Adani Enterprises is selling a total of 44% stake in the JV, and Wilmar International will acquire up to 31% in it. Adani’s nominee directors will be stepping down from the board and shareholders will be changing the name of the company.
Adani Enterprises to exit JV with Wilmar (Adani Wilmar Ltd) in $2 billion deal – Daily Market Update 31 Dec 2024
Overview and Outlook
Global Stock Market Today
- US equity markets settled lower by 1%.
- European equity markets settled on a flat to negative note.
- Asian equity markets are trading lower.
- GIFT Nifty is down by 170 points, Nifty futures likely to open around 23665 levels.
Nifty Overview & Outlook
The Indian benchmark index, Nifty, opened with little movement but attempted a slight rebound in the first half of the session. However, it quickly gave up those gains and reversed course, closing 0.7% lower. The Bank Nifty mirrored this performance, also falling by 0.7%. The rupee dropped to its lowest level, impacted by a decline in the offshore yuan and broad-based demand for the Greenback. Adani Enterprises, which gained over 7%, along with a few frontline IT and pharma stocks, tried to support the benchmark index but were unable to provide significant cushion.
In the broader market, the Midcap index slightly outperformed the benchmark, closing flat, while the Smallcap index underperformed, falling by 1.2%. Sector-wise, the defensive Nifty Pharma sector traded against the benchmark, rising by 1%, while Nifty IT gained 0.6%. On the other hand, Nifty Media tumbled the most by 1.9%. Overall market breadth was negative, with 187 advancing stocks and 312 declining across the NSE 500.
From a technical perspective, today marked the fourth consecutive range-bound session for Nifty, but with a sharp intraday decline. The index once again faced resistance near the 23.6% retracement level of the previous downtrend from 24792 to 23537. Given the intraday fall, we slightly adjust our resistance levels to 23760 and 23915. On the support side, considering the intraday chart, Nifty filled the gap at 23634, so levels below this will see support at 23535, followed by 23260.
Derivatives Overview & Outlook
Yesterday, short buildup was seen in Nifty, Finnifty and Banknifty futures with an increase in open interest by 6%, 14.9% and 6.3% respectively whereas some short covering in Midcapnifty futures with decrease in open interest by 13.9%.
Majority of sectoral indices settled lower. Amongst them, Capital Goods, Infrastructure, Metals and Realty stocks witnessed maximum addition of short position.
On options front, further call writing was seen at multiple strikes and maximum positions are at 24500 CE followed by 24000 CE and 22500 PE. Quantum of call positions is significantly higher than the quantum of put positions that shows further weakness in index.
Institutional Trading Activity
Yesterday, FIIs sold stocks worth Rs 1893 Cr in the cash segment, bought stocks futures worth Rs 1914 Cr and sold index futures worth Rs 1427 Cr. DIIs were net buyers to the tune of Rs 2174 Cr in the cash segment.
Nifty Futures, Banknifty Futures and Finnifty Key Levels
Nifty – Resistances 23950-24050; Supports 23770-23620
Banknifty – Resistances 51800-52100; Supports 51100-50900
Finnifty – Resistances 23900- 24000; Supports 23720-23620
F&O Security in Ban Today: NIL
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