Vedanta Declares Second Interim Dividend, HCL Tech Surges on Fed’s Decision

Technical Overview – Nifty 50

NIFTY50 witnessed a blockbuster opening on 14th December and formed another continuation gap in the daily time frame.  Gift Nifty is seen jumping out of the gate indicating Nifty is likely to scale fresh uncharted territory in today’s trade.
Overnight, the Dow Jones sprinted to a new record closing high after the Fed signaled rate cuts. The central bank left rates unchanged at its December meeting but hinted that several cuts are coming in 2024.

The breakout on today’s session is likely to be a bullish flag pattern breakout on the daily chart and the Index has closed convincingly above its previous resistance zones. The Index is trading above its 9, 21 & 50 EMA and the momentum oscillator RSI (14) is riding near 80 levels with a bullish crossover on the daily time frame.

The major trend remains to buy on dips. The immediate support for the Nifty is placed near the 21,050 – 21,000 levels and the 21,350 levels will remain an immediate hurdle for the time being.

Technical Overview – Bank Nifty

The Banking index was in no way going to stay on the back foot in this bull market where the prices recorded a new lifetime high at 47943 levels. It was a structural bullish day for the Banks where the index closed with a gain of more than 1.30% and formed a bullish candle with a continuation gap on the daily time frame.

The Banking index has already witnessed a bullish rectangle pattern breakout which already geared the momentum in the prices. The move on 14th December was a continuation trend for the bullish breakout 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 47,400 – 47,200 levels and the 48,500 levels will remain an immediate hurdle for the time being.

Indian markets:

• Domestic equity barometers concluded Wednesday’s session with marginal movement, exhibiting a slightly positive inclination.
• The Nifty 50 index commenced the day above the 20,900 marks but struggled to sustain these initial gains, succumbing to selling pressure that pushed the market into negative territory.
• During early afternoon trading, the index touched its intraday low at 20,769.50 before staging a recovery.
• As the session advanced, the Nifty managed to recover entirely from the earlier losses, reclaiming its position in the positive zone.

Global Markets

• Markets in Europe advanced while Asian stocks ended mixed on Wednesday, as investors awaited the U.S. Federal Reserve’s last monetary policy decision of the year.
• The Fed is expected to hold its benchmark overnight borrowing rate in a range of 5.25% to 5.5%, but investors will be analyzing Fed Chair Jerome Powell’s commentary for clues on how soon rate cuts can be expected.
• Meanwhile, the U.K. economy contracted 0.3% in October, with the country’s services, production and construction sectors all shrinking, new data from the Office for National Statistics showed Wednesday. The monthly dip follows growth of 0.2% in September and is worse than the 0% change economists had reportedly predicted.
• US stocks closed at fresh highs of the year on Tuesday, after inflation data did little to alter views for the timing of a rate cut by the Federal Reserve, as investors awaited the central banks last policy decision of the year on Wednesday.
• The consumer price index gained 0.1% in November from the prior month. On a year-over-year basis, the print came in at 3.1%. Excluding energy and food, CPI rose 0.3% month over month and 4% year over year.

Stocks in Spotlight

• Vedanta Ltd’s shares increased by 0.5 percent following the announcement that its board would review and approve a second interim dividend for FY24 on December 18. The company previously declared its first interim dividend of Rs 18.50 per share in May. Vedanta’s dividend payouts have notably risen in recent years. In FY23, it paid a total dividend of Rs 37,572 crore, compared to Rs 16,689 crore in FY22 and Rs 3,519 crore previously.
• HCL Tech Ltd’s shares rose by 3.2 percent to reach Rs 1,413, interrupting a two-day gaining streak on the stock market. This surge is attributed to investor optimism following the Federal Reserve’s decision to maintain unchanged interest rates and the suggestion that achieving the 2 percent inflation target might happen sooner than initially expected.
• HDFC Life Insurance Company Ltd, Shares fell 2 percent as the IRDAI proposed a higher surrender value on non-PAR products. The IRDAI has released a consultation paper that proposes a higher surrender value on non-PAR products. This will result in policyholders receiving a higher amount following lapses in their policies, which will likely hurt the margins of non-PAR products.

News from the IPO world🌐

• India Shelter Finance IPO booked 4.34 times so far on Day
• Inox India IPO fully subscribed on strong retail interest.
• Happy Forgings announces price band at Rs 808-850 for Rs 1,009-cr IPO

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