TVS Electronics, IRB Infrastructure, and IIFL Securities Show Strength Amid Challenges

Technical Overview – Nifty 50

It was a historic day for the Indian Markets where the benchmark Index Nifty50 registered its lifetime high and touched the 21 thousand levels for the very first time. Overall, it was a sideways trading session initially with above-average volatility but later on in the last hour of trading prices moved higher formed another bullish candle stick.

On the weekly chart, the Nifty50 has formed a continuation gap and prices have closed in the green for the consecutive 6th week. The prices have given a horizontal trend line breakout and the Index has gained more than 3% return in the week.
The momentum oscillator RSI (14) is reading above 80 levels and indicating strength in the current momentum. The MACD indicator seems to be overheated and reading near 450 levels with a positive crossover.

The view remains to buy on dips for the index towards 20,900 – 20,850 levels and the upside can be extended to 21,100 levels.

Technical Overview – Bank Nifty

It was a sparkling week for the Banking Index where prices gained 5.50% in a week and formed a tall bullish candle with an unfilled continuation gap on the weekly time frame. The Index on the weekly chart has given a horizontal trend line breakout and prices have closed above the resistance band of the range.

The Bank Nifty on the daily chart has witnessed a rectangle pattern breakout and the index has most likely completed the throwback of the pattern. Presently 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.

The Bank Nifty on the 60 mins chart has given a bullish flag pattern breakout and the index has closed above the same. The immediate support for the Banking Index has shifted higher near 46,750 levels as prices have witnessed a range breakout and the immediate resistance is likely to be capped below 48,000 levels.

Indian markets:

• The equity benchmarks resumed their upward trend on December 8 after a day’s pause to hit new highs as the Reserve Bank of India (RBI) left the key interest rate unchanged for the fifth time in a row.
• The market recorded the biggest weekly gain since July 2022, as both the benchmarks gained 3.5 percent each.
• FMCG, oil & gas and power indices were down 1% each, healthcare and auto were down 0.5% each. However, IT, Bank and Realty were up 0.5-1%.
• The Reserve Bank of India kept the repo rate unchanged at 6.5 percent, citing a potential resurgence in inflation and signaling that price stability remained its primary objective.
• The central bank raised its GDP growth forecast for 2023-24 by a huge 50 basis points to 7 percent following the big upside surprise in the July-September data.

Global Markets

• Asia-Pacific markets were mixed as Japan’s third-quarter GDP was revised downward in a surprise move, while India’s central bank held its benchmark lending rate steady.
• European stocks slightly higher ahead of key U.S. jobs report.
• Oil heads for 7th weekly loss with supply surplus, weak China demand.

Stocks in Spotlight

• TVS Electronics shares rose despite a Rs 35.58 crore notice from Chennai customs. The company plans to appeal and has hired an attorney for the tribunal. The market’s positive response might suggest investor confidence in a favorable resolution or a belief that the impact won’t be severe. Watching the tribunal’s proceedings could offer insights into the situation’s impact on the company.
• IRB Infrastructure Developers saw a 6.5 percent surge, hitting a 52-week high of Rs 40.95 on December 8. This spike followed a noteworthy 20 percent year-on-year increase in gross toll collections for November. Despite reduced economic activity due to holiday festivities, the company recorded toll collections worth Rs 437.05 crore, up from Rs 366 crore in the same period last year. This strong performance amid holiday slowdowns showcases the company’s resilience in maintaining robust revenue streams.
• Shares of IIFL Securities gained 4.2 percent after the Securities Appellate Tribunal (SAT) set aside SEBI’s order dated June 19, 2023, prohibiting IIFL Securities from onboarding new clients for two years in respect of its business as a stockbroker.

News from the IPO world🌐

• India Shelter Finance IPO price band is set at ₹469 to ₹493 per share.
• Dom Industries to launch IPO on December 13th to raise Rs. 1200 crore
• Suraj Estate Developers IPO is a book-built issue of Rs 400.00 crores

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