SpiceJet Surges on Capital-Raising, Network18’s Amalgamation Plans

Technical Overview – Nifty 50

NIFTY50 on 07th December witnessed a flat opening near 20,900 levels and prices drifted lower within the first few minutes of the trade which indicated a bearish to sideways trend for the day. The index on the daily chart traded within its previous day’s range and closed the weekly expiry day with a flattish tone.

NIFTY has broken out of its all-time highs and is ready to head higher in the seasonally strong month of December. Nifty has ended on a positive note in 15 out of the last 20 years in this month. It has generated an average gain of 2.8% in December over the years. 

The recent rally from the low of 18,837 to the all-time high of 20,961 took 26 trading sessions, which is equal to the fall from the October high of 20,222 to 18,837. This indicates that the market is in a strong uptrend.

As the index has witnessed a one-sided rally in the past couple of trading sessions henceforth a mild profit booking or a sideways trading session cannot be ruled out. The immediate support for the index has shifted higher near 20,750 levels and the resistance is likely to capped near 21,000 levels.

Technical Overview – Bank Nifty

The BANK NIFTY opened lower on 07th December and registered its day low in the first 15 minutes of the trade at 46,507 levels. Post forming the day’s low the Banking index traded to move higher but was capped below 47,000 levels for the day.
On the daily chart, the Index has formed a narrow range spinning top candle stick pattern and prices are sustained above all its important averages. The higher high higher low formation is well intact on the daily chart signifies a confident bullish trend in the banking index.

The momentum oscillator RSI (14) on the daily chart has reached 80 levels and the distance between the price and the 21 EMA has increased drastically. 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 46,500 – 46,300 levels and the 47,250 levels will remain an immediate hurdle for the time being.

Indian markets:

• Benchmark indices, after seven days of remarkable gains, experienced a downturn on December 7, slipping below 20,900 primarily due to selling pressure in capital goods, FMCG, IT, and metal stocks.
• Weak global cues set the tone for the day as the indices opened negatively, continuing below the 20,900 mark amid consolidation. The market remained cautious ahead of the RBI monetary policy meeting scheduled for December 8. However, a late surge in buying activity in the final hour helped Nifty close at 20,900.
• Thursday saw a pause in the benchmark indices’ upward movement following the seven-day winning streak. Metal, FMCG, and IT sectors faced downward pressure, influenced by weak global cues and profit booking in anticipation of the RBI monetary policy meeting on December 8. Despite this, mid and small-cap stocks outperformed the major indices. Volatility persisted due to the expiration of weekly index options on the NSE.

Global Markets

• Markets in Europe and Asian declined on Thursday, mirroring moves on Wall Street as investors assessed trade data from China and Australia.
• US stocks ended lower on Wednesday as investors assessed data indicating falling inflation while awaiting jobs report.

Stocks in Spotlight

• SpiceJet surged an impressive 20%, reaching a 52-week high of Rs 52.29 per share. This surge followed the announcement by the company regarding an upcoming board meeting scheduled for December 11. The meeting aims to deliberate on potential strategies for raising fresh capital, sparking investor enthusiasm and driving the stock to hit its upper circuit.
• Network18 Media & Investments witnessed an 8% drop, while TV18 Broadcast fell 7% following Network18’s announcement of its board’s approval for the amalgamation of e-Eighteen.com and TV18 Broadcast with itself. As per the proposed terms, shareholders of TV18 Broadcast are slated to receive 100 shares of Network18 for every 172 shares held, while E18 shareholders will get 19 shares of Network18 for each E18 share held. This development spurred market reactions, leading to declines in the respective stock prices of Network18 Media & Investments and TV18 Broadcast.
• SJVN experienced a remarkable seven percent surge, reaching Rs 90 per share, subsequent to Monarch Networth Capital’s initiation of ‘buy’ coverage on the stock. The coverage highlighted the stock’s potential to yield robust returns, estimating a possibility of two to three times growth over a span of three to five years. This endorsement by Monarch Networth Capital propelled investor confidence, contributing to the significant uptick in SJVN’s stock price.

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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