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Today’s share market’s key updates include how NTPC Green Energy and NHPC boost Bihar's renewable projects. Piramal to raise ₹2,000 crore via QIPs. NSE excludes 16 securities from F&O. UltraTech Cement makes strategic acquisitions. Govt infuses ₹500 crore into IFCI. FIIs net sell ₹3,597.82 crore.
1. NTPC Green Energy signs MoU with Bihar Government for renewable energy projects.
2. NHPC to invest ₹5,500 cr in Bihar for Solar Energy and Green Hydrogen Projects.
3. Piramal Enterprises board approves raising funds up to ₹2,000 crore via QIPs in one or more tranches.
4. NSE announces exclusion of 16 securities from F&O effective Feb 28.
5. UltraTechCement: To acquire 10.13 cr shares (32.72% equity) of India Cements held by the promoters and members of the promoter group. Makes an open offer for 8.05 crore shares (26% equity) at a price of ₹390/share from public shareholders.
6. Govt to infuse ₹500 crore in IFCI to improve its financial health.
7. FIIs net sell ₹3,597.82 cr while DIIs net buy ₹1,374.37 cr in equities on Friday.
US Share Market News
Performance Overview:
The Dow Jones Industrial Average bounced on Friday to close out a tough week that saw the index plunge 1,100 points in a single day and complete its longest losing streak since the 1970s. Some cooler-than-expected inflation data helped fuel the session’s rebound.
Trading in US is expected to be relatively muted during the week. The New York Stock Exchange closes early Tuesday for Christmas Eve and the market is shut on Christmas Day.
Sector-Specific Movements:
On Friday, the S&P 500 gained 1.1% to 5,930.90 points, and the Dow Jones Industrial Average rose 1.2% to 42,841.06, while the NASDAQ Composite climbed 1% to 19,572.60 points.
Economic Indicators:
PCE price index data—a key inflation gauge favoured by the Federal Reserve—rose 0.1% in November, a slower pace from October's 0.2% increase. This brought the annual PCE inflation rate to 2.4%, slightly below estimates of 2.5% leading to a pullback in benchmark indices.
Although the recent data indicated some cooling in inflation, it still remained above the Fed's 2% annual target, indicating that overall inflation still remained sticky.
Treasury Yields:
The 10-year Treasury yield retreated on Friday as a key inflation gauge showed cooler-than-expected price pressures. The yield on the 10-year Treasury fell 4.4 basis points to 4.526%.
Currency:
The U.S. dollar pulled back from a two-year high on Friday. The dollar was down 0.6% against a basket of six other currencies at 107.78.
Commodities:
Gold prices extended gains on Friday, supported by a softer dollar and Treasury yields after U.S. economic data indicated a slowdown in inflation. Spot gold was up 1.1% at $2,623.36 per ounce.
Oil prices were little changed at their settle on Friday as markets weighed Chinese demand and interest rate-cut expectations after data showed cooling U.S. inflation. Brent crude futures closed up 0.08%, at $72.94 a barrel.
General Trends:
Asia-Pacific markets started the holiday-shortened Christmas week on a positive note.
Specific Index Performance:
Japan’s Nikkei 225 climbed 0.68%, while the Topix was 0.51% higher. South Korea’s Kospi gained 0.72%, and the small-cap Kosdaq rose 0.96%.
GIFT Nifty Projection:
Gift Nifty suggests a positive opening for the Indian market amid pullback in the global equity market after last week sharp decline. Nifty spot in today's session is likely to consolidate in the range of 23500-23900.
Market in Previous Session:
Indian equities extended their losing streak on Friday, with the Nifty 50 declining by more than 1,200 points over five consecutive sessions. The downturn was driven by hawkish signals from the US Federal Reserve, persistent FII outflows, and concerns over stretched valuations, which weighed heavily on investor sentiment. Investors are also apprehensive about Trump's trade policies when he takes charge in mid-January next year, as his aggressive policies could lead to further pressure on global markets.
By the close, the Sensex fell 1,176.46 points (1.49%) to 78,041.59, and the Nifty dropped 364.2 points (1.52%) to 23,587.50.
All the sectoral indexes closed in the red with declines led by Bank, Realty, Auto and IT stocks. Bank Nifty also witnessed sthe harp decline and closed the session down by 1.6%. Broader market under performed and closed the session down by 2.8% and 2.2% respectively.
Nifty Short-Term Outlook:
Index on Friday has formed a sizable bear candle as it extended decline for the 5th session in a row signaling a continuation of corrective bias. The index on expected lines post breakdown below 23,800 tested the key support area of 23,500-23,600, which was the confluence of the 200-day EMA and the lower band of the rising channel.
Immediate bias remains down. However, the daily oscillators are placed at an oversold territory after the last week's sharp decline. Hence, a technical pullback can not be ruled out holding above the support area of 23,500. The index will likely consolidate in the range of 23,500-24,200 in the coming truncated week amid stock-specific action.
However, a follow-through weakness below 23,500 will open further downside towards the November low of 23250 levels in the coming weeks.
Intraday Levels:
Nifty: Intraday resistance is at 23,780 followed by 23,890 levels. Conversely, downside support is located at 23,500, followed by 23,360.
Bank Nifty: Intraday resistance is positioned at 51,280, followed by 51,500, while downside support is found at 50,600, followed by 50,370.
Nifty:
The highest call OI is positioned at 24000 followed by the 24500 level, whereas the highest put OI is positioned at the 23000 level followed by the 23500 level.
Put unwinding along with call OI addition was seen at 24000 strikes making it a crucial level to watch for. On the lower end, put OI addition was seen at the 23200 level making it a crucial support.
According to option chain analysis, a broader range for Nifty is 23500 and 24000.
The Nifty put-call ratio is now positioned at 0.80.
Bank Nifty:
The highest call OI is positioned at 52500 followed by the 52000 level, whereas the highest put OI is positioned at 49000 followed by the 50000 level.
Call writers were active above 51000 making it a crucial resistance. A break above 51000 can trigger further upside towards the 51500 level. Put OI addition was seen at 50800 making it a crucial support level.
According to option chain analysis, an immediate range for Bank Nifty is 50000 and 51500.
The Bank Nifty put-call ratio is now positioned at 0.52.
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