How are the Markets Looking ?
We’re in an exciting month, with a strong start but now entering a phase of consolidation. In today’s session, though the market initially hit a new high above 21,000, by evening, it succumbed to its weight, closing at 20,906. This bearish engulfing candle indicates we might see some softness in the coming days.
The market seems to be waiting for the Fed meet on Wednesday night, which will likely impact us on Thursday morning. Expectations from the Fed meet are muted, with no rate cut anticipated. The market is under some pressure from profit-booking, but there’s no downtrend yet.
Nifty Heatmap
Taking a look at the market, banks are down, with HDFC Bank dropping almost 1%, and Infosys down 1% after the CFO’s resignation. Reliance is down by one and a half percent, a significant move. ONGC and Coal India are also down. Kotak Bank and IndusInd Bank saw declines, while HDFC Life had an excellent move, up 5%. Ultrasemco and Bajaj Auto also gained.
Other losers included Sun Pharma, Maruti, Tata Motors, Titan, and Bharti Airtel.
Sectoral Overview
Metals eked out a small gain, but the entire market was predominantly red, with real estate and energy sectors taking the most profit off the table. The sectors that were seen running in the past few sessions have taken off some gains due to profit taking. In terms of sector performance for the month, real estate is up by 11%, energy by 13.9%, and metals by 12%
Mid & Small Cap Performance
Mid caps lost some ground, as did small caps, indicating a period of market stagnation.
Bank Nifty Overview
Nifty Bank showed a shallow profit-taking move from 47,350 to 47,062, indicating potential consolidation. With the expiry coming up, many bulls might be taking profits.
Highlights – Nifty Realty Index
The energy index is coming off the top, signaling a need for consolidation, as is the real estate sector. We’ve seen significant moves in some sectors, so a consolidation period ahead of Christmas and New Year’s is likely.
Highlights – Sugar Sector
An interesting development is unfolding in the sugar sector, with ethanol blending highlighted by the government. Despite this, sugar futures are falling. We’ve covered this story on the WeekendInvesting app, so do check it out for more details.
Overall, the market’s undercurrent remains strong, but it’s drifting gradually upwards. After a robust first week of December, the second week has been much mellower. We hope the market remains in a sideways to uptrend for the next couple of weeks, leading to new year allocations potentially pushing the market higher
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