The Nifty index showed losses for the third week, but momentum remains positive. Midcap and smallcap indices closed higher, signaling potential market recovery
The Foreign Institutional Investors (FIIs) extended their buying on third consecutive Session on December 19 as they bought equities of over Rs 1800 crore, while Domestic Institutional Investors (DIIs) purchased equities of Rs 5722 crore on the same day.
Silver has been buoyed by speculative inflows and lingering supply tightness after a historic short squeeze in October.
MSCI Inc.’s gauge of Asia Pacific shares rose 0.5%, with the tech sector leading gains. The measure capped a 1.9% weekly decline on Friday, its first in four weeks.
Biggest Nifty gainers were Shriram Finance, Trent, Wipro, Infosys, Bharti Airtel, while losers included SBI, HDFC Life, Cipla, Tata Consumer, Kotak Mahindra Bank. BSE Midcap index added 0.8 percent and smallcap index jumped 1 percent. All the sectoral indices ended higher with capital goods, metal, IT up 1-2%.
With 125 bps of rate cuts, RBI shall use other tools in its arsenal to ensure transmission of lower rates, according to Raghvendra Nath.
Jefferies noted that younger investors are driving incremental participation, with investors below 30 years accounting for about 40% of the investor base in FY25, compared with roughly 20% in the pre-pandemic period. IPO activity has also contributed to new investor additions.
The immediate resistance for the Nifty 50 is expected to be in the 26,050–26,100 range, as a convincing move above this zone could open the door for a rally toward record highs, with 25,800–25,700 acting as crucial support.
The market is expected to witness a further uptrend, provided it defends short-term moving averages. Below are some short-term trading ideas to consider.
Stocks to Watch, 22 December: Stocks like Sudeep Pharma, IRB Infrastructure Developers, Krishna Institute of Medical Sciences, Ge Vernova T&D India, Granules India, Soma Textile, Tata Chemicals, Indian Hotels Company, Emmvee Photovoltaic Power, Jupiter Wagons, Fortis Healthcare, KEC International, and Allcargo Terminals will be in focus on December 22.
Hence, if the Nifty 50 maintains its upward journey and sustains above the 26,000 zone, the 26,200–26,300 levels will be crucial to watch in the upcoming sessions. However, the 25,800–25,700 zone is expected to act as a key support, according to experts.
In the truncated week starting December 22, the market is expected to stay positive but cautious, with focus on US quarterly GDP and PCE data, China’s NPC Standing Committee meeting, rupee movement, FII flows, and the VIX.
These 11 companies are set to raise a little over Rs 755 crore through their IPOs, including the sole mainboard maiden issue of Gujarat Kidney & Super Speciality, worth Rs 250.8 crore.
On Friday, the 30-share BSE Sensex jumped 447.55 points or 0.53 per cent to settle at 84,929.36. The 50-share NSE Nifty climbed 150.85 points or 0.58 per cent to 25,966.40
Reliance Infrastructure, Roto Pumps, Lloyds Enterprises, Bliss GVS Pharma, Gandhar Oil Refinery India, Rain Industries, Antony Waste Handling Cell, DCX Systems added more than 15 percent.
Despite geopolitical flare ups and a recent global selloff in risk assets, the NSE Nifty 50 Index has barely budged for months as domestic money overwhelms foreign flows and derivatives trading curbs choke off volatility.
From a technical standpoint, the prevailing chart structure of both sectors - banking and IT - suggests that they are well-positioned to continue providing support to the frontline indices, making them the likely drivers of any near-term rally, Sudeep Shah said.
The probability of a 15–20 percent rally exists, but it is not a default. The more dependable strategy is to focus on breadth of earnings, balance-sheet strength, and valuation discipline rather than targeting a specific index number, said Anirudh Garg.
With the upcoming holiday week likely to see thinner trading volumes, price action may be subdued.
While silver has taken the spotlight recently, the broader setup indicates that gold may be preparing for a catch-up phase, supported by both fundamentals and technical indicators.
Domestic Institutional Investors (DII) continued their buying in this week also as they bought equities worth Rs 12,061.92 crore.
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Sonal Minhas believes that high quality banks/NBFCs with MSME, personal and corporate credit exposure should grow well from hereon.