Weekend Investing Daily Byte - December 8

How are the Markets Looking ?

We’ve had a remarkable week, with the last three days showing a bit of a slowdown, but nevertheless, we’re closing at 20,972. After hitting 21,000 and the RBI maintaining the repo rate, there was a bout of profit-taking from 21,000 down to 20,860, a drop of about 150 points. However, almost the entire dip was recovered, ending at 20,972. The market remains very strong; there’s no doubt about it

Nifty Heatmap

Looking at the heat map, HDFC Bank led the private banks’ rally, up 1.4%. ICICI Bank, Axis Bank, and Kotak Bank also saw gains. Reliance was flat, while ITC was the main FMCG stock down nearly 2%, along with Nestle, Britannia, and Tata Consumers. Autos were mostly down, but it’s more of profit-taking than a slide. IT, on the other hand, picked up with Infosys up nearly 2%, along with HCL Tech and Wipro gaining ground. Steel stocks led by JSW Steel had mixed performances, with Tata Steel down but Ultratech Cement, Grasim, and Hindalco almost flat.

Sectoral Overview

Today, IT led the day, up 1.3%, followed by private banks at 1.1%. We saw profit-taking in energy, FMCG, pharma, commodities, and consumption stocks. It’s good to see some sector rotation happening daily.

Mid & Small Cap Performance

Nifty Mid Caps lost ground initially but recovered towards the end. Small Caps, however, took more brunt, dropping from 13,650 to around 13,400 – a 250 point drop but this is after a rhuge run up.

Bank Nifty Overview

Now, let’s talk about Nifty Bank. Even after an intraday dip, it closed at a new all-time high of 47,273. Banking always leads the rally when the market is firm, and that’s exactly what’s happening now. I expect to see much higher levels in the markets going forward.

Highlights – Nifty FMCG Index

FMCG, however, was the weak link, led by ITC

Highlights – Nifty Private Banks

Private banks, especially HDFC Bank, are hitting new highs. After a couple of sideways sessions, today was a good upward move. We’ve seen more than a 10% gain in the last five weeks, going from 22,000 to 24,517.

Highlights – IT Index

Nifty IT is also at a crucial point, and there’s a gap from April 2022 that I expect to be filled in the next couple of days, breaking out of the 33,400 resistance.