Bank credit growth to industry decelerates to 6.1% in November : Daily Market Update Equity 01 Jan 2024 | Globe Capital Market LTD.
Bank credit growth to industry decelerates to 6.1% in November : Daily Market Update Equity 01 Jan 2024

Growth of bank credit to industry decelerated to 6.1% in November as against 13% recorded in the same month last year, according to data released by the Reserve Bank of India on Friday. Among major industries, year-on-year credit growth to basic metal & metal products, food processing and textiles accelerated in November 2023 as compared with the corresponding month of the previous year, while that to all engineering, chemicals & chemical products, and infrastructure decelerated.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on a negative note in range 0.05% to 0.56%.
  • European equity markets settled higher in range 0.11% to 0.30%.
  • Majority of Asian equity markets are trading mixed.
  • GIFT Nifty is up down 6 points, Nifty futures are likely to open around 21957 levels (as on 8:30AM)


News highlights from across the globe

  • Most Asian markets are closed today on account of New Year.
  • Wall Street’s final session of 2023 saw stocks take a breather after a rally that put the market on pace for its ninth straight week of gains—the longest winning streak since 2004, Bloomberg reported.
  • Brent crude was trading 0.11% lower at $77.04 a barrel


Important news updates from the domestic front

  • Grasim Industries commissioned an additional 1.23 lakh tonnes of annual advanced materials capacity at the Bharuch plant in Gujarat. The total capacity of advanced materials is 2,46,000 tonnes per annum. The expansion will facilitate the growth of the specialty chemical business.
  • Dr. Reddy’s Laboratories: The company’s global arm acquired 6.46% of Israel-based biotechnology company Edity Therapeutics for $1.97 per share to further develop its technology platform.
  • ACC successfully commissioned a cement manufacturing unit with a capacity of 1.0 MTPA at Ametha, Madhya Pradesh.
  • Torrent Power incorporated a wholly owned subsidiary for generating electricity from renewable sources in Gujarat.
  • Aditya Birla Capital: The timeline for the completion of the sale of a 50% stake in Aditya Birla Insurance Brokers has been extended till March 31, 2024, subject to receipt of the approval of the Insurance Regulatory and Development Authority of India.
  • Nazara Technologies: The company’s arm signed agreements for subscribing to a convertible note of Freaks 4U Gaming GmbH at a consideration of Rs 33.26 crore to be paid in cash.


Nifty Overview & Outlook

The benchmark Nifty index took a pause after five days of advancing and settled lower at 21731 levels, down 47 points from its previous closing values after a volatile trading session.

Broader markets outperformed the benchmark as Midcap and small-cap index was up over 0.5% each against negative closing of frontline index.

Performance on the sectoral front was mix. Amongst them, Nifty Auto index was at the top of the tally, rose over 1% followed by FMCG, Metal and Realty indices that were up over 0.5% each.  On the other hand, Banking & Financial stocks along with IT and Oil & Gas stocks led the decline, down in range 0.5% to 1%.

Technically, Nifty Index is well placed on multiple chart frames. However, possibility of some profit taking can not be ruled out at this juncture. Going ahead, we reiterate our bullish view with a cautious stance on Nifty index till it is trading above 21500 levels on closing basis and expect it to test 22000 and higher levels in near term.


Derivatives Overview & Outlook

Last Friday, long unwinding was seen in Nifty futures with decrease in open interest by 0.1% whereas short buildup was seen in Banknifty and Finnifty futures with increase in open interest by 2.0% and 26.6%.

On the sectoral front, long buildup was seen among FMCG, Automobile, Metals, Media, Telecom and Capital Goods stocks whereas some short buildup was seen in Banking and Technology stocks.

On options front, put writing along with call writing was seen at multiple strikes and maximum positions are at 21500 PE and 22000 CE.


Institutional Trading Activity

Last week, FIIs bought stocks worth Rs 8649 Cr in the cash segment, bought stocks futures worth Rs 9516 and sold index futures worth Rs. 1869 Cr. DIIs were net buyer in the cash segment to the tune of Rs 666 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21950-22050; Supports 21735-21590

Banknifty – Resistances 48850-49150; Supports 48230-47890

Finnifty – Resistances 21720-21850; Supports 21410-21250


F&O Securities in Ban Today  – HINDCOPPER


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