SGX Nifty Indicates Muted Opening; SBI Card Raises Rs 450 Crore; Bajaj-Auto to Set-up a New Plant

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 13,433, compared with Nifty’s close of 13,466 yesterday.

Market status: Confirmed Uptrend

Distribution days: Four

Global stock markets: Dow30, -0.7%; S&P 500, -0.2%; Nasdaq, +0.5%; Nikkei, +0.1%; Kospi, +0.3%; Hang Seng, +0.1%

Yesterday, after a gap up opening, Nifty immediately digested the opening gains and traded toward the day’s low of 13,193 in the first hour. The market was highly volatile in the first half but recovered sharply in the second half and closed near the day’s high posting solid gains. Volume was higher than the previous session. The broader market performed in line with the general market. Midcap closed 0.9% higher, while smallcap closed with a gain of 1%.

On the sectoral front, all the sectors closed in the green. Nifty IT (+3.4%) advanced the most, followed by Nifty Pharma and Metal, which advanced 2.1% and 1.3%, respectively. Further, Nifty Auto, Bank, FMCG, Media, PVT Bank, and Realty were up in the range of 0.5–1.5%. Market breadth was skewed toward advancers. Of 2,233 stocks traded, 1,068 stocks advanced, 818 declined, and the remaining stocks were unchanged.

Looking ahead, we would like the index to hold its 21-DMA and trade above it. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial. If the distribution day is elevated further, it can halt the uptrend.

Key News

Wipro (Nse)’s share buyback will open from December 29 to January 11. It also signed a deal with Metro AG for strategic and IT help.

Bajaj Auto plans to set up a new plant in Maharashtra with a capex of Rs 650 crore. The plant is expected to commence production from 2023.

Sbi Cards And Payment Services raised Rs 450 crore by issuing bonds on a private placement basis. The bonds have a coupon of 6% with a five-year tenure.

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 84%; Rally Attempt, 0%; Uptrend Under Pressure, 12%; Downtrend, 4%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 46%; Rally Attempt, 0%; Uptrend Under Pressure, 54%; Downtrend, 0%.