Market Insight, 31 December 2024

Tuesday , 31st December 2024

Time : 8:15 AM IST

Insights :

1. Let’s understand yesterday’s market: Nifty was down by 168.5 points, closing at 23,644.
2. Nifty dropped 100 points in the first 30 minutes, took support at 23,730, then gained 200 points before falling again by nearly 250 points. Selling pressure is clearly emerging at higher levels. India VIX was up by 5%.
3. The Smallcap index declined by 0.6%, while the Midcap index remained stable, closing 0.3% higher. The IT sector rose by 0.6%, driven by positive comments on H-1B visas from US President-elect Donald Trump.
4. FIIs were net sellers with an outflow of ₹1,893 crores in cash market. Fii’s long to short ratio is very low standing at 82% :18% in index futures.
5. Let’s understand today’s cues:

• US markets declined due to a sell-off in tech stocks, with Nasdaq down 1.2% and Dow down nearly 1%.
• The US Dollar Index is trading just below 108, while US bond yields have eased to 4.54%, down by 9 basis points from recent highs.
• Some Asian markets, including Japan and South Korea, are closed today.
• GIFT Nifty is indicating a negative start for Indian markets, down by about 140 points.
• With lower participation from FIIs, the market is experiencing reduced liquidity.
• Nifty has support at December’s low of 23,537 and resistance at 23,850.