HPL Electric Jumps 10%, NTPC Gains 4%, PI Industries Sees 11.2% Drop

Technical Overview – Nifty 50

Bears had full control since the opening where the Nifty50 drifted below 20,800 levels and registered an intraday low at 20,769 levels. Post forming a day low the Index witnessed a sudden spike and formed a V-shape reversal formation on the intraday chart, which helped prices to recover their initial loss and closed with very marginal gains.

The Nifty50 on the daily chart has formed a Doji candle with a very small body and a long wick on the lower end indicating a recovery from the lowest point of the day. The prices came lower to mingle with 9 EMA which is placed at 20,750 levels on the daily chart.

As the index has taken resistance near its overbought zone henceforth a mild profit booking or a sideways trading session cannot be ruled out. The immediate support for the index is placed at 20,700 levels and the resistance is likely to be capped near 21,000 levels.

Technical Overview – Bank Nifty

The Bank Nifty seems to be in control and was mildly outperforming the Benchmark Index in the 13th December trading session. The Banking Index started to trade lower in the initial hour of the trade but soon recovered its losses and traded flat for most of the day.

The BANK NIFTY on the daily chart has formed a Doji candle with a very small body and a long wick on the lower end indicating a recovery from the lowest point of the day. The Bank Nifty on the daily chart has witnessed a rectangle pattern breakout and the index is presently hovering above the upper range 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 major trend remains to buy on dips. The immediate support for the Banking index is placed near the 46,800 – 46,600 levels and the 47,500 levels will remain an immediate hurdle for the time being.

Indian markets:

• Domestic equity benchmarks dipped slightly following recent record highs, signaling investor fatigue amidst subdued foreign investor engagement.
• Market attention turns towards upcoming November retail inflation figures in India and the US, alongside the US Federal Reserve’s stance on interest rates.
• Increased demand was observed in media, metal, and PSU bank stocks, contrasting with declines in realty, oil & gas, and consumer durables sectors.

Global Markets

• Shares in Europe and Asia advanced on Tuesday. Japanese stocks lead the gains for a second straight session ahead of the final U.S. Federal Reserve meeting of the year.
• US stocks registered modest gains on Monday but managed to close at new highs for the year, ahead of major market catalysts this week that include inflation readings and the Federal Reserve’s policy announcement.
• The Fed’s two-day meeting kicks off Tuesday, and the U.S. central bank is expected to maintain the Federal Funds rate steady in the 5.25%-5.5% range. Market players will also assess the U.S. November inflation figures out late Tuesday. Later in the week, the European Central Bank (ECB) and the Bank of England (BOE), are also due to make policy announcements.

Stocks in Spotlight

• HPL Electric & Power’s stock surged by 10% on December 13 after securing a Rs 545 crore order for smart meters. supporting India’s national metering initiative, it’s soared 121% this year, outperforming the Sensex’s 13% rise. Hit a 52-week high of Rs 269 on November 6, 2023.
• NTPC Ltd: Shares of the public sector undertaking company gained over 4 percent to Rs 295 on December 13, a day after the counter fell over a percent. Volumes were low. One crore shares changed hands against the 1-week daily average of 2 crore.
• PI Industries faced significant downward pressure in the last two trading sessions, witnessing an almost 11.2% decline from ₹3,869 to ₹3,426 apiece. This downturn is attributed to recent media reports suggesting pressure on the company’s key product, pyroxasulfone, due to capacity additions by a Chinese company, Shandong Weifang Rainbow Chemical.

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