Friday is setting out to be a volatile day for stocks entering the Sensex and FTSE indices, as the rebalancing coincides with Sensex’s weekly options expiry. Shares of food delivery platform Zomato Ltd and frontline private lenders ICICI Bank, Kotak Mahindra Bank and Bajaj Finance will be in demand on in the last leg of trading tomorrow, with their entry to the gauges.
The index balancing will be undertaken in the last 30 minutes of trade, coinciding with Sensex rejig and expiry of the Sensex Options.
Sensex and FTSE rejig along with Sensex weekly expiry to keep market volatile- Daily Market Update 20th Dec 2024
Overview and Outlook
Global Stock Market Today
- US equity markets settled on a flat note.
- European equity markets settled lower in range 1% to 1.37%.
- Majority of Asian equity markets are trading in red.
- GIFT Nifty is down by 70 points, Nifty futures likely to open around 23930 levels.
Nifty Overview & Outlook
Indian stock markets plunged on Thursday following a gap-down opening, reacting to the Federal Reserve’s December 2024 monetary policy review. The Fed implemented the anticipated 25 basis point rate cut but maintained a hawkish outlook for 2025, signaling a slower pace of rate cuts next year. This sentiment weighed on global markets, including Indian stocks. The rupee fell to an all-time low of 85.12, which negatively impacted rupee-sensitive sectors, particularly banking and financial institutions. The Nifty opened over 300 points lower and slightly recovered from its lows to close 1% down, or 247 points lower. The Bank Nifty underperformed slightly, dropping 1.1%.
In the broader market, the Midcap index outperformed the benchmark by gaining 1.1% after a highly volatile session, while the Smallcap index also slightly outperformed but ended 0.9% lower. Sector-wise, Nifty Pharma was the only index to close in the green, up 1.7%, while Nifty IT tumbled the most by 1.3%, followed by Nifty Finserv, which closed 1.2% lower. The overall market breadth was notably negative, with 165 advances and 333 declines across the NSE 500.
From a technical perspective, the Nifty index opened with a gap-down at its multiple support level of 23870-23880, which also represents the 61.8% retracement of the previous rally from 23263 to 24858. The index attempted to recover from these levels, taking support at the same zone. Going forward, the immediate support is seen at 23870-23880, followed by 23420. Conversely, if Nifty reverses and bounces from support, the immediate resistance is at 24090, followed by 24150, the gap-filling level, and the next resistance is placed at 24330.
Derivatives Overview & Outlook
Yesterday, Short buildup was seen in Nifty and Banknifty futures with an increase in open interest by 2.2% and 5.2% respectively along with some long unwinding in Finnifty futures with decrease in open interest by 3%.
All the sectoral indices, barring Oil & Gas and Pharma, settled lower. Amongst them, Auto, Banking, FMCG and Technology stocks witnessed maximum addition of short positions whereas some long unwinding was seen in Chemical stocks.
On options front, Nifty will start the final contract of Dec series with maximum positions at 25000 CE and 24000 PE.
Institutional Trading Activity
Yesterday, FIIs sold stocks worth Rs 4225 Cr in the cash segment, sold stocks futures worth Rs 2974 Cr and also sold index futures worth Rs 1519 Cr. DIIs were net buyers to the tune of Rs 3943 Cr in the cash segment.
Nifty Futures, Banknifty Futures and Finnifty Key Levels
Nifty – Resistances 24100-24250; Supports 23900-23780
Banknifty – Resistances 51900-52100; Supports 51400-51000
Finnifty – Resistances 24080- 24200; Supports 23900-23800
F&O Security in Ban Today: BANDHANBNK, GRANULES, HINDCOPPER, MANAPPURAM, NMDC, PVRINOX, SAIL.
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