On Friday, Nifty closed at 24,677.80, down by 30.60 points, or 0.12%
“Commenting on the previous session’s action, Om Mehra, Technical Analyst at SAMCO Securities, said that the Nifty index is holding steady above the crucial 24,650 support level. In his view, the primary trend remains positive, as Nifty trades near the upper band of the Donchian Channel, which is trending higher—a signal of potential bullish momentum.
Additionally, India’s VIX remains subdued, hovering below the 15 mark, suggesting a contraction in volatility and reduced fear in the market, he added.
Factors that are likely to impact movement when markets open this week:
1) IPOs this week
Plenty of action awaits investors in the primary markets this week, as the high-profile IPOs of Vishal Mega Mart, One Mobikwik, and seven other issues open for subscription. Apart from the new issues, the Street will also see three listings from Nisus Finance, Property Share REIT, and Emerald Tyre Manufacturers.The IPO of leading supermarket chain Vishal Mega Mart will open for subscription on December 11 and close on December 13. The price band is set at Rs 74-78 per share for the Rs 8,000 crore offering.Meanwhile, Gurugram-based One MobiKwik Systems is set to launch its initial public offering (IPO) on Wednesday, December 11. The three-day bidding period will close on Friday, December 13. The price band for the IPO has been set at Rs 265-279 per share.
On Friday, private equity major TPG Capital-backed Sai Life Sciences said it had set a price band of Rs 522-549 per equity share for its Rs 3,043 crore Initial Public Offering (IPO), which opens for public subscription on December 11.
The SME segment will see as many as six new issues opening next week from Dhanlaxmi Corp, Toss the Coin, Jungle Camps, Supreme Facility Management, Purple United Sales, and Inventurus Knowledge Solutions.
2) IPO Lock-in expiry
Shareholder lock-ins worth $867 million in 10 companies will be lifted between December 9 and 13, according to a report by IIFL Alternate Research. While the value pertains to the total lock-in opening shares, it is important to note that not all of these shares will be put up for sale, as a sizable portion of these shares are also held by promoters and their groups.
The stocks that will see lock-in expiry include Shree Tirupati Balajee Agro, Sagility India, Kronox Lab Sciences, Kroxx, Swiggy, Acme Solar Holdings, Bajaj Housing Finance, Niva Bupa Health, Tolins Tyres, and PN Gadgil Jewellers.
3) US Markets
Domestic markets will take cues from their overseas peers, especially those on Wall Street.
Wall Street’s headline indices, the S&P 500 and Nasdaq Composite, hit fresh record highs on Friday, supported by a strong US jobs market. The broad-based S&P 500 climbed 0.25% to 6,090.27, while the tech-rich Nasdaq Composite Index added 0.81%, ending at 19,859.80. Meanwhile, the blue-chip index Dow 30 fell 123.19 points, or 0.28%, to end the day at 44,642.50.
4) FII/DII Action
On Friday, foreign institutional investors (FIIs) were net sellers to the tune of Rs 1,830.31 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,659.06 crore.
Foreign portfolio investors (FPIs) reversed their selling trend in December, recording net equity inflows of Rs 24,454 crore so far this month. With the latest inflows, FPIs have experienced a total net inflow of Rs 9,435 crore in 2024 so far, compared to outflows of Rs 15,019 crore at the end of November.
5) Technical Factors
Technically, on the daily chart, the index paused after a strong rally and formed a small red candle, while on the weekly chart, it formed a strong bullish candle, indicating strength, Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates, said. Additionally, the index has witnessed a breakout from an inverted head and shoulders pattern, he added.
“As per this breakout, the index could test the 25,000-25,200 levels in the medium term. Immediate support is placed near 24,550, followed by 24,300. As long as the Nifty stays above 24,300, traders should adopt a ‘buy on dips’ strategy,” Yedve said.
6) Rupee Vs Dollar
The Indian rupee strengthened on Friday, supported by a softer dollar and after the Indian central bank kept policy rates unchanged but cut banks’ cash reserve ratio by 50 bps to 4%, effectively easing monetary conditions amid slowing economic growth. The rupee closed at 84.6875 against the U.S. dollar, up from its previous close of 84.7325. The currency logged its fifth consecutive weekly decline, falling 0.2%
The rupee had declined to its all-time low of 84.7575 earlier in the week, weighed down by weakness in the Chinese yuan and strong dollar bids.
Incremental capital inflows into India from these FCNR measures may help the INR marginally in the short term, but they are unlikely to be substantial enough to change the overall trajectory for USD/INR to move higher,” MUFG Bank said in a note.
7) Crude Oil
Oil prices climbed about 1% on Friday, settling at a two-week high, as the intensifying war in Ukraine this week boosted the market’s geopolitical risk premium. Brent futures rose 94 cents, or 1.3%, to settle at $75.17 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.14, or 1.6%, to settle at $71.24.
Both crude benchmarks were up about 6% for the week, marking their highest settlements since November 7, as Moscow stepped up its Ukraine offensive after Britain and the U.S. allowed Kyiv to strike deeper into Russia with their missiles.
8) Corporate Action
Exxaro Tiles and a host of other companies are likely to remain in focus this week as they approach their record dates for the purpose of dividends, bonus issues, and stock splits.
December 10 is the ex-date for Achyut Healthcare stock, which had declared a bonus issue in the ratio of 4:10. Achyut Healthcare, Global Education, Shradha AI Technologies, and Shradha Infraprojects will trade ex-split on this day.
December 13 will be the ex-date for the 1:5 bonus issue of Essen Speciality Films, while Exxaro Tiles shares will trade ex-split on this day.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
