Embracing 2024: Anticipating Market Dynamics
As the dawn of the new year, 2024, unfolds, the financial markets are poised for potential growth, fostering hopes of extending their triumphant streak for the ninth consecutive year. However, this ascent might commence at a gradual pace.
Broad Market Resilience
The broader market scenario paints a positive picture, with the Nifty Midcap 100 and Nifty Smallcap 100 showcasing resilience, trading 0.7 percent and 0.6 percent higher, respectively. Across various sectors, green dominates, notably with Nifty PSU Bank recording a 1 percent surge.
In the Heart of the Action: Sensex and Nifty Analysis
Amidst midday trading on the inaugural session of the calendar year, the Sensex and Nifty exhibit a consolidation mode, hovering flat at noon. The heavyweight on the index, HDFC Bank, concludes its four-day winning streak, exerting pressure on these market benchmarks.
At 12:05 pm, the Sensex experiences a dip of 92.99 points (0.13 percent) at 72,147, while the Nifty follows suit with a decline of 10.50 points (0.05 percent) at 21,720. The market dynamics reveal 2,340 shares advancing, 963 declining, and 133 remaining unchanged.
During this timeframe, HDFC Bank registers a 0.5 percent decrease, quoting Rs 1,700.05 on the NSE, emerging as a notable negative contributor to the index.
Broader Market Momentum
In contrast, the broader markets fare comparatively better, with the Nifty Midcap 100 and Nifty Smallcap 100 recording a 0.7 percent and 0.6 percent uptick, respectively. Various sectors contribute to the positive trend, including Nifty PSU Bank (up 1 percent), Nifty Energy (up 0.4 percent), and Nifty Metal (up 0.6 percent). Additionally, the Nifty Auto index sees a marginal rise as December auto sales figures come to light.
Insightful Perspectives
Entering 2024, optimism prevails, with expectations of the market sustaining its winning streak for the ninth consecutive year. The Moneycontrol Markets Poll, comprising 35 analysts and fund managers, reveals that nearly half of them anticipate the Nifty ranging between 23,000 to 25,000 by the end of 2024, promising a potential return in the 6-15 percent range.
However, caution looms over the initial phase, with concerns about stretched valuations. Analysts at Kotak Institutional Equities highlight the possible interplay between fundamentals and sentiment, suggesting that a solely ‘fundamental’ market might yield modest returns for the overall market and negative returns for several stocks.
Technical Analysis
According to Mandar Bhojane of Choice Broking, traders and investors are advised to capitalize on buying opportunities during Nifty dips while maintaining prudent stop-loss strategies. Vigilance and informed decision-making are crucial in the current market environment.
Analysts caution that a close below 21,600 may trigger a descent to 21,500, with resistance noted at 21,900.
For the Bank Nifty, resistance looms near the 48,500 level, maintaining near-term support around the 48,000 zone. Prabhudas Lilladher, a domestic broking firm, forecasts a daily range of 47,900–48,600 levels for the Bank Nifty.
Unveiling Market Movers
Key Nifty Gainers
Adani Enterprises
Adani Ports
Coal India
UPL
Tata Motors
Key Nifty Losers
Eicher Motors
Bharti Airtel
M&M
HUL
Bajaj Auto
Key Sensex Gainers
Tata Motors
Nestle
ITC
Tech Mahindra
Tata Steel
Key Sensex Losers
Bharti Airtel
M&M
HUL
Ultratech Cement
Bajaj Finserv
In the dynamic landscape of 2024, market enthusiasts are poised for a thrilling journey, navigating through potential ups and downs with strategic insights and calculated decisions.
