Aniket PujariStock market today: The domestic benchmark indices faced selling pressure during the opening trade on Wednesday, as the weakening Rupee and cautious investor sentiment impacted the markets.
With the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting starting today, and the significant global event of the Modi-Putin meeting on December 4-5 approaching, traders remained cautious in the early hours.
The Nifty 50 index commenced at 26,043.60, gaining 11.40 points (0.04%), but quickly dropped to the 25,942 mark, showcasing early volatility. The Sensex also began on a positive note at 85,180.72, increasing by 42.45 points (0.05%), but soon retreated to approximately 84,840 as selling pressure mounted.
Analysts indicated that the steep decline in the Rupee and the ongoing outflow of foreign portfolio investments (FPI) have resulted in a negative cycle for the equity markets, amplifying worries about macroeconomic stability.
Market Outlook by Jay Thakkar, Vice President & Head of Derivatives and Quant Research, ICICI Securities
Nifty 50
Nifty 50 seems to be facing stiff resistance near 26,300 levels and it has been unsuccessful to close above those levels despite it attempting to surpass those levels couple of times. The Index as soon as it closed below 26,200 levels melted to slip towards 26,000 levels on the weekly expiry day as there was no prior put base or support before 26,000 levels. On the weekly expiry day, the 26,000 levels were tested but not broken as it has the highest cumulative put base at 26,000 levels.
Below 26,000 levels, it is likely to slip towards 25,800 which is the next hurdle for the Index. The range so far has shifted lower and it is now 26,200-26,000 which is a narrow range and the broader range is 26,200-25,800 levels. Now, until 26,200-26,300 levels are not broken the short-term trend in the Index will be sideways to negative more from the point of view of profit booking and not trend reversal as of now.
Stocks To Buy in the near-term – Jay Thakkar
Jay Thakkar of ICICI Securities recommends Cyient Futures, Bharat Petroleum Corporation Ltd (BPCL )Futures, and Colgate Palmolive (India) Futures.
Buy Cyient Futures in the range of ₹1,190-1,170; stop loss at ₹1,130; Targets at ₹1,270-1,320
Cyient has provided a breakout from the falling trend line and with that it has also indicated a short covering due to decrease in Open Interest. The stock has the highest call base at 1200, so whenever it will be taken off the stock will witness further gain in the upward momentum. It has now closed above its max pain level which is a short-term positive for the stock.
Buy BPCL Futures in the range of ₹355-365; stop loss at ₹345; Targets ₹385-400
The stock has taken off its multiple swing resistances with an increase in Open Interest indicating long built up which is a positive sign. The stock has recently witnessed some profit booking as well by which it seems to have completed the retest of the breakout levels. It has witnessed significant long rollovers from November series to December series, indicating buying interest by the market participants. The stock has witnessed improved put base which indicates that the stock has a good support at the lower levels.
Buy Colgate Palmolive Futures in the range of ₹2,150-2,180; stop loss of ₹2,100; Targets ₹2,280-2,320
Colgate Palmolive has been falling and the open interest has been climbing higher indicating short positions built up in the stock. There has been positive divergence in the stock’s momentum indicating short covering which is very much likely once it takes off 2,200 which has the second-best call open base and beyond that the next hurdle will be at 2,300 as it has the highest call base.
The stock witnessed addition in puts from 2,100 to 2,200 strikes due to which the PCR is marginally below 1 at 0.85, so if it the stock moves beyond 2,200 levels then the PCR is likely to improve. At 2200 levels, the stock has its max pain resistance, so above that it will lead to a double breakout.
Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 02/12/2025 or have no other financial interest and do not have any material conflict of interest.
The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
