Stock Taking: The Sensex and Nifty touched a record high once again, extending its winning run to the seventh day

 Stock Taking: The Sensex and Nifty touched a record high once again, extending its winning run to the seventh day

Stock Taking: The Sensex and Nifty touched a record high once again, extending its winning run to the seventh day

With around 1,633 shares rising, 1,611 falling, and 90 remaining unchanged, the market breadth was neutral.

On December 6, domestic stock indexes rose for the seventh day in a row as gains in IT and power sectors persisted and ongoing foreign inflows drove the benchmarks to new highs for the third day.

Both indexes set new closing highs when the Sensex finished 357.59 points, or 0.52 percent, higher at 69,653.73 and the Nifty closed 82.60 points, or 0.40 percent, higher at 20,937.70. Nifty was at 20,961.95 while Sensex was at 69,744.62 intraday.

With around 1,633 shares rising, 1,611 falling, and 90 remaining unchanged, the market breadth was neutral.

"After the state elections, there is excitement in the market, which guarantees the continuity of the policy and meets the requirements of investors," said Vinod Nair, head of statistical analysis at Geojit Financial Services. In three of the five states that were up for election this past weekend, the BJP emerged victorious ahead of the 2024 Lok Sabha elections.

"Deceleration in inflation and decline in yields in both US and Indian markets are the main drivers of a strong FII reversal." China's credit rating cut and the easing of geopolitical tensions as a result of declining oil prices helped the Indian market, according to Nair.

The electricity industry saw a boost in momentum due to a decrease in the dangers of a US recession and a significant rebound in IT due to expectations of high summer demand.

"In spite of a bright future, worries over domestic premium valuation might cause short-term profit booking. In addition, the RBI may decide to significantly raise its predictions for H2FY24 growth and future inflation due to El Nino concerns, falling reservoir levels, and reduced sowing. could compel you to cut it down." Nair continued.

Sector and Stock

While closing higher, broader market indexes did not outperform their important counterparts. The Nifty Midcap 100 increased by 0.25 percent, while the Nifty Smallcap 100 increased by 0.38 percent. The NSE's broadest index, the Nifty 500, increased by 0.49 percent.

There was a mixed sectoral matrix. The largest gainer was Nifty Media, which increased by 2.11 percent. Nifty FMCG, Nifty IT, and Nifty Oil & Gas all had one percent increases after it. Nifty Pharma and Nifty Healthcare both gained 0.67 percent, making them the top gainers.

Wipro was the largest gainer among Nifty equities, increasing by around 4%. Tata Motors, LTIMindtree, ITC, L&T, TCS, and L&T all had gains of 2–3%. With a 2 percent decline, Adani Enterprises was the biggest loss, followed by NTPC, Cipla, Eicher Motors, and Eicher Motors.

Prospects for December 7

Senior Technical Analyst at LKP Securities, Rupak Dey

On the daily chart, the index created a hanging man pattern that raised the prospect of a negative reversal. The key resistance level at 21,000 has formed, which intensifies the negative attitude. Support is located around 20,850, below which the market can have a brief but healthy pullback.

However, a rise over 21,000 may spark a new bullish trend.

SVP of Technical Research at Religare Broking, Ajit Mishra

The index is gaining speed due to notable traction in important industries, but we can no longer rule out some correction.

Since we are seeing an increase in industries and businesses that were overlooked in previous months, traders should continue to concentrate on choosing their stocks. Refrain from placing irrational wagers in expectation of a significant loss.

Senior VP (Research) Prashant Tapse of Mehta Equities

For the seventh consecutive session, the BJP maintained its amazing winning record, and Sadak now anticipates that the BJP will receive a sizable public mandate in the 2024 Lok Sabha elections. Investor confidence increased as a result of declining crude oil prices and predictions that the US Federal Reserve would start cutting interest rates in the next year.