India's foreign exchange reserves increased by USD 9.112 billion to USD 615.971 billion in the week ending December 15, 2023 : Daily Market Update Equity 26 Dec 2023 | Globe Capital Market LTD.
India’s foreign exchange reserves increased by USD 9.112 billion to USD 615.971 billion in the week ending December 15, 2023 : Daily Market Update Equity 26 Dec 2023

India’s forex reserves jumped USD 9.112 billion to USD 615.971 billion in the week ended December 15 and the quantum of increase is one of the highest for a week, according to RBI data. In the previous reporting week, the overall reserves had risen USD 2.816 billion to USD 606.859 billion. In October 2021, the country’s forex kitty reached an all-time high of USD 645 billion. The reserves took a hit as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global developments since last year.

Overview and Outlook

Global Stock Market Today

  • Barring Dow Jones, other US equity markets settled on positive note.
  • European equity markets settled on a positive note.
  • Asian equity markets are trading in green.
  • GIFT Nifty is up by 33 points, Nifty futures are likely to open around 21428 levels (as on 8:30AM)


News highlights from across the globe

  • The S&P 500 index and Nasdaq 100 advanced 0.17% and 0.12% higher respectively on Friday. The Dow Jones Industrial Average was trading 0.05% lower.
  • Brent crude was trading 0.04% lower at $73.53 a barrel.


Important news updates from the domestic front

  • Aurobindo Pharma: U.S FDA’s pre-approval inspection—from Dec. 11-22—at the U.S.-based unit Eugia ended with 10 observations.
  • Adani Power: A consortium of Adani Power received letter of intent from resolution professional of Coastal Energen after lenders approved the resolution plan.
  • Adani Green Energy completed power purchase agreement with the Solar Energy Corp of India to supply 1,799 MW of solar power. Concludes power offtake tie-up for the entire 8,000 MW manufacturing-linked solar tender awarded by SECI.
  • Zydus Lifesciences: The USFDA conducted an inspection at the API site situated in Ahmedabad between Dec. 14 and 22. The inspection was closed with six observations.
  • KPIT Technologies approved the initial strategic acquisition of 13% shareholding in N-Dream AG, a cloud-based game aggregation platform for €2.7 million as a primary investment and €0.3 million as a secondary investment.
  • Talbros Automotive Components approved divesting and selling its entire 40% stake in Nippon Leakless Talbros to Nippon Leakless Corp. and Leakless Gasket for a consideration of Rs 81.80 crore.
  • Arman Financial Services raised Rs 230 crore via QIP and set the issue price at Rs 2,195 per share, which indicates a discount of 4.96% to the floor price of Rs 2,309.51 per share.


Nifty Overview & Outlook

Nifty index settled on a positive note after a volatile trading session, closed shop at 21349 levels after adding nearly 100 points to its previous closing values.

Smallcap index outperformed the benchmark, rose over 1% while Mid cap index performed in line with the benchmark as it was up 0.57%.

Majority of sectoral indices tracked at NSE settled in green. Amongst them, Nifty IT and Reality indices were at the top of the tally, rose over 2% followed by Auto, Metal, Pharma and Healthcare index that were up in range 0.8% to 1.7%. On the other hand, Banking & Financial stocks led the decline down over 0.5% each.

Technically, Nifty Index is well placed on multiple chart frames. Going ahead, we reiterate our bullish view with cautious stance on Nifty index till it is trading above 21200 levels on closing basis and expect it to test 21500 and higher levels in near term.


Derivatives Overview & Outlook

Last Friday, long buildup was seen in Nifty futures with increase in open interest by 0.5% whereas long unwinding was seen in Banknifty futures with decrease in open interest by 6.3%. Short buildup was seen in Finnifty futures with increase in open interest by 12.1%.

On the sectoral front, long buildup was seen among Media, Technology and Telecom stocks whereas some short covering was seen in Chemical, Realty and Textile stocks. Short buildup was seen in Infrastructure stocks and long unwinding was seen in Banking and Cement stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 21000 PE and 22000 CE.


Institutional Trading Activity

Last week, FIIs sold stocks worth Rs 6422 Cr in the cash segment, bought stocks futures and index futures worth Rs. 7492 Cr and Rs.2926 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 9094 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21600-21800; Supports 21030-20840

Banknifty – Resistances 48350-48850; Supports 47050-46520

Finnifty – Resistances 21570-21720; Supports 21090-20920




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