Glenmark Pharma’s Unexpected Dip, REIT Recovery, and Energy Giants’ Soar

Technical Overview – Nifty 50

The Benchmark Index slipped more than 350 points or 1.75% from the intra-day high of 21,593 level on account of profit booking—nifty touched the intra-day low of 21,087. Traders are booking profit after relentless buying in the last few sessions ahead of the Christmas holiday.   

Profit booking pulled Nifty into negative territory while the Asian and European markets posted smart gains. Overnight US market ended at a record high. Undertone bullish sentiment in the domestic market and a good buying opportunity.

The Nifty50 on the daily chart has formed a bearish engulfing candle stick pattern and the tall red candle has engulfed its previous 3 days’ candle signifying a healthy profit boking scenario. The Index has filled its first continuation gap which was formed near 21,200 levels and the next immediate support for the index is placed at 21,000 next to its previous continuation gap.

Technical Overview – Bank Nifty

The Banking Index reverses early morning gains into losses and drifts more than 500 points from the day’s high signaling a profit-booking scenario. Traders are booking profit after relentless buying in the last few sessions ahead of the Christmas holiday.  

The momentum oscillator has drifted lower from 80 (over-bought) levels and has moved below 70 with a bearish crossover indicating early profit booking signs.  The tall red candle has formed on the daily chart and it has engulfed its previous 2 days’ candle and prices have inched lower and kissed 9 EMA which is placed at 47370 levels.

The Banking Index has partially filled its continuation gap which was formed near 47,300 levels and the next immediate support for the index is placed at 47,000 – 46,800 next to its previous week’s low.

Indian markets:

• Indian benchmark indices halted a two-day winning streak as Nifty retreated from its record high amid investor concerns preceding US inflation data and global central bank meetings.
• Despite initially opening marginally higher, marked by Nifty touching a new peak of 21,037.90, the market underwent consolidation through the first half of the day.
• However, profit booking intensified in the latter half, leading to a decline that pushed the indices into negative territory, closing near the day’s lowest levels.

Global Markets

• Most of the European stocks advanced. The UK Inflation fell sharply to 3.9% in November from 4.6% in October, lowest level in more than two years, the official data showed.
• Most Asian stocks ended higher on Wednesday, with Japan stocks extending gains to another session after the countrys central bank left its ultra-loose monetary policy unchanged at its final meeting this year.
• The People?s Bank of China held its one-year loan prime rate at 3.45%. The five-year benchmark loan rate was unchanged at 4.2%.
• US stocks ended higher on Tuesday as the Federal Reserve?s recent dovish shift on rates lifted stocks. 

Stocks in Spotlight

• Despite the Competition Commission of India (CCI) granting approval for Nirma’s acquisition of a majority shareholding in Glenmark Life Sciences, Glenmark Pharma faced a significant decline of 4.52 percent in its stock value. This unexpected plunge occurred despite the regulatory nod for the subsidiary’s ownership transfer, reflecting an unusual market response to the news
• Embassy Office Parks REIT experienced a sharp 5 percent intraday decline following a massive Rs 7,148-crore block deal, marking Blackstone group’s exit from the company. However, the stock managed to recover partially, closing 1.35 percent lower by the end of the session. Analysts remain optimistic about the company’s growth potential, contributing to a more positive outlook despite the substantial transaction and initial market reaction.
• Oil India Ltd surged to an unprecedented peak, accompanied by ONGC Ltd reaching a six-year high, marking a consecutive session of upward movement. Concurrently, Reliance Industries saw a 1 percent increase in its stock value. These movements aligned with the firming up of crude prices at $79.35 per barrel. Additionally, the government’s decision to reduce the levy on windfall gains from domestically produced crude oil and diesel exports contributed to this positive market momentum.

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