NIFTY OUTLOOK FOR 30 DECEMBER 2024

 Daily Market Report: December 27

Key Highlights:

• Sensex: Up 226.59 points (+0.29%) to 78,699.07

• Nifty: Up 63.20 points (+0.27%) to 23,813.40

• Advance/Decline Ratio: 1866 shares advanced, 1946 shares declined, 113 shares unchanged

Market Overview: Indian benchmark indices ended with gains on December 27, driven by strength in Asian equities. Nifty closed above the 23,800 mark, while Sensex advanced to 78,699.07. However, the session saw range-bound action with resistance at the 23,900-24,000 levels, which capped further gains. Profit-taking in the mid-session caused indices to drift lower from their intraday highs.

Technical Analysis:

• A small green candle with an upper shadow formed on the daily chart indicates an attempt to break out of the narrow range but lacked conviction.

• The downside gap from December 19 remains unfilled, signaling potential bearish undertones.

• Resistance Levels: 24,000-24,200

• Support Levels: 23,650

Sectoral Performance:

• Gainers:

  • Nifty Auto Index: +1%, driven by expectations of higher December volumes and favorable valuations.

  • Nifty Pharma & Healthcare: +0.8%, showing strength in defensive sectors.

  • Nifty Bank: +0.3%, supported by select heavyweights.

• Losers:

  • Nifty Metal & PSU Bank: -1% each.

  • Nifty Oil & Gas: -0.7%.

  • Nifty Realty & Consumer Durables: -0.5% each.

Global Markets:

• Asian Markets: Continued their rally, with the MSCI Asia Pacific Index logging its fifth consecutive gain. Tokyo stocks surged due to yen weakness driven by unclear signals from the Bank of Japan.

• European Markets: Stoxx Europe 600 edged up 0.2% in light holiday trading.

• US Markets: Equity futures dipped as markets digested a lackluster session on Wall Street. Treasury yields and the dollar remained stable.

Stock Highlights:

• Gainers:

  • Dr. Reddy's Labs, M&M, IndusInd Bank, Eicher Motors, Bajaj Finance.

• Losers:

  • Hindalco Industries, SBI, ONGC, Coal India, Bharat Electronics.

• Midcap and Smallcap Indices: Midcap index remained flat, while smallcap index rose 0.3%.

Key Observations:

• Consolidation continued as the market remained volatile and lacked conviction.

• Late profit-taking capped gains, especially in sectoral heavyweights.

• Rupee’s record low against the dollar and foreign investors’ cautious stance contributed to uncertainty.

Outlook: The short-term trend for Nifty is slightly positive but remains range-bound. Resistance levels at 24,000-24,200 may provide a sell-on-rise opportunity. Defensive sectors like pharma and healthcare, along with select heavyweight stocks, present promising opportunities. Traders are advised to stay stock-specific and maintain a balanced approach on both sides of the market.