Today’s Market Summarised

Markets start the last week of the year in green trying to reverse the fall from Friday.

NIFTY opened the day at 16,949 with a gap-down and quickly fell. But the initial fall looked like a bear trap and the market bounced back to day-high and above. It slowly went up to break 17,000 and test 17,100 towards market close. NIFTY ended the day at 17,086, up 82 points or 0.49%.

BANK NIFTY opened the day at 34,596 and followed a similar pattern to NIFTY. After the initial fall, the index recovered more than 900 points to the day high. Bank Nifty was able to close about the 35k mark and ended the day at 35,057, up by 200 points or 0.58%.

Only NIFTY PHARMA (+1.6%) closed with more than 1% gains, while IT (+0.69%) and Finserv (+0.91%) moved up slightly. NIFTY MEDIA (-1%) fell.

Most Asian markets closed mixed in the day. All European markets are trading flat currently.

News Picks

Almost all NIFTY IT stocks closed in the green today, led by Tech M (+3.5%) as Nifty 50’s top-gainer.

CIPLA (+2.4%) moved up after brokerages saw positivity in the company’s new injection getting USFDA approval. Dr Reddy (+2.1%) and SunPharma (+1.1%) also gained from the NIFTY 50.

RBL Bank (-18.4%) saw panic selling after the MD & CEO stepped down nearly six months before his term ends. It managed to recover slightly from the day-low. RBI has said that RBL Bank’s financial health remains stable.

GMR Infra(+8.2%) hit multi-year highs after signing a deal to develop and manage Kualanamu International Airport in Indonesia.

ZEEL(-4.1%) continued to see profit booking after the merger with Sony Pictures was completed.

Ashoka Buildcon(+10%) shot up after its subsidiary entered into share subscription and share purchase agreements with Galaxy Investments for Rs 1,337 crores.

Sunteck(+8.8%) saw buying while many other realty stocks stayed under pressure. Prestige also moved up.

HFCL(+3.6%) moved up after getting approved as a ‘Trusted Source’ by the National Security Council Secretariat.

Paras Defence(+6.8%) shot up near closing after DRDO awards Transfer Of Technology (ToT) For Development Of Border Surveillance System to the company.

Kabra Extrusion(+20%) moved up after its board approves raising Rs 301 crores for expansion.

Markets Ahead

The IT Index continued to move up to all-time highs and boosted NIFTY along with financials. ICICI Bank and HDFC twins contributed nearly half of NIFTY’s gains today.

If we look at the monthly candle for December in NIFTY, it is indicating indecision right now. On the downward side, we will have to look for the market to stay above 16,600 to prevent bearishness. Closing below this level would pull Nifty down till the 200 days moving average which has never been broken since being crossed in August 2020.

HDFC closed near the day-high by day-end indicating some strength for tomorrow. Reliance and ICICI Bank also closed the same way.

Another set of stocks to be kept an eye on are those from the Tata Group. Stocks are trying to break out from their current levels.

The last Monday of 2021 is done. Let us know if you are waiting for bulls or bears in the comments section of the marketfeed app!

Meet you all on The Stock Market Show at 7 PM on YouTube!