Stock Market Analysis

Indian Stock Market Report: Dec 08, Week 2

Indian markets soar with record highs, Nifty hits 21,006. RBI's cautious optimism, positive expert outlook, and sectorial trends guide the week.

Weekly Market Snapshot

Throughout the week, the Nifty experienced an impressive surge, marked by a breakout to a swing high on the daily chart. This indicates a growing sense of optimism among market participants. Nevertheless, the latter part of the week saw the Nifty consolidating its gains.‌‌‌‌The week ended on a positive note in the US, with indications of a slowing labor market and economy, fueling speculation about potential interest rate cuts in early 2024.

Key Market Movements‌‌

Market indices posted record closes, with Nifty reaching a life high of 21,006 intra-day.
Sensex rose by 304 points to 69,826, and Nifty gained 68 points to 20,969.
The market recorded its biggest weekly gain since July 2022, with Sensex and Nifty rising more than 3%, and Nifty Bank gaining over 5%.

Sectoral Movements And Stock Specifics‌‌‌‌

Midcap Index slipped from a record high, snapping a 25-day gaining streak.
14 of the 50 Nifty stocks hit multi-year highs on Friday.
IT stocks, including HCL and Mindtree, were top gainers with healthy volumes.
Adani Group stocks saw profit booking, closing all stocks in the red.
Sugar stocks were under pressure following an announcement regarding ethanol.

Leaders And Laggards

'BTST' and 'Nifty Rider' were two of the best-performing models, with 8.97% and 6.30% returns, respectively.

'Back Up' and 'Quick Short' were two of the underperformers, with negative 1.28% and 3.20% returns respectively in the same period.

Coming to stocks, PRESTIGE, or Prestige Estates Projects Limited, provided a return of 9.85% as part of 'Alpha Ally' model, followed by HSCL, or Himadri Speciality Chemical Ltd, which returned 9.77% as part of 'Sector Superstars' model.

On the contrary, JINDALSAW, or Jindal Saw Limited, was the underperformer with negative 7.95% returns, followed by RKFORGE, or Ramkrishna Forgings Ltd with negative 7.57% returns, both as part of the 'Sector Superstars' model.

Expert Insights And Market Outlook‌‌

Prashanth Tapse, Senior VP (Research), Mehta Equities‌‌Buying resumed after a day's break, driven by positive global cues and RBI's increased FY24 GDP forecast. Despite overbought technical conditions, the short-term technical outlook favors the bulls. Support for Nifty is at 20,777-20,521 levels, with resistance at 21,121-21,331.
Vinod Nair, Head of Research at Geojit Financial Services: RBI's balanced approach raised economic growth forecasts but expressed concern about short-term food inflation. Impact observed on FMCG stocks as food grain prices may rise. IT stocks, including HCL and LT-Mindtree, rose with healthy volumes, while Adani Group stocks saw profit booking.

Reads On The Internet

Vedanta to raise $1.25 bn at much higher rates‌‌

The company is in the process of raising $1.25 billion for refinancing and managing our upcoming maturities. We are at an advanced stage of these discussions and continue to engage with bondholders simultaneously.

Dunzo’s fund crunch continues; fails to pay November salary

‌‌Dunzo is trying for a fund raise of around $25-30 million to meet operating expenses. However, the same is expected to come at a much lower valuation.

BSE, NSE GIFT City units to be merged by Jan 2024; direct listing by April‌‌

The move is expected to bring more volumes in GIFT City exchanges. As per the official website, average daily turnover on international exchanges is $20 billion currently, majorly driven by GIFT Nifty contract.

India's forex reserves surpasses $600 billion mark after nearly four months

‌‌We remain confident of meeting our external financing requirements comfortably," Reserve Bank Governor Shaktikanta Das said

India to move to same-day market settlement before fiscal year end: Sebi‌‌

Currently trades in India are settled in "T+1" or one day after the trades are initiated. T+0 would mean settlements in the same day and instant settlement would ensure trades are settled immediately.

Disclaimer: The opinions expressed in this blog are personal views and should not be considered financial advice. Please do your own research and consult with a professional before making any investment decisions.