After a session that tested every ounce of human emotion on Friday, the Nifty was back into consolidation mode, trading in a range and eventually ending with a negative bias, giving up some part of the huge recovery it saw on Friday. However, like it did before Friday’s session of extremes, the Nifty respected both sides of the range on Monday as well.
Company Value Change %Change
22 central banks are about to declare their monetary policy decisions this week. This includes the likes of the US Federal Reserve, Bank of England and the Bank of Japan. While most of their interest rate actions are priced in by the market, their commentary on the road ahead is what is keeping the market participants nervous.
Monday’s src80-point range on the Nifty saw the index manage to defend 24,600 on the downside, but crossing 24,800 continued to remain a struggle. Therefore, the week before last’s high of 24,857 continues to remain an important pivot point for the index if it has to ensure a smooth move towards the 25,000 mark. On the downside though, multiple supports have now emerged at 24,600 and even 24,500 on the downside, before the 50-Day Moving Average at 24,400.
Advance-Decline was nearly at par but the advances managed to outnumber the declines on Monday. 67 stocks on the Nifty Midcap Index and 58 of the Nifty Smallcap index ended the session with gains.
Both foreign and domestic institutions were net sellers in the cash market on Friday, albeit in small quantities.
The near-term uptrend of the Nifty is intact and the market will eventually see an upside breakout of the 24,800 hurdle, said Nagaraj Shetti of HDFC Securities. He continues to advise a buy on every dip with immediate support at 24,550 as the long-term weekly chart is still in an uptrend.
Shrikant Chouhan of Kotak Securities believes that 24,600 – 24,550 will be key support levels for day traders, while 24,800 – 24,850 will act as a barrier for the Nifty. He said that traders may exit their long positions in case the index falls below the 24,550 mark.
The Nifty Bank traded in a 400-point range on Monday and also made multiple attempts at scaling the 53,800 mark on the upside, but failed in all of those attempts, eventually cooling off from the day’s high 53,738 and ending exactly where it did last Friday. The index is still 900 points away from its previous record high of 54,467.
Om Mehra of SAMCO Securities said that the trend on the hourly chart remains strong as long as the index holds above its middle Bollinger band and the Relative Strength Index (RSI) is above 60, which currently is at 63. The support is placed at 53,000, while resistance on the upside is at 54,src00.
The Nifty Bank has formed a modest green candle on the daily chart with short-term resistance at 53,800 – 54,000, said Hrishikesh Yedve of Asit C Mehta Investment Interrmediates, who expects the Nifty Bank to continue consolidating between 52,500 – 54,000. The index must sustain above 54,000 to continue its upward trend, else the consolidation will continue, he added.
What Are The F&O Cues Indicating?
Nifty 50’s December futures added 0.2% or 20,750 shares in Open Interest on Monday. They are now trading at a premium of 70.25 points from 62.45 points earlier. On the other hand, Nifty Bank’s December futures shed 0.2% or 4,200 shares in Open Interest on Monday. Nifty 50’s Put-Call Ratio is now at 0.9 from src.src2 earlier.
Metropolis and PVRINOX are out of the F&O ban.
Granules India, Hindustan Copper, Manappuram, NALCO, RBL Bank and SAIL remain in the F&O ban list.
Nifty 50 on the Call side for December src9 expiry:
On the Call side, the Nifty 50 strikes between 24,700 and 25,000 have seen Open Interest addition for this Thursday’s weekly expiry.
Strike OI Change Premium 24,700 33.47 Lakh Added src48.9 25,000 27.32 Lakh Added 45.55 24,900 src4.5src Lakh Added 70.35 24,750 src3.5src Lakh Added src25.4
Nifty 50 on the Put side for December src9 expiry:
On the Put side, the Nifty 50 strikes between 24,600 and 24,700 have seen Open Interest addition, while the 24,000 strike saw the maximum addition.
Strike OI Change Premium 24,000 2src.66 Lakh Added 9.4 24,650 9.42 Lakh Added src38.75 24,700 7.src7 Lakh Added src62.8 24,600 5.28 Lakh Added srcsrc6.9
Fresh long positions were seen in these stocks on Monday, meaning an increase in both price and Open Interest:
Stock Price Change OI Change Coromandel International 2.47% src8.0src% Nykaa 3.94% src6.94% HUDCO 5.27% src5.49% Prestige Estates 4.40% src5.38% Macrotech 3.22% src4.50%
Fresh short positions were seen in these stocks on Monday, meaning a decline in price but an increase in Open Interest:
Stock Price Change OI Change IRFC -src.2src% src3.39% Poonawalla Fincorp -src.27% src2.src8% Adani Green Energy -2.94% 9.77% Delhivery -0.56% 6.88% Jindal Stainless -2.src2% 6.25%
Short covering was seen in these stocks on Monday, meaning an increase in price but a decline in Open Interest:
Stock Price Change OI Change Manappuram Finance src.25% -7.58% Max Financial src.63% -7.09% Glenmark 2.22% -5.88% KEI Industries 0.77% -5.57% CAMS 0.39% -5.06%
These are the stocks to watch out for ahead of Tuesday’s trading session:
Vedanta: Board approves fourth interim dividend of ₹8.5 per share for FY25. Record date fixed as December 24, 2024.
Wipro: To acquire src00% shareholding of Applied Value Technologies and its affiliates for $40 million.
Indus Towers: ITAT orders in favour of the company on denial of depreciation of assets received under merger. The order will result in a reduction of contingent liability worth ₹3,500 crore.
Mindspace REIT: Abu Dhabi Investment Authority to sell 9.2% stake worth ₹src,903 crore via block deals. Floor price of the deal fixed at ₹350 per share, which is a clean out trade.
Gravita India: Launches QIP to raise funds, confirming a CNBC-TVsrc8 Newsbreak. Floor price set at ₹2,206.49 per share. Issue size is ₹750 crore with an upsize option.
Adani Wilmar / Auto Component Makers: GST relief on rice bran oil for FMCG companies, auto components for EV manufacturers unlikely, sources told CNBC-TVsrc8. Industry had asked GST on Rice Bran oil be cut from 5% and on various EV components be cut from 28% and src8% to 5%.
GMR Airports: November passenger traffic up src4% from last year and 5% month-on-month to src.src2 crore. November Domestic Passenger Traffic up src4.3% from last year. International passenger traffic up srcsrc.3% from last year. Aircraft movements up 8% year-on-year and down 3% from last month to 69,540.
Gopal Snacks / Prataap Snacks / Bikaji Foods: Companies making Namkeens ^ Savoury Foods may not get relief from GST demands. No recommendation from Fitment panel to review src8% tax on extruded and expanded products or on savoury, salted packaged foods pre-December 2022.
Texmaco Rail: Bags order worth ₹src87.4src crore from Chhattisgarh State Power Transmission Co.
RVNL: Gets LoA for a project worth ₹270 crore from Maharashtra Metro Rail Corporation.
RailTel: Gets work order worth ₹37.99 crore from the Central Warehousing Corporation.
HCC: Opens QIP to raise funds. Floor price set at ₹45.27 per share.
HPCL: Board approves lube modernisation and bottoms upgradation project at Mumbai Refinery, which will increase Bitumen production from 475 KTPA to 487 KTPA at an estimated cost of ₹4,679 crore.
Nitco Tiles: Gets order worth ₹src05.4 crore from Prestige Estates Projects.
Varun Beverages: Acquires 39.93% stake in Lunarmech, making it the wholly-owned subsidiary of the company.
TCS: Partners with Landis+ Gyr to deliver next-generation energy efficiency solutions.
Mawana Sugars: Nanglamal Sugar Complex & Mawana Sugar Works get notices from the anti-corruption branch in New Delhi. The ACB is seeking information with regards to transactions done by an agent of the company in the purchase of sugar.
Allcargo Terminals: CFS volumes in November up 4% year-on-year and src% sequentially to 47.7 TEUs.
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