The Indian equity benchmarks ended Thursday's session with cautious gains, as investors held their breath for the Reserve Bank of India's (RBI) monetary policy announcement. The Sensex rose 0.19% to close at 85,265, while the Nifty 50 gained 0.18% to settle at 26,033. Trading remained range-bound for most of the day, reflecting the market's wait-and-see approach.
Key Market Drivers and Global Pressures
Market participants largely anticipated a 25 basis point rate cut from the RBI Monetary Policy Committee, which was scheduled to announce its decision on Friday, December 5. However, strong domestic GDP data and mixed signals from global markets prevented any major directional moves. Adding to the pressure was the Indian rupee, which depreciated past the 90 per USD mark to hit a fresh all-time low.
Analysts pointed out that rising yields on Japanese government bonds sparked fears of capital flowing back to Japan, prompting increased caution towards emerging markets like India. Meanwhile, the primary market saw activity with the conclusion of three mainboard IPOs—Meesho, Vidya Wires, and Aequs—with several more lined up for the coming weeks.
Expert Outlook and Sector Watch
Siddhartha Khemka, Head of Research for Wealth Management at Motilal Oswal Financial Services Ltd, stated that investor focus was squarely on the RBI policy outcome and upcoming US CPI data. He highlighted that rate-sensitive sectors like banking, automobiles, and real estate were in the spotlight. While markets are expected to remain in a consolidation phase, a potential rate cut could act as a significant short-term catalyst.
On the geopolitical front, Russian President Vladimir Putin's arrival in New Delhi on December 4 for strategic talks is seen as a positive for defense stocks. Discussions are expected to focus on enhanced defense collaboration, including the advanced S-500 Prometheus missile system, which could sustain positive sentiment in the defense manufacturing sector.
Technical Analysis and Trade Setup for Friday
Rupak De, Senior Technical Analyst at LKP Securities, noted that the Nifty index remained below the 21 EMA on the hourly chart, indicating persistent selling pressure. He expects volatility to continue within a band until the RBI's lending rate announcement. Key resistance is placed in the 26,100–26,150 range, while support lies at 25,900–25,950. A break below 26,000 could trigger a swift correction towards the support zone.
Stocks to Buy: Expert Recommendations
Market analysts recommended eight stocks for intraday trading on Friday. Here are the picks from Sumeet Bagadia of Choice Broking, Ganesh Dongre of Anand Rathi, and Shiju Koothupalakkal of Prabhudas Lilladher.
Coforge Ltd: Bagadia recommends buying at ₹1,966, with a stop-loss at ₹1,900 and a target of ₹2,100. The stock shows an ascending triangle pattern on weekly charts, indicating a potential breakout.
JK Tyre & Industries Ltd: Buy at ₹474, with a stop-loss at ₹457 and a target of ₹508. The stock is in a strong uptrend and recently hit a fresh 52-week high.
AXIS Bank Ltd: Ganesh Dongre suggests buying at ₹1,280, with a stop-loss at ₹1,260 and a target of ₹1,320, citing a bullish reversal pattern.
Union Bank of India: Buy at ₹152, with a stop-loss at ₹146 and a target of ₹162, as the stock shows reversal action at current levels.
DLF Ltd: Dongre recommends buying at ₹709, with a stop-loss at ₹700 and a target of ₹740, anticipating a rebound from a key support level.
Petronet LNG Ltd: Shiju Koothupalakkal advises buying at ₹280.95, with a stop-loss at ₹273 and a target of ₹300, noting a bullish candle with strong volume.
Allied Blenders and Distillers Ltd: Buy at ₹628, with a stop-loss at ₹614 and a target of ₹670. The stock shows a higher bottom formation on daily charts.
Himadri Speciality Chemical Ltd: Buy at ₹462, with a stop-loss at ₹452 and a target of ₹490. The stock has shown a strong pickup from the ₹432 zone.
Disclaimer: The views and recommendations are those of individual analysts and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
