Hindalco’s Milestone, Nifty50 Reshuffle Predictions

Technical Overview – Nifty 50

The Benchmark Index on 12th December, witnessed a marginal gap opening and registered a new lifetime at 21,037.90 levels. But as the day progressed a profit booking was starting to witness from the higher levels and finally Nifty drifted near 20,900 levels.

The Index lost around half a percent in a day and formed a bearish engulfing candle stick pattern on the daily time frame. A bearish candle stick pattern at all-time high levels indicates a scenario of profit booking from the higher levels. 

The momentum oscillator has reached near 80 levels which is an overbought zone for an oscillator and due to today’s selling RSI has moved below 80 levels and is about to form a bearish crossover on the daily chart.

As the index has reached 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 20,050 levels.

Technical Overview – Bank Nifty

The Banking Index opened marginally higher from its previous close but couldn’t hold on to its opening gains and drifted lower due to a profit booking in private sector banks. The BANK NIFTY on the daily chart has formed a bearish engulfing candle stick pattern near the all-time high levels.

In the last 7 trading sessions, the Index has second time formed a bearish engulfing pattern, this indicates a strong resistance at this level. The momentum oscillator has reached near 80 levels which is an overbought zone for an oscillator the oscillator is finding resistance at current levels.

Overall chances of profit booking at present levels look bright. The major trend remains to buy on dips. The immediate support for the Banking index is placed near the 46,800 – 46,500 levels and the 47,500 levels will remain an immediate hurdle for the time being.

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

• 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 Reserves 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

• Hindalco Industries surged over 3%, hitting a 52-week high at Rs 538.50, following its announcement of establishing a battery foil manufacturing facility in Odisha. The stock witnessed increased trading activity, with 36 lakh shares exchanged, surpassing the previous day’s volume of 28 lakh shares. The company’s planned investment of up to Rs 800 crore for this new plant, scheduled for commissioning by July 2025, aims to produce 25,000 tonnes of essential material used in Lithium-ion and Sodium-ion cells.
• Nuvama’s analysts foresee the potential inclusion of Shriram Finance Ltd into the Nifty50 by March 2024, potentially replacing UPL. This shift could result in an estimated $217 million inflow for Shriram and a $114 million outflow from UPL. The official list for the Nifty 50 reshuffle is expected to be revealed in late February 2024. Furthermore, Nuvama indicates a moderate to high likelihood of Canara Bank replacing Bandhan Bank in the March 2024 review.
• Torrent Pharma’s shares bounced back from early losses, marking an approximate one percent gain during trading. This reversal came after the conclusion of a US FDA inspection, resulting in the issuance of a Form 483, highlighting five procedural observations for the company. Notably, no observations concerning data integrity were reported during the inspection.

News from the IPO world🌐

• INOX India IPO to open on December 14 closing on December 18
• Ola Electric to file DRHP with SEBI this month to raise $700 million via IPO
• SEBI sounds alarm on crowding of IPOs

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