Weekly Market Analysis for December 23 to 27, 2024
What happened last week?
Nifty closed last week at 23587.5, down 4.8% over the previous week.
The previous 4 weeks’ recovery was erased last week. Nifty is again back to a 10% drawdown.
Last week’s fall can primarily be attributed to the US Fed’s hawkish stance and reduced number of rate cuts in 2025.
Broader market indices (Midcap/SmallCap) fell by 2% on Friday. But on a weekly basis they did not fall as much as Nifty 50. Small Caps are still only at 5% drawdown compared to Nifty’s 10%.
Large caps have fallen more in the recent times than Small Caps. This is primarily due to Banks & Financial services taking a big hit last week, down by about 5%.
At an industry level, EMS (Electronics Manufacturing Services) continued their good momentum even on a down week for most Indices. Hospitals industry also closed in green for the week. Good to keep a tab on industries that show strength even in tough times.
FIIs sold -15828 Cr and DIIs bought 11873 Crs.
No surprises here. FIIs had heavy short positions thrroughout the week.
FIIs have significantly increased their shorts as shown below.
They have also reduced their longs in Index Derivatives. FII sentiment is very Bearish.
Nifty Sentiment Analysis…
Weekly and Monthly Max Pain both started falling from the start of last week. There was no reason to be bullish last week. However, on Friday the weekly max pain stayed near 24000 despite the fall. GIFT Nifty also inched higher after Friday’s negative close.
Note: When the blue line and pink line below start moving up together, we will turn bullish. If they tread down together, we will stay Bearish.
What else happened last week?
WPI inflation drops to 1.89% as food prices cool, potentially setting stage for RBI rate cut.
MobiKwik, Vishal Mega Mart, and Sai Life Sciences debut strongly despite weak market.
Ola re-enters quick commerce with "Dash" service, joining competitive 10-minute delivery market.
Note: Click on the links above to read more about them in our research platform.
Key Upcoming Events
December 23
- Unimech Aerospace IPO Opens
December 26
- US Initial Jobless Claims Data
December 27
- India Foreign Exchange Reserves Data
Key Stock Announcements from Last week
You can check all the most important Stock Announcements from last week in Finvezto Daily Market Bytes series.
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Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This weekly update highlights market trends and upcoming events for your awareness. It does not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.