Mumbai, Dec 7: After three days of continuous positive momentum, the stock market opened on a flat note in the red territory on Thursday. The benchmark indices, Sensex and Nifty, experienced a slight dip in early trading.

Sensex commenced the day 215.59 points lower, opening at 69,438.13, while Nifty marked a 63.15 points decline, initiating trading at 20,878.25. Among the Nifty companies, 21 witnessed advances, while 29 faced declines.

Top gainers from the Nifty firms included Adani Ports, BPCL, Adani Enterprises, Ultra Cement, and Dr. Reddy, contributing to the positive market sentiment. However, Hindustan Unilever, Apollo Hospitals, Bharti Airtel, ONGC, and ICICI Bank found themselves among the top losers.

In the dynamic landscape of the Indian equity market, the GIFT Nifty, a key indicator, recently traded at 21,031.50, experiencing a marginal dip of 28.5 points or 0.14 per cent. Simultaneously, the benchmark Nifty 50 is on the verge of breaching the historic 21,000-mark for the first time, indicating sustained upward momentum.

The Sensex showcased a robust performance on the trading floor by surging 357.59 points, concluding at 69,653.73. The Nifty 50 settled at 20,937.70, marking a gain of 82.60 points or 0.40 per cent on the previous day.

Despite the overall positive sentiment, technical analysis of the Nifty 50 suggests a potential consolidation or minor correction as it approaches the critical 21,000 level. The formation of a hanging man pattern on the daily chart adds to the indications of a possible bearish reversal.

Varun Aggarwal, founder and Managing director, Profit Idea said, "Despite the prevailing positive sentiment, technical analysis of the Nifty 50 reveals a potential consolidation or minor correction as it approaches the 21,000 level. The formation of a hanging man pattern on the daily chart further signals the prospect of a bearish reversal, particularly around the critical resistance point of 21,000".

Options data reveals that the highest Open Interest (OI) on the call side is concentrated at 21,000 and 21,100 strike prices, while the put side shows the highest OI at the 20,800 strike price. These insights underscore the nuanced dynamics influencing the current market trajectory.

On the global front, US gold futures experienced a 0.2 per cent dip, settling at USD 2,044.10. Precious metals, including spot silver, platinum, and palladium, also saw marginal declines, contributing to the complexity of the broader economic landscape.

Asian markets responded diversely, with Japan's Nikkei 225 plummeting by 1.28 per cent, while South Korea's Kospi and Kosdaq experienced slight downturns of 0.42 per cent and 0.46 per cent, respectively. Hong Kong's Hang Seng index futures echoed cautious sentiment, down 1.49 per cent at 16,232.5 points.

Aggarwal said, "Meanwhile, on the global stage, US gold futures experienced a 0.2 per cent dip, settling at USD 2,044.10. Precious metals, including spot silver, platinum, and palladium, also saw marginal declines, adding complexity to the broader economic landscape".

"Despite these fluctuations, positive global cues are expected to sustain the Nifty's winning streak, potentially marking its 8th consecutive day of gains in December. As markets adapt to evolving economic dynamics, participants remain vigilant to navigate the intricate financial landscape", said Aggarwal.

Aggarwal stated, "Additionally, the energy sector witnessed a notable development as WTI Oil hit a 5-month low at USD 70.70 per barrel. This shift had repercussions on specific stocks such as Asian Paints and Indigo. Concurrently, the 10-year US Treasury yields dropped to 4.415, favoring IT and Software stocks".

Notably, the energy sector witnessed a significant development as WTI Oil hit a 5-month low at USD 70.70 per barrel, impacting specific stocks such as Asian Paints and Indigo.

Concurrently, the 10-year US Treasury yields dropped to 4.415, favouring IT & Software stocks.

(ANI)

Read Business News

Argus English: Odisha's Top English News Platform | Latest Breaking News, Politics, Sports & Live TV