Nifty recovers 600 points from lows in a volatile session

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Market Overview

The Nifty opened 50 points lower at 24,498.35 and turned bearish immediately, dropping nearly 320 points by 10:30 AM to hit the day’s low near 24,180.80. However, the market quickly rebounded from these levels, reaching 24,500 by 12 noon. After making an initial high of around 24,600, the index retraced to 24,520 before staging a strong rally to close near the day’s high of 24,792.30. This upward move expanded the trading range and marked a decisive close above 24,700, a level the market had struggled to surpass over the past week. By the end of the session, the index settled at 24,768.30, reflecting a 0.89% gain for the day.

Broader Market Performance:

Despite the Nifty's strong upward movement, the overall market breadth remained negative. On the NSE, 1,222 stocks advanced, 1,572 declined, and 77 remained unchanged.

Sectoral Performance:

Sectoral trends were mixed, with heavyweight sectors such as Financials, IT, FMCG, and Auto contributing to the market's recovery. However, sectors like Pharma, Realty, Metals, and PSU Banks ended the day in the red.

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 19th December:

• The maximum Call OI is at 25,000, followed by 24,800, while the maximum Put OI is at 24,500, followed by 24,400.

• A significant increase in Put OI, combined with the strong closing, suggests that the market is finding support at lower levels.

• Immediate downside support is observed at the 24,700 level, followed by the 24,500–24,400 range. On the upside, minor resistance is around 24,800, with a stronger resistance at 25,000.

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

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What’s happening in India

Passenger vehicle dispatches from manufacturers to dealerships increased by 4% year-on-year in November, reaching 3,47,522 units, according to the Society of Indian Automobile Manufacturers (SIAM). This growth indicates sustained demand momentum following the festive period in October. Dive deeper

SEBI has proposed a framework allowing retail investors to participate in algorithmic trading, requiring broker approval for algorithms and unique tags for algo orders. Algos will be categorized into Execution (White Box) and Black Box types. Brokers must identify algo orders and work with approved providers. Public comments are due by January 3, 2025. Dive deeper

TCS (+0.42%) has teamed up with Landis+Gyr to offer energy efficiency solutions for utilities, combining TCS’s Clever Energy with Landis+Gyr’s smart metering and grid technologies. This partnership aims to help commercial and industrial clients improve energy usage and meet sustainability goals, with a focus on real-time optimization, demand response, and smart EV charging. Dive deeper

Ashok Leyland (+0.84%) has announced a price increase of up to 3% on its entire range of commercial vehicles, effective January 2025, due to inflation and higher commodity prices. The increase will vary by model and variant. Dive deeper

In a separate development, the company has secured a Rs 345.6 crore order from Tamil Nadu State Transport Corp. for 1,475 BSVI diesel passenger bus chassis, to be delivered by May 2025. Additionally, the company confirmed the voluntary liquidation of its subsidiary, Ashok Leyland Russia. Dive deeper

Welspun Corp Ltd has announced the expansion of its HFIW pipe manufacturing facility in Little Rock, Arkansas, with a $100 million investment. The expansion, set to be completed by March 2026, will increase production capacity to 350 KMTPA and add 175 jobs. Dive deeper

Siyaram Silk Mills Ltd.'s share price reached a lifetime high on Friday after launching Cadini Italy Perfumes in India at the Taj Mahal Palace, Mumbai. Dive deeper

Ambuja Cements (+0.17%) has commissioned a 200 MW solar power project in Khavda, part of its 1 GW Renewable Power initiative. This project is expected to reduce power costs by 70%, enhancing EBITDA. The company aims to meet 60% of its energy needs with green power by FY’28, with further capacity expected by mid-2025. Dive deeper

360 ONE WAM Limited has agreed to acquire a 15% stake in Maple Infra InvIT Investment Manager Private Limited for approximately Rs. 5.04 crore. The acquisition is a minority financial investment and is expected to be completed by December 20, 2024. Maple Infra InvIT manages road assets in India through its registered infrastructure investment trust. Dive deeper

Rail Vikas Nigam Ltd (RVNL) shares fell despite securing a Rs 110.86 crore project from Southern Railway for signaling upgrades in the Chennai Division. The company also received a Rs 186.76 crore contract from East Central Railway for electric traction system upgrades. Dive deeper

SpiceJet has cleared all pending employee provident fund (PF) dues of INR 160.07 crore, along with statutory liabilities, including TDS, GST, and salary dues, following a INR 3,000 crore Qualified Institutional Placement (QIP). The airline has also resolved disputes with lessors and creditors. Dive deeper

Reliance Retail faced challenges in 2024 due to weak demand and rising competition. Jefferies suggested that the company may need to focus on quick commerce, given its omnichannel ambitions and past investment in Dunzo. Reports indicate that Reliance may target a 30-minute delivery service, as quick commerce continues to grow in major cities. Dive deeper

Godrej Industries Ltd. (-0.33%) acquired a 26% stake in Clean Max Kaze Pvt., a subsidiary of Clean Max Enviro Energy Solutions Pvt. The initial investment has been completed, with a further investment of up to Rs 7.59 crore expected by January 31, 2025, through a rights issue. The investment aims to set up a renewable energy project using wind and solar power at its Valia factory in Gujarat, helping reduce costs and secure "green power" at lower rates. Dive deeper

BlueStone Jewellery and Lifestyle has filed its DRHP with SEBI to raise ₹1,000 crore through an IPO, consisting of a fresh issue of shares up to ₹1,000 crore and an offer for sale of 2.4 crore equity shares. Dive deeper

PC Jeweller Ltd's board has approved issuing 5.17 crore equity shares to a consortium of lenders, including SBI, to settle part of its outstanding debt through preferential allotment. The shares will be issued at a price higher than the floor price. Dive deeper

India's edible oil imports rose 38.5% to 15.9 lakh tonne in November, driven by increases in crude sunflower oil and crude soyabean oil shipments. Total vegetable oil imports for the month rose 40% to 16.28 lakh tonne. Imports of palm oil declined, while soft oils saw a rise. Indonesia and Malaysia are key suppliers of palm oil, while soybean oil is mainly imported from Argentina, Brazil, and Russia. Dive deeper

Zomato's (+1.17%) Blinkit has launched Bistro, a 10-minute food delivery service, competing with Zepto Cafe, Swiggy's Bolt, and other quick commerce platforms. The app offers a variety of food and beverages and is currently available in parts of Gurugram. Dive deeper

Hindustan Aeronautics Ltd. will supply 12 Su-30MKI aircraft to the Indian Air Force for Rs 13,500 crore, enhancing operational capability with 62.6% indigenous content. The contract was signed by the Ministry of Defence and includes taxes and duties. Dive deeper

Apple Inc. will begin assembling AirPods in India for the first time in early 2025, aiming to reduce reliance on Chinese manufacturing. Production will be managed by Foxconn Technology Group at a new facility near Hyderabad, Telangana, according to a Bloomberg report. Dive deeper

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What’s happening globally

Switzerland has announced the suspension of the Most Favoured Nation (MFN) clause in its Bilateral Direct Tax Avoidance Agreement (DTAA) with India, effective January 1, 2025. This suspension means that income earned after this date will be subject to taxation in the source state. The move could impact the $100 billion investment commitment under the European Free Trade Association (EFTA) deal. Dive deeper

US initial jobless claims rose by 17,000 to 242,000 in the first week of December, above expectations. Outstanding claims increased by 15,000 to 1,886,000, nearing the three-year high. On a non-seasonally adjusted basis, claims climbed by 99,140 to 310,366, mainly due to increases in California, New York, and Texas. Dive deeper

South Africa reported FDI outflows of ZAR 3.2 billion in Q3 2024, a reversal from ZAR 16.6 billion inflows in Q2. This was driven by loan repayments by domestic subsidiaries. Meanwhile, portfolio investments saw inflows of ZAR 45.6 billion, primarily from increased foreign purchases of government bonds. Dive deeper

Spain's annual inflation rate rose to 2.4% in November 2024, driven by higher electricity and fuel prices. The core inflation rate eased to 2.4%, and consumer prices increased by 0.2% month-over-month. The EU-harmonized CPI rose 2.4% year-on-year. Dive deeper

Germany's imports decreased by 0.1% to EUR 111.2 billion in October 2024, reversing a 2.0% growth in September. Imports from non-EU countries fell by 0.6%, with declines from China and Russia. Imports from the EU rose by 0.4%. For the first ten months of 2024, total imports contracted by 3.6%, totaling EUR 1,100 billion. Dive deeper

China will expand its private pension scheme nationwide from December 15. Those covered by public pension insurance can open private pension accounts and invest up to 12,000 yuan ($1,652) annually in financial products like government bonds, pension savings, and index funds. The move follows a pilot program launched in 36 cities in 2022, which saw over 60 million private pension accounts opened. Dive deeper

The National Association of Realtors (NAR) forecasts the U.S. 30-year fixed-rate mortgage will average 6.0% in 2025, boosting housing construction and demand for existing homes. NAR projects 4.5 million existing home sales and a 2% increase in house prices, with a median existing home price of $410,700. If rates stabilize around 6%, more households could afford median-priced homes. Dive deeper

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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.

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Nitin Gadkari, Union Minister of Road Transport and Highways of India

"India's logistics cost is 14-16 percent compared to 8 percent in China and 12 percent in the US and European Union. We aim to bring this down to 9 percent in two years," - Link

We should try and reduce our fossil fuel imports from 22 lakh to 10 lakh crore.

36 express highways are under construction currently in India.

Initiatives toward building a network of ethanol, EVs, and alternative fuel transport or vehicles are underway. - Link

Calendars

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

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