As we had predicted markets moved up swiftly clocking gains of over 2% in a truncated week.

Global cues were robust over the previous weekend. Domestically very good set of GDP Growth numbers added oil to the already red-hot markets. India's GDP grew by 7.6% in Q2FY24, making it the fastest growing big economy in the world. It was a positive surprise for the markets and the bulls took full advantage of this good news propelling the markets to new ATH. India is estimated to grow at 6.5% for FY24.

Although Nifty achieved an ATH, the BankNifty remained some distance away from its ATH. The markets are expectantly waiting for election results. Favorable outcome in the elections may lead the market to newer highs and any divergence in results may lead to a small correction.

Let us have a look at the charts and try to figure out what lies in store for next week.

Nifty made a new ATH last and is in an uncharted zone, RSI, however is showing a divergence, which, points towards a probable corrective move. In case Nifty moves down it should find support in 20000-19800 range. On the upside, we may see some more traction and profit taking may emerge after election result euphoria dies down. 

BankNifty has been underperforming compared to Nifty. It has remained subdued in the last month, managing to gain some ground only in the last week. 44000 happens to be a strong support for BankNifty. Sustaining below 44000 BankNifty may drift towards 43500.

All in all traders should be cash ready and look for opportunities to buy in case of any dips in the markets. Till the time Nifty is above 19400 market remains Buy-On-Dips.

Happy Investing!!!

"The biggest risk of all is not taking one." ~ Mellody Hobson

P.S.: This communication is for educational purpose only and does not recommend buying or selling any stock or index. Trade at your own risk.