Market closes flat after facing resistance above 24500

Dec 04, 2024

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Market Overview

Nifty 50 opened 31 points higher at 24,488.75, surged to 24,573.20 in the first half-hour, and then traded in a tight range around 24,530-24,560 until 11:45 AM. A sharp sell-off followed, dropping it to 24,370, but the index quickly recovered to 24,530 by 2:00 PM. It eventually drifted lower to close nearly flat at 24,467.45, up 0.04%.

Broader market performance:

The market displayed strong sentiment, with 1,699 stocks advancing, 1,103 declining, and 75 remaining unchanged out of a total of 2,877 traded stocks.
Sectoral indices showed mixed trends, with buying interest in banks, particularly PSU banks, as well as in the realty and IT sectors, while selling pressure was observed in the auto and FMCG sectors.

Looking ahead:

The focus now shifts to the upcoming RBI monetary policy as markets maintain their upward momentum.

Note: The above numbers for Commodity futures were taken around 4 pm.

Change in OI for the day

The following is the change in OI for Nifty contracts expiring on 5th December:

The maximum CE OI is at 24800 followed by 24500 and 24600, and the maximum Put OI is at 24000 closely followed by 24100 and 24200.
Puts OI addition was witnessed around 24500 levels with some puts unwinding at lower levels indicating both resistance at current levels and possible rangebound play for tomorrow.
Immediate support on the downside can be seen at 24300 levels followed by 24100 levels. Resistance on the upside is at 24500-550 levels followed by 24700.

Note: OI is subject to multiple interpretations but generally, in a falling market if there is an increase in the call OI, it indicates resistance, and in a rising market, if there is an increase in the put OI, it indicates support.

Source: Sensibull

Tijori is an investment research platform, and they have constructed niche indices for various themes and sub-sectors. They help you get a sense of the market performance of narrow slices of the market. You can also track the Promoter buying and other interesting stuff like Capex activity by the companies in the Tijori App’s idea dashboard.

What’s happening in India

Bharti Airtel (-2.25%) has signed a multi-year agreement with Ericsson to enhance its 4G and 5G network infrastructure. The deal includes deploying advanced solutions for improved coverage and capacity, aligning with Airtel’s strategy to strengthen its network amid competition. Airtel leads the sector in average revenue per user at ₹233, with a subscriber base of 406.5 million. Dive deeper

HEG shares surged 14.2% to a four-year high of ₹569.70, while Graphite India rose 7.5% to ₹613.05 after China tightened export controls on graphite. This move is expected to boost demand for Indian suppliers, as graphite is crucial for EV batteries and steel production. Dive deeper

Star Cement rose 9.6% to ₹215 before closing higher by 6.2% on reports of a potential acquisition by Ambuja Cement. Star Cement, with a capacity of 7.7 mtpa (million tonnes per annum), plans to expand to 25 mtpa by 2030. Dive deeper

Defence stocks gained as the Defence Acquisition Council approved ₹21,772 crore procurement proposals, benefiting companies like Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), and Mishra Dhatu Nigam Limited (MIDHANI). Dive deeper

RattanIndia Enterprises (RTNINDIA, +5.8%) announced that Revolt Motors, its electric motorcycle subsidiary, achieved a 197% year-on-year and 109% month-on-month sales growth in November 2024, selling 1,994 units. The surge is driven by the launch of the affordable RV1 and RV1+ models, alongside an expanding dealership network of 154 locations in India and a recent entry into Sri Lanka. Dive deeper

Vodafone Group is selling its remaining 3% stake in Indus Towers, equivalent to 79.2 million shares, through an accelerated book build. Proceeds, valued at $334 million, will be used to repay $101 million in debt secured against its Indian assets. This follows the sale of an 18% stake in June for $1.82 billion. Dive deeper

LTIMindtree (LTIM, +0.89%) announced a partnership and strategic investment in Voicing.AI, a startup specializing in AI voice solutions. The collaboration focuses on integrating "Agentic AI" to enhance customer engagement and streamline business processes while ensuring compliance with security protocols. Dive deeper

L&T Technology Services (LTTS, -0.4%) secured a $50 million deal to provide product integration services in North America for a global network provider, focusing on advanced networking solutions, including private LTE and 5G networks. Dive deeper

CarTrade Tech (+0.38%) announced that CarWale, BikeWale, and OLX India each surpassed 150 million yearly unique users, with over 90% of traffic generated organically. This milestone drives revenue growth ad an anticipated 25-30% PAT increase in Q3 FY25 over the prior quarter. Dive deeper

Suzlon Energy (+3.55%) and Jindal Renewables expanded their partnership with a 302.4 MW wind power project in Karnataka, adding to last month’s 400 MW deal. This brings Suzlon’s total order from Jindal Renewables to 702.4 MW, its largest C&I order from a single customer, aimed at powering green steel production in Chhattisgarh and Odisha. Dive deeper

Honasa Consumer hit a 10% upper circuit during the day and closed at ₹278.35 (+6.36%). The surge followed CEO Varun Alagh increasing his stake to 31.93% with a ₹4.5 crore share purchase. Dive deeper

Credit card additions in India fell by nearly 50% year-on-year in October, with 786,000 new cards issued, bringing the total to 107 million. Rising delinquencies and stricter RBI risk norms have impacted the segment, with credit card outstanding growth slowing to 17% in October 2024, down from 26% in March. Dive deeper

ONGC increased its stake in ONGC Petro additions Ltd. (OPaL) to 95.69% through a ₹10,501 crore rights issue, supporting its integration into downstream petrochemicals. OPaL’s facility in Gujarat produces 1.4 million tonnes of polymers annually. Dive deeper

Reliance Power shares hit the 5% upper circuit at ₹41.07 after Solar Energy Corporation of India (SECI) withdrew its debarment notice, allowing Reliance Power and its subsidiary to participate in future SECI tenders. Dive deeper

Wonderla Holidays rose nearly 15% after the company opened its qualified institutional placement (QIP) at a floor price of ₹829.74 per share. The board had earlier approved raising up to ₹800 crore through funding methods including QIP. Dive deeper

Niva Bupa Health Insurance shares surged 15% to a record high of ₹94.37, driven by reports of a potential GST rate reduction on health and life insurance policies, pending a decision by the GST Council later this month. The stock has gained around 25% in two sessions. Dive deeper

White-collar hiring activity grew 2% YoY in November, driven by sectors like oil and gas (16%), AI/ML (30%), FMCG (7%), and real estate (10%), as per the Naukri JobSpeak Index. Cities like Jaipur (14%), Udaipur (24%), and Bhubaneswar (21%) also showed notable hiring growth, reflecting resilience despite the festive season lull. Dive deeper

What’s happening globally

South Korea's finance ministry announced readiness to inject "unlimited" liquidity into financial markets after President Yoon Suk Yeol lifted martial law imposed overnight. Emergency measures include special repo operations and a 10 trillion won ($7.07 billion) stock market stabilization fund to support market recovery and stability. Dive deeper

France's Prime Minister Michel Barnier faces no-confidence votes over his budget policy, threatening his three-month-old administration. The motions, backed by both the far-right and hard-left, could force President Emmanuel Macron to navigate political uncertainty without calling new elections for a year. Dive deeper

OPEC+ rescheduled its policy meeting to December 5, 2024, amid extended production cuts of 2.2 million barrels per day to stabilize oil prices. The meeting will address delaying January 2025 output hikes, balancing price support with market share concerns amid slowing global demand and rising non-OPEC output. - Dive deeper

Meta is inviting proposals from nuclear power developers to add 1-4 GW of U.S. nuclear generation capacity by the early 2030s, supporting its AI and environmental goals. The company is open to both small modular reactors and larger nuclear plants, emphasizing the pivotal role of nuclear energy in a cleaner, more reliable grid. Submissions are open until January 3, 2025. Dive deeper

China's services activity grew at a slower pace in November, with the Caixin/S&P Global Services PMI at 51.5, down from 52.0 in October. The economy faces challenges from a property downturn, local government debt risks, and weakening global demand, prompting Beijing to implement fiscal and monetary support measures. Dive deeper

Vanguard has warned of a potential correction in AI stock prices, citing overvaluation due to heightened investor optimism. While AI's transformative potential is significant, Vanguard notes that the benefits may ultimately favour companies using the technology rather than those developing it. Dive deeper

BlackRock is acquiring HPS Investment Partners in a $12 billion stock deal, boosting its private credit franchise to $220 billion in client assets. The move strengthens BlackRock’s position as a comprehensive asset manager for insurance clients, integrating HPS’s $148 billion in private credit expertise. The transaction is expected to close by mid-2025. Dive deeper

Abu Dhabi launched the Abu Dhabi Registration Authority (ADRA) to streamline business registration as part of its efforts to diversify its economy beyond oil. The authority, under the Department of Economic Development, aims to attract foreign investment and spur local businesses. Non-oil GDP growth reached 6.6% in Q2 2024, driven by construction, manufacturing, and finance. Dive deeper

Management chatter

In this section, we pick out interesting comments made by the management of major companies and policymakers of the Indian and Global Economy.

Rohit Kapoor, Food Marketplace CEO, Swiggy

"In terms of any share claims of numbers, we'd rather rely largely on the listed players — Blinkit, which gets reported under Zomato and us, rather than focus too much on selective numbers thrown about by private competitors who probably don't have the same bar on reporting and information provision that some of us need to provide," - Link

FM Nirmala Sitharaman on Banks

"Banks are being professionally run today. The metrics are healthy so they can go to the market and raise bonds, raise loans & run their business accordingly," - Link

"Indian banks have performed exceptionally well in recent years. Highest-ever net profit of Rs 1.41 lakh crore was achieved in 2023-24 & Rs 85,520 Crore in the first half of 2024-25. Today, all the public sector banks have turned profitable. As a sector, profitability of all scheduled commercial banks is the highest in multiple decades, with the Return on Assets at 1.3 per cent and return on equity at 13.8 per cent," - Link

Calendars

In the coming days, we have the following major events and corporate actions:

That’s it from us. Do let us know your feedback in the comments and share it with your friends to spread the word.

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