Market Wrap: Sensex, Nifty end flat; focus shifts to RBI MPC outcome

Updated: 06 Dec 2022, 08:24 AM IST

While the Sensex fell 34 points, or 0.05 percent, to end at 62,834.60 while the Nifty closed at 18,701.05, up 5 points, or 0.03 percent.

Markets ended flat on December 5.

Domestic market benchmarks the Sensex and the Nifty ended flat on December 5 as investors restricted their bets while the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) begins its rate-setting huddle.

While the Sensex fell 34 points, or 0.05 percent, to end at 62,834.60 while the Nifty closed at 18,701.05, up 5 points, or 0.03 percent.

Mid and smallcaps outperformed the benchmarks as the BSE Midcap index rose 0.10 percent while the Smallcap index clocked a gain of 0.25 percent.

The focus of investors now has shifted to the RBI MPC meet outcome. The RBI MPC meet started on December 5 and its outcome will be revealed on December 7.

Most analysts and brokerage firms expect a rate hike between 25 to 35 bps. An in-line rate hike will have no major effect on the market. If the RBI signals that it is getting ready for a pause on rate hikes in the near future, it will be a major boost to the market sentiment.

"Markets were extremely range-bound with a negative bias with most of the Asian indices too closing on a sluggish note. Investors are keeping a low profile ahead of RBI's credit policy meeting this week, while the lack of fresh triggers from global markets, too, has been a dampener. Another factor could be the recent rally was too fast-paced and hence nobody wants to risk taking long-only bets," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

Tata Steel, NTPC and State Bank of India ended as the top gainer stocks while Reliance Industries, Tech Mahindra and UltraTech Cement settled as the top laggard stocks in the Sensex index.

Metal stocks hogged the limelight; the Nifty Metal index rose 1.87 percent. Nifty PSU Bank index logged a gain of 1.20 percent.

Nifty IT (down 0.52 percent), Oil & Gas (down 0.36 percent), Auto (down 0.30 percent) and Pharma (down 0.26 percent) ended in the red.

Crude oil prices rose on reports of a further easing of Covid curbs in China. Benchmark Brent Crude traded above the $87 per barrel mark.

The rupee fell 48 paise to close at 81.80 per dollar.

Technical view by experts

"After the early morning selloff, the Nifty took support near 18,600 and reversed sharply. However, the short-term texture of the market is still non-directional. We are of the view that 18,600 could act as a sacrosanct support zone for the market. if the index trades above the same, it could retest 18,800-18,850 in the near future. On the flip side, below 18,600, the index could slip to 18,500-18,450," said Chouhan.

Ameya Ranadive, Equity Research Analyst at Choice Broking believes, for the time being, the trend may continue to be positive after profit booking and sideways consolidation from higher levels.

"Technically, the Nifty managed to close above 18,700 which could allow the uptrend to intensify. According to the volume profile, 18,650 may act as robust support while on the upside, 18,850 may act as an immediate hurdle," said Ranadive.

Key market data

Active stocks
Volume shockers

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.

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First Published: 05 Dec 2022, 03:33 PM IST