Market Insight, 20 December 2024

Friday, 20 December 2024

Time : 8 AM IST

Insights :

Understanding Yesterday’s Market:

1. Nifty Performance:
   • Nifty declined by 247 points, closing at 23,951.
   • As anticipated, the fall was primarily due to the Fed outcome. However, it was notable that the market remained stable with no significant volatility, even on Nifty’s expiry day.
2. Global Comparison:
   • While US markets fell by over 3%, Indian markets dropped only 1%, showcasing relative resilience.
3. Sectoral Highlights:
   • The only sector in the green was Nifty Pharma, which gained 1.7%.
4. FII and DII Activity:
   • FIIs sold equities worth ₹4,200 crores.
   • DIIs bought equities worth ₹3,940 crores.
   • FIIs are creating more short positions, with their long-to-short ratio more than 35%:65% in index futures.
5. Trade Deficit Data:
   • India’s trade deficit data for November revealed that the increase was primarily due to higher gold imports.
   • However, there was a calculation error in the data it seems, possibly we will see better data for the month of December .
6. US Market Updates:
   • US markets closed marginally lower:
     • Nasdaq fell by 0.12%.
     • S&P 500 declined by 0.09%.
   • The US GDP data for Q3 came in above expectations.
   • Weekly initial jobless claims were below expectations.
7. Dollar Index and Bond Yields:
   • The Dollar Index is trading at 108.4.
   • The US 10-year bond yield stands at 4.54%.
8. Asian Markets:
   • Asian markets are trading mixed, with the Nikkei in positive territory and the Kospi showing a negative bias.
9. GIFT Nifty:
   • GIFT Nifty indicates a negative start for Indian markets.
10. Key Levels:
    • Support: 23,800.
    • Resistance: 24,350.