Closing Bell: Nifty at 21,000, Sensex hits 70k in volatile session

Benchmark indices ended higher in the volatile session on December 11 with Nifty around 21,000. At close, the Sensex was up 102.93 points or 0.15 percent at 69,928.53, and the Nifty was up 27.70 points or 0.13 percent at 20,997.10.

We wrap up today's edition of the Moneycontrol live market blog, and will be back tomorrow morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices/ for all the global market action.

The Nifty traded mostly sideways as traders stayed on the sidelines at the beginning of a data-packed week. There's a strong resistance at 21,000, with call writers actively building positions. A decisive breakthrough above 21,000 is necessary to resume the uptrend. Until then, it's anticipated that the market will consolidate within a broader range.

On December 11, the benchmark indices experienced volatility but ultimately closed higher, with the Nifty reaching approximately 21,000. The Sensex concluded the session with a gain of 102.93 points or 0.15 percent at 69,928.53, while the Nifty was up 27.70 points or 0.13 percent, settling at 20,997.10.

The daily chart indicates that Nifty is consolidating within the range of 20,850 to 21,000. Overall, Nifty is maintaining a strong bullish trend with support levels at 20,850 and 20,800. Positional traders are advised to hold Nifty with a stop loss at 20,850.

In terms of sectors, PSU Bank, FMCG, capital goods, power, metal, and realty saw gains of 0.5-1 percent, while the pharma index experienced a decline of 0.4 percent. The top gainers on the Nifty included UPL, UltraTech Cement, Bajaj Auto, Adani Enterprises, and LTI Mindtree. On the flip side, the losers were Dr. Reddy's Laboratories, Cipla, Axis Bank, BPCL, and M&M.

The index has a support zone around 20,850-20,800. Looking at the Open Interest (OI) data, the highest OI on the call side is observed at 21,100, followed by 21,500 strike prices. On the put side, the highest OI is at the 20,900 strike price.

Turning attention to Bank Nifty, it finds support at 47,000-46,700, with resistance levels at 47,600 and 48,000.

The Bank Nifty index encountered resistance at higher levels, but the overall sentiment remains bullish, supported by a robust foundation at the 46800 level. The index is currently adopting a buy-on-dip strategy, suggesting that any declines towards the specified support zone present opportunities to initiate long positions. A significant breakthrough and closure above 47500 are anticipated to trigger additional upward momentum towards the 48000 mark.

The Nifty opened on a flat note and consolidated within a range. It closed with marginal gains of ~20 points. On the daily charts we can observe that the Nifty is trading around the level of 21000 which can act as a psychological resistance from short term perspective. Overall the trend is positive and incase of a dip towards 20870 – 20850, should be used as a buying opportunity. The upmove is likely to be slow and steady considering the sharp run-up witnessed last week. Sector rotation and stock specific action is likely to keep the index elevated from short term perspective.

Bank Nifty continued its upmove and closed with marginal gains. It faced selling pressure around the 47500 levels. Thus, going ahead we can expect some consolidation. The range of consolidation is likely to be 46800 – 47500. Overall, the trend is positive and dips should be used as a buying opportunity.

The market crossed 70,000 levels today, while the broader market outperformed the main indices. However, profit booking was evident at higher levels as traders anticipated clues from tomorrow's significant data releases on inflation from the US and India, as well as the IIP. While US inflation is predicted to remain stable, the market anticipates a rise in domestic inflation. The better-than-expected US job data and a moderate increase in US bond yields from the recent lows, however, also encouraged investors to book profits at higher levels. Investors will be closely watching the upcoming FOMC meeting tomorrow for clues about potential future rate cuts while expecting to keep rates the same this time.

A rangebound trade comes to an end on a positive note at 20,997.10 with gains of 27.70 points. Except for Pharma, rest all the sectors ended the day in green with PSU Banks and Media being the top performers. In today's trade, volume-based buying was seen in Railway stocks. Despite the rangebound trade, a strong market breadth indicates that the interest of the market participants is more towards the Broader markets which resulted in an outperformance by the Mid and Smallcap indices.

For the past couple of days, the Index has been oscillating in a narrow range but the positive side is that the support levels have shifted upwards. The immediate hurdle is at 21,090 while the downside is protected at 20,900.

Indian rupee flat at 83.39 per dollar on Monday against Friday's close of 83.39.

: Benchmark indices ended higher in the volatile session on December 11 with Nifty around 21,000.

Oil prices held steady on Monday as U.S. efforts to replenish strategic reserves provided support, though concerns persist about oversupply and softer fuel demand growth next year.

Brent crude futures edged up 2 cents to $75.86 a barrel by 0913 GMT. U.S. West Texas Intermediate crude futures were up a single cent at $71.22.

Both contracts jumped more than 2% on Friday but were down for a seventh straight week, their longest streak of weekly declines since 2018, on lingering oversupply concerns.

Relaxo Footwears announced the successful bid and acquisition of a Land Parcel admeasuring ~ 30 Acres in Pathredi Industrial Area, Bhiwadi – II, (Rajasthan) which will be used for setting up Manufacturing facilities for future needs.

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The Indian Rupee weakened marginally on the strong US Dollar and surge in crude oil prices. However, positive domestic markets and FII inflows cushioned the downside. The US Dollar gained on Friday on a better-than-expected non-farm payrolls report. The US added 199,000 jobs in November 2023 versus the forecast of 185,000 jobs and 150,000 jobs in the previous month raising hawkish sentiments.

We expect the Rupee to trade with a slight negative bias on a positive tone in positive US dollars and extended gains in crude oil prices. However, fresh foreign inflows and mixed-to-positive global markets may support the Rupee at lower levels. Investors may remain cautious ahead of inflation data from India and the US tomorrow and the US Federal Reserve monetary policy meeting later this week. USDINR spot price is expected to trade in a range of Rs 83.10 to Rs 83.70.

Morgan Stanley View On Metals:

Tata Steel - Equal-weight call, target Rs 120 per share 
SAIL – Equal-weight call, target Rs 85 per share 
JSPL- Underweight call, target Rs 525 per share 
JSW Steel – Underweight call, target Rs 620 per share 

Crude oil prices, after six straight days of decline on doubts about OPEC+ output reduction and China’s demand concerns, closed with a gain of 1.89% at $71.23 Friday on better-than-expected US monthly job report that showed that the US employers added 199.000 jobs in November Vs the forecast of 185,000 jobs. In addition, the unemployment rate edged lower to 3.70% from 3.90% in October. The average hourly earnings rose 0.40% m-o-m Vs the estimate of 0.30%. The US SPR refilling plans and joint call by Russia and Saudi Arabia urging other OPEC+ members to reduce productions further boosted the oil prices. The US aims to solicit 3 million barrels for the reserve and a plan to hold monthly tenders through at least May. However, oil was still down 3.83% on the week.

China's consumer prices data, released in the weekend, showed that CPI inflation fell the fastest in three years in November. The consumer price index dropped 0.5% both from a year earlier and a month ago as compared with the forecasts of 0.10% decline both year-on-year and month-on-month. Even factory-gate deflation deepened as PPI fell 3% y-oy Vs the forecast of 2.80%. China’s inflation data indicate weak domestic demand.

Crude oil is expected to trade with a positive bias in near-term as US CPI data and FOMC monetary policy decision loom. The counter may rise to $75 in the near-term. Support is at $65.

Sensex Today | Market at 3 PM

The Sensex was up 105.99 points or 0.15 percent at 69,931.59, and the Nifty was up 30.20 points or 0.14 percent at 20,999.60. About 2060 shares advanced, 1285 shares declined, and 117 shares unchanged. 

Sensex Today | BSE Information Technology index up 0.4 percent led by Cressanda Solution, Genesys International Corporation, Affle India:

-Buy call, target Rs 6,580 per share
-Management expects growth to be in lower end of their 13-16% guidance
-Growth expected in lower end of their 13-16% guidance despite longer furloughs in Q3
-Management expects similar growth in FY25 given recent deal wins
-Growth expected even if demand doesn't pick up
-Company has also intensified its focus on optimising costs
-The aim is also to improve margins by 150-300 bps over next 3-4 years

Shares of Tata Power jumped 3 percent on December 11 after the company's arm signed a deal with Indian Oil Corporation (IOCL) to roll out more than 500 fast and ultra-fast electric vehicle (EV) charging points across India.

These charging points will be installed across multiple IOCL retail outlets. These EV charging points will be installed in major cities like Mumbai, Delhi, Kolkata, Bengaluru, Ahmedabad, Pune, and Kochi, as well as across major highways such as the Mumbai-Pune Expressway, Salem-Kochi Highway, Guntur-Chennai Highway and the Golden Quadrilateral.

-Have transitioned to using B-heavy molasses as feedstock for the production of ethanol
-Have necessary infrastructure in place for this transition at both our units
-Financial implications stemming from this recalibration are unquantifiable

-Buy call, target raised to Rs 974 per share
-Company introduced generic medicines at significant discounts to gain market share
-Company intends to expand its diagnostic footprint beyond Hyderabad
-Company expects to expand with a subscription-based high discount model
-Uncertainty around success of expansion initiatives
-Adverse impact on near-term earnings are key concerns
-Think these are right strategic moves
-Expansion moves need a gradual implementation for successful execution

Sensex Today | Market at 2 PM

The Sensex was up 69.08 points or 0.10 percent at 69,894.68, and the Nifty was up 13.20 points or 0.06 percent at 20,982.60. About 2034 shares advanced, 1263 shares declined, and 133 shares unchanged. 

-Underweight call, target Rs 370 per share
-Announced resignation of its chief growth officer
-Senior management exits over the last 12 months has been a matter of concern for investors
-Chief growth officer had a significant role managing the large deal team
-Team was focusing on sourcing large deals from market via advisors
-Team consulting channels & used to work together in shaping up new deals

Sensex Today | BSE Power index up 0.4 percent supported by Tata Power, BHEL, Siemens:

Oil prices rose on Monday, extending gains for a second session as U.S. efforts to replenish strategic reserves provided some support, although concerns of crude oversupply and softer fuel demand growth next year persisted.

Brent crude futures rose 0.7%, or 56 cents, to $76.40 a barrel by 0735 GMT, while U.S. West Texas Intermediate crude futures were at $71.71 a barrel, also up 0.7%, or 48 cents.

Both contracts jumped more than 2% on Friday but fell for the seventh straight week, their longest streak of weekly declines since 2018, on lingering oversupply concerns.

Stock Market LIVE Updates | Morgan Stanley View On Real Estate

DLF - overweight call, target raised to Rs 770 per share from Rs 549 per share 
Prestige Estate- overweight call, target raised to Rs 1,300 per share from Rs 524 per share 
Macrotech Developers - equal-weight call, target raised to Rs 960 per share from Rs 572 per share 
Godrej Properties - equal-weight call, target raised to Rs 2,050 per share from Rs 1,354 per share 
Oberoi Realty – downgrade to underweight call, target raised to Rs 1,180 per share from Rs 885 per share
Demand supported by a strong macro & positive industry structure 
Meaningful downside exists as well
Industry upcycle has started since 2021 in terms of ASP growth 
Industry upcycle could continue with the help of a strong macro & favorable industry structure

Sensex Today | Nifty PSU Bank index up 1.3 percent led by Jammu & Kashmir Bank, Bank of India, Central Bank of India:

Sensex Today | Market at 1 PM

The Sensex was up 44.74 points or 0.06 percent at 69,870.34, and the Nifty was up 10.00 points or 0.05 percent at 20,979.40. About 2039 shares advanced, 1226 shares declined, and 142 shares unchanged. 

SpiceJet share price rose 15 percent as the company to consider the unaudited standalone and consolidated financial results for the second quarter ended September 2023, and also options for raising fresh capital through issue of equity shares and/or convertible securities on preferential basis.

Sugar production is in full swing currently and don’t foresee any fall in sugar production, said Aditya Jhunjhunwala of Indian Sugar Mills Association (ISMA) to CNBC-TV18.

Shares of Cantabil Retail zoomed 2 percent on December 11 after BoFA Securities Europe SA picked up a 2.87 percent stake in the company. Bulk deal data showed that 4.67 lakh shares were picked up at an average price of Rs 263 apiece. Read More

Sensex Today | BSE Metal index up 0.5 percent led by Jindal Steel, Coal India, SAIL:

Coforge shares gained in trade on December 11 after global brokerage Jefferies increased its target price on the IT services player. The brokerage firm raised its TP from Rs 6,250 to Rs 6,580 apiece, and maintained its ‘buy’ call on Coforge as the company optimises costs with the aim of improving margins by 150-300 bps over next 3-4 years.

The management highlighted that the macro remains challenging in the third quarter, but the new project wins suggest that outlook for Q4 may be better. The deals won are in the banking and insurance verticals, not so much in the travel segment. Coforge is likely to achieve the lower-end of its growth guidance for FY24, ie, 13-16 percent YoYcc. Read More

Sensex Today | BSE FMCG index up 0.4 percent led by Avadh Sugar & Energy, Bajaj Hindusthan Sugar, Radico Khaitan:

-Neutral call, target Rs 345 per share
-Multi-pronged approach for growing decorative sales
-Company did not share any specific targets for near/ medium term
-Kansai Paint in its November-23 strategy briefing shared target of 12% sales growth
-Company in November-23 briefing shared target of 14.8% EBITDA margin for India for year ending Mar-25
-Focus on premiumising industrial sales

-Underperform call, target Rs 465 per share
-Acquisition of Sahara Hospital in-line with strategy
-Acquisition EV of Rs 940 crore represents an EV/sales multiple of 4.7x
-Profitability of target entity is unknown
-Company’s management expects to quickly improve the operating and financial performance
-Management expects the acquisition to close in the next 2-3 months

Shares of Mazagon Dock Shipbuilders jumped more than 3 percent on December 11 after the company bagged a Rs 1,145-crore order from state-run natural gas major ONGC. The contract is for the Part Replacement of Pipeline Project (PRPP), which calls for the installation of approximately 44.4 km of subsea pipelines divided into 19 segments.

The time period by which the order needs to be executed is May 15, 2024. Read More

Nirman Agri Genetics has obtained Import Export Code on December 8, 2023. "It will benefit to start export of different varieties of seeds and pesticide worldwide and cater to the increasing international enquiries we are getting for our products," company said.

This will help us to expand geographically and tap a huge market ultimately benefiting the company's topline and bottom-line, it added.

GRM Overseas has sold more than 3 percent stake in GRM Foodkraft Pvt. Ltd., a subsidiary of GRM Overseas Ltd. focused on domestic India based foods business, to Sauce.vc, a consumer-focused venture capital fund, for an undisclosed amount.

Sauce has also acquired an additional 1 percent stake from other shareholders.

Wockhardt announced the completion of the pivotal Phase 3 pneumonia Study of its macrolide antibiotic Nafithromycin WCK 4873.

The results of the study showed that an ultrashort course of three-day treatment with Nafithromycin is as effective as seven-day therapy with Moxifloxacin. The findings of Phase 3 study are in line with Phase 2 study conducted in the US and Europe.

Fedbank Financial Services stock price gained as the Board of Directors of the company will be meeting on December 11 to consider unaudited financial results for the quarter and half year ended September 2023.

Shares of Max Healthcare Institute gained on December 11 as investors cheered the company's foray into the Lucknow region through the acquisition of Sahara Hospital in a Rs 940-crore deal.

The 550-bed Sahara Hospital in Lucknow is housed in a 17-storey building with a built-up area of 8.9 lakh sq ft and offers multi-disciplinary care in various specialties like gastroenterology, neurology, surgery, cardiology, pulmonology and diagnostic facilities. It also has a nursing college on the same premises with an annual intake of over 100 students. Read More

Sensex Today | BSE Midcap index rose 0.5 percent led by GMR Airports Infrastructure, Bank of India, Glenmark Pharma:

Sensex Today | Market at 12 PM

The Sensex was up 64.50 points or 0.09 percent at 69,890.10, and the Nifty was up 17.00 points or 0.08 percent at 20,986.40. About 2071 shares advanced, 1181 shares declined, and 114 shares unchanged. 

GMR Airports Infrastructure shares rose 3 percent on acquisition of shares worth Rs 1,671.5 crore by GQG Partners.

According to exchange data, GQG Partners Emerging Markets Equity Fund, and Goldman Sachs Trust II via Goldman Sachs GQG Partners International Opportunities Fund bought 28.29 crore equity shares or 4.7 percent stake in GMR Airports Infrastructure via open market transactions. They bought shares at an average price of Rs 59.09 per share, amounting to Rs 1.671.55 crore.

Nomura India Investment Fund Mother Fund also purchased 6.25 crore equity shares or 1 percent stake in GMR, and Stichting Depositary APG Emerging Markets Equity Pool picked 3.4 crore shares or 0.56 percent stake in GMR at an average price of Rs 58.20 per share.

Bank of Maharashtra will float bonds worth up to Rs 1,000 crore on December 12, market sources said. It includes Rs 250 crore of base issue and Rs 750 crore as greenshoe.

The bank will issue Tier-II bonds maturing in 10 years with a call option after five years.

The Tier-II bonds are a type of debt instrument banks issue to raise capital for their operations. Tier-II bonds form a part of the bank's Tier-II capital and are subordinate to Tier-I capital.

Bidding for these bonds will take place between 11am and 12:30pm on the electronic bidding platform of the BSE. Read More

TVS Motor Company announced a collaboration between TVS Racing - India's first factory racing team, with Alpinestars, a renowned riding apparel and gear. The association between them aims to enhance the overall riding experience for customers.

Sensex Today | Nifty Metal index up 0.5 percent led by Adani Enterprises, SAIL, Jindal Steel:

Gold prices slipped on Monday as the dollar held firm, with investors looking forward to several major central bank meetings and U.S. inflation data release this week for more clarity on the interest rate trajectory.

Spot gold was down 0.3% at $1,997.16 per ounce, as of 0514 GMT. U.S. gold futures eased 0.1% at $2,013.20.

Zydus Lifesciences Ltd on Monday announced a licensing pact with South Korea's Daewoong Pharmaceutical Co Ltd to co-develop and commercialise a generic version of Leuprolide Acetate for depot suspension used to treat advanced prostatic cancer, endometriosis and uterine leiomyomata (fibroids).

Zydus Worldwide DMCC, a wholly-owned subsidiary, and Daewoong Pharmaceutical Co Ltd have entered into an exclusive licensing agreement to co-develop and commercialise Leuprolide Acetate for depot suspension in six dosage strengths for the US market, Zydus Lifesciences said in a regulatory filing.

Under the terms of the agreement, Zydus will assume full responsibility for the clinical development and commercialisation in the US market, and Daewoong will be responsible for the pre-clinical studies, production and supply of the product, it added. Read More

Sensex Today | Morgan Stanley View on Real Estate

-Expects real estate upcycle to continue
-DLF share price gains as Morgan Stanley raises target to Rs 770/share from Rs 549/share
-Prestige Estates shares slip despite upward revision in target by Morgan Stanley

Shares of Religare Enterprises gained 1 percent in early trades on December 11, after the company announced the acquisition of a 100 percent equity stake in MIC Insurance Web Aggregator. At 10:30am, the stock was trading at Rs 220.45.

In a regulatory filing on December 11, Religare Enterprises said that the company has completed the acquisition of a 100 percent equity stake in MIC Insurance Web Aggregator, from IGEAR Holdings of The Indian Express Group. Accordingly, MIC has become a wholly owned subsidiary of the company. MIC Insurance Web Aggregator is an IRDAI-registered insurance web aggregator. Read More

Shares of Dr Reddy's Laboratories plunged nearly 7 percent in the early trade on December 11 as the US Food and Drug Administration's some of the observations about the company's unit in Telangana have been seen found to be “severe”. READ MORE

Intellect Design Arena announced that Indian Bank has chosen Intellect’s eMACH.ai powered Cash Management System to bolster their Corporate Banking Modernisation.

Sensex Today | BSE Smallcap index up 0.5 percent led by Steelcast, Cheviot Company, Sandur Manganese and Iron Ores:

Great Eastern Shipping Company took delivery of 2014 built Kamsarmax Dry Bulk Carrier “Jag Amaira” of about 80,919 dwt. The company had contracted to buy the vessel in Q3 FY24.

Spandana Sphoorty Financial said a meeting of the Management Committee of the board of directors is scheduled to be held on December 13 to consider the issue and offer of non-convertible debentures on private placement basis.

Blue Dart Express said the board of directors has approved purchase of two leased aircrafts by Blue Dart Aviation, a wholly owned subsidiary of the company from DHL Aviation (Netherlands) B V, a fellow subsidiary company for Rs 40 crore. These two aircrafts are currently operating on lease basis by Blue Dart Aviation.