Market to look for cues from IIP, inflation data

The market closed with marginal gains after a range bound trading session. The S&P BSE Sensex rose 70.42 points to settle at 34,503.49, while Nifty 50 index rose 19 points to end at 10,651.20, both the indices hit their record closing highs. Buying was seen in mid and small cap segment with the S&P BSE Mid-Cap index ended 0.27 per cent higher, while the S&P BSE Small-Cap index gained 0.41 per cent. 

Technical Outlook

Mustafa Nadeem, CEO, Epic Research: Nifty makes a new all-time high of 10,664 while ends within the range for a third consecutive day at 10,651. This is the third day that we have seen a close in the exact same range which has been between 10670 - 10,620 odd levels while the close was on the flip side positive as compared to two previous close. A small green candle is seen today encouraging bulls to stretch the momentum given the positive environment in global markets.

Nifty has been consolidating past three days with a very narrow range. The momentum is though on the positive side with buying coming in from 10,620 odd levels while resistance is seen at 10,670 - 10,660 levels. After a bearish reversal pattern yesterday we are seeing a green candle which indicates this is the play of power between bulls and bears. This consolidation is healthy in nature since it brings in more smart money and that's what make market moves. A range break with enough push will give a short-term momentum. we suggest to be a bit cautious and long investors should trail aggressively. a clear breakout of this range will give a move.

Things to watch out

The government will announce industrial production data for November 2017 on Friday. India's industrial production increased by 2.2 per cent year-on-year in October, easing from an upwardly revised 4.1 per cent gain in September. It will also announce inflation data based on consumer price index for 

December 2017. Consumer prices increased 4.88 per cent in November, higher than 3.58 per cent in October. 

—Ashwin Punnen