Market Today, Dec 31: Nifty gap-down; Indo Farm IPO opens, Unimech listing

Stock Market Today, Dec 31, 2024: The initial public offering (IPO) of Indo Farm Equipment will open for subscription today. The IPO will close on January 2, 2025

Stock Market Today, Tuesday, December 31: India stock markets are expected to open gap-down on the year’s last trading session. At 7:05 AM, GIFT Nifty futures were trading 161 points lower at 23,656 level.

 

On Monday, too, the 30-share Sensex dropped 450.94 points, or 0.57 per cent, to end at 78,248.13. Similarly, the NSE Nifty50 ended down by 168.50 points, or 0.71 per cent, to settle at 23,644.90.

 

The decline in Indian stock markets came as FIIs/FPIs net sold stocks worth Rs 1,893.16 crore. DIIs, on the other hand, bought shares worth Rs 2,173.86 crore.

 

Stock Market Prediction Today, December 31, 2024:

There are no major triggers for the stock markets, domestic as well as globally. Stock-specific action, trends in the institutional activity, especially by foreign investors, along with primary market activity will sway the market mood.

 

 

Among macro data, India’s infrastructure output data for the month of November, and the US’ House Price Index data for the month of October will be released today.

 

Back home, the Reserve Bank of India (RBI) has flagged the issue of write-offs by private banks. It noted in its Financial Stability Report (FSR) that these practices partly mask worsening asset quality in the retail loan segment and a dilution in underwriting standards. READ MORE

 

Global Markets Today

Asian markets have begun Tuesday’s session on a weak footing amid a thin trade. Most major global markets are shut on account of New Year’s Eve.

 

Australia’s ASX200 is down 0.73 per cent. Japan and South Korea’s stock markets are closed for the New Year’s Eve holiday, while Hong Kong’s stock markets will have a shortened trading day.  China's purchasing managers’ index for December came in at 50.1, missing expectations. Against this, Hang Seng was up 0.3 per cent, while Shanghai Composite fell 0.11 per cent.

 

Overnight, Wall Street stocks ended lower amid profit booking. The Dow Jones Industrial Average lost 0.97 per cent, the S&P 500 fell 1.07 per cent, and the Nasdaq Composite slid 1.19 per cent.

 

IPO Listing, IPO Allotment Today

In the IPO market, the initial public offering (IPO) of Indo Farm Equipment will open for subscription today. The IPO will close on January 2, 2025.

 

Indo Farm Equipment IPO aims to raise Rs 260.15 crore. The issue is a combination of fresh issue of 8.6 million shares worth Rs 184.90 crore and an offer for sale (OFS) of 3.5 million shares aggregating to Rs 75.25 crore.

 

That apart, shares of Unimech Aerospace will list on the NSE and the BSE today. The Rs 500-crore Unimech Aerospace IPO was subscribed a massive 175 times. Ahead of the listing, Unimech Aerospace was commanding a grey market premium (GMP) of Rs 625. At the upper price band of Rs 785, Unimech Aerospace IPO may list at Rs 1,410, leading to a listing gain of 79.62 per cent.

 

In the SME IPO space, Technichem Organics’ Rs 25-crore IPO will open for subscription today. Technichem Organics’ IPO will run till January 2, 2025. The allotment for the Technichem Organics IPO is expected to be finalised on Friday, January 3, 2025. Technichem Organics IPO will list on BSE SME.

 

Besides, Citichem India IPO will close for subscription today, December 31, 2024.

 

Further, the allotment status of Anya Polytech IPO, whose bidding closed on Monday, December 30, 2024, will get finalised today. Anya Polytech IPO will list on NSE SME.

 

Upcoming IPOs

Sebi has cleared proposals of six companies to launch their initial public offerings. The companies are Ivalue Infosolutions Ltd, Ather Energy, Oswal Pumps, Quality Power Electrical Equipments, Fabtech Technologies and Schloss Bangalore Ltd. READ MORE

 

Stock Market Alert:

The Price Band of Aditya Birla Money, and Marine Electricals (India) has been changed from 10 per cent to 5 per cent; the Price Band of Borosil Renewables, R.P.P. Infra Projects, and Shaily Engineering Plastics has been changed from 20 per cent to 5 per cent; Bajaj Healthcare has come out of ASM, while Greaves Cotton has moved into ASM.

 

Year in Review: Markets in 2024

Thus far in calendar year 2024, benchmark indices -- NSE Nifty 50 and the BSE Sensex -- have rallied 8.5 per, clocking their 9th consecutive year of positive gains, lifted by institutional investors, especially the domestic mutual funds (MF). 

 

In the broader markets, the Nifty MidCap, and Nifty SmallCap indices have rallied around 24 per cent each thus far in 2024. READ MORE

 

Besides, India’s stock market is on pace to receive the biggest annual inflow ever from small investors, underscoring their continuing love affair with equities. Mom-and-pop investors poured a net Rs 1.54 trillion ($18 billion) into stocks on the National Stock Exchange of India Ltd. this year through Nov. 30, according to data from the nation’s largest bourse. READ MORE

 

On the regulatory front, the Securities and Exchange Board of India (Sebi) implemented significant reforms in 2024, focusing on cooling down the derivatives segment, enhancing transparency and accountability in small and midsized enterprise (SME) listings, and deepening the fund management ecosystem. READ MORE

 

How to trade Sensex, Nifty today, Dec 31? Key levels to watch today:

Shrikant Chouhan, Head Equity Research, Kotak Securities:

Till the Nifty and Sensex are trading below 23,800/78,700, weak sentiment is likely to persist, and the market could retest the levels of 23,500- 23,450/77,700-77,500. However, if it moves above 23,800/78,700, the sentiment may change. Above that level, it could bounce back to 23,900/79,000. Further upside may also continue, potentially lifting the market to 24,000/79,300.

 

Osho Krishnan, Senior Analyst, Technical & Derivatives, Angel One:

The Nifty index is showing a range-bound movement. The level of 23,600-23,500 is particularly important, serving as a critical support zone where buying interest could potentially emerge. On the other hand, the 23,800-23,850 subzone poses a formidable challenge, as overcoming it on a closing basis will be essential for a sustained upward trend.

Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities:

A reasonable negative candle was formed on the Nifty daily chart with an upper shadow. Technically, this market action indicates an attempt of downside breakout of the range movement. This is not a good sign and signals more weakness ahead.

 

The crucial support of 200-day EMA has been violated again at 23,700 levels amidst choppy movement. The unfilled opening down gap could be considered as a bearish run-away gap, which is normally formed in the middle of a down trend. Hence, more decline could be in store.

 

The short-term trend of Nifty is down and the market is expected to slide down to 23,500-23,400 levels in the short term. Immediate resistance is at 23,800 levels.