Weekly Report: 21st December 2024

Weekly Trend Report

Week Gone By

The Indian market experienced sharp decline during the week, largely led by the selloff triggred by the Federal Reserve’s hawkish outlook on the 2025 rate cut rally. The declines were further supported by the INR depreciation and FII selloff. Additionally, domestic trade deficit and foreign reserve data further added to market concerns. India’s wholesale price inflation (WPI) eased to 1.89% in November as prices of vegetables witnessed correction. On the global front, PBOC, BoE and BoJ kept their rates steady in the final meet of the year, while Fed slashed its rates with a 25 bps cut. US retails rose only 3% YoY, weakest growth in three months and lower than October’s 4.8% increase.

Week Ahead

As the year end approaches, the markets is poised to take cues from the upcoming global market data, as there are no significant events scheduled. FII/DII flows, rupee movement and crude oil prices are likely to be the key area of focus for participants. Following are the data scheduled: 1) US durable goods order data and New homes sales data are set to release on Tuesday, 2) BoJ’s monetary policy meeting minutes will also release on Tuesday, 3) US initial jobless claim data will release on Thursday while Japan will release its unemployment data on Friday.

Technical Overview
  • The Nifty50 index began the trading week on a subdued note, following the high volatility observed at the close of the previous week. Despite encountering significant resistance near 24840, the neckline of the inverted head and shoulders pattern, the index succumbed to selling pressure and trended lower throughout the week.
  • This intensified selling ultimately led to a decline of 1,180 points, closing below the 200 DMA and a multi-month support line, along with a notable 15.5% increase in the VIX to 15.07 on a weekly basis.
  • By the end of the week, all broader indices, except for Microcaps, closed below their 50 DMA, placing their uptrends under pressure.
  • On the sectoral front, most indices are experiencing downswings; with the exception of Pharma, all sectoral indices are exhibiting negative and deteriorating momentum—a concerning development.
  • In terms of market breadth, stocks trading above 10 and 20 DMA are significantly below median levels, reflecting a negative crossover that indicates a considerable lack of momentum and strength in the intermediate trend.
  • The number of stocks trading above 50 DMA has once again dropped below the median threshold, while those trading above 200 DMA are only marginally above median levels, calling for a cautious approach.
  • This trend is further demonstrated by the momentum market breadth, which indicates weaker stock participation and suggests prudence moving forward. Technically, the index has struggled to maintain crucial support levels, forcing the resistance level down to 24200.
  • Conversely, 23500 and 23250 serve as important support levels, and a breach below this zone may trigger additional selling pressure.
  • The index is expected to continue experiencing volatile bearish trends in the coming week, which could lead to a hard money market transitioning into a no-money market.

To view the detailed report click here to   Download 

Newsletter: 23rd December 2024

UltraTech's Game-Changing Deal

Aaj Ka Bazaar

Major U.S. stock indexes ended a volatile session little changed on Thursday, although the Dow snapped a 10-day losing streak. The S&P 500 and Nasdaq were slightly in the red by day’s end, extending Wednesday’s sharp selloff tied to a signal from the Federal Reserve that it may deliver fewer interest rate cuts in 2025 than it had earlier projected. Asian shares were pinned near three-month lows on Friday as investors awaited key U.S. inflation data that could either ease or worsen concerns about price pressures, while the dollar towered at two-year peaks. Japan’s Nikkei rose 0.2% on Friday and is up a whopping 16% for the year, in part due to the weakness in the yen, which has depreciated 12% in 2024 and drew intervention warnings again from Japanese authorities. Considering the global market cues, the Indian benchmarks will likely have a negative start, Indian shares are set for a muted open on Friday after the previous session’s declines on concerns over a slower pace of rate cuts by the U.S. Federal Reserve, while IT stocks are likely to find support after solid results by U.S. peer Accenture. On a stock-specific note, GE Vernova T&D will be in focus as the company has received an order worth Rs. 400 crores from Sterlite Grid 32 Ltd.

Markets Around Us

BSE Sensex –78,575.73 (0.75%)

Nifty 50 – 23,747.15 (0.68%)

Bank Nifty – 51,125.00 (0.72%)

Dow Jones – 42,866.59 (0.08%)

Nasdaq – 19,553.28 (0.93%)

FTSE – 8,084.61 (-0.26%)

Nikkei 225 – 39,034.66 (0.86%)

Hang Seng – 19,819.85 (0.50%)

Sector: : Cement

UltraTech Deal Boosts India Cements

India Cements’ share price surged nearly 11% on December 23 after the Competition Commission of India (CCI) approved UltraTech Cement’s ₹7,000-crore acquisition deal. The approval, granted on December 20, allows UltraTech Cement, led by Kumar Mangalam Birla, to acquire a 32.72% stake in India Cements from its promoters and an additional 26% through an open offer. This deal strengthens UltraTech’s market leadership amidst growing competition from the Adani Group, which has been expanding its capacity through acquisitions. Following the announcement, India Cements’ shares saw a sharp rise to ₹376.20 per share, while UltraTech Cement’s shares traded flat at ₹11,392.95. The approval comes shortly after CCI sought clarifications from UltraTech regarding the deal, highlighting its significance in reshaping market dynamics in the cement industry.

Why it Matters:

This deal consolidates UltraTech Cement’s position as a market leader, enhancing its capacity amidst increasing competition from the Adani Group. It marks a significant shift in the cement industry with strategic acquisitions driving growth. For traders, it signals opportunities in India Cements due to its sharp price surge.

 NIFTY 50 GAINERS

JSWSTEEL – 934.90 (1.91%)

TATASTEEL – 142.62 (1.38%)

SHRIRAMFIN – 2915.20 (1.32%)

 

NIFTY 50 LOSERS

APOLLOHOSP – 7223.00 (-0.40%)

SBILIFE – 1395.25 (-0.38%)

HDFCLIFE – 621.95 (-0.30%)

Sector: : Pharmaceuticals

UK Approval Boosts Aurobindo pharma

Aurobindo Pharma’s shares rose in early trade on December 23 after its step-down subsidiary, CuraTeQ Biologics, received marketing approval from the UK’s Medicines and Healthcare products Regulatory Agency (MHRA) for Bevqolva, a biosimilar of bevacizumab. Bevqolva, available in 100 mg and 400 mg vials, is used to treat various cancers, including colorectal, lung, renal, cervical, ovarian, and other advanced cancers. At 9:36 am, the stock was trading at ₹1,245.95, up 0.42%. This approval adds to Aurobindo’s recent achievements, including a positive opinion from the European Medicines Agency for another biosimilar and USFDA approval for a cancer treatment drug. However, the company also received two observations from the USFDA after an inspection at its API facility. These developments highlight Aurobindo’s growing presence in the global oncology market while maintaining regulatory focus, making it a stock to watch for traders and investors.

Why it Matters:

The UK MHRA approval strengthens Aurobindo Pharma’s oncology portfolio, enhancing its presence in the high-demand biosimilar market. It showcases the company’s progress in expanding globally with innovative cancer treatments. For investors, it signals growth potential amid regulatory achievements and product launches.

Desh Duniya Bazaar

Around the World

Asian stocks rose on Monday, following Wall Street’s rally after softer U.S. inflation data fueled hopes of falling interest rates in 2025. Japanese markets gained, with Honda up 2% on reports of a potential merger with Nissan, aiming to create the world’s third-largest automaker by sales. Broader Asia saw advances, including a 1.2% rise in Australia’s ASX 200, driven by News Corp’s sale of Foxtel, and a 1.5% jump in South Korea’s KOSPI, as investors bought discounted stocks. Chinese indices rose slightly as Beijing assured increased fiscal spending in 2025. Singapore’s Straits Times gained 1.1%, while India’s Nifty 50 futures hinted at a positive open after last week’s losses. Optimism over U.S. inflation, potential mergers, and regional fiscal policies drove the gains across markets.

Option Traders Corner

 Max Pain

Nifty 50 – 23,772

Bank Nifty – 52,000

Nifty 50 – 23,730 (Pivot)

Support – 23,994, 23,201, 22,886

Resistance – 23923,014, 24,258, 24,451

Bank Nifty – 50,999 (Pivot)

Support – 50,369, 49,979, 49,349

Resistance – 51,839, 52,018, 52,408

Did you know?

Indian Digital Milestone Achieved

India has generated over 138 crore Aadhaar numbers, transforming digital identity verification. DigiLocker now serves 37 crore users, securely storing 776 crore documents. The DIKSHA platform has facilitated 556 crore learning sessions and achieved nearly 18 crore course enrollments. 

Have you checked our latest Brand Ad

Newsletter: 20th December 2024

Rajasthan MoU Boosts KPI

Aaj Ka Bazaar

Major U.S. stock indexes ended a volatile session little changed on Thursday, although the Dow snapped a 10-day losing streak. The S&P 500 and Nasdaq were slightly in the red by day’s end, extending Wednesday’s sharp selloff tied to a signal from the Federal Reserve that it may deliver fewer interest rate cuts in 2025 than it had earlier projected. Asian shares were pinned near three-month lows on Friday as investors awaited key U.S. inflation data that could either ease or worsen concerns about price pressures, while the dollar towered at two-year peaks. Japan’s Nikkei rose 0.2% on Friday and is up a whopping 16% for the year, in part due to the weakness in the yen, which has depreciated 12% in 2024 and drew intervention warnings again from Japanese authorities. Considering the global market cues, the Indian benchmarks will likely have a negative start, Indian shares are set for a muted open on Friday after the previous session’s declines on concerns over a slower pace of rate cuts by the U.S. Federal Reserve, while IT stocks are likely to find support after solid results by U.S. peer Accenture. On a stock-specific note, GE Vernova T&D will be in focus as the company has received an order worth Rs. 400 crores from Sterlite Grid 32 Ltd.

Markets Around Us

BSE Sensex -79,036.97 (-0.23%)

Nifty 50 – 23,909.95 (-0.17%)

Bank Nifty – 51,426.05 (-0.29%)

Dow Jones – 42,046.29 (-0.68%)

Nasdaq – 19,369.58 (-0.12%)

FTSE – 8,105.32 (-1.16%)

Nikkei 225 – 38,817.75 (0.03%)

Hang Seng – 19,775.30 (0.11%)

Sector: : Power Generation

KPI Green Rises on Rajasthan MoU

KPI Green Energy’s stock rose 3% in early trade on December 20 after signing an agreement with the Rajasthan government to develop solar and wind hybrid power projects in Jaisalmer. The state government will assist the company in obtaining necessary approvals. Additionally, the company announced January 3, 2025, as the record date for issuing bonus shares at a 1:2 ratio, pending shareholder approval. Earlier this month, KPI secured its largest-ever order worth ₹13.11 billion from Coal India to set up a 300 MW solar plant with maintenance services for five years. The stock, trading at ₹787, is 29% below its 52-week high of ₹1,116 but 89% above its 52-week low of ₹417. This reflects strong growth potential supported by recent developments and increasing demand for renewable energy solutions.

Why it Matters:

KPI Green’s MoU with Rajasthan boosts its renewable energy portfolio, aligning with India’s push for clean energy. The bonus share announcement adds shareholder value, attracting more investors. Its largest-ever solar project order reflects strong business growth and future potential.

 NIFTY 50 GAINERS

TCS – 4337.55 (1.54%)

WIPRO – 315.15 (0.77%)

INFY – 1960.55 (0.74%)

 

NIFTY 50 LOSERS

AXISBANK – 1096.30 (-1.14%)

ITC – 461.85 (-1.01%)

LT – 3685.05 (-0.84%)

Sector: : Port Services

JSW Infra Targets 400 MTPA capacity

JSW Infrastructure, India’s second-largest private port operator, plans to invest ₹30,000 crore to increase its cargo-handling capacity to 400 MTPA by FY30. The company is working on expanding existing ports and developing new ones while enhancing its logistics network through acquisitions like Navkar Corporation. Currently, third-party cargo accounts for 48% of its total business, up from 5% in FY19, with a target of achieving a 50-50 mix between group and third-party clients in the long term. Debt-free and with a market cap of ₹66,000 crore, JSW Infra is focusing on a robust ports and logistics ecosystem aligned with India’s infrastructure goals. It has spent ₹400 crore on capex this year and recently secured contracts for new terminals, supporting its growth plans.

Why it Matters:

JSW Infrastructure’s ₹30,000 crore investment strengthens India’s port and logistics capacity, aligning with national infrastructure goals. The shift towards third-party cargo and acquisitions boosts diversification and long-term revenue potential. Its debt-free status and strong market cap highlight financial stability for sustained growth.

Desh Duniya Bazaar

Around the World

Asian stocks mostly fell or stayed flat this Friday, ending a tough week due to concerns over slower U.S. interest rate cuts. Japanese stocks rose slightly despite strong inflation data hinting at possible future rate hikes, as the central bank signaled they may wait until later in 2025. Chinese markets were steadier, with small gains as expectations grew for more government spending next year to support the economy. However, China’s central bank kept rates steady due to limited room for further cuts and a weak yuan. Broader Asian markets, like Australia’s and South Korea’s, fell sharply amid hawkish U.S. Federal Reserve signals and weaker risk appetite, with South Korea’s market hit hardest by political and tech sector challenges. Indian stock futures pointed to more losses after a difficult week. The overall sentiment across Asia reflected caution due to global economic uncertainties.

Option Traders Corner

Max Pain

Nifty 50 – 24,000

Bank Nifty – 52,500

Nifty 50 – 23,942 (Pivot)

Support – 23,879, 23,807, 23,745

Resistance – 24,014, 24,076, 24,148

Bank Nifty – 51,543 (Pivot)

Support – 51,296, 51,017, 50,770

Resistance – 51,822, 52,069, 52,348

Did you know?

Indian Digital Milestone Achieved

India has generated over 138 crore Aadhaar numbers, transforming digital identity verification. DigiLocker now serves 37 crore users, securely storing 776 crore documents. The DIKSHA platform has facilitated 556 crore learning sessions and achieved nearly 18 crore course enrollments. 

Have you checked our latest Brand Ad

Newsletter: 18th December 2024

Shoppers Stop Stock Spikes

Aaj Ka Bazaar

Indian equity markets are expected to open lower on Wednesday, with the Gift Nifty indicating a weak start, as global market pressures mount. Foreign institutional investors are turning risk-averse ahead of the US Federal Reserve’s policy rate decision, shifting their investments from Indian equities to US stocks. Market sentiment is cautious, with volatility anticipated ahead of the Fed’s announcement and its economic projections. While most Asian markets are in the green, Japan’s Nikkei is trading lower due to concerns over Japan’s trade data and the Bank of Japan’s upcoming rate decision. Central banks in Japan, Britain, Sweden, and Norway are meeting this week, with Sweden expected to hike rates. The US Fed is widely anticipated to cut rates by 25 basis points. In stock specific front, the cancellation of Va Tech Wabag’s contract for a major desalination project in Saudi Arabia has further added to market uncertainty.

Markets Around Us

BSE Sensex –80,564.70 (-0.15%)

Nifty 50 – 24,302.75 (-0.14%)

Bank Nifty – 52,701.20 (-0.25%)

Dow Jones – 43,512.80 (-0.04%)

Nasdaq – 20,108.30 (-0.33%)

FTSE – 8,195.20 (-0.82%)

Nikkei 225 – 39,210.33 (-0.39%)

Hang Seng – 19,810.83 (0.56%)

Sector: Retail

Shoppers Stop Rises on Major Deal

Shares of Shoppers Stop surged nearly 6% on December 18 after a large trade worth ₹236 crore took place, involving 37.6 lakh shares, or 3.4% of the company’s stake, at an average price of ₹628 per share. By 9:24 am, the stock was trading at ₹660 on the NSE, with trading volumes spiking to nearly double the one-month daily average. Despite today’s rally, the stock has been under pressure, falling over 23% in the past three months due to weak urban demand. The company reported a net loss of ₹20.59 crore in Q2, compared to a ₹2.73 crore profit in the same period last year, as extended rains and weak discretionary spending weighed on performance. However, revenue grew 7.3% year-over-year to ₹1,114.87 crore. To boost growth, Shoppers Stop recently announced plans to enter quick commerce, offering delivery of products like clothing and cosmetics within three hours from its stores.

Why it Matters:

Shoppers Stop’s stock surge reflects market optimism following a significant ₹236 crore trade, despite recent underperformance. The company’s focus on quick commerce highlights strategic efforts to adapt to evolving consumer preferences. This could signal potential growth opportunities for investors amid challenging retail conditions.

 NIFTY 50 GAINERS

DRREDDY – 1275.35 (2.22%)

SUNPHARMA – 1818.65 (1.65%)

CIPLA – 1471.90 (1.45%)

 

NIFTY 50 LOSERS

TATAMOTORS – 762.25 (-2.24%)

POWERGRID – 324.90 (-1.49%)

LT – 3769.05 (-1.00%)

Sector: : Real Estate

DLF Shares Drop Despite Positive Outlook

DLF shares have gained 20% this year, and an international brokerage predicts a 12% upside with a target price of Rs 975. The company’s luxury project, “The Dahlias,” has seen strong demand, with 130-150 units sold, potentially generating Rs 10,000-11,000 crore in sales—exceeding FY25 expectations. DLF reported a 121% rise in profit to Rs 1,387 crore for Q2FY25, up from Rs 628 crore last year, driven by tax reversals and higher revenues. Revenue grew 48% year-on-year to Rs 2,181 crore, while expenses rose 58% to Rs 1,604 crore. New sales bookings totaled Rs 692 crore, and operating cash surplus stood at Rs 1,211 crore.

Why it Matters:

DLF’s strong profit growth of 121% and robust demand for its luxury project, “The Dahlias,” signal its resilience and leadership in India’s real estate market. With a 20% rise in share price this year and an additional 12% upside forecast, it presents a compelling investment opportunity. The company’s consistent performance underscores the growing demand for premium housing and solidifies its market position.

Desh Duniya Bazaar

Around the World

Asian markets mostly rose on Wednesday, supported by reports of increased fiscal spending in China, though gains were capped by caution ahead of a key U.S. Federal Reserve decision. China’s proposed fiscal deficit increase to 4% of GDP by 2025—its highest ever—signals a focus on boosting growth with an additional 1.3 trillion yuan in spending and more debt issuances. This uplifted Chinese stocks, with the CSI 300, Shanghai Composite, and Hang Seng gaining modestly. Meanwhile, Japan’s markets were mixed as investors awaited the Bank of Japan’s meeting, while speculation of a Honda-Nissan-Mitsubishi merger spurred notable stock moves. Broader markets saw mixed performances, with South Korea’s KOSPI up 1%, Australia’s ASX 200 edging higher, and Singapore’s STI dipping slightly. In India, Nifty 50 futures pointed to a weak opening after recent losses. All eyes remain on the Fed’s expected rate cut and its 2025 policy outlook, which may shape global market sentiment.

Option Traders Corner

Max Pain

Nifty 50 – 24,450

Bank Nifty – 53,000

Nifty 50 – 24,421 (Pivot)

Support – 24,218, 24,100, 23,897

Resistance – 24,538, 24,741, 24,859

Bank Nifty – 53,019 (Pivot)

Support – 52,524, 52,213, 51,717

Resistance – 53,330, 53,826, 54,136

Did you know?

Indian Digital Milestone Achieved

India has generated over 138 crore Aadhaar numbers, transforming digital identity verification. DigiLocker now serves 37 crore users, securely storing 776 crore documents. The DIKSHA platform has facilitated 556 crore learning sessions and achieved nearly 18 crore course enrollments. 

Have you checked our latest Brand Ad

Newsletter: 17th December 2024

RVNL Gains on Nagpur Metro Deal

Aaj Ka Bazaar

Indian benchmark indices, Sensex and Nifty, are likely to open on a cautious note, following Gift Nifty cues which is trading 24.50 points down. Investors in the Indian stock markets are likely to stay cautious as they wait for the US Federal Reserve’s upcoming decision on interest rates and any clues about its plans for next year. However, the strong performance of the Nasdaq and S&P 500 on Wall Street may help boost some stocks in India. While South Korean markets are down due to political uncertainties, most markets in the Asia-Pacific region are rising ahead of the Federal Reserve’s decision. In stock-specific news, Vedanta will be in focus after announcing its fourth interim dividend, and Varun Beverages is making news after acquiring a 39.93% stake in Lunarmech.

Markets Around Us

BSE Sensex –81,511.81 (-0.29%)

Nifty 50 – 24,584.80 (-0.34%)

Bank Nifty – 53,394.10 (-0.35%)

Dow Jones – 43,701.82 (-0.04%)

Nasdaq – 20,161.15 (1.18%)

FTSE – 8,262.05 (-0.46%)

Nikkei 225 – 39,510.88 (0.14%)

Hang Seng – 19,698.57 (-0.49%)

Sector: Constructions

RVNL Wins ₹270Cr Maharashtra Metro Contract

RVNL shares rose 2.5% to ₹482 after winning a ₹270-crore contract from Maharashtra Metro Rail Corporation. The project includes constructing 10 elevated stations for Nagpur Metro’s Phase II, targeting completion in 30 months. Seven stations are planned in Reach 3A, including Rajiv Nagar and APMC, while three stations are in Reach 4A, like Pardi and Transport Nagar. This follows RVNL’s recent ₹186.76-crore project win for East Central Railway. Despite Q2 profit declining 27% due to margin pressure, RVNL shares have surged 159% in 2023.

Why it Matters:

RVNL’s ₹270-crore Nagpur Metro contract win underscores its growing role in India’s infrastructure sector, boosting its project pipeline. This comes amid recent financial challenges, including profit declines and operational margin pressures. Despite this, RVNL’s strong performance in 2023, with shares up 159% year-to-date, reflects investor confidence in its long-term growth prospects.

 NIFTY 50 GAINERS

CIPLA – 1475.80 (1.89%)

TATAMOTORS – 789.25 (0.57%)

NTPC – 353.60 (0.20%)

 

NIFTY 50 LOSERS

SHRIRAMFIN – 3096.05 (-1.32%)

INFY – 1961.40 (-0.94%)

EICHERMOT – 4794.00 (-0.92%)

Sector: IT

Wipro Secure $40M Deal for US Acquisition

Wipro’s shares rose to ₹312 after announcing a $40 million deal to acquire US-based Applied Value Technologies and its affiliates. This acquisition is aimed at enhancing Wipro’s enterprise application services and attracting new clients. The deal involves cash payments and a performance-based earnout, with completion expected by December 2024. While Applied Value’s revenue surged from $0.8 million in 2021 to $19.4 million in 2023, analysts believe its small scale will have minimal financial impact on Wipro in FY25-FY26. The acquisition strengthens Wipro’s growth strategy in the IT services sector.

Why it Matters:

Wipro’s $40 million acquisition of Applied Value Technologies boosts its application services capabilities, expands its client base, and strengthens its growth strategy despite limited near-term financial impact.

Desh Duniya Bazaar

Around the World

Asian markets were mixed on Tuesday, awaiting interest rate decisions from major central banks this week. The U.S. Federal Reserve is expected to cut rates by 25 basis points, with markets also watching the long-term outlook. Stock futures in the U.S. fell slightly, though tech stocks rose. Japan’s Nikkei gained ahead of the Bank of Japan’s meeting, while Indonesia and Thailand’s markets were flat, awaiting key rate decisions. In the Philippines, the stock index fell on expectations of another rate cut. Weak economic data from China added to market caution, with retail sales growth slowing despite a rise in industrial output. South Korea’s market fell amid political uncertainty, while Australian stocks rose.

Option Traders Corner

Max Pain

Nifty 50 – 24,650

Bank Nifty – 53,300

Nifty 50 – 24,683 (Pivot)

Support – 24,586, 24,504, 24,406

Resistance – 24,765, 24,863, 24,945

Bank Nifty – 53,551 (Pivot)

Support – 53,364, 53,147, 52,960

Resistance – 53,768, 53,955, 54,172

Did you know?

Indian Digital Milestone Achieved

India has generated over 138 crore Aadhaar numbers, transforming digital identity verification. DigiLocker now serves 37 crore users, securely storing 776 crore documents. The DIKSHA platform has facilitated 556 crore learning sessions and achieved nearly 18 crore course enrollments. 

Have you checked our latest Brand Ad

Weekly Report: 14th December 2024

Weekly Trend Report

Week Gone By

The equity indices showed a mixed trend throughout the week but ended with modest gains, supported by a strong rally on Friday. The BSE Sensex rose by 424 points to 82,133.12, while the Nifty 50 gained 90.50 points, reaching 24,768.30. In India, CPI inflation eased to 5.48% in November, down from 6.21% in October, with retail inflation also falling within the RBI’s target range of 2-6%. The Index of Industrial Production saw a 3.5% growth in October, up from 3.1% in September. Globally, China’s consumer prices rose 0.2%, with exports growing 6.7%, indicating global demand concerns. The S&P 500 and NASDAQ reached record highs, while the Dow Jones lagged. In the US, nonfarm payrolls rose by 227,000 jobs, CPI increased by 2.7%, and core CPI climbed 3.3% YoY.

Week Ahead

Next week, investor sentiment will be influenced by a mix of domestic and global factors, including key economic data releases. In India, the HSBC Composite, Manufacturing, and Services PMI for December will be announced on December 16, along with WPI inflation and balance of trade data. Globally, the US Federal Reserve will meet on December 19 to decide on interest rates, while Q3 GDP data will also be released. Key data from China, including industrial production and retail sales, will be available on December 16. Additionally, US retail sales data for November will be released on December 17.

Technical Overview
  • The Nifty50 index commenced the trading week on a subdued note and remained relatively lackluster for the majority of the week.
  • Nevertheless, it concluded the week with an increase in volatility, managing to close in the upper quartile of its trading range, surpassing the 50-day moving average. This accomplishment marks the fourth consecutive week of higher closing values.
  • The Volatility Index (VIX) decreased by 7.7% during the week, reaching a value of 13.05, which signifies a reduction in market fears, a positive indicator.
  • The week ended with most broader indices exhibiting confirmed uptrend status, although their positive momentum appears to be diminishing. From a sectoral perspective, sectors such as IT, Consumer Durables, and Finance are demonstrating relatively higher positive momentum, which is further improving.
  • In terms of market breadth, the percentage of stocks trading above the 50-day and 200-day moving averages has shown significant recovery and is now operating above the median threshold, indicating increasing bullish strength.
  • In contrast, the percentage of stocks trading above 10 DMA is lower than those trading above 20 DMA. This negative crossover reflects comparatively weaker momentum within the intermediate trend.
  • On the momentum market breadth front, the numbers exhibited a negative trajectory for the week, and this weakness further persisted by the end of the week. However, over a broader timeframe, the numbers continue to appear healthy, which is encouraging.
  • The zone of 24780-25000 serves as a critical resistance level, representing the neckline of the inverted head and shoulders pattern, beneath which the Nifty experienced a pronounced correction that began in late October.
  • The index is expected to attract additional bullish momentum upon decisively reclaiming this zone on a closing basis. Conversely, the support levels have been adjusted higher, with the zone of 24350-24130 anticipated to provide immediate support.
  • In light of the prevailing hard-money market conditions characterized by persistent volatility, it is advisable for swing portfolios to maintain their positions and await a reduction in volatility prior to initiating new positions, given that the swing confidence of the general market stands at 50. This implies that portfolios should undertake half of the maximum permissible open risk.

To view the detailed report click here to   Download 

Newsletter: 16th December 2024

Bhopal Metro Project Secured

Aaj Ka Bazaar

Stock markets in India are expected to remain cautious amid mixed global cues, as investors await the US Federal Reserve’s policy rate decision later this week. Most Asian indices, including Japan’s Nikkei, Hong Kong’s Hang Seng, and South Korea’s Kospi, traded with little change, while Australia’s ASX 200 saw a decline. In the US on Friday, the S&P 500 closed flat, the Dow Jones fell, and the Nasdaq Composite saw a modest rise. In stock-specific news, HBL Power will be in focus after securing a significant order from Chittaranjan Locomotive Works for the supply, installation, and commissioning of on-board train collision avoidance systems in 2,200 locomotives.

Markets Around Us

BSE Sensex –81,982.79 (-0.40%)

Nifty 50 – 24,726.55 (-0.22%)

Bank Nifty – 53,430.60 (-0.29%)

Dow Jones – 43,824.30 (-0.10%)

Nasdaq – 19,923.52 (0.10%)

FTSE – 8,300.33 (-0.14%)

Nikkei 225 – 39,380.86 (-0.23%)

Hang Seng – 19,877.50 (-0.47%)

Sector: Constructions

Afcons Wins ₹1006.74 Crore Project

Afcons Infrastructure shares are in focus after securing a ₹1,006.74 crore project for the Bhopal Metro Rail. The project involves constructing elevated viaducts and 13 metro stations, connecting Bhadbhada Chauraha to Ratnagiri Tiraha. Afcons is to complete the project within 36 months. Recently, the company also emerged as the lowest bidder for a ₹503.86 crore water supply project in Rajasthan and achieved significant milestones, such as completing a major tunneling drive for Delhi Metro Phase IV. These developments showcase Afcons’ strong project pipeline and infrastructure expertise.

Why it Matters:

This project win strengthens Afcons Infrastructure’s presence in India’s infrastructure sector and supports urban development through metro rail connectivity. The company’s recent achievements, including tunneling for Delhi Metro, highlight its expertise in large-scale projects. These milestones could positively influence investor confidence and share performance.

 NIFTY 50 GAINERS

ITC – 473.85 (0.82%)

LT – 3907.25 (0.52%)

CIPLA – 1453.75 (0.45%)

 

NIFTY 50 LOSERS

BPCL – 298.75 (-0.98%)

JSWSTEEL – 992.00 (-0.79%)

TECHM – 1785.00 (-0.63%)

Sector: Pharmaceuticals

Wochardt Surges as Zaynich Aids Transplant

Wockhardt’s investigational antibiotic Zaynich, undergoing Phase III trials, has facilitated a successful liver transplant in the U.S. by clearing a chronic bile duct infection caused by dual drug-resistant pathogens. The FDA-approved compassionate use of Zaynich has already benefited 45 patients with life-threatening Gram-negative infections. Zaynich, part of the novel β-lactam enhancers class, is also under evaluation for treating urinary tract infections. Earlier in 2024, it demonstrated a 100% clinical cure rate in critically ill patients with severe infections, including pneumonia, bloodstream infections, and intra-abdominal sepsis. Shares surged 10% on this development.

Why it Matters:

Wockhardt’s Zaynich shows promise in tackling extreme drug-resistant infections, marking a breakthrough in global antibiotic development. Its compassionate use has enabled life-saving treatments, including facilitating a liver transplant in the U.S., boosting confidence in its efficacy. This positions Wockhardt as a leader in combating critical Gram-negative infections.

Desh Duniya Bazaar

Around the World

Asian stocks fell on Monday as markets awaited the U.S. Federal Reserve’s interest rate decision, with a 25 basis points cut expected. Chinese shares dropped after retail sales data fell short of expectations, highlighting weak consumer demand despite recent stimulus. Japan’s markets were stable ahead of the Bank of Japan’s meeting, where no rate changes are anticipated. South Korea’s KOSPI stayed flat following political upheaval. Australian and Indonesian markets declined, while India’s Nifty 50 and Malaysia’s KLCI showed slight gains, reflecting mixed regional performance amid global caution.

Option Traders Corner

Max Pain

Nifty 50 – 24,650

Bank Nifty – 53,300

 

Nifty 50 – 24,580 (Pivot)

Support – 24,368, 23,968, 23,757

Resistance – 24,980, 25,191, 25,591

 

Bank Nifty – 53,167 (Pivot)

Support – 52,680, 51,778, 51,291

Resistance – 54,070, 54,556, 55,459

Did you know?

Indian Digital Milestone Achieved

India has generated over 138 crore Aadhaar numbers, transforming digital identity verification. DigiLocker now serves 37 crore users, securely storing 776 crore documents. The DIKSHA platform has facilitated 556 crore learning sessions and achieved nearly 18 crore course enrollments. 

Have you checked our latest Brand Ad

Newsletter: 13th December 2024

₹13,500 Crore Jet Deal

Aaj Ka Bazaar

Wall Street indices closed mostly higher, with the S&P 500 gaining 0.82% and the Nasdaq Composite surging 1.77% to hit the 20,000 mark for the first time. The rally in tech stocks, driven by hopes of looser regulations under Donald Trump’s presidency and optimism around AI-driven earnings growth in the coming quarters, showed no signs of slowing. However, the Dow Jones edged down by 0.22%. These movements were supported by the US inflation report, which solidified expectations of a Federal Reserve rate cut next week. Asian markets largely tracked the gains from the US markets, closing in positive territory. Japan’s Nikkei rose by 1.5%, while Hong Kong’s Hang Seng and China’s CSI 300 added 0.12% and 0.14%, respectively. Indian benchmark indices are expected to open on a muted note but may gain momentum and turn positive, reflecting the global cues. In stock-specific news, ACME Solar Holdings secured the 250 MW FDRE Project W Firm and Dispatchable Renewable Energy in an e-reverse auction conducted by NHPC at a Rs. 4.56 per unit tariff. Additionally, a greenshoe option could potentially double the project’s capacity to 500 MW, increasing ACME Solar’s total capacity to 6,970 MW.

Markets Around Us

BSE Sensex –80,966.46 (-0.40%)

Nifty 50 – 24,495.10 (-0.22%)

Bank Nifty – 53,139.60 (-0.14%)

Dow Jones – 43,871.29 (-0.10%)

Nasdaq – 19,915.98 (-0.59%)

FTSE – 8,311.76 (0.12%)

Nikkei 225 – 39,394.86 (-1.14%)

Hang Seng – 20,079.46 (-1.54%)

Sector: Aerospace & Defence

HAL Signs Deal for Sukhoi Jets

Hindustan Aeronautics Ltd. (HAL) shares are in focus after signing a ₹13,500 crore deal with the Ministry of Defence to deliver 12 advanced Su-30MKI jets. These jets will include 62.6% locally sourced components, bolstering India’s self-reliance in defense. The aircraft, to be built at HAL’s Nasik division, will enhance the Indian Air Force’s operational capability. HAL has already secured ₹40,000 crore in manufacturing orders this year, and analysts expect further defense contracts in Q4FY25, making it a key player in India’s defense sector.

Why it Matters:

This deal emphasizes India’s push for self-reliance in defense through indigenous manufacturing. It strengthens the Indian Air Force’s capabilities while showcasing HAL’s growing role in securing major defense contracts. Analysts predict more orders, solidifying HAL’s importance in the sector.

 NIFTY 50 GAINERS

HINDUNILVR – 2353.65 (0.37%)

NESTLEIND – 2231.60 (0.34%)

ADANIENT – 2512.55 (0.34%)

 

NIFTY 50 LOSERS

JSWSTEEL – 981.55 (-2.41%)

TATASTEEL – 147.34 (-2.28%)

SHRIRAMFIN – 3187.85 (-1.85%)

Sector: Financial Services

CRISIL Gains on Strategic Investments

CRISIL shares are likely to rise further on December 14 after its board approved a ₹33.25 crore investment to acquire a 4.08% stake in Online PSB Loans. This deal aims to enhance CRISIL’s market presence by supporting fintech-driven loan platforms. The acquisition, pending standard conditions and final agreements, is expected to close within 45 days. CRISIL recently reported a 12.8% YoY rise in Q2FY25 net profit to ₹171.55 crore, and its stock remains near its 52-week high, showing strong investor interest.

Why it Matters:

CRISIL’s acquisition of a stake in Online PSB Loans strengthens its foothold in the fintech lending sector, aligning with growth opportunities in digital financial solutions. This strategic move is set to diversify CRISIL’s offerings and boost market confidence.

Desh Duniya Bazaar

Around the World

Asian stocks fell sharply on Friday, mirroring Wall Street losses amid caution before the Federal Reserve meeting next week. Chinese markets declined as updates from a key legislative meeting disappointed investors, failing to announce aggressive economic stimulus. The Shanghai Composite dropped 1.8%, while Hong Kong’s Hang Seng lost 1.9%. Japan’s Nikkei 225 fell 1.3%, and other Asian indices also struggled. Meanwhile, South Korea’s KOSPI rose 0.3% amid political developments, while India’s Nifty 50 and Malaysia’s FTSE KLCI showed mixed trends. Global investors remained cautious on central bank policy signals.

Option Traders Corner

Max Pain

Nifty 50 – 24,500

Bank Nifty – 53,300

Nifty 50 – 24,583 (Pivot)

Support – 24,492, 24,436, 24,345

Resistance – 24,639, 24,731, 24,787

Bank Nifty – 53,309 (Pivot)

Support – 53,081, 52,946, 52,718

Resistance – 53,444, 53,672, 53,807

Did you know?

Indian Digital Milestone Achieved

India has generated over 138 crore Aadhaar numbers, transforming digital identity verification. DigiLocker now serves 37 crore users, securely storing 776 crore documents. The DIKSHA platform has facilitated 556 crore learning sessions and achieved nearly 18 crore course enrollments. 

Have you checked our latest Brand Ad

Newsletter: 12th December 2024

Rajkot Blaze Sparks Decline

Aaj Ka Bazaar

Wall Street indices closed mostly higher, with the S&P 500 gaining 0.82% and the Nasdaq Composite surging 1.77% to hit the 20,000 mark for the first time. The rally in tech stocks, driven by hopes of looser regulations under Donald Trump’s presidency and optimism around AI-driven earnings growth in the coming quarters, showed no signs of slowing. However, the Dow Jones edged down by 0.22%. These movements were supported by the US inflation report, which solidified expectations of a Federal Reserve rate cut next week. Asian markets largely tracked the gains from the US markets, closing in positive territory. Japan’s Nikkei rose by 1.5%, while Hong Kong’s Hang Seng and China’s CSI 300 added 0.12% and 0.14%, respectively. Indian benchmark indices are expected to open on a muted note but may gain momentum and turn positive, reflecting the global cues. In stock-specific news, ACME Solar Holdings secured the 250 MW FDRE Project W Firm and Dispatchable Renewable Energy in an e-reverse auction conducted by NHPC at a Rs. 4.56 per unit tariff. Additionally, a greenshoe option could potentially double the project’s capacity to 500 MW, increasing ACME Solar’s total capacity to 6,970 MW.

Markets Around Us

BSE Sensex –81,506.27 (0.02%)

Nifty 50 – 24,615.75 (-0.11%)

Bank Nifty – 53,382.50 (-0.02%)

Dow Jones – 44,030.80 (-0.26%)

Nasdaq – 20,032.76 (1.76%)

FTSE – 8,301.62 (0.26%)

Nikkei 225 – 39,899.82 (1.34%)

Hang Seng – 20,501.14 (1.69%)

Sector: Packaged Foods

Rajkot Factory Fire Hits Gopal Snacks

On December 12, Gopal Snacks shares fell following a major fire at its snacks manufacturing unit near Rajkot, Gujarat. The fire, which broke out on December 11, required 14 fire tenders to contain, with no injuries reported as the site had minimal staff due to a holiday. To mitigate the impact, the company has scaled up production at its facilities in Modasa and Nagpur and is collaborating with third-party manufacturers to meet demand. All assets are insured, and critical systems remain operational with no data loss or IT disruptions, ensuring smooth business continuity. Efforts are underway to restore operations at the affected unit quickly, and the management anticipates no long-term impact on financial performance. The company continues to maintain its position in the market, with its stock trading between its 52-week high and low range.

Why it Matters:

This incident highlights the importance of operational risk management for manufacturers. Despite the fire, Gopal Snacks showcased resilience by leveraging backup facilities and ensuring business continuity. It reassures investors that the company is prepared to handle disruptions without significant long-term financial impact.

 NIFTY 50 GAINERS

TECHM – 1793.80 (1.76%)

INFY – 1994.75 (1.04%)

TCS – 4469.25 (0.94%)

 

NIFTY 50 LOSERS

TATACONSUM – 920.20 (-1.59%)

COALINDIA – 410.90 (-1.45%)

APOLLOHOSP – 7240.00 (-1.37%)

Sector: Pharmaceuticals

Neuland Shares Slide After Block Deal

Neuland Laboratories shares dropped 8% on December 12 after a ₹780 crore block deal, with Smallcap World Fund reportedly selling its 3.8% stake. Around 4.9 lakh shares exchanged hands at ₹15,900 each, a 6% discount to the previous close, causing a sharp rise in trading volumes far above the monthly average. Reports suggest the deal was aimed at raising ₹747 crore for the fund, signaling its exit from the stock. This comes amid a 10% decline in Neuland Labs’ stock over the past week, driven by uncertainty around the US Biosecure Act. The Act, crucial for boosting demand for Indian CDMO firms under the China+1 strategy, failed to pass through a key defence bill, tempering optimism for the sector.

Why it Matters:

The block deal and Smallcap World Fund’s exit highlight significant investor activity, which can impact market sentiment. The broader decline in Neuland Labs’ stock reflects growing concerns over the stalled US Biosecure Act, a potential catalyst for Indian CDMO growth. This uncertainty could affect long-term prospects for the sector.

Desh Duniya Bazaar

Around the World

Asian stocks mostly rose on Thursday, driven by gains in U.S. technology stocks after inflation data boosted expectations of a Federal Reserve interest rate cut next week. U.S. consumer prices grew as expected in November, leading markets to price in a 98% chance of a 0.25% rate cut. Chinese markets gained as investors awaited economic stimulus details from the Central Economic Work Conference. Japan and South Korea saw tech-driven rallies, while Australia’s shares dipped as strong jobs data reduced chances of near-term rate cuts. Mixed performances were seen in other Asian markets, with investor focus split between local and global economic cues.

Option Traders Corner

Max Pain

Nifty 50 – 24,600

Bank Nifty – 53,400

Nifty 50 – 24,639 (Pivot)

Support – 24,585, 24,531, 24,478

Resistance – 24,694, 24,747, 24,803

Bank Nifty – 53,501 (Pivot)

Support – 53,378, 53,180, 53,057

Resistance – 53,447, 53,246, 53,210

Did you know?

Indian Digital Milestone Achieved

India has generated over 138 crore Aadhaar numbers, transforming digital identity verification. DigiLocker now serves 37 crore users, securely storing 776 crore documents. The DIKSHA platform has facilitated 556 crore learning sessions and achieved nearly 18 crore course enrollments. 

Have you checked our latest Brand Ad

Newsletter: 11th December 2024

Highway Boost for HG

Aaj Ka Bazaar

Wall Street indices closed in negative territory on Tuesday as investors awaited a key inflation report that could influence the Federal Reserve’s upcoming interest rate decision. The S&P 500 declined by 0.30%, while the Dow Jones Industrial Average dropped by 0.35%. Gains in the communication services sector partially offset losses in the tech sector. Of the 11 sectors in the S&P 500, only three finished in positive territory, as markets braced for the November CPI report, one of the final major data releases before the Fed’s December 17-18 meeting. Asian markets also reflected investor caution as they awaited US inflation data to gauge whether the Federal Reserve might cut or maintain interest rates next week. Meanwhile, Indian benchmark indices are expected to open on a muted note, influenced by primary market activities and mixed global cues. This is further indicated by the GIFT Nifty, which is trading flat.  In stock-specific news, NTPC Green Energy’s subsidiary, NTPC Renewable Energy, secured a 500-megawatt solar power contract in the SECI auction. The project will deliver solar power at a tariff of 3.52 per kWh.

Markets Around Us

BSE Sensex –81,525.95 (0.02%)

Nifty 50 – 24,627.00 (0.07%)

Bank Nifty – 53,440.25 (-0.26%)

Dow Jones – 44,220.50 (-0.06%)

Nasdaq – 19,688.98 (-0.24%)

FTSE – 8,280.36 (-0.87%)

Nikkei 225 – 39,259.83 (-0.27%)

Hang Seng – 20,270.53 (-0.18%)

Sector: Civil Constructions

HG infra Gains on 763 cr deal

Shares of HG Infra Engineering rose over 5% to ₹1,532 in morning trade on December 11 after securing a ₹763.11 crore highway project from the Ministry of Road Transport and Highways (MoRTH). The project involves upgrading a 63.84-km stretch in Uttar Pradesh under the hybrid annuity mode (HAM) and is expected to be completed within two years. This is HG Infra’s second major order win in less than a month, following a ₹1,110 crore contract for battery energy storage systems announced in November. Despite a 16% drop in Q2 profit to ₹80.7 crore and a slight revenue dip, the company maintained stable operating performance, with improved margins of 24.3%. HG Infra’s stock, up 72% this year, continues to reflect market confidence in its growing project pipeline and operational resilience, making it a strong contender in the infrastructure space for traders and new investors alike.

Why it Matters:

This highlights HG Infra’s strong project pipeline and ability to secure high-value contracts, reinforcing its growth potential. The improved EBITDA margin shows operational efficiency despite revenue pressures, which is promising for investors. The stock’s 72% rally this year reflects market confidence, making it a key player in infrastructure development.

 NIFTY 50 GAINERS

ULTRACEMCO – 12032.00 (2.44%)

GRASIM – 2699.80 (1.68%)

TATACONSUM – 939.10 (1.33%)

NIFTY 50 LOSERS

DRREDDY – 1228.80 (-0.93%)

HCLTECH – 1924.75 (-0.60%)

ICICIBANK – 1322.90 (-0.57%)

Sector: Banking

IOB Shares Surge on ₹1,359 Cr Refund

Shares of Indian Overseas Bank (IOB) rose 3.4% to ₹38.85 in morning trade on December 11 after the bank received an income tax refund order of ₹1,359.29 crore for the 2015-16 assessment year, including interest. This is the latest in a series of tax refunds for IOB, following ₹1,238 crore in November and ₹123.8 crore in September. The bank’s financial performance has been strong, with a 24.4% rise in Q2 net profit to ₹777.2 crore and an 8.2% increase in net interest income. Asset quality also improved, with gross NPAs dropping to 2.72% and net NPAs declining to 0.475%. Over the past year, IOB’s stock has surged 30%, significantly outperforming the Nifty 50, signaling growing market confidence in the bank’s financial health and operational performance. This makes IOB a noteworthy stock for traders and young investors watching the banking sector.

Why it Matters:

The tax refund strengthens IOB’s cash position, supporting its growth and operational stability. Improved financial metrics like higher profits, better net interest income, and reduced NPAs highlight the bank’s strong performance. With a 30% stock rally in the past year, it signals growing market confidence in IOB’s turnaround and potential for further gains.

Desh Duniya Bazaar

Around the World

Asian stocks showed mixed performance on Wednesday as investors awaited key U.S. inflation data to gauge potential interest rate changes. Chinese stocks rose, with the Shanghai Composite up 0.4% and Hong Kong’s Hang Seng jumping 0.8%, driven by expectations of government stimulus announcements at the Central Economic Work Conference. Broader Asian markets saw modest gains, with Indonesia and South Korea showing strength, while Japan’s Nikkei fell 0.6% due to concerns over rising inflation possibly triggering rate hikes. In contrast, Australia, Taiwan, Malaysia, and the Philippines posted declines amid cautious sentiment. Geopolitical tensions in the Middle East also weighed on risk appetite, while U.S. stock futures edged higher after a technology-led decline overnight. Investors are watching for U.S. consumer price index data to gain insights into the Federal Reserve’s next steps, as mixed economic signals and geopolitical risks continue to shape market sentiment.

Option Traders Corner

Max Pain

Nifty 50 – 24,600

Bank Nifty – 53,400

Nifty 50 – 24,599 (Pivot)

Support – 24,521, 24,432, 24,354

Resistance – 24,688, 24,766, 24,855

Bank Nifty – 53,501 (Pivot)

Support – 53,378, 53,180, 53,057

Resistance – 53,700, 53,822, 54,021

Did you know?

Indian Digital Milestone Achieved

India has generated over 138 crore Aadhaar numbers, transforming digital identity verification. DigiLocker now serves 37 crore users, securely storing 776 crore documents. The DIKSHA platform has facilitated 556 crore learning sessions and achieved nearly 18 crore course enrollments. 

Have you checked our latest Brand Ad