Adani surges 20%, Bajaj Group’ milestone

Technical Overview – Nifty 50

The Indian markets again witnessed a gap-up opening on 05th November, and prices have left their gap unfilled on the daily chart. There are 4 continuation gaps in the last 7 seven trading sessions signifies the strong trending market.

The Higher high higher low formation is well intact on the daily chart and the index is trading above all the important averages. Another bullish day and the Benchmark index registered its lifetime high at 20,829 levels. 

Post breakout the index is trading higher with stronger momentum and the VIX Index has witnessed a breakout on the daily chart which has fueled the volatility. The PCR Ratio has again moved towards the overbought zone. As the index has moved almost 550 points in two trading sessions henceforth a mild profit booking or a sideways trading session cannot be ruled out in the further trading sessions. The immediate support for the index has shifted higher near 20,700 levels and the resistance is likely to capped near 21,000 levels.

Technical Overview – Bank Nifty

It was a historic day for the Banking Index where prices witnessed a massive gap up opening and recorded a lifetime high at 46,484.45 levels. The Index has formed a continuation gap on the daily chart and closed 3.50% higher for the day.
The Banking index on the daily chart has given a rectangle pattern breakout and closed above the trend line resistance. The RSI (14) has moved above 70 levels with a bullish crossover and moved vertically higher.

The Banking index on the weekly chart has taken support near the lower band of the rising channel pattern and has taken anchor point support near 21 EMA. The MACD has moved vertically higher with a positive crossover on the daily time frame. 

The PCR Ratio has again moved towards the overbought zone. As the banking index has moved almost 1600 points in a single day a mild profit booing or a sideways trading session cannot be ruled out in the further trading sessions. The immediate support for the Bank Nifty has shifted higher near 46,000 levels and the resistance is likely to be capped near 47,000 levels.

Indian markets:

• The market continued its winning streak on December 5, extending its rally for the sixth straight session.
• Despite weak global cues, the benchmark indices started at fresh record highs and extended the gains throughout the day.
• Some profit booking was seen at mid-session, but final-hour buying helped the market to close near the day’s high.
• The impressive gains were led by power, oil & gas, and banking stocks, as investors continue to bet big on India’s growth story.
• The recent state election victory for the ruling party further aided the sentiment. – Investors’ sentiments were also boosted by hopes that the US Federal Reserve will initiate rate cuts in the coming year.

Global Markets

• European markets showed a mixed trend on Tuesday, with the Stoxx 600 initially slipping before stabilizing. Notable movements included a 0.2% rise in oil and gas stocks but a 0.6% drop in mining stocks.
• The recent momentum that fueled an impressive month seemed to taper off slightly.
• The S&P 500 surged to a 2023 high last Friday, backed by expectations of rate cuts and the anticipation of the U.S. Federal Reserve maintaining its current stance at the upcoming mid-December policy meeting. This surge came after a five-week winning streak.
• The Dow Jones Industrial Average also had a strong November, marking its best month since October 2022.

Stocks in Spotlight

• Adani Green Energy’s stock gained 20 percent and got locked in the upper circuit after the company announced that it secured an additional $1.36 billion in funding via a senior debt facility. The renewable energy company plans to use the funds to finance its under-construction renewable assets. The announcement was well-received by investors, who are optimistic about the company’s growth prospects in the renewable energy sector.
• The Bajaj Group recently joined the prestigious league of business houses surpassing the Rs 10-lakh-crore market cap milestone, marking its place alongside other giants like Tata Group, Mukesh Ambani Group, HDFC Bank, and Adani Group. The conglomerate comprises five listed companies associated with the late Rahul Bajaj Group, each showcasing diverse performances. Bajaj Finserv and Bajaj Finance, under Sanjiv Bajaj’s leadership, stand alongside Bajaj Auto, helmed by Rajiv Bajaj. Notably, Bajaj Auto experienced notable growth post the launch of the Triumph Bike earlier this year, driving an uptick in its shares. CEO Rajiv Bajaj unveiled ambitious targets, aiming for a monthly sales figure of 10,000 units for Bajaj Triumphs, with expectations of production and sales surging to 18,000 units in the third quarter of this fiscal year. Additionally, Maharashtra Scooters operates as a subsidiary of Bajaj Holdings & Investment within this conglomerate.
• Bharat Forge witnessed a surge of over 2 percent, reaching a 52-week high of Rs 1,185.95 on December 5, attributed to the remarkable increase in Class 8 truck orders in North America. November saw a notable spike of 32 percent from the previous month, totaling 36,750 units, marking a 3 percent year-on-year rise. This surge in orders holds promising implications for Bharat Forge, given its involvement in North America’s Class 8 truck business. FTR, responsible for tracking these orders within the transportation industry, highlighted that the market aims to sustain historically high performance standards, as revealed by their report on monthly preliminary order numbers.

News from the IPO world🌐

• Accent Microcell IPO opens on December 8, price band set at ₹133-140 per share
• Dom Industries to launch IPO on December 13th to raise Rs. 1200 crore
• SEBI sounds alarm on crowding of IPOs

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