Nifty Eyes Gap-Up Opening On Dec 1-Experts Pick 15 Stocks For Near-Term

Domestic equity benchmarks Sensex and Nifty 50 have clocked their third straight monthly gain in the previous session driven by improving earnings, expectations of domestic and US Fed rate cuts and eased valuations, and closed near fresh record highs. On Friday, Nov. 28, the Nifty 50 index ended 0.05% lower at 26,202.95 and Sensex lost 0.02% to 85,706.67. Government data released post-market hours showed that India's gross domestic product (GDP) beat Street estimates and rose 8.2% in the July-Sept quarter of the current financial year, driven by robust manufacturing and services output. With this, the Indian economy has grown the fastest in six quarters. Notably, Sensex and Nifty had hit all-time highs on Nov 27 after 14 months. They rose nearly 2% each in November, gaining nearly 7.3% over the last three months. The broader small-cap index fell 3% and the mid-caps added 2% in November. According to market analysts, the rally still remains constrained due to uncertainty over a trade deal with the US. The Indian stock market awaits a gap-up opening on Monday, Dec. 1 after the stellar Q2 GDP data release. Gift Nifty trades around 26,516.00, up 129 points, a premium of nearly 120 points from the Nifty futures’ previous close at 26,396, indicating a positive start for the benchmark Nifty 50 index. GIFT Nifty operates in two trading sessions. To be sure, the first session runs from 6:30 a.m. to 3:40 p.m. IST. The second session begins at 4:35 p.m. and continues until 2:45 a.m. the following day. The derivative futures contract based is on Nifty 50, and listed on the NSE International Exchange. D-Street experts predict a positive start with the GDP boost supporting the near-term sentiment. "Domestically, the stronger-than-expected Q2 GDP print, driven by resilient manufacturing, solid construction activity, and healthy private consumption, is set to support sentiment in the near term," said Vinod Nair, Head of Research, Geojit Investments Ltd. "With robust GDP momentum and improving credit growth providing a solid backdrop for earnings acceleration in H2, the medium-term outlook remains positive. However, pockets of short-term volatility may persist, influenced by global cues and central bank policy announcements," said Nair. According to Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, the market has entered a new chapter — Nifty has surged past its 14-month resistance zone to register a fresh all-time high. "It posted its strongest weekly and monthly close ever, giving bulls a solid victory. Strength wasn’t limited to the frontline index. Nifty Bank, Nifty Private Bank, Nifty Financial Services, Nifty Auto, and Nifty Infra have hit lifetime highs, indicating that leadership sectors still display conviction." said Shah. Sensex, too, has notched a fresh lifetime high and delivered its strongest weekly and monthly finishes on record. Marking its third straight week of gains. "Going forward, after making a new high last week, markets are expected to maintain a gradual up-move, with investor focusing on the RBI policy meeting this week," said Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd. According to Vatsal Bhuva, Technical Analyst at LKP Securities, Nifty's technical setup suggests the index may trade in a range, with immediate support at 26,100 and resistance around 26,300–26,350 levels. "Closing above 26,300 levels will open the door for 26,600 levels," said Bhuva. Going forward, Nifty is likely to extend its move and head toward 26,500, with 26,800 as the next target. "On the downside, the 20-day EMA zone of 25,950–25,900 should offer strong near-term support," said Sudeep Shah. Shah noted Bank Nifty continues to be the star of the market, delivering outstanding outperformance. It not only hit a new all-time high last week but also ended higher for the fourth week in a row on sustained strength. Bajaj Broking expects Bank Nifty to retain its positive momentum and move towards the 60,400 level in the coming sessions, based on the measuring implication of the recent range breakout. A move above that will open further upside towards 61,000 levels in the coming weeks. Coming to Sensex, SBI Securities expects it to move towards 86,400 and then 87,000. Key support resides near the 20-day EMA at 84,900–84,700. Analysts believe supportive growth data, steady inflation, and a possibility of a softer tone from the RBI could provide a tailwind for equities. The US Fed’s rate-cut cycle will also be central to risk appetite and FII flows. Any progress on the India–US trade agreement — a long-standing overhang — could boost sentiment and benefit export-heavy sectors. According to Sudeep Shah of SBI Securities a set of banking names looks attractive at current market levels. The Bank Nifty/Nifty ratio has broken out above a horizontal trendline, suggesting continued outperformance of banking over the broader market. "Within PSU banks, most stocks have already seen sharp rallies and are trading near multi-year highs, limiting the immediate risk–reward. However, Canara Bank stands out for its persistent relative strength and potential for further upside," said Shah. Among private banks, Federal Bank, AU Small Finance Bank, Kotak Bank, and HDFC Bank appear well-positioned. These stocks have recently surpassed previous swing highs and are consolidating — a follow-through breakout above their recent ranges could push them into the next leg of the rally. "Under the Sensex radar, several stocks are showing strong setups and look promising in the near term. Among them, Laurus Labs, LTIMindtree, Mahindra & Mahindra, Paytm, 360 ONE WAM, Adani Ports & SEZ, Cummins India, Escorts Kubota, Cholamandalam Investment & Finance, Coforge, and HUDCO stand out with favourable chart structures and momentum indicators pointing towards potential upside," he added.