Election results shot in arms for Govt, positive for market: Aamar Deo

Investors are advised to adopt a cautious approach due to uncertainties in the financial markets. Nifty and Bank Nifty experienced a correction, along with global markets, as concerns over the Israel-Hamas crisis and US Fed Chairman Powell's speech weighed on the markets. Next week, investors will watch out for the US Fed Chairman's speech, ECB rate decision, US GDP estimates, and the quarterly earnings of major companies. Midcap and small-cap stocks have performed well, but investors should be selective and consider booking profits. Volatility may increase in the future.

The 30-share BSE benchmark Sensex advanced 1,384 points or 2.05% to settle at 68,865. The broader NSE Nifty surged 419 points or 2.07% to end at 20,687. Meanwhile, the market capitalisation of all listed companies on BSE surged by Rs 5.78 lakh crore to Rs 343.45 lakh crore.

Wall Street is counting on the so-called Santa Claus Rally to bring record highs as markets close out 2023 with strong gains.

The weekly RSI stands at 75.90; it has made a fresh 14-period high. However, it stays neutral and does not show any divergence against the price. The weekly MACD stays bullish and above its signal line. The price has closed above the upper Bollinger band; however, while this can be considered bullish, a temporary pullback inside the band cannot be ruled out.

The IPO market also continued its momentum, which has seen five listings and out of which, four have exceeded expectations, led by Tata Technologies

The net short position of FIIs reduced from Rs 56,948 crore on Thursday to Rs 47,161 crore on Friday.

“Adani Enterprise, Adani Ports and Adani Power are the three top bets among Adani stocks. We generally have a pre-election rally of around 10% to 15%. We just superimpose that from Thursdays closing prior to exit polls results, the target comes to 20,000 plus. So, yes, upside definitely is there, downside is now limited or floor is near to around 20,000.”

“What we are expecting here is that the fear of missing out (FOMO) could take the markets even higher and we are expecting 21,000 to be tested anytime soon in December. My reading is the market may not give us that opportunity for a dip. A small dip may be possible but a big dip will be latched upon quickly by the money that is waiting on the sidelines. ”

Option data suggests a shift in trading range in between 19500 to 20200 zones while an immediate trading range in between 19600 to 20000 zones.

Stock market today: Speculation arises if market has topped out, but experts believe rally will continue, led by FMCG and Capital Goods sectors