PVR-Inox’s Expansion, Aurobindo Pharma’s FDA Nod, and PFC’s Surge

Technical Overview – Nifty 50

The Benchmark Index on 1st December opened with a gap of almost 60 points registered its lifetime high at 20,291.55 levels and closed the week with more than two percent gains. In the last 12 trading sessions, the Nifty has formed three unfilled continuation gaps which indicates a strong bullish trend.

Short Covering Fuels Market Rally in November Series, Bullish Momentum Likely to Continue. Nifty rose 6.77% during the November month expiry. Nifty futures rollover stood at 73.06%, which is significantly lower compared to last month’s expiry rollover of 83.39% and its three-month average of 77.41%.

Nifty will start the December series with an open interest of 1.07 crore shares compared to an OI of 1.16 crore shares at the beginning of the November series. Nifty saw significantly lower rollover with a higher cost of carry (+0.67%) and a fall in open interest, compared to its previous month, indicating a covering of short positions in the November series.
Technically, gates have opened for a test of Nifty’s new all-time high at the 20,400 mark. The immediate support for the index is placed at 20,100 levels.

Technical Overview – Bank Nifty

It was a power pack day for the Banking index where prices opened above 44,500 levels and registered an intraday high at 44,951 levels and closed with a gain of more than 2% on the weekly time frame. The Index on the weekly chart has taken support near the lower band of the rising wedge pattern and moved higher post taking support near 21 EMA.

The Bank Nifty on the daily chart has witnessed an inverted head & shoulder pattern breakout and the index has closed above the neckline of the pattern. Presently the Index is trading comfortably above its short and medium-term averages on the daily time frame, which is a positive sign for the index. The Banking Index has formed a tall bullish candle on the monthly chart and has formed a bullish piercing candle stick pattern.

The immediate support for the Banking Index has shifted higher near 44,400 levels as prices have witnessed a range breakout and the immediate resistance is likely to be capped below 45,400 levels.

Indian markets:

• The domestic stock market started December on a high note, with the Nifty 50 index reaching a new peak.
• This surge was propelled by robust GDP figures and extensive buying across various sectors, notably FMCG, real estate, and metal sectors leading the charge.
• India’s GDP growth for July-September exceeded expectations at 7.6%, surpassing the RBI’s forecast of 6.5% and contributing significantly to the market’s optimism.
• Foreign institutional investors’ increased positivity and favorable indications from European markets added fuel to the bullish momentum.
• Global cues, especially the performance of the US markets, are further bolstering the overall positive sentiment in the market.

Global Markets

• European markets rose, while Asian markets had a mixed close on Friday. Chinas manufacturing sector unexpectedly grew in November, with the Caixin purchasing managers index rising to 50.7 from 49.5 in October.
• US stocks ended mixed on Thursday as investors anticipated interest rate cuts following a slowdown in consumer inflation, with the personal consumption expenditures price index rising 3.5% year-over-year, down from 3.7% in the previous month.

Stocks in Spotlight

• PVR-Inox witnessed a 2 percent increase, reaching a day’s high of Rs 1,755 per share on December 1, following the inauguration of its new 6-screen venue at Jio World Plaza in Mumbai. This addition, featuring an additional Imax screen, has expanded the multiplex operator’s Imax screen count to 4 in Mumbai and 22 across India. Notably, over the past month, PVR-Inox’s stock has surged by 8 percent, outperforming the benchmark Sensex, which rose by 6 percent during the same period. This positive market response signifies investor enthusiasm surrounding the company’s expansion and strategic developments within the entertainment industry.
• Aurobindo Pharma concluded trading with a 2.31 percent increase following the approval granted by the US Food and Drug Administration (USFDA) to its wholly owned subsidiary. This approval allows the subsidiary to produce and market an asthma medication. The positive market response indicates investor confidence in the company’s prospects, potentially bolstering its position within the pharmaceutical industry.
• Power Finance Corporation Ltd (PFC) witnessed a remarkable surge of over 9 percent in its shares subsequent to the revelation that its wholly-owned subsidiary, PFC Consulting, has formed a special purpose vehicle (SPV) called Paradeep Transmission. This development follows PFC Consulting Limited’s appointment as the “bid process coordinator” (BPC) by the power ministry for the selection of developers via tariff-based competitive bidding for Independent Transmission Projects (ITPs). The establishment of Paradeep Transmission marks a strategic move aligned with the broader efforts in the power sector, showcasing PFC’s proactive stance in fostering essential infrastructure and enhancing transmission capabilities.

News from the IPO world🌐

• Jana Small Finance Bank has received final nod from market regulator SEBI to launch its proposed IPO
• India Shelter Finance Corporation and Doms Industries have received approval from the capital markets regulator to go ahead with the IPO plans
• SEBI sounds alarm on crowding of IPOs

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