9th December 2024 Pre-Market Analysis

Introduction

This report provides an overview of the recent market performance, key economic indicators, and notable stocks in both bullish and bearish situations as of December 9, 2024.

Key Points

1. Market Overview

• The GIFT Nifty is trading lower, suggesting a negative opening.
• On the previous Friday, both NSE Nifty 50 and BSE Sensex incurred slight losses, influenced by declines in HDFC Bank Ltd. and Reliance Industries Ltd.
• Despite the losses, the Nifty 50 noted its largest weekly gains since early June.
• Asian markets show mixed results amid political situations in South Korea and expectations of stimulus from Beijing.
• Oil prices remained steady following changes in Syria’s government.
• In the U. S. , stock performances were mixed but global stocks generally increased due to hopes of an interest rate cut.

2. Economic Indicators

• The U. S. 10-Year Treasury yield fell to 4. 14%, and the 2-Year Treasury yield dropped to 4. 10%.
• The U. S. dollar index remained stable near 106.
• Asian currencies were mixed, led by gains in the South Korean won.
• Gold prices increased as China’s central bank resumed bullion purchases.
• The Indian rupee strengthened, reaching 84. 57 against the U. S. dollar.

3. Technical Analysis

• Nifty-50: The index stayed within the previous day’s range, forming a small red candle but remained above key moving averages.
• Nifty Bank: The index created a small bearish pattern but indicated volatility with the Bollinger Bands widening.
• Key support and resistance levels for both indices were provided.

4. Open Interest Analysis

• Changes in call and put Open Interest suggest potential resistance and support levels.
• Increasing call OI reflects bearish sentiment, while decreasing call OI indicates bullish sentiment, and vice versa for put OI.

5. Stocks to Watch
Bullish Stocks:

• Laurus Labs: Secured Rs 120 crore investment.
• JSW Energy: Awarded contract for a solar power project.
• Wipro: Partnered with SIAM. AI for an AI-powered assistant.
• Welspun Corp: New orders for pipes valued over ₹7,000 crore.
• Others include Uno Minda, NLC India, Ceat, RITES, and Bajaj Healthcare.

Bearish Stocks:

• Poonawalla Fincorp: CTO resignation amid harassment allegations.
• AIA Engineering: U. S. imposed anti-dumping duty on specific imports.
• Star Health and Allied Insurance: Received notice from regulatory authority.

6. Foreign Institutional Investors (FII) and Domestic Institutional Investors (DII)

• FIIs were net sellers with a loss amounting to Rs -1,830. 31 Cr.
• DIIs were net buyers with a selling amount of Rs 1,659. 06 Cr.

7. Put-Call Ratio (PCR)

• A PCR above 1 indicates bullish sentiment; below 1 suggests bearish sentiment, and the trend should be analyzed for a clear market perspective.

8. Stock Performance and Sector Analysis

• Stocks showing significant performance included:
• Long Build Up Stocks: CAMS, CANFINHOME, NYKAA, DMART, INDIANB.
• Short Build Up Stocks: NHPC, SJVN, NCC, METROPOLIS, CESC.
• Notable sector performance included Nifty Realty, Nifty Alpha 50, and Nifty Consumer Durables.

Conclusion

The market is set for a cautious start with mixed signals from international markets and local economic indicators. Investors should continue to monitor key stocks and market indices for potential movements in both bullish and bearish directions, keeping an eye on upcoming economic data and geopolitical events.