• The Indian stock market began the week flat, with a mildly bullish trend noted by experts.
• The return of foreign institutional investors (FIIs) and potential of leading banks are seen as positive signs.
• However, the market faces resistance and volatility, with a period of consolidation predicted before a further rally.
• The market's performance will be influenced by factors including Asian and US markets, FIIs actions, and the global economic climate.

The Indian stock market commenced the week on a flat note, with the Nifty trading below 24,700. The market saw heavy selling in the FMCG sector in the early trade. As of 9:27 am, the Sensex was trading at 81,748.46, gaining 39.34 points or 0.05 per cent, while the Nifty was trading at 24,696.10, rising 18.30 points or 0.07 per cent. The market trend remained positive with 1,450 stocks trading in green on the National Stock Exchange (NSE), while 498 stocks were in red. Market experts have described the near-term trend of the market as mildly bullish. The rally, which has seen the Nifty rise by 3.2 per cent over the last fortnight, has been led by leading banks, which are fairly valued and have the potential to drive the market forward.

The Return of FIIs and Market Predictions

The return of foreign institutional investors (FIIs) is another positive development that bodes well for large caps. Experts believe that the ongoing rally could push the Nifty Bank to new record highs, thereby lifting the Nifty further. The Nifty Bank was up 23.45 points or 0.04 per cent at 53,532.95. The Nifty Midcap 100 index was trading at 58,824.65 after gaining 120.05 points or 0.20 per cent, while the Nifty Smallcap 100 index was at 19,543.60 after gaining 51.50 points or 0.26 per cent. Akshay Chinchalkar of Axis Securities noted that the Nifty's drop on Friday traced a small-sized bar contained within Thursday's long-range, creating a so-called 'inside day'. This represents volatility compression but since volatility is cyclical, a trending move is expected soon. He also mentioned that the Nifty is facing resistance from the 50- and 100-day moving averages and an Ichimoku hurdle, so the 24,800 - 24,900 area is formidable. Support lies at 24,445 and 24,360.

Asian and US Market Trends

In the Sensex pack, L&T, Tech Mahindra, NTPC, Bajaj Finance, JSW Steel, HDFC Bank, Sun Pharma and Adani Ports were the top gainers. Hindustan Unilever Limited, Infosys, M&M, Axis Bank and Ultra Tech Cement were the top losers. In Asian markets, Jakarta and Japan were trading in green, while China, Hong Kong, Seoul and Bangkok were trading in red. In US stock markets, the S&P 500 and Nasdaq ended 0.25 per cent and 0.81 per cent higher, respectively. The Dow Jones Industrial Average ended 0.28 per cent down on the previous trading session. Foreign institutional investors (FIIs) sold equities worth Rs 1,830.31 crore on December 6, while domestic institutional investors bought equities worth Rs 1,659.06 crore on the same day.

The Indian stock markets started the second week of December with a pause as both indices opened with a marginal dip on Monday. The Nifty 50 index opened at 24,633.90 points with a decline of 43.90 or 0.18 per cent, while the BSE Sensex index opened at 81,602.58 with a dip of 106.54 or 0.13 per cent. Experts highlighted that markets have recovered around 50 per cent from the October and November fall; however, now the markets will remain in a consolidated position before marching towards the rally. Ajay Baggga, Banking and Market Expert, stated that Indian markets have recovered more than 50 per cent of their post-September fall. He expects markets to consolidate for some time and then resume their uptrend.