Nifty to reclaim 18750 or bears to drag index below 18500? 5 things to know before market opening bell SGX Nifty hinted at a positive start for Indian benchmark indices amid strong global cues. Ahead of the week’s last trading session, Nifty futures were trading 0.35% higher at 18792 on the Singapore exchange. In the previous session, BSE Sensex gained 160 points to 62,571, while NSE Nifty 50 rose 49 points to 18,609. “Going forward, keep focusing on thematic movers for better trading opportunities. There have been contributions across the board, the significant benefactors that boosted the bullish sentiments were from the Banking space, especially the PSU bank index which soared to a new 52-week high. Looking at these developments, the undertone is likely to remain upbeat, and any intraday blip is expected to augur well for the bulls,” said Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One.Key things to know before share market opens Global market watch: Asian stocks advanced after US shares posted their first gain this month, with traders focused on inflation figures in China and the US. Japan’s Topix index rose 1%, while South Korea’s Kospi index fell 0.5%. Hong Kong’s Hang Seng Index rose 0.8%, while China’s Shanghai Composite Index fell 0.2%. Overnight in the US, the S&P 500 ended higher, snapping a five-session losing streak. The Dow Jones Industrial Average rose 0.55%, and the Nasdaq Composite added 1.13%. Nifty technical view: “A long bear candle was formed on the daily chart, that placed at the edge of moving below the support of 18550-18500 levels. This pattern indicates continuation of weakness in the market and lack of strength to sustain the intraday highs. The positive chart pattern like higher tops and bottoms is still active and we expect Nifty to bounce back from the support 18450 levels. If the lower support gets broken, then the market could test another lower base of around 18150 levels. Immediate resistance is placed at 18650 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. Key levels to watch for: “The market undertone is bullish, and the major trend of the index is on the positive side. Hence any short-term corrections remain as a buying opportunity. However minor corrections in the upcoming weeks cannot be ruled out. Bank Nifty has support at 43000 levels while resistance is placed at 44200. Technically, as Nifty manages to close above 18750 levels, there would be another stage for upside rally. The Nifty VIX closed at 13.40, and we anticipate that Nifty will rise over the course of the upcoming week,” said Om Mehra, Technical Associate, Choice Broking. FII and DII data: Foreign institutional investors (FIIs) net sold shares worth Rs 1,131.67 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 772.29 crore on 8 December, according to the provisional data available on the NSE. Also Read: Investors see political stability in BJP’s dominance in India, eye benefits in paring dependence on China: EIU Stocks under F&O ban on NSE: The National Stock Exchange has kept GNFC and Indiabulls Housing Finance, under its F&O ban list for 9 December. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.
Logistics, good or bad, are driven by the states and the commerce ministry has a LEADS (Logistics Ease Across Different States) report, based on perceptions. The 2023 version was released in December. Since states are heterogenous, in the reporting, they are divided into four groups—coastal, landlocked, north-east, and UTs. States that do well are called achievers. Nomenclature matters. Thus, states that are middling aren’t called average. They are called fast movers. States that are sub-par are called aspirers. Let me highlight coastal states, since 75% of export cargo is estimated to originate from them. Among coastal states, ones that do well are Andhra Pradesh, Gujarat, Karnataka, and Tamil Nadu. The ones that lag are Goa, Odisha, and West Bengal. While India’s logistics performance may have improved over time, that’s not true of every state. Some have slipped. Most states have a state-level logistics policy, including Goa and Odisha. West Bengal, bottom of the pecking order in the coastal category, doesn’t have one. To quote from LEADS 2023, “Looking ahead, the State (West Bengal) could benefit from formulating a State Logistics Master Plan and State Logistics Policy to drive efficiency improvements and facilitate investments within the logistics sector and undertake consultation with the logistics stakeholders for educating and informing them about the initiatives State is undertaking for the development and improvement of logistics sector.”
Logistics has been talked about for a long time and India has also focused on improving performance. We are now getting some precise data on measurement and quantification. That helps.
Bibek Debroy, chairman, EAC-PM. Views are personal.