Nifty 50, Sensex today: What to expect from stock market indices in trade on December 8

Profit booking in select heavyweights, sell -off by foreign investors amid weak global cues contributed to the fall in markets on Thursday, December 7. Nifty 50 index closed at 20,901.15, down 37 points, or 0.17 per cent and the 30-share Sensex settled 132 points, or 0.19 per cent, lower at 69,521.69.

However, Nifty 50 is up 3 per cent on the week after frontline indices witnessed a record-breaking run in the last few days on strong macroeconomic fundamentals and expectations of political stability.

Crude oil prices fell on Thursday to six-month lows, as investors worried about sluggish energy demand in the US and China. Global market cues suggest a flat start for Nifty 50 and Sensex today. The trends on Gift Nifty indicate        for the Indian benchmark index. The Gift Nifty was trading around   level as compared to the Nifty futures’ previous close of 21,033.85.

Also Read: RBI Monetary Policy: Rate pause may continue on GDP print, CPI inflation; Key indicators to watch

Now, the market focus has shifted to the monetary policy outcome by RBI’s rate-setting panel and the US Federal Reserve. While, RBI Governor Shaktikanta Das will unveil the policy decisions at 10:00 am today, the US Federal Reserve is set to announce its policy outcome next week on Wednesday, December 13.

According to the majority of economists on D-Street, the RBI would keep its key repo rate unchanged at 6.50 per cent, continuing its hawkish stance. Analysts also do not expect the central bank to change its stance from ‘withdrawal of accommodation’. 

Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty Open Interest Data

Nifty weekly contract has highest open interest at 21,000 for calls and 20,800 for puts while monthly contracts have highest open interest at 21,000 for calls and 19,000 for puts. Highest new OI addition was seen at 21,100 for calls and 20,900 for puts in weekly and at 22,000 for calls and 20,900 for puts in monthly contracts. 

‘’Foreign institutional investors increased their future index long position holdings by 10.19 per cent, decrease future index shorts by 12.02 per cent and decrease in index options by 15.19 per cent in call longs, 19.20 per cent decrease in call short, 36.53 per cent decrease in put longs and 34.80 per cent decrease in put shorts,” said Anand James, Chief Market Strategist at Geojit Financial Services.

Nifty 50 Predictions

The Nifty remained sideways during the previous session, hovering within the bands of 20,850-20,950. Sentiment remains somewhat cautious ahead of the RBI policy meet. 

‘’The near-term trend remains sideways to weak as long as it stays below 21,000, a psychologically crucial level. A decisive breakout above 21,000 might induce a resumption of the uptrend. Until then, we anticipate weakness over the near term,” said Rupak De, Senior Technical Analyst at LKP Securities.

Also Read: JM Financials upgrades Tata Power to ‘buy’ after shares hit 52-week high, sees 24% upside over revised TP

Bank Nifty Predictions

The Bank Nifty index exhibited sideways momentum in the previous session preceding the RBI policy announcement. The lower-end support for the index is situated at 46,500-46,400, and as long as it maintains levels above this zone, the stance remains in a buy-on-dip mode. 

‘’Immediate resistance on the upside is identified at 47,000, and a decisive breakthrough at this level is anticipated to propel the index further upwards towards the 47,500 mark,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 08 Dec 2023, 06:29 AM IST