Mazagon Dock Bags ONGC Contract, Tata Power-IOCL EV Deal, IREDA’s Soaring Debut

Technical Overview – Nifty 50

Nifty has demonstrated a robust bullish momentum, forming a substantial bullish body candle stick pattern that reflects a notable 3.46% gain on the weekly chart.   The gap opening underscores the strength of the bulls, and this sentiment is further emphasized by six consecutive weeks of bullish body candles.

On 11th December, the Nifty witnessed a flat opening near its Friday close but due to the initial buying spurt prices moved higher and registered its lifetime high at 21,026 levels. Overall, it was a sideways trading session with a bullish bias.

 The momentum oscillator RSI (14) is reading above 80 levels and indicating strength in the current momentum. The MACD indicator seems to be overheated and reading above 450 levels with a positive crossover.

The view remains to buy on dips for the index towards 20,900 – 20,850 levels and the upside can be extended to 21,100 – 21,200 levels.

Technical Overview – Bank Nifty

The BANKNIFTY scaled to a record high on 11th December, at 47,588 levels supported by Private & PSU banks. The Bank Nifty has recovered its lost ground on closing above 46,000 and post that index is gaining strength in the broader time frames.

The Bank Nifty on the daily chart has witnessed a rectangle pattern breakout and the index has most likely completed the throwback of the pattern. Presently the Index is trading comfortably above its short and medium-term averages on the daily time frame, which is a positive sign for the index.

The Bank Nifty on the 60 mins chart has given a bullish flag pattern breakout and the index has sustained and closed above the same, which is a bullish sign for the Banking index. The immediate support for the Banking Index has shifted higher near 46,800 levels as prices have witnessed a range breakout and the immediate resistance is likely to be capped below 48,000 levels.

Indian markets:

• The stock market surged as the Nifty briefly crossed the 21,000-mark after the RBI announced the consistent maintenance of the repo rate at 6.5%, in line with market predictions.
• This decision, combined with positive global market conditions, significantly boosted investor confidence.
• Additionally, the RBI’s upward revision of GDP growth forecast for FY24 to 7% from 6.5% further fueled optimism in the market.
• Investor focus shifted towards IT, private banks, and financial services stocks, while FMCG and pharma shares experienced a decline.

Global Markets

• Shares in Europe and Asia advanced on Friday as Japans third-quarter GDP was revised downward in a surprise move.
• Japans third-quarter GDP was revised downward to a 0.7% fall quarter-on-quarter, a sharper decline compared to the previously estimated 0.5% drop.
• The yen emerged as the top-performing Asian currency this week, rising over 2% after BoJ Governor Kazuo Ueda hinted at a potential shift away from negative interest rates. This announcement led to a 0.2% rise in the yen to 143.88 against the dollar on Friday.
• Uedas statements during a Thursday address caused a significant shift in expectations, indicating reduced anticipation of yen weakening and reinforcing beliefs that the BOJ will eliminate its negative rate policy in 2024. These developments contributed to the yens strengthening, despite data showing a larger-than-expected contraction in Japans economy during the third quarter.
• US stocks ended higher on Thursday ahead of Friday?s all-important jobs report. The Nasdaq ended sharply higher after Alphabet and Advanced Micro Devices sparked a megacap rally on fresh optimism about artificial intelligence.

Stocks in Spotlight

• IREDA soared more than 160% above its issue price of Rs 32, fueled by positive sentiment in power and PSU stocks. Despite potential profit-taking by some investors, analysts view IREDA as a long-term opportunity, expecting further upward momentum. The company’s retail division swiftly sanctioned its inaugural loan of Rs 58 crore under the KUSUM-B scheme shortly after market debut. As the first public sector company to enter the market in a year, IREDA’s asset portfolio predominantly includes solar energy (30%), wind power (20.9%), state utilities (19.2%), and hydropower (11.5%).
• Mazagon Dock Shipbuilders surged 5% after securing a substantial Rs 1,145-crore contract from ONGC for the Part Replacement of Pipeline Project (PRPP). The project involves installing approximately 44.4 km of subsea pipelines across 19 segments, as disclosed in the state-run shipbuilder’s regulatory filing. This order, obtained through a competitive bidding process, requires completion by May 15, 2024.
• Tata Power EV Charging Solutions Limited (TPEVCSL) and Indian Oil Corporation (IOCL) have inked a deal to deploy over 500 fast and ultra-fast EV charging points nationwide. These units will be stationed at various IOCL retail outlets, spanning cities like Mumbai, Delhi, Kolkata, Bengaluru, Ahmedabad, Pune, and Kochi. Additionally, the charging infrastructure will cover key highways including the Mumbai-Pune Expressway, Salem-Kochi Highway, Guntur-Chennai Highway, and the Golden Quadrilateral.

News from the IPO world🌐

• INOX India IPO to open on December 14 closing on December 18
• Ola Electric to file DRHP with SEBI this month to raise $700 million via IPO
• SEBI sounds alarm on crowding of IPOs

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