Zomato’s Clarity, Credit Card Surge, and BEL’s Orders Drive Market Buzz

Technical Overview – Nifty 50

It was a day with lots of volatility where the Index witnessed a marginal gap opening and trading higher and recorded a day high at 21,390 levels prices again drifted lower and formed a day low at 21,232 levels and finally moved higher above 21,300 levels towards close.

The Benchmark index on the 15-minute chart has formed a cup and handle formation and the neckline resistance is placed at 21,400 levels. Overall strong V-shape reversal rally was witnessed for two consecutive days indicating buying from the lower levels.

Index has formed an inside-day candle pattern on the weekly chart and the long wicks of the candle indicate a volatile week. This week prices filled their continuation gap which was formed earlier.
The view remains to buy on dips for the index towards 21,200 – 21,100 levels and the upside can be extended to 21,500 – 21,550 levels.

Technical Overview – Bank Nifty

It was a day with lots of volatility where the Banking Index witnessed a flat opening and trading higher and recorded a day high at 48,071 levels prices again drifted lower and traded in a pressure through the day. The Index witnessed a rising channel pattern breakdown on the intraday chart and prices were underperforming the Benchmark index for the entire day.
On the weekly chart index has formed an inside-day candle stick pattern and prices have lost more than 1% in the week. 

The momentum oscillator RSI (14) has found resistance near 80 levels and drifted lower after below 70 levels with a bearish crossover. The Index has taken support near the 9 EMA which is placed at 47,480 levels and moved higher.

Technically two continuation gaps were left unfilled during the move and in the recent correction prices have filled the gaps and have closed the window on the daily time frame. The view remains to buy on dips for the index towards 47,100 – 47,000 levels and the upside can be extended to 48,000 – 48,200 levels.

Indian markets:

• On December 22, the market saw a second consecutive higher close, with Nifty surpassing 21,300, driven by widespread buying across sectors, excluding banks.
• Investors continue to adhere to a ‘buy on dips’ strategy, prevailing through a subdued week.
• Mid and small-cap stocks take the spotlight, benefiting from lowered oil prices and expectations of a potential rate cut in CY24, buoyed by slower-than-anticipated US GDP growth and a weakened dollar, indicating possible early rate cuts.
• The Realty and Auto sectors stand out, while PSU banks outshine peers due to improved balance sheets and profitability.
• Despite premium valuations, the short-term positive trend endures, supported by robust Foreign Institutional Investors (FIIs) buying and specific actions in various stocks.

Global Markets

• Asian stocks geared up for gains in the final week of the year, with the dollar looking at a potential loss as investors anticipate significant US rate cuts in 2024.
• MSCI’s Asia-Pacific shares outside Japan edged up by 0.3% in early trade, barely registering a marginal increase for the week. Japan’s Nikkei saw a 0.2% rise, supported by banking shares, while the euro surpassed $1.10.
• Markets have been buoyant for weeks, buoyed by global inflation slowing down and signals from the Federal Reserve indicating a halt in interest rate hikes

Stocks in Spotlight

• Zomato opened with an uptick following CEO Deepinder Goyal’s dismissal of reports suggesting the company’s interest in acquiring Shiprocket for $2 billion. Goyal clarified Zomato’s firm commitment to its ongoing ventures, dispelling any immediate acquisition plans. 
• Credit card spending surged by 40 percent year-on-year to reach Rs 1.6 lakh crore in November, accelerating from the 38 percent growth recorded in October. SBI Cards notably outpaced the industry average with a remarkable 50 percent year-on-year surge in spends, totaling Rs 31,400 crore for the month, according to Jefferies citing RBI data. Market share in spending saw an uptick for HDFC Bank and RBL, rising by 88 and 26 basis points month-on-month respectively. Conversely, ICICI Bank and Axis Bank experienced declines of 184 and 60 basis points MoM in their credit card spends.
• BEL’s shares surged by 1 percent intraday on December 22 following a substantial order influx totaling Rs 2,673 crore from Goa Shipyard and Garden Reach Shipbuilders & Engineers. Goa Shipyard’s order stands at Rs 1,701 crore, while Garden Reach Shipbuilders & Engineers’ order amounts to Rs 972 crore. This significant contract is expected to involve the participation of various electronics and associated industries, including MSMEs, operating as sub-vendors of BEL.

News from the IPO world🌐

• Azad Engineering IPO issue gets oversubscribed by 80.42 times on day 3
• Happy Forgings IPO subscribed 82 times on day 2
• DOMS IPO lists at 77% premium over IPO price

Day Leader Board

Sectoral Performance

Advance Decline Ratio

Numbers to track

Please visit www.fisdom.com for a standard disclaimer.