The Reserve Bank of India (RBI) has enhanced the collateral-free loan limit for farmers from Rs 1.6 lakh to Rs 2 lakh, effective January 1, 2025, a move aimed at supporting small and marginal farmers amid rising input costs. The new directive instructs banks nationwide to waive collateral and margin requirements for agricultural and allied activity loans up to Rs 2 lakh per borrower.
RBI increases collateral-free agricultural loan limit to Rs 2 Lakh to support farmers – Daily Market Update 16th Dec 2024
Overview and Outlook
Global Stock Market Today
- US equity markets settled on a flat note.
- European equity markets too settled on a flat note.
- Asian equity markets are trading mix.
- GIFT Nifty is little changed, Nifty futures likely to open around 24780 levels.
Nifty Overview & Outlook
Continuing the negative sentiment from the previous day, the Indian benchmark index Nifty opened Friday’s session on a weak note, following declines in US markets. Additionally, the Rupee hit an all-time low in the previous session. Sentiment further dampened by news that China might devalue the Yuan amid trade war with the US. However, Nifty managed to recover all its losses and rebounded sharply in the afternoon trade, reacting positively to the release of CPI data, which showed a decrease to 5.48% in November, as against 6.21% in the previous month. This led to significant reversal in the FMCG and Auto sector stocks.
At the end of the session, Nifty was up by 0.9%, while Nifty Bank slightly underperformed, ending 0.7% higher. In the broader market, both the Midcap and Smallcap indices lagged, with Midcap closing flat to negative and Smallcap falling 0.6%. Sector-wise, Nifty FMCG and Nifty Infra were the top gainers, each rising more than 1%. On the downside, Nifty Metal and Nifty Media were the biggest losers, with declines of 0.7% and 0.6%, respectively. The overall market breadth was notably negative, with 202 advances and 296 declines in the NSE 500.
From a technical standpoint, during an intraday decline, Nifty found support near the 61.8% retracement level of its prior upward move and then rebounded sharply, closing above the key resistance zone of 24690-24700. As a result, Nifty managed to close above the important 24550 neckline level once again. On a weekly time frame, Nifty ended exactly at the 50% retracement of the decline from 26277 to 23263. Therefore, if Nifty moves above 24770, the next resistance level is seen at 25125. Should there be any profit-taking at current levels, 24480 will act as immediate support.
Derivatives Overview & Outlook
On Friday, Nifty, Banknifty and Finnifty futures shed 1.7, 4.3% and 8.6% of open interest respectively as short covering while Midcapnifty futures added around 1.2% of open interest as long build-up.
Performance on the sectoral front was mix. Short build-up was seen among Finance and Power stocks along with long unwinding among Metal stocks whereas some long build-up was seen among Capital Goods and Telecom stocks.
On options front, put writing was seen at multiple strikes along with call addition at multiple strikes and maximum positions are at 24500 PE and 26000 CE followed by 25000 CE.
Institutional Trading Activity
On Friday, FIIs bought stocks worth Rs 2335 Cr in the cash segment, bought index futures worth Rs 481 Cr also bought stocks futures worth Rs 7759 Cr. DIIs were net sellers in the cash segment to the tune of Rs 732 Cr.
Nifty Futures, Banknifty Futures and Finnifty Key Levels
Nifty – Resistances 25000-25100; Supports 24600-24490
Banknifty – Resistances 54000-54300; Supports 53200-52800
Finnifty – Resistances 25040- 25130; Supports 24800-24630
F&O Security in Ban Today: GRANULES, HINDCOPPER, MANAPPURAM, METROPOLIS, NATIONALUM, PVRINOX, RBLBANK, SAIL.
Disclosure
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