Zydus Lifesciences’ Strategic Move and Ashok Leyland’s Stake Increase

Technical Overview – Nifty 50

The Indian markets again witnessed a gap-up opening on 06th November, and it was a strong bullish trading session where prices registered a lifetime high of 20,961 levels with daily gains of 80 points.

NIFTY has broken out of its all-time highs and is ready to head higher in the seasonally strong month of December. Nifty has ended on a positive note in 15 out of the last 20 years in this month. It has generated an average gain of 2.8% in December over the years. 

The recent rally from the low of 18,837 to the all-time high of 20,961 took 26 trading sessions, which is equal to the fall from the October high of 20,222 to 18,837. This indicates that the market is in a strong uptrend.
As the index has witnessed a one-sided rally in the past couple of trading sessions henceforth a mild profit booking or a sideways trading session cannot be ruled out. The immediate support for the index has shifted higher near 20,800 levels and the resistance is likely to capped near 21,000 levels.

Technical Overview – Bank Nifty

The Bank Nifty on 06th December also witnessed a gap-up opening but due to an overbought oscillator, the prices drifted lower within the first few minutes of the trade and remained under pressure throughout the day.

The Banking index registered its lifetime high levels in the opening trade and due to a profit booking formed a bearish engulfing candle stick pattern on the daily time frame. The higher high higher low formation is well intact on the daily chart and the index is trading above all the important averages.

The momentum oscillator RSI (14) on the daily chart has reached at 80 levels and the distance between the price and the 21 EMA has increased drastically. Overall chances of profit booking at present levels look bright. The major trend remains to buy on dips. The immediate support for the Banking index is placed near the 46,500 – 46,300 levels and the 47,250 levels will remain an immediate hurdle for the time being.

Indian markets:

• Domestic equity indices logged seventh straight day of gains on December 6.
• Bullish momentum continued with buying in information technology and power names.
• Continuous foreign inflow took the benchmarks to a new high for a third day.
• A robust FII reversal is fueled by receding inflation and dropping yields in both US and Indian markets.
• The allure of Indian market gains post-China credit rating downgrade and decline in oil prices was followed by ease in geopolitical tension.
• A strong rebound in IT, driven by reduced US recession risks and in anticipation of robust summer demand, fueled the momentum in the power sector.

Global Markets

• European markets opened higher on Wednesday after a mixed trade seen earlier in the week.
• The regional Stoxx 600 index gained 0.13% in morning trade, with mining stocks seeing a sharp turnaround to climb 1.5% following metals prices higher.
• Germany’s blue chip DAX index nudged slightly higher, extending the record level it closed at on Tuesday.

Stocks in Spotlight

• Hero MotoCorp and Ather Energy have announced their partnership for an interoperable fast-charging network in India. This collaboration will enable EV users to use VIDA and Ather Grids nationwide, covering 100 cities with over 1900 fast charging points. Following the news, shares of Aether Industries rose over a per cent, while Hero MotoCorp continued to trade nearly 2 per cent lower.
• Zydus Lifesciences‘ US arm Sentynl Therapeutics has taken over the development and commercialisation of CUTX-101 for the treatment of Menkes disease from Cyprium Therapeutics. Sentynl assumed full responsibility for the product candidate after Cyprium transferred its worldwide proprietary rights and US FDA documents pertaining to CUTX-101 to Sentynl. Following the news, Zydus Lifesciences’ stock gained 1.6 percent.
• Ashok Leyland has increased its stake in Optare Plc UK for approximately Rs 662 crore. The commercial vehicle manufacturer now owns nearly 92.20 percent stake in Optare, up from the previous 91.63 percent. Optare is a company that produces and sells commercial vehicles and is the holding company of Switch Mobility Limited and Switch Mobility Automotive Limited, both of which are subsidiaries of Ashok Leyland. As a result of this news, Ashok Leyland shares rose by 1 percent.

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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