Nifty 50, Sensex today: What to expect from the Indian stock market in trade on December 2 after Q2 GDP shocker
The Nifty 50 is expected to open negatively on December 2 due to disappointing GDP numbers and foreign capital outflows.
Indian stock market benchmark, the Nifty 50, may see a negative start on Monday, December 2, as indicated by Gift Nifty. Disappointing Q2 GDP numbers continued foreign capital outflow, and caution ahead of the policy outcome of the RBI (December 4 to 6) are likely to keep market sentiment low.
Around 8:30 a.m., the Gift Nifty was at 24,337, a 63-point discount from the Nifty futures’ previous close.
The Nifty 50 rose about a per cent last Friday, reclaiming the support of the 21-day exponential moving average (DEMA) and forming a green candle, which indicates strength.
However, it is early to say that the worst is behind us as the market is dealing with multiple headwinds, including weak earnings growth, signs of a slowdown in the domestic economy, foreign capital outflow and geopolitical tensions.
India's Q2 GDP number came in at 5.4 per cent, the lowest in nearly two years, raising concerns that the economy is losing momentum.
Nifty 50 predictions
According to Tejas Shah, Technical Research, JM Financial & BlinkX, a decisive close above 24,350 levels will indicate further strength in the Nifty 50 or else consolidation may continue in the range of 24,000 to 24,350 levels.
"Support for Nifty is now seen at 24,000 and 23,750-800. On the higher side, immediate resistance for Nifty is at 24,350 level and the next crucial resistance zone is at 24,500-550 levels," said Shah.
Hrishikesh Yedve, AVP of technical and derivatives research at Asit C. Mehta Investment Intermediates Ltd., pointed out that on the upside, the index will find an immediate hurdle near 24,350-24,360 levels. The 21-DEMA is placed near 24,080, which will act as immediate support for the index, followed by 23,570, where the 200-DEMA support is placed.
"As long as the index persists below 24,360, traders should focus on booking profits on the bounce and wait for a fresh breakout," said Yedve.
Bank Nifty predictions
Shah underscored that Bank Nifty is holding above the psychological support level of 52,000 on a closing basis.
"The technical structure of Bank Nifty is relatively stronger than nifty. On the downside, the support zone lies at 51,750 / 51,400-500 while the resistance is at 52,500-600 / 53,500-700," said Shah.
Yedve observed that on a daily chart, Bank Nifty produced an insider bar candle, while on a weekly scale, the index formed a Doji candle, indicating uncertainty.
"The index is facing strong resistance near 52,500-52,600 levels. On the downside, the 21-DEMA is placed near 51,540, which will act as immediate support for the Bank nifty. Traders are advised to book profits on the bounce and wait for a sustained breakout above 52,600,” said Yedve.
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