Markets Today: Wall St. in red, FIIs, Property Share listing, Gold & Oil up

Stock Markets Today, December 10: The key benchmark indices, Nifty50 and Sensex, are likely to react to mixed global cues in Tuesday's session, given the absence of major domestic triggers.

 

At 6:35 AM, GIFT Nifty futures were trading 50 points higher at 24,753 levels, hinting at an upbeat start.

 

In the previous session, the Sensex shed 200.66 points, or 0.25 per cent, to settle at 81,508.46. Similarly, Nifty settled at 24,619, down 58.80 points, or 0.24 per cent.

 

Also Read: Veteran investor Raamdeo Agrawal's pursuit of 'bruised blue-chips'

  Domestic cues 

Notably, inflows into corporate bond funds have risen to multi-year highs in recent months with the risk-reward dynamics of AAA-rated corporate bonds improving significantly vis-a-vis government securities (g-secs), especially in the near-term.

 

Also Read: Change of guard: Who is Sanjay Malhotra, Centre's pick as new RBI governor?

 

IPO corner

  The Property Share Investment Trust SM REIT IPO (Mainline) is set to debut on the bourses today. Additionally, Toss The Coin IPO (SME) and Jungle Camps IPO (SME) will open for subscription. 

 

Also Read: Cracking the whip: Why Sebi is tightening rules for public issues of SMEs

 

The subscription for Dhanlaxmi Crop Science IPO (SME) enters its second day, while the allotment of shares for Emerald Tyre Manufacturers IPO (SME) is expected to be finalised.

 

Also Read: Mobikwik IPO GMP zooms 40% ahead of Dec 11 opening; Key details from RHP

 

FII, DII  

Foreign Institutional Investors shifted to a buying stance, acquiring shares worth Rs 724.27 crore on December 9. In contrast, Domestic Institutional Investors sold equities worth Rs 1,648.07 crore.

 

Also Read: Salary, wage expenses growing faster than revenues for India Inc

 

Global cues 

Asia-Pacific markets opened mostly higher on Tuesday, rebounding from Wall Street's losses where the S&P 500 and Nasdaq retreated from record highs ahead of crucial inflation data. 

 

In Asia, traders analysed Beijing's announcement of ‘more proactive’ fiscal measures and a ‘moderately’ looser monetary policy for the upcoming year, aimed at boosting domestic consumption. 

 

The announcement, released late Tuesday after mainland China's markets had closed, drove the Hang Seng Index up nearly 3 per cent. 

 

Investors are also focused on Australia's upcoming interest rate decision, with a Reuters poll predicting that the Reserve Bank of Australia will maintain its benchmark rate at 4.35 per cent for the 10th consecutive meeting. 

 

Meanwhile, Australia’s ASX 200 dipped 0.25 per cent. Nikkei climbed 0.75 per cent, with the Topix gaining 0.85 per cent. The Kospi advanced 1.5 per cent amid ongoing scrutiny of the nation's political situation.

 

In the mother market, US, Monday’s trading session was marked by challenges in the tech sector as investors braced for inflation data. The S&P 500 fell 0.61 per cent, the Nasdaq slid 0.62 per cent, and the Dow Jones dropped 0.54 per cent. 

 

Among individual stocks, chipmaker Nvidia shares fell 2.6 per cent following news of an antitrust investigation by a Chinese regulator. 

 

Commodity check

  Gold prices surged to two-week highs on Monday, gaining over 1 per cent as China’s central bank resumed gold purchases after a six-month pause. The rally was further supported by expectations of an impending US Federal Reserve interest rate cut. Spot gold rose 1.2 per cent to $2,665.39 per ounce, while US gold futures advanced 1.1 per cent to $2,688.40.

 

Oil prices also climbed more than 1 per cent, buoyed by reports of China’s first move toward loosening monetary policy since 2010, aimed at stimulating economic growth. Brent crude futures increased 1.43 per cent to $72.14 per barrel, while US WTI crude gained 1.74 per cent, to close at $68.37.

 

Here's how analysts are assessing today's (December 10) trading session:

 

Rupak De, senior technical analyst at LKP Securities 

Technically, Nifty has initial support around 24,470. A break below this level could trigger a correction of 200-250 points. On the higher end, the 24,700-24,750 zone is expected to act as a resistance.

 

Hrishikesh Yedve, AVP of technical & derivatives research at Asit C Mehta Investment 

On the daily chart, the index formed a small red candle. However, the index is still holding above its recent breakout mark of 24,550. Thus, any dips near 24,550 would offer a good entry point for the short-term. On the downside, 100-DEMA support is placed near 24,330. As long as the index sustains above it, traders are advised to adopt a buy on dips strategy. On the upside, the index could test the levels of 24,800-25,000 in the short-term.