Ambuja Cement’s board on Tuesday approved the merger of its recently acquired entities—Sanghi Industries Ltd and Penna Cement Industries Ltd—with itself through separate schemes of arrangement. The Adani Group cement-maker will issue 12 equity shares of face value of Rs 2 each for every 100 equity shares of Sanghi Industries of face value Rs 10. The eligible shareholders of Sanghi Industries will become the shareholders of Ambuja Cements, according to an exchange filing.
Ambuja Cement approves merger of Sanghi Industries, Penna Cement with itself- Daily Market Update 18th Dec 2024
Overview and Outlook
Global Stock Market Today
- US equity markets settled on a negative note.
- European equity markets, barring CAC, settled on a negative note.
- Majority of Asian equity markets are trading in green.
- GIFT Nifty is down by 70 points, Nifty futures likely to open around 24360 levels.
Nifty Overview & Outlook
The Indian benchmark index, Nifty, plunged in Tuesday’s session due to weak domestic indicators and global uncertainties. The country’s merchandise trade deficit surged from 27.1 billion USD in October to a record high of 37.8 billion USD in November majorly driven by higher imports. Additionally, the U.S. Federal Reserve signaled a slowdown in the pace of interest rate cuts after December’s reduction, which dampened market sentiment. China’s ongoing struggle to provide better stimulus package for investors also raised jitters for competing nations, including India.
As the Nifty fell by 1.4%, Nifty Bank declined in line. In the broader market, both the Midcap and Smallcap indices ended in the red, though they slightly outperformed the benchmark index. The Midcap index dropped 0.6%, while the Smallcap index decreased by 0.7%. Sector-wise, nearly all sectoral indices closed lower, except for Nifty Media, which ended flat. Nifty PSU Banks led the decline with a 1.8% fall. The overall market breadth was significantly negative, with 115 advances and 383 declines across the NSE 500.
From a technical standpoint, the Nifty index fell below both its support levels and closed below its 50-day EMA of 24445 for the first time since December 2. On the weekly charts, 24245 is seen as the immediate support level, aligning with the 38.2% retracement of the prior upward rally from 23263 to 24857. The next support is at 24060. If the Nifty rebounds for a pullback, resistance levels are placed at 24420, followed by 24550.
Derivatives Overview & Outlook
Yesterday, Nifty, Banknifty and Finnifty futures added 4.8%, 3.8% and 24.9% of open interest respectively as short buildup whereas some long unwinding was seen in Midcapnifty futures with decrease in open interest by 1.5%.
All the sectoral indices, barring Media and Realty, settled lower. Amongst them, Auto, Banking, Chemical, Infrastructure and Oil & Gas stocks witnessed maximum addition of short positions.
On options front, call writing in Nifty current week contract was seen at multiple strike; maximum positions are at 25000 CE followed by 24700 & 24500 CE and 23900 PE closely followed by 24000 PE. The quantum of call positions are much higher than that of put positions indicating weakness; however, PCR is trading close to 0.5 which generally lead to short term reversals.
Institutional Trading Activity
Yesterday, FIIs sold stocks worth Rs 6410 Cr in the cash segment, sold stocks futures worth Rs 6360 Cr also sold index futures worth Rs 1225 Cr. DIIs were net buyers to the tune of Rs 2706 Cr in the cash segment.
Nifty Futures, Banknifty Futures and Finnifty Key Levels
Nifty – Resistances 24600-24800; Supports 24280-24080
Banknifty – Resistances 53200-53600; Supports 52400-52200
Finnifty – Resistances 24700- 24800; Supports 24480-24400
F&O Security in Ban Today: BANDHANBNK, CHAMBALFERT, GRANULES, HINDCOPPER, MANAPPURAM, NATIONALUM, PVRINOX, RBLBANK, SAIL.
Disclosure
Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, MCX, NCDEX, and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager and Research Analyst. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.
AY Securities and Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. AtoZ Finstock Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited, Lakshya Impex Private Limited and Launchpad Fintech Private Limited are associates of GCML.
This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.
Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.
This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.
Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months. GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.
Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months. GCML or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.
No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.
The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.
Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.
Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.