Dear
Trader…
After plunging up to 1,200 points on its weekly expiry day,
Sensex staged a stellar recovery of over 2,000 points to end 843 points higher.
The sharp U-turn left bears trapped. The IT stocks gained on a near-certain US
rate cut anticipation while consumer stocks bounced back after declining 1% as
domestic inflation data showed that rural and urban food inflation remained
elevated.
The benchmark BSE Sensex gained 1.04% to settle at 82,133,
while the broader Nifty Future index closed at 24,830, higher by 182 points or
0.74%.
Bharti Airtel led the advances on the Nifty 50 index, in an
extended rally after brokerage firm Jefferies added the telecom operator to its
top Asia picks for 2025.
The FMCG index, which slipped 1% in early trade after
domestic inflation data showed that rural and urban food inflation remained
elevated, emerged as the top-performing sector in the Nifty pack, ending 1.3%
higher.
The rate-sensitive IT stocks also reversed course to end 0.6%
higher amid market expectations of a US Federal Reserve rate cut after in-line
U.S. inflation data on Wednesday cemented hopes of a rate cut next week.
Retail
Outlook – India’s retail inflation declined in November to
5.48% and came within the Reserve Bank’s comfort zone mainly due to easing food
prices, creating headroom for a rate cut at RBI’s rate-setting panel meeting in
February.
Meanwhile, US producer price inflation data on Thursday
reaffirmed investor expectations of a 25-basis point rate cut by the US Federal
Reserve on December 18 as well as a comparatively slower pace of policy easing
over 2025.
Global
Markets – European markets opened mixed on Friday as
investors assessed the European Central Bank’s Thursday rate cut decision while
Asian shares sank as a lack of details on Chinese stimulus disappointed
investors.
Hong Kong’s Hang Seng index sank 2.1% and the Shanghai
Composite index skidded 2%, while Japan’s benchmark Nikkei slipped 1%.
Elsewhere in Asia, South Korea’s Kospi added 0.5%.
Forex
Watch – The Indian rupee closed stronger
at 84.7875 against the US dollar on Friday, but fell 0.1% in the week, logging
its sixth consecutive weekly decline as pressure remained on account of
heightened dollar demand in the non-deliverable forwards market.
Meanwhile, the dollar index, which gauges the greenback’s
strength against a basket of six currencies, was trading higher by 0.06% at
106.70.
Crude
Oil – Oil prices edged higher on Friday
and were set for a weekly gain of around 3%. Brent crude, the global oil
benchmark, climbed 0.54% to $73.81 per barrel in futures trade.
Market
Dynamics – Foreign institutional investors
(FIIs) sold shares worth Rs 3,560.01 crore in the Indian market on December 12,
while domestic institutional investors bought equities worth Rs 2,646.65 crore
on the same day.
Nifty futures opened at 24593 points against the previous
close of 24648 and opened at a low 24231 points. Nifty Future closed with an
average movement of 638 points and Decline of around 182 points and closed 24830
points…!!
Meanwhile,
The domestic market smartly recovered from the
day’s low and moved out of the consolidation path led by index heavyweights.
A gradual easing in food inflation and a price hike by FMCG
companies, along with a recent correction in valuation, supported the sector to
outperform. Currently, the market is anticipating a revival in consumer
spending, driven by the festive season and year-end holidays, adding to the
sentiments. Additionally, expectation of an increase in US spending is
propelling the IT sector.
Technically, the
important key resistances are placed in Nifty future are at 24830 levels, which
could offer for the market on the higher side. stainability above this zone
would signal opens the door for a directional up move with immediate
resistances seen at 25008 – 25088 levels. Immediate support is placed at 24707 –
24606 levels.
Past Performance is not an Indicator of Future Returns. The
securities quoted are for illustration only and are not recommendatory. Investment
in securities market are subject to market risks. Read Disclaimer and related
all the documents carefully before investing, mentioned on www.nikhilbhatt.in
