Nifty is again having a great run as investors are having high hopes for a Santa rally as the year draws to a close…

The Week That Was @ 7:30 AM – Saturday, December 14th 2024

December 9th to December 13th 2024.

# The Good News: Amidst volatility, Nifty was up for the 4th-straight week as the trading theme revolved around the “buy the dip” approach.

The positive takeaway was that Nifty is again having a great run as investors are having high hopes for a Santa rally as the year draws to a close

Nifty (+0.37%, 24768)
Sensex (+0.52%, 82133)

# Strictly speaking, it was a stellar performance by Nifty as sentiments got boost from positive catalysts like:

1) The CPI Inflation in the US came in line with expectations, reinforcing bets that the Federal Reserve will deliver another 25bps rate cut in the fed funds rate next week.

2) The odds for Fed’s rate cut currently stand at around 96%.(Amidst this backdrop, Nifty IT index was star outperformer and scaled fresh all-time-high).

3) FIIs were net buyers in the week gone by to the tune of Rs 11707 crores.

4) In the week gone by, Nasdaq nabbed the psychological 20,000 levels fueled by investor enthusiasm for artificial intelligence.

5) Hoes of a business-friendly administration under President-elect Donald Trump.

6) A resilient US economy.

# Meanwhile, sentiments were also buoyed after Revenue Secretary Sanjay Malhotra was named RBI Governor for three years.

Sanjay Malhotra, age 56, took over from Shaktikanta Das on December 11 as the 26th Governor of RBI. Malhotra, who has, in the past, worked as chairman and managing director of state-run REC, has been instrumental towards achieving the recent buoyancy in tax collections.

In his first address, RBI Governor Sanjay Malhotra emphasized for continuity and stability in policy decision.

# Long story short: Dalal Street still appears one of the best investment destination this Christmas. So, all bullish eyes eagerly awaiting the arrival of Santa and his reindeer.

Weekly Recap:
Instruments LTP Weekly % Change
Nifty 24768 +0.37%

Sensex 82133 +0.52%
Bank Nifty 53584 +0.14%
Nifty Midcap 16456 +0.82%
India VIX 13.05 (-7.69%)

Dow 44828 (-1.82%)
Nasdaq 21780 +0.73%
Bovespa 124612 -1.06%

Crude Oil 70.96 +5.61%
Gold 2663 +1.12%
Silver 30.48 -1.47%
USD/INR 84.82 +0.18%

# Here are how indices performed in the week gone by:

1) Nifty bulls continue to dominate, ending the week on a firm note up 0.37%.

2) Bank Nifty too inched up and traded firm, up 0.14% to end at 53584 level.

3) Nifty Private Bank index was seen consolidating, down 0.01% while Nifty PSU Bank index ended 1.88% lower on weekly basis.

4) In broader markets, the Nifty Mid-cap 100 index gained 0.82% while the Nifty Small-cap index inched 0.44% lower.

5) Interestingly, the modest upward traction at Dalal Street was despite the Dow Jones losing for 7-straight days.

Bullish Sectors:
Nifty IT (+2.86%)
Nifty Reality (+1.04%)
Nifty Metal (+0.45%)
Nifty Infra Index (+0.21%)

Bearish Sectors:
Nifty Media (-5.96%)
Nifty Energy (-1.71%)
Nifty FMCG (-1.52%)
Nifty Oil & Gas (-1.43%)
Nifty Pharma (-1.24%)
Nifty Auto Index (-0.76%)
Nifty PSE Index (-0.58%)

STOCK SPECIFIC NEWS:

1) Hindustan Aeronautics Limited (HAL) gained 2.41% on bagging an ₹13,500 crore contract from the Indian defence ministry for 12 Sukhoi-30 fighter aircraft along with associate.

2) Adani Group stocks were in limelight and gaining traction after FBI Director Chris Wray announced he would step down from his position early next year. Under Chris Wray, FBI indicted Adani Group and charged them with Bribery/Corruption cases.

3) GHCL has hit fresh record all-time-high a at Rs. 759 after the company received environment clearance for a greenfield soda ash project.

4) Tata Motors will increase the price of its commercial vehicle portfolio by 2 % and Ashok Leyland will increase the price of its truck and bus portfolio by up to 3%. The rising input costs incurred are the reason for the price hike. (Tata Motors ended 3.2% lower in the week gone by).

5) Mobikwik IPO got oversubscribed an insane 126x on the final day.

6) Vishal Mega Mart IPO: Issue subscribed 27 times as on final day.

# In the week gone by, notable gainers amongst Nifty 50 were:
BHARTI AIRTEL +5.25%
BAJAJ FINANCE +4.85%
WIPRO +4.24%
INFOSYS +4.02%
BAJAJ FINSERV +2.72%

# And the losers were:
TATA CONSUMER (-4.59%)
HUL (-3.77%)
NTPC (-3.34%)
TATA MOTORS (-3.24%)
AXIS BANK (-3.07%)

# The Big Question: What’s Next? Run up the hills?

We suspect, Nifty may go nowhere as traders may look for profit booking.

That said, downside shall be limited amidst this big positive catalyst: November US jobs report and US CPI data solidifies rate-cut expectations. Another rate cut in sight.

The Federal Open Market Committee’s interest rate policy decision is on December 18.

# Bottom-line: The trading theme revolves around plenty of optimism for a strong year-end rally at Dalal Street.

 

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