 "Stock Market Today: GIFT Nifty gains, Sensex rejig, Unimech IPO opens")
Stock Market Today, Monday, December 23, 2024: After a massive selling last week, India stock markets are expected to open higher today. GIFT Nifty futures were indicating a gap-up open for the Indian stock market, trading 157 points higher at 23,782.5 levels at 7:00 AM.
The rebound in the stock markets today, at least in the initial trading hours, is expected as global markets inch higher in a holiday-shortened week. Markets will remain closed on Wednesday on account of the Christmas holiday.
Japan’s Nikkei 225 was up 0.98 per cent, while the Topix was 0.81 per cent higher Monday morning.
South Korea’s Kospi gained 1 per cent, and the small-cap Kosdaq rose 1.24 per cent. Australia’s S&P/ASX 200 started the day up 1 per cent.
The positive sentiment across Asia-Pacific markets was also led by a recovery in Wall Street stocks on Friday.
Last Friday, The Dow Jones Industrial Average added 1.18 per cent, the S&P 500 1.09 per cent, and the tech-heavy Nasdaq Composite 1.03 per cent after the personal consumption expenditures price index, the US Federal Reserve’s preferred inflation gauge, accelerated lower-than-expected to 2.4 per cent in November from 2.3 per cent the previous month.
Market Recap
Remember, the Sensex and the Nifty 50 recorded their steepest weekly fall in two years last week with both the indices cracking roughly 5 per cent each.
While the Sensex crashed nearly 4,100 points in five sessions, the Nifty50 entered a ‘correction’ zone by falling 10 per cent from its record high level.
The indices ended the week at 78,041.59 and 23,587.5 levels, respectively.
Triggers for the week
The truncated week will see no major economic data being released in India. The Nifty's monthly F&O expiry will happen on Thursday, December 26, 2024.
Globally, investors will watch out for the UK’s Q3 gross domestic product (GDP) data on Monday, minutes of Japan’s latest monetary policy meeting on Tuesday, and the weekly jobless claims data in the US on Thursday.
That apart, foreign investors’ capital flows and the US dollar index movement will be among the key market moving factors. Thus far in December, FIIs have sold India equities worth Rs 4,121.22 crore. By comparison, the DIIs have pumped in Rs 16,546 crore into India equities this month.
Sensex rejig
Zomato will enter the BSE Sensex index today, replacing JSW Steel. Shares of Mahindra & Mahindra, ITC, Infosys, and Sun Pharmaceuticals, on the other hand, will see changes in their weights within the index.
IPOs this week
Back home, primary markets will see a lot of action this week, mostly in terms of listings.
Unimech Aerospace and Manufacturing IPO will open in the mainboard IPO category on December 23 till December 26, 2024.
Solar91 Cleantech IPO, and Anya Polytech & Fertilizers IPO, from the SME segment, will open for subscription on December 24 and December 26, respectively.
Further, Transrail Lighting IPO, DAM Capital Advisors IPO, Mamata Machinery IPO, Sanathan Textiles IPO, and Concord Enviro Systems IPO will close for subscription today. The stocks of these companies will list on the bourses on December 27.
Ventive Hospitality IPO, Senores Pharmaceuticals IPO, and Carraro India IPO will close for subscription on December 24.
Among SME IPOs, NACDAC Infrastructure, Identical Brains Studios, and Newmalayalam Steel will list on December 24, 26, and 27, respectively.
Bonus, Dividend stocks this week:
Shares of Mazagon Dock Shipbuilders, Vedanta, Aayush Wellness, and three others will be in the spotlight this week as they turn ex-date for corporate actions, such as dividends, subdivisions, rights issues, and bonus issues. READ MORE
Outcome of 55th GST Council meeting:
The 55th Goods and Services Tax (GST) Council meeting, held on Saturday in Jaisalmer, resulted in mixed decisions. The Council agreed to refer the proposal for a special levy for disasters to a Group of Ministers (GoM). Additionally, the Council clarified that no GST is payable on ‘penal charges’ levied and collected by banks and non-banking financial companies (NBFCs) from borrowers for non-compliance with loan terms. READ MORE
Gold, Oil prices
Gold prices rose on Friday, December 20, 2024, after softer-than-expected inflation print in the US boosted sentiment for the yellow metal. Spot gold had settled 1.1 per cent higher at $2,623.36 per ounce and the US gold futures ended 1.4 per cent higher to $2,643.2.
Gold, however, was trading slightly weak Monday morning. At the time of writing of this report, Spot Gold was down 0.32 per cent at $2,939 per ounce.
Oil prices, on the other hand, were up this morning. Brent crude oil was quoting 0.3 per cent higher at $73.15 per barrel. WTI crude, on the other hand, was up 0.36 per cent at $69.71 per barrel.
Stock Market Today: Key levels to watch on Nifty 50 chart today:
Kunal Shah, Senior Technical and Derivative Research Analyst, Mirae Asset Sharekhan:
On the daily chart, the Nifty is trading below the 20-day moving average (DMA) and the 40-DEMA of 24,363 and 24,350, respectively. The momentum indicator has a negative crossover on the daily chart.
On the hourly chart, the Nifty is trading below the 20-hour moving average (HMA) and the 40-HEMA of 23,962 and 24,135, respectively. The momentum indicator has a negative crossover on the hourly charts.
Nandish Shah, Senior Derivative & Technical Research Analyst, HDFC Securities:
The Nifty has violated its 200-days SMA and EMA supports and closed on a weak wicket last Friday. Nifty is in continuation of a downtrend and the only support which is visible on the chart is the swing low of 23,263, made on November 28, 2024. 200-days SMA, which is placed at 23,834, is now expected to act as an intermediate resistance for the short term.
Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities:
Derivatives data reveal a bearish tilt, with significant call writing dominating the session. The 24,000-strike call accumulated the highest open interest at 93.22 lakh contracts, highlighting it as a formidable resistance level. On the downside, the 23,000-strike put garnered 82.65 lakh contracts, marking a vital support zone. Heavy call writing between the 23,700–24,000 levels reinforce resistance, while diminishing put positions at lower strikes indicate fading bullish sentiment. The put-call ratio (PCR) edged up to 0.71 from 0.60, reflecting a bearish undertone.
Currently, the Nifty index trades near the upward-sloping trendline and immediate support at 23,500, where significant put writing has been observed. Holding this level is crucial for any meaningful recovery. Resistance persists in the 23,700–24,000 range due to aggressive call writing. A sustained move above 24,000 could ignite short-covering rallies, potentially pushing the index toward the 24,500-mark. Until the index confirms a breakout above resistance, a "sell on rise" strategy remains advisable. A breakdown below 23,500 could intensify selling, driving the index toward the 23,150–23,000 support zone, further reinforced by strong put writing.
Stocks to Watch Today, Dec 23:
UltraTech Cement: The Competition Commission of India (CCI) has given its approval for the acquisition of India Cements by UltraTech Cement.
NTPC Green Energy: The company signs a Memorandum of Understanding (MoU) with the Bihar government for renewable energy projects in Bihar.
Vedanta: The mining company has said it will consider the base metals business demerger at a later stage, while the share entitlement ratio for the demerger of the remaining five businesses would remain unchanged.