On December 3, Nifty traded flat near all-time high but the broader markets continued their positive momentum with a sharp up-move in mid-caps and small-caps.

Nifty Midcap and Smallcap indices closed near 2-year highs and may continue to outperform the broader markets.

The advance-decline in the derivatives segment remained strong with 125 advances and 14 declines for the current expiry month-till-date.

There could be some bouts of volatility due to the RBI monetary policy announcements.

Bank Nifty is facing resistance near 30,200-30,500 levels and we expect some time-wise correction after a sharp up-move in the last 2 months.

Among sectors, we expect Nifty FMCG and Pharma index to outperform from the current levels as they have crossed the short-term averages.

Risk-reward is in favour of longs and we expect scaling a new all-time high.