Coal India’s Surge, Adani Group’s Momentum, Gold Peaks

Technical Overview – Nifty 50

It was a super duper Monday for the Indian markets where prices witnessed a massive gap up opening near 20,600 levels registered a life-high level and closing with a gain of 2%. The Benchmark index again formed a continuation gap on the daily chart. 

In the last five trading sessions index has left a three-unfilled continuation gap, which hints at a strong trending market. The momentum oscillator RSI (14) has reached its overbought zone (80) with a bullish crossover. The overbought levels do not mean an immediate selling, as an Index or a stock can remain in the overbought zone for a long time in a strong bullish trending market.

The MACD has moved vertically higher with a positive crossover on the daily time frame. The PCR Ratio has again moved towards the overbought zone. As the index has moved almost 400 points in a single day a mild profit booing or a sideways trading session cannot be ruled out in the further trading sessions. The immediate support for the index has shifted higher near 20,500 levels and the resistance is likely to capped near 20,800 levels.

Technical Overview – Bank Nifty

It was a historic day for the Banking Index where prices witnessed a massive gap up opening and recorded a lifetime high at 46,484.45 levels. The Index has formed a continuation gap on the daily chart and closed 3.50% higher for the day.
The Banking index on the daily chart has given a rectangle pattern breakout and closed above the trend line resistance. The RSI (14) has moved above 70 levels with a bullish crossover and moved vertically higher.

The Banking index on the weekly chart has taken support near the lower band of the rising channel pattern and has taken anchor point support near 21 EMA. The MACD has moved vertically higher with a positive crossover on the daily time frame. 

The PCR Ratio has again moved towards the overbought zone. As the banking index has moved almost 1600 points in a single day a mild profit booing or a sideways trading session cannot be ruled out in the further trading sessions. The immediate support for the Bank Nifty has shifted higher near 46,000 levels and the resistance is likely to be capped near 47,000 levels.

Indian markets:

• Nifty 50 and Nifty Bank surged to new all-time highs in the domestic market on December 4, marking their most substantial single-day gains since October 2022.
• The assembly election outcomes in Madhya Pradesh, Rajasthan, Chhattisgarh, and Telangana pleasantly surprised the markets, raising confidence in the likelihood of ongoing government policies extending beyond 2024 due to decisive election mandates.
• This positive turn of events alleviated a major short-term concern that had been looming over the markets.

Global Markets

• Global shares saw mixed results on Monday, with MSCI’s broadest index of world shares rising 0.1% after hitting a fourth month high in earlier trading.
• However, Europe’s STOXX 600 benchmarks fell 0.1%.
• Gold prices spiked to all-time peaks above $2,100 at the start of a busy week for economic data. The upcoming economic data will test market wagers on rate cuts from major central banks next year.
• Attacks on commercial vessels in the Red Sea on Sunday could reignite investor worries about a widening of the war between Israel and Hamas, potentially complicating the outlook for a rally that saw U.S. stocks crest a fresh closing high for the year last week.

Stocks in Spotlight

• Coal India Ltd (CIL) has seen a surge in positive recommendations from analysts, with 18 “buy”, one “hold”, and four “sell” calls for the stock. This follows an upgrade in FY24 earnings by multiple brokerage houses, which came after strong September quarter earnings that saw production and offtake grow by 12-13 percent. This is a significant increase from the previous month, where the stock had 14 “buy”, two “hold”, and six “sell” ratings.
• Adani group’s stocks have seen a surge following recent developments. The Supreme Court’s observation that there is no reason to discredit SEBI findings has given a boost to the group, as SEBI has given a clean chit to 22 of the 24 cases of market manipulation against Adani. Additionally, COP28 and clean energy themes have been dominating, leading investors to increase exposure through Adani stocks. The market sentiment towards Adani group has also been positively impacted by recent state election results that favor the incumbent government.
• Som Distilleries has secured approval from the Karnataka Excise Department to distribute its premium beer brands in Tamil Nadu, triggering a nearly 5 percent surge in its stock post-announcement. Notably, in QFY24, the company experienced a substantial 40.5 percent year-on-year surge in beer volume, reaching 40.3 lakh cases. This growth was propelled by brands like Hunter and Blackfort, which saw impressive volume increases of 24.1 percent and 36.7 percent, respectively, compared to the preceding quarter. These brands are integral to the company, being among the select few with sales surpassing 1 million cases annually.

News from the IPO world🌐

• Accent Microcell IPO opens on December 8, price band set at ₹133-140 per share
• Dom Industries to launch IPO on December 13th to raise Rs. 1200 crore
• SEBI sounds alarm on crowding of IPOs

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