The Nifty 50’s unbeaten run continued for the seventh day running although the index faced some resistance above the 20,950 mark during mid-week trading. Thursday will also be the weekly options expiry session and this consolidation may continue until Friday when the Monetary Policy Committee (MPC) announces its interest rate decision.
Over the last seven sessions, the Nifty 50 has surged over 1,200 points. In case the index ends higher on Thursday as well, it will turn out to be its longest winning streak in six months. Thursday will also be the weekly options expiry session for the Nifty 50 contracts.In the three trading sessions this week, the Nifty 50 is up 3.3%. This is turning out to be the best week for the index so far since July 2022, when the index gained over 4%.
“For Nifty, 20,550 is a very good buying zone. In case you get around those levels, add on to your long positions or trail your stop losses on both the indices and maintain long bias. We will clearly be trending on the upside for the coming few days and weeks,” Mitessh Thakkar, technical analyst said.”There is always a risk of not getting those levels but then when you are trading per se – and specially on leverage – you would want to see a proper risk-reward equation but otherwise maintain long bias,” he added.Shrikant Chouhan of Kotak Securities expects the Nifty to rally towards 21,050- 21,100 till it remains above the mark of 20,850. That is where the support has shifted for the trend following traders. On the downside, the Nifty can see a 100-point downside in case it slips below 20,850.There is a hurdle for the Nifty at levels of 20,910, said Nagaraj Shetti of HDFC Securities. He expects consolidation from levels close to 21,000 in the short-term. Support on the downside is placed at 20,800.
On its weekly options expiry session, the Nifty Bank witnessed some resistance above the 47,000 mark and had a bout of profit booking to shed close to 200 points. However, the index is still up over 2,000 points in just the last five trading sessions and over 8,000 points higher than its recent swing low of 38,613.Kunal Shah of LKP Securities attributed the profit booking to come in anticipation of the RBI policy on Friday. However, he maintains a buy on dips strategy only until the index sustains above a key level of 46,400. “Immediate hurdle on the upside is at 47,250 and a successful breach of that would pave the way for upward momentum towards 48,000,” he said.However, Ashwin Ramani of SAMCO Securities believes that the index has formed a bearish engulfing pattern on the daily chart, which is seen as a bearish reversal signal. He added that the options activity at the 47,000 strike will determine the future trajectory of the index.
What Are The F&O Cues Indicating?
These stocks added fresh long positions on Wednesday, meaning an increase in both price and Open Interest:
| Stock | Price Change | OI Change |
| Birlasoft | 2.82% | 24.62% |
| IndiaMart InterMesh | 4.82% | 23.12% |
| Hindustan Aeronautics | 6.91% | 15.29% |
| SAIL | 3.89% | 12.41% |
| Chambal Fertilisers | 8.17% | 12.10% |
These stocks added fresh short positions on Wednesday, meaning a decrease in price but increase in Open Interest:
| Stock | Price Change | OI Change |
| Can Fin Homes | -5.45% | 8.63% |
| Page Industries | -0.66% | 8.52% |
| Aditya Birla Fashion | -1.05% | 7.17% |
| Polycab | -0.80% | 7.13% |
| Lupin | -1.08% | 5.58% |
Here’s a look at the stocks which saw a bout of short covering on Wednesday, meaning an increase in price but decrease in Open Interest:
| Stock | Price Change | OI Change |
| L&T Technology Services | 4.11% | -12.85% |
| JK Cement | 0.27% | -6.63% |
| M&M Finance | 1.41% | -4.85% |
| HDFC Bank | 0.10% | -4.08% |
| Adani Ports | 1.09% | -3.70% |
Here are the stocks to watch out for ahead of Thursday’s trading session:
Bharti Airtel: Bloomberg reports that Warburg Pincus plans to raise $211 million through a block deal. It is offering 17.5 million shares at a floor price of ₹1,005 per share.IRCON: Government to sell 8% stake via an Offer for Sale with a floor price of ₹154 per share. The 8% OFS includes a base size of 4% and a greenshoe option of 4%. The OFS for non-retal will open on December 7 and for retail on December 8. The government currently owns 73.18% stake in the company.IDFC First Bank: Cloverdell Investment (Warburg Pincus) likely to sell 1.3% stake in IDFC First Bank via a block deal. Deal size of $100 million with a floor price of ₹85.7 per share. Lock up of 45 days on further sale of shares.Dr Reddy’s Laboratories: Enters into an exclusive collaboration with Coya Therapeutics for development and commercialisation of COYA 302, an investigational combination therapy for treatment of Amyotrophic Lateral Sclerosis (ALS).Bharat Electronics: BEL gets orders worth ₹580 crore from the Indian Army for AMC of Radars. Cumulatively, the company has so far received orders worth ₹18,298 crore in financial year 2024.Paytm: To expand credit distribution business to enhance focus on higher ticket loans for consumers and merchants in partnership with banks and NBFCs.RITES: Entered into a Memorandum of Understanding (MoU) with Meghalaya Industrial Development Corporation Ltd. (MIDC) to develop a multi-modal logistics projects in Meghalaya.Brigade Enterprises: Signs joint development agreement to develop a Grade A office space in Bengaluru’s CBD with development value of ₹500 crore.
