4th December 2024 – Pre-Market Analysis

Introduction

This report provides a summary of the latest financial market trends, key stocks to watch, and technical analyses as of December 3, 2024.

Key Points
1. Market Movement:
The GIFT Nifty showed little change, indicating a neutral market start. Major indices have risen for three consecutive sessions, mainly due to positive global sentiment ahead of US jobs data. However, political issues in South Korea affected Asian markets, causing declines in equities.

2. US Performance:
US stocks exhibited mixed results; S&P 500 and Nasdaq reached new highs. The Dow Jones decreased slightly. Treasury yields fluctuated, with the 10-year yield up to 4. 23%.

3. Asian Market:
Asian currencies showed mixed results, with South Korean won and Philippine peso gaining ground. Oil prices were stable, and gold prices dropped slightly after previous increases due to increased demand for safe havens.

4. Indian Rupee and Economic Concerns:
The Indian rupee closed at a record low of 84. 69, affected by foreign outflows and economic concerns.

5. Technical Analysis – Nifty-50:
Nifty-50 rose 0. 8% with significant trading volumes, forming a bullish candlestick pattern and an Inverted Head and Shoulders breakout. The Relative Strength Index (RSI) indicated positive momentum.

6. Nifty Bank Analysis:
Nifty Bank closed at 52,695. 75 with a gain of 1. 13%. It broke out of a two-month consolidation, showing strong buy interest and positive momentum indicators.

7. Notable Stocks – Bullish:
• United Breweries: Launched Amstel Grande beer.
• Sudarshan Chemical: Introduced a new natural mica-based pigment.
• RVNL: Awarded a railway upgrade project worth Rs 186. 76 crore.
• Kaynes Technology: Acquired a majority stake in Sensonic.
• ONGC: Invested Rs 10,000 crore in OPaL.
• Wipro: Partnered with Netskope for cybersecurity services.
• Nitiraj Engineers: Authorized as a Drone Remote Pilot Training Organization.
• Hero MotoCorp: Sponsoring Hero World Challenge through 2030.

8. Notable Stocks – Bearish:
• Vakrangee: CEO resignation.
• Deepak Nitrite: Fund sold a stake.
• Indegene: Stake sold by CA Dawn Investments.

9. Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs):
FIIs were net sellers (Rs 3,664. 67 crore) while DIIs were net buyers (Rs –250. 99 crore).

10. Put-Call Ratio (PCR):
A PCR above 1 signals bullish sentiment, while below 1 indicates bearish sentiment. The current trends show slight bullish sentiment across indices.

11. Pre-Market Analysis:
GIFT Nifty and other global indices showed slight movements.

12. Long and Short Build-Up Stocks:
Significant changes in open interest were noted for several stocks, indicating bullish or bearish trends.

Conclusion

The market reflects cautious optimism due to bullish trends in major indices and specific stocks showing potential for growth amidst global and domestic economic concerns. Investors should keep an eye on the upcoming US jobs data and political developments in Asia, which may impact market performance.