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Santa rally would drive market higher
Equity benchmark extended gains over second consecutive week fueled by state election outcome that coupled with firm global cues. Broader market remained outlier as Midcap, Smallcap gained 2.3% and 4.5%, respectively
What to expect: Nifty to form a higher base while holding the key support zone of 23700-23500 which would set the stage for challenging immediate hurdle of 24500 in coming weeks.
Bank Nifty : Six weeks corrective phase retraced back in just 2 weeks. Faster pace of retracement signifies structural improvement. Within the segment PSU banks outperformed, up 4%
December Seasonality: Past three decades historical data exhibit that seasonality favour bulls with 73% success rate wherein average returns have been to the tune of 3%
Breadth indicator: Significant improvement in market breadth data bodes well for extension of ongoing pullback as currently 35% stocks of Nifty 500 universe are trading above 50 days SMA compared to mid-Nov reading of 12%
US Dollar Index: After facing stiff resistance from 108 levels DXY drifted below 106. Further decline would result into risk on sentiment in equities tracking its inverse correlation
Sectorally, we remain positive on BFSI, IT, Pharma, Capital Goods while Oil & Gas, Metal offer bargain buy opportunity
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
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