LTIMindtree Surges on Latin American Expansion, JM Financial Rises with Management Change

Technical Overview – Nifty 50

Overnight, the Dow Jones sprinted to a new record closing high as sentiments were buoyed after the Fed signaled rate cuts. Gift Nifty seen to be jumping out of the gate indicated that Nifty is likely to scale fresh uncharted territory on 15th December.

A new record high continues to be the new normal at Dalal Street. Markets reacted positively to the Federal Reserve signaling potential rate cuts after the central bank held interest rates steady.

On the weekly chart, the Nifty50 has formed a continuation gap and prices have closed in the green for the consecutive 7th week. The prices have given a consolidation breakout and the Index has gained more than 6% return in the past two weeks.
Well, amidst overbought technical conditions, the benchmark may consolidate in the near term but that said, the near-term outlook for Nifty continues to be in favor of the bulls. The view remains to buy on dips for the index towards 21,300 – 21,200 levels and the upside can be extended to 21,700 levels.

Technical Overview – Bank Nifty

It was another sparkling week for the Banking Index where prices gained more than 1.50% in a week and a 6% gain in the past couple of weeks and formed a tall bullish candle with an unfilled continuation gap on the weekly time frame.

The Bank Nifty on the daily chart has witnessed a rectangle pattern breakout and the post that the index is trading in a higher high higher low formation indicates a strong bullish trend. 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.

Well, amidst overbought technical conditions, the banking index may consolidate in the near term but that said, the near-term outlook for Bank Nifty continues to be in favor of the bulls. The view remains to buy on dips for the index towards 47,750 – 47,500 levels and the upside can be extended to 48,650 – 49,000 levels.

Indian markets:

• The key equity benchmarks ended with major gains on Friday, rising for the third straight day. The Sensex and the Nifty, both, attained record closing high levels. After opening at 21,287.45, the Nifty 50 index marched higher as the session progressed to settle above the 21,450 marks. IT, PSU bank and metal stocks advanced while realty, FMCG and media shares declined.
• India’s merchandise trade deficit in November stood at $20.58 billion, based on export and import data released by the government on Friday. India’s merchandise exports in November stood at $33.9 billion, while imports were $54.48 billion, government data showed.
• In the previous month, merchandise exports were $33.57 billion, while imports stood at $65.03 billion. Services exports in November were $28.68 billion, while imports were $13.4 billion. In October, services exports were $28.70 billion and imports were $14.32 billion.

Global Markets

• Markets in Europe and Asia edged higher on Friday as Wall Street continued to rally after the U.S. Federal Reserve held rates and laid out a roadmap for cuts in 2024 and beyond. Investors await key economic data out of China, including November house prices, industrial output, and retail sales data.
• Japan’s manufacturing activity contracted in December for the seventh straight month, according to a private survey. A flash reading of the au Jibun Bank Japan manufacturing purchasing managers index shrank to 47.7 in December from 48.3 in November, signaling the quickest deterioration in manufacturing business conditions for ten months. The au Jibun Bank flash services PMI, however, was 52.0 in December versus 50.8 in November, the fastest gain in the three months.
• US stocks ended higher on Thursday lifted by optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve. The 10-year Treasury note yield dropped below 4% for the first time since August as traders bet on rate cuts for 2024 mount.

Stocks in Spotlight

• Shares of LTIMindtree jumped 4.5 percent to hit a 52-week high of Rs 6,215.8 on December 15 after the IT services provider launched a delivery centre in Mexico City as part of expanding its presence in Latin America.
• Shares of JM Financial rose 13.47 percent following a change in management and allotment of equity shares resulting from the exercise of stock options by eligible employees. The company has appointed Chirag Negandhi as a senior management person (SMP) effective December 18.
• Shares of Infibeam Avenues gained 2.9 percent after the fintech company announced its strategic foray into the capital markets and digital lending software market by acquiring a 49 percent stake in Pirimid Fintech. The company will invest Rs 25 crore to solidify this venture, it said.

News from the IPO world🌐

• Inox India IPO booked 5.96 times on Day 2
• DOMS Industries IPO subscribed 93.4 times on last day
• Azad Engineering to launch IPO on December 20, sets price band at Rs 499-524

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