News Shots 

RBL Bank confirmed raising Rs 2,600 crore via certificate of deposits. Bank also released provisional data for 2021. Its total deposits rose 9.6% YoY to Rs 73,637 crore and CASA ratio stood at 34.4%.

Merger of GMR Power Infra into GMR Infra and the demerger of non-airport business of GMR Infra into GMR Power and Urban Infra has become effective from Dec. 31 after NCLT clearance.

Exide Industries entered share purchase agreement between Cleantech India and Greenyana Solar for sale of its entire equity shareholding in Greenyana for Rs 5.24 crore.

IRDA approved acquisition of 100% of the equity share capital of Exide Life Insurance Company by HDFC Life Insurance Company.

Punjab National Bank approved divestment of entire stake (20.9%) in India SME Asset Reconstruction Company Ltd.

Adani Enterprises incorporated Adani New Industries Ltd. to take up projects around the synthesis of low carbon fuels and chemicals and the generation of low carbon electricity.

What to expect? 

 NIFTY opened with a gap-up at 17,247 on Friday and moved up with strength. After facing resistance at 17,350, NIFTY consolidated in a range and moved up later in the second half. But 17,400 pushed the index down and NIFTY closed the day at 17,354, p 150 points or 0.87%.

BANK NIFTY opened with a gap up at 35,134 and after an initial up-move, faced resistance in the zone of 35,500-35,600. The index consolidated in a range of 200 points after rejection. BANK NIFTY closed at 35,482, up 418 points or 1.19%.

All the major sectoral indices moved up on Friday. NIFTY METAL (+1.94%) performed well.

The US markets closed in the red with last-minute profit booking. The European markets closed in the red except DAX. It was a half-day for them.

The Asian markets are mostly shut for holidays. South Korea and Taiwan are trading in the green whereas HANG SENG is down with Evergrande shares halted. The U.S. Futures are trading in the green and the European Futures are mixed.

SGX NIFTY is trading at 17,411 indicating a gap-up opening. 

Major supports for NIFTY are at 17,200, 17,150, 17,100, 17,000 and 16,900. We can expect resistances at 17,250, 17,325, 17,400 and 17,500.

BANK NIFTY has supports at 35,400, 35,300, 35,150, 35,000 and 34,800. Resistances are at 35,500, 35,600, 35,700 and 36,000.

NIFTY has the largest call OI build-up at 18,000 followed by 17,500 and 17,700. The largest put OI build-up is at 17,300 followed by 17,200 and 17,000.

BANK NIFTY has the highest call OI build-up at 35,500 followed by 36,000 and the highest put OI build-up is at 35,000.

INDIA VIX is at 16.22.

Foreign Institutional Investors net bought shares worth Rs 575 crores. Domestic Institutional Investors net bought shares worth Rs 1,166 crores. 

Though the US markets had a bearish close, the market was consolidating with a positive bias until the last-candle sell-off happened. This will act as a follow-up candle for the bearish engulfing pattern formed on Thursday.

The Foreign Institutional Investors were net buyers on Friday. This gave NIFTY a good end to the year. If this is a trend reversal for FIIs, we may see an up-move towards 18,000 soon. At the same time, there are hurdles for the index ahead.

NIFTY was at a crucial point on Friday: at the intersection of a short term bullish channel and a longer-term bearish channel. There was no rejection at the top of the channel and NIFTY broke out and managed to close above 17,350. The index is also above the 50-day moving average which is an indication of strength. However, investors are waiting for a close above 17,600 for confirmation of strength. 

We will see the reaction to Auto sales data when the market opens. Chip shortage has eased and the data looks good but Maruti saw a decline in sales. However the company’s exports have gone up. With the GST collection crossing 1 lac for the sixth month, I will be closely watching 17,400 on the upside for an up-move. At the same time, a down-move should take our eyes to the level of 17,325.

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