The week ending December 2, saw Nifty open at 8,088 points and continue its buying momentum from the previous week. The Nifty made new highs for four days consecutively from Monday through Thursday. Nifty along with Small Cap Index rose 194 and 222 points respectively from their Monday lows. Thursday morning markets opened gap up and after testing the major resistance area for Nifty at 8288, markets fell sharply by 180 points in just two days to end the week at 8110, almost where it started.

The move in the market was triggered by the OPEC meeting where consensus was achieved that oil production cuts would happen to stabilize crude oil prices. This resulted in crude oil prices spiking up with crude closing on Friday at a weekly gain of 12.45%. However, the fact worth noticing is that the FIIs have been relentless sellers in the Indian Equity markets with a total selling worth Rs 20,574 Cores since Nov 1st, the largest selling spree for the year. We have the GST council meet along with the RBI Credit policy scheduled for the coming week which would decide the further direction of the Indian Indices. Markets expect a rate cut, anything short of it might be a shock.

The International markets too have been weak with US S&P 500 futures falling from its all time high of 2213.75 points to make a low of 2181 points and finally close at 2192 points.

Much of the movement in the next week would depend on the Italian referendum, as also the RBI Monetary Policy of December 7, 2016, where a rate cut is expected. If the Italian referendum is a "no" expect more pains for the markets.

Courtesy: Dynamic Levels