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• Following a substantial decline in the week prior, the Nifty index engaged in efforts to stabilize during the truncated trading week, remaining just below critical resistance levels.
• Over four trading days, the Nifty faced resistance at the 200 DMA and consistently failed to achieve a closing value above this benchmark. The trading range became considerably narrower, as the Nifty oscillated within a limited span of 292 points before concluding the week with a marginal gain of 226 points.
• Notably, volatility diminished relative to the previous week; during a surge of 15.48%, the India VIX experienced a decline of 12.17%, ultimately settling at 13.24.
• As the week concluded, all broader indices continued to remain below their 50 DMA, with Microcaps being a notable exception, as they showed improvements in the negative momentum that had characterized the prior week.  Sector-wise, a majority of indices persisted in exhibiting a strained trend, although some enhancement in negative momentum was observed.
• In terms of market breadth, the majority of stocks demonstrated a lack of strength in their intermediate positions, with the percentages of stocks trading above 10 and 20 DMAs significantly falling beneath median levels, accompanied by a negative crossover. Furthermore, the percentages of stocks trading above 50 and 200 DMA dipped below median levels once more, necessitating a cautionary stance.
• Indicators related to momentum market breadth remained on the weaker side, suggesting diminished stock participation, thereby reducing the likelihood of successful trades within this market framework.
• From a technical perspective, the Nifty is situated at a critical juncture. On one hand, it has closed below the resistance level of 200 DMA (23861), as well as the prior gap area near 24150, thereby forging this region into a crucial resistance zone. Conversely, the Nifty holds a position just above the 50 WMA at 23568, which serves as immediate support, followed by a pivotal support level near 23250.
• This situation positions the Nifty within a fragile range of 24150-23250. It is imperative for the Nifty to maintain its standing above the 50WMA; any violation of the support zone may precipitate sustained market weakness and induce an intermediate corrective trend. Furthermore, it is crucial to            assert that any prospective technical rebound will only be tenable if the Nifty is able to surpass and close above its 200 DMA. The longer the Nifty  remains below this threshold, the more susceptible it becomes to retesting the support zone.
• Consequently, it is prudent to adopt a cautious approach accompanied by effective risk management strategies in the current market context, emphasizing the importance of waiting for conditions to become more favorable.

• 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.

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.

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.