Nifty Bulls get Mauled by the Rampaging Bears.

The Week That Was @ 8:30 AM – Saturday, December 21st 2024

December 16th to December 20th 2024.

# Nifty Bulls get Mauled by the Rampaging Bears.

# The negative takeaway was that Dalal Street was under siege as the bears were everywhere, attacking Nifty and its stocks again and again.

Nifty (-4.77%, 23588)
Sensex (-4.98%, 78042)

 

 

# Amidst turbulence and rocky environment, Nifty plunged in the week gone by and most importantly, did closed below its 200 DMA at 23834 mark.

# All of that selling is tied to 7-big bad news from:

1) The trading theme revolved around Jerome Powell’s hawkish outlook for 2025. (The Federal Reserve lowered its benchmark interest rate by 25 basis points to 4.25%-4.55%, marking the third consecutive reduction this year. The Fed delivered its expected quarter-point interest rate cut but trimmed projections for follow-on moves in 2025 to only two additional cuts, compared to a full percentage point in the last projection from September).

2) Intense FIIs selling (In the week gone by, FIIs have pulled out over Rs 15828 crore from Indian equities).

3) India’s slowing economic growth, which is likely to mean that capital flows will be weak.

4) Weak Indian Rupee is a concern after the rupee hit a record low of ₹85.10 against the dollar, making Indian markets less attractive to foreign investors and raising inflation fears.

5) China plans to increase its budget deficit to 4% in 2025, which could restrict foreign inflows into India.

6) The street is also apprehensive on the theme that Trump will impose tariffs next year.

7) Wall Street key indices too slumped around 4% as investors were seen fleeing after the Federal Reserve rolled back its expectations for 2025 rate cuts.

# Long story short: The pessimism was such that there was absolutely no place to run, no place to hide and it looked as if the sky was falling.

Weekly Recap:
Instruments LTP Weekly % Change
Nifty 23588 (-4.77%)

Sensex 78042 (-4.98%)
BankNifty 50759 (-5.27%)
Nifty Midcap 16456 (-3.50%)
India VIX 15.07 +15.48%

Dow 42840 (-2.25%)
Nasdaq 21289 (-2.25%)
Bovespa 122102 (-2.01%)

Crude Oil 68.62 -3.57%
Gold 2614 -1.18%
Silver 29.28 -3.77%
USD/INR 84.95 +0.16%

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

1) Nifty sinks as investors looked for massive profit booking, as the benchmark ended the week on a negative note, down 4.77%.

2) Bank Nifty too witnessed tough week, plunging 5.27% to end at 50579 level.

3) Nifty Private Bank index was seen tumbling, down 5.14% while Nifty PSU Bank index ended 6.3% lower on weekly basis.

4) In broader markets, the Nifty Mid-cap 100 index slipped 3.50% while the Nifty Small-cap index dropped 3.57% lower.

Bullish Sectors:
Nifty Pharma (+1.55%)

Bearish Sectors:
Nifty PSE Index (-6.79%)
Nifty Metal (-6.63%)
Nifty Energy (-6.14%)
Nifty Infra Index (-5.58%)
Nifty Auto Index (-5.02%)
Nifty Oil & Gas (-4.95%)
Nifty IT (-4.84%)
Nifty Media (-3.35%)
Nifty Reality (-2.30%)
Nifty FMCG (-2.23%)

STOCK SPECIFIC NEWS:

1) IOL Chemicals & Pharmaceuticals ended 1.4% higher at Rs 421 on reports that the company’s board will meet on 27 December 2024 to consider and approve sub division or split of existing equity shares of the company.

2) SpiceJet was in limelight after the company informed bourses that it has reached a settlement with Genesis to resolve over a $16 million dispute.

Ajay Singh, Chairman and Managing Director, SpiceJet, said, “This settlement marks another crucial step in our journey towards financial stability.

3) ITC has set January 1, 2025 as the appointed date and the effective date for the demerger of the hotel business of the company.

4) Vishal Mega Mart, Sail Life Sciences and One Mobikwik Systems have witnessed bumper market debuts. Interestingly, Vishal Mega Mart has crossed the Rs 50,000 crore market capitalisation, while Sai Life Sciences m-cap stands at Rs 15,917 crore, and Mobikwik’s current m-cap is Rs 4,120 crore. (At intraweek peak, Mobikwik shares had ringed 89% gains; Vishal Mega Mart, Sai Life had rallied around 40%).

5) Aurobindo Pharma Ltd gained 2.76% after announcing that its wholly-owned subsidiary, CuraTeQ Biologics Private Ltd, has received a positive opinion from the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) for Zefylti (BP13), a filgrastim biosimilar.

6) Wockhardt’s stock price is in limelight and at its 52-Week-High After Company’s Antibiotic ‘Zaynich’ Successfully Treated 73 Year Old Cancer Patient.

# In the week gone by, notable gainers amongst Nifty 50 were:
DR REDDYS LAB +7.81%
CIPLA +1.71%

# And the losers were:
SHRIRAM FIN (-9.02%)
TATA MOTORS (-8.38%)
JSW STEEL (-8.25%)
BHARAT ELECTRONIC (-7.86%)
GRASIM (-7.58%)

# The Big Question: The big question: No Santa rally for Nifty and its stocks this year?

On the backdrop of massive drubbing, we suspect, pessimism shall still be the preferred theme.

Sentiments continue to remain extremely fragile considering the headwinds and pessimism that are lurking all over Dalal Street.

The long and short of the week’s trading theme suggests that the unwinding of long positions at Dalal Street is not showing any signs of fatigue.

Technically speaking, confirmation of strength only above Nifty’s biggest hurdles at 24350 mark.

Until then, Nifty’s immediate downside risk remains at November 21st low at 23263 and then all eyes will be at its psychological 23000 mark.

Bottom-line: The gyan manta is to stay light on leveraged long positions as caution continues to be the buzzword.

 

 

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