The Nifty 50 has formed a bearish candle on daily charts, indicating a largely negative trend, according to analysts.
"We are of the view that the intraday market texture is weak, but a fresh sell-off is possible only after a dismissal of 24,500, below which level the market could slip to 25,350-25,300," said Shrikant Chouhan, research analyst at Kotak Securities Ltd.
The sentiment could change if the Nifty inches above 24,620. Above the 24,800 level, the market could bounce back to 24,700. If the upward movement continues, the index may rise further to 24,775 or even 24,820, he added.
On the options front, the highest call open interest for Nifty is at the 26,000 strike, followed by 25,000, while the highest put open interest is at the 23,500 strike, followed by 24,000, noted Chandan Taparia, head of equity derivatives at Motilal Oswal Financial Services Ltd.
Call writing is observed at the 24,600 and 25,000 strikes, while put writing is seen at the 23,900 and 24,500 strikes. The option data suggests a broader trading range between 24,000 and 25,000, with an immediate range between 24,400 and 24,800, he said.
On the macro side, November's CPI moderation strengthens the case for monetary easing, said Arsh Mogre, an economist at Prabhudas Lilladher, who expects the RBI to cut the repo rate in its February 2025 meeting.
FII, DII Activity
Overseas investors remained net sellers of Indian equities on Thursday for the second consecutive day, while domestic institutional investors remained net buyers for the third consecutive session.
Foreign portfolio investors offloaded stocks worth Rs 3,560.01 crore, whereas the DIIs bought stocks worth Rs 2,646.65 crore, according to provisional data shared by the NSE.
F&O Cues
Nifty December futures are down by 0.36% at 24,647, with a premium of 99 points. The open interest for Nifty December futures has decreased by 0.3%.
For the Nifty Options Dec. 19 expiry, the maximum call open interest is at the 26,000 strike, while the maximum put open interest is at the 23,000 strike.
Market Recap
The NSE Nifty 50 and BSE Sensex ended at the lowest level in over a week as shares of Reliance Industries Ltd., Larsen & Toubro Ltd., and Hindustan Unilever Ltd. dragged.
The Nifty 50 ended 93.10 points, or 0.38%, down at 24,548.70, while the Sensex ended 236.18 points, or 0.29%, lower at 81,289.96.
On NSE, 10 sectors declined, and two advanced. The NSE Nifty Media declined the most. The NSE Nifty IT was the best-performing sector. Earlier in the session, the Nifty IT rose to the record high.
Broader indices underperformed and ended lower; BSE Midcap closed 0.6% down, and BSE Smallcap fell 1%.
Major Stocks In News
HAL: The defence ministry signed a contract worth Rs 13,500 crore with the company for procurement of 12 advanced Sukhoi aircrafts.
Zomato: The company received demand order worth Rs 402 crore with penalty of Rs 402 crore for alleged non-payment of GST on delivery charges.
NHPC: The company revised the borrowing plan for raising of debt up to Rs 6,900 crore during fiscal 2025 through NCDs and Rs 2,600 crore will be carried out in one or more tranches through private placement as part of the borrowing plan.
Tata Motors: The automaker announced a price increase of up to 2% across its trucks and buses portfolio effective from Jan. 1. The price increase is to offset the rise in input costs.
Global Cues
Stocks in the Asia-Pacific region slipped following a decline on Wall Street, ending the week on a negative note ahead of the Federal Reserve meeting next week.
Japan's Nikkei was 443 points, or 1% lower at 39,500, while South Korea's Kospi was down 5.6 points, or 0.19% at 2,454 as of 6:30 a.m. Stock gauges in China and Hong Kong were down by 1.18% and 1.21%, respectively
Stocks in China are poised to end the week negative despite expectations of higher stimulus, even as the country changed its monetary stance to "easing" after 11 years. President Xi Jinping said earlier this week that Beijing is fully confident in achieving its economic growth target this year.
Top officials said that China would raise the fiscal deficit target next year following the two-day Central Economic Work Conference in Beijing, Bloomberg News reported.
The dollar index—which tracks the greenback's performance against a basket of 10 leading global currencies—was trading 0.10% higher at 107.05. Bitcoin was trading a tad below the $1,00,000 mark.
Wall Street ended the previous session negative after Wednesday's record surge, as weekly jobless claims rose more than expected. The initial jobless claims rose to 2.42 lakh for the week ended Dec. 7, ahead of economists’ estimates for 2.20 lakh.
Swaps market pricing reflects around a 95% level of confidence that the Fed will reduce borrowing costs by 25 basis points at the meeting next week, according to Bloomberg.
The S&P 500 index and the tech-heavy Nasdaq Composite fell 0.54% and 0.66%, respectively, on Thursday. The Dow Jones Industrial Average slipped 0.53%.
Oil headed for a weekly advance after the OPEC cut oil demand growth forecasts for this year. The Brent crude was trading 0.03% lower at $73.39 a barrel as of 7:17 a.m. IST, and the West Texas Intermediate was down 0.03% at $70.00.
Money Market Update
The Indian closed three paise lower at 84.87 against the US dollar on Thursday. The domestic currency weakened to a record low of 84.88 against the greenback during trade.
The rupee opened flat at 84.85 for the second day in a row, according to Bloomberg data. It had closed at 84.84, after opening at 84.85 on Wednesday.
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