Indices consolidate on D-Street ahead of FO expiry

Indian market consolidated in a narrow range on December 24 ahead of Christmas Holiday, and December series expiry amid muted global cues. The S&P BSE Sensex fell nearly 200 points while the Nifty50 closed below 12,250 but held on to the 12,200-levels.

Let’s look at the final tally on D-Street – the S&P BSE Sensex fell 181 points to 41,461 while the Nifty50 plunged 48 points to close at 12,241 on Tuesday.

Sectorally, action was seen in the S&P Metal, Realty, and Power indices while profit-taking was seen in Energy, Oil & Gas, IT and Capital Goods indices.

Experts are of the view that the index is likely to remain volatile on Thursday on F&O expiry day. The trading volume could remain lackluster amid the ongoing holiday season.

“Lack of fresh triggers seems to have held markets to trade flat. We may see lacklustre trading sessions due to holiday mood and December month F&O expiry due this week,” Vinod Nair, Head of Research at Geojit Financial Services told .

“Investors to stay focused on the Budget as hopes are alive that government will consider options to push consumption and investments,” he said.

Top Nifty gainers include names like IndusInd Bank, Cipla, YES Bank, and ONGC.

Top Nifty losers include names like UPL, RIL, HCL Tech, and BPCL.

Stocks & Sectors:

Sectorally, the S&P BSE Metal index rose 0.64 percent, followed by the S&P BSE Realty index which was up 0.57 percent, and the Telecom index was up 0.43 percent.

On the losing front, the S&P BSE Energy index was down 1.2 percent, followed by the S&P BSE Oil & Gas index which was down 0.88 percent, and the S&P BSE Capital Goods index was down 0.61 percent.

Volume spike of 100-400% was seen in MindTree, Cipla, Bosch, NIIT Tech, and UBL.

Long Buildup – Britannia Industries, M&M, Cipla, Bajaj Finserv

Short Buildup – Bosch, Tech Mahindra, LIC Housing Finance, Petronet LNG

Stocks in the News

United Breweries: United Breweries share price gained 4 percent on December 24 as CNBC-TV18 reported that Heineken is going to consider an open offer to increase stake in the company, quoting Sources.

Sterling Tools: Sterling Tools share price zoomed 20 percent on December 24 after the company entered into a joint venture agreement with China-based company.

Solara Active Pharma: Shares of Solara Active Pharma Sciences rallied 2.74 percent on December 24 after getting approval from National Company Law Tribunal (NCLT) for the merger with Strides Chemicals.

IFCI: Shares of IFCI rallied 7 percent on December 24 after amount realisation from the stake sale in the National Stock Exchange of India.

NIIT Technologies share price gained over 1 percent the company board approved buyback of its equity shares.

Technical View:

On the charts, Nifty formed a Bearish candle on the daily charts

Overall, the index has been trading in a narrow range of 100 points (12,200-12,300) since the last 4-5 sessions

December series expiry could happen in between the range of 12200-12300 zone

In the next trading session if Nifty closes below 12200 levels then shall trigger a short term downswing and correction shall get accelerated with initial targets placed around 12k levels.

Market may remain volatile in the next session and strength in the index shall not be expected unless it closes above 12300 levels, suggest experts.

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