The Union Government will continue its focus on improving quality spending, strengthening the social security net and bring down the fiscal deficit to 4.5% of the GDP in fiscal 2026, a finance ministry document said. Finance Minister Nirmala Sitharaman is schedule to present the Budget for 2025-26 in Parliament on Feb 1, 2025.
India’s Finance Ministry aims to improve quality spending and cut fiscal deficit to 4.5% of GDP by FY26 – Daily Market Update 26th Dec 2024
Overview and Outlook
Global Stock Market Today
- Global equity markets were closed on account of Christmas holiday.
- Majority of Asian equity markets are close on account of Christmas celebrations.
- GIFT Nifty is trading higher by 60 points, Nifty futures likely to open around 23825 levels.
Nifty Overview & Outlook
The Indian benchmark index Nifty took a second consecutive breather following a sharp decline at the end of last week, with no external triggers to drive the momentum. The ongoing strengthening of the US Dollar against the Indian Rupee held any fresh buying in Indian markets, as investors find attractive opportunities elsewhere. As a result, Nifty opened flat and saw a rise in the first half of the session, but failed to sustain the gains, eventually witnessing a sell-off. The index ended 0.1% lower, while Nifty Bank mirrored this movement, closing down by 0.2%.
In the broader market, the Midcap index underperformed the benchmark, losing 0.3%, while the Smallcap index slightly outperformed by ending flat. Sector-wise, Nifty Auto and Nifty FMCG provided support to the index, each gaining more than 0.5%, while Nifty Metal weighed on the market, declining by 0.8%. The overall market breadth was nearly neutral, with 255 advancing stocks and 243 declining across the NSE 500.
From a technical perspective, Nifty formed two Doji candlesticks following last Friday’s sharp drop. The index has attempted to rise but has struggled to hold above the 23.6% retracement level of the previous downtrend from 24792 to 23537. Therefore, the immediate resistance for Nifty is the said level i.e. 23835, followed by 24015. On the downside, the current swing low of 23537 will serve as the key support level.
Derivatives Overview & Outlook
On Tuesday, no significant change was seen in all major index futures on the price front, whereas on open interest front, Banknifty and Finnifty futures shed around 29% and 26% of open interest respectively as long unwinding.
Performance on the sectoral front was mix. Amongst them, long buildup was observed in Auto, Chemical, Infrastructure and Oil & Gas stocks along with some short buildup in Capital Goods, Metals and Power stocks whereas some long unwinding was seen among Cement and Telecom stocks.
On options front, call writing along with some put writing was seen at multiple strikes. Maximum call positions are at 24000 CE followed by 23800 CE while the maximum put positions are at 23500 PE followed by 23000 PE.
Institutional Trading Activity
On Tuesday, FIIs sold stocks worth Rs 2454 Cr in the cash segment, bought stocks futures worth Rs 1968 Cr and sold index futures worth Rs 1008 Cr. DIIs were net buyers in the cash segment to the tune of Rs 2819 Cr.
Nifty Futures, Banknifty Futures and Finnifty Key Levels
Nifty – Resistances 23900-24000; Supports 23650-23580
Banknifty – Resistances 51500-51900; Supports 51000-50600
Finnifty – Resistances 23900- 24000; Supports 23750-23680
F&O Security in Ban Today: RBLBANK.
Disclosure
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