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Is the santa rally coming to an end?

Good Morning Everyone, The small rally in the stock market during the Christmas and New year week every year is called the Santa rally, which we have seen in the last few days. After hitting record highs multiple times this week, US markets have gone into a consolidation mode yesterday. This means the global cues are not that great!

But something interesting to note is though small, the FIIs finally have bought for the first time yesterday in the Indian market. Is it a one of buying or a trend to start can be confirmed only after some bigger repeat buying comes in from the FIIs.

Also with the monthly expiry and the last derivative expiry of the year being tomorrow, we can expect volatility to be higher, today and tomorrow.

On the higher side, 17300 to 17500 can act as major resistance and on the lower side, 17000 to 17100 can act as a major support to the Nifty.

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Yesterday Nifty opened with a gap up at 17177 and went on a volatile movement with a positive uptrend and closed the day at 17233.

On the daily timeframe, the Nifty has formed a small bullish candle.

The Smallcap index was up 1.56% led by Ceat LTD up 14%, IDFC up 10.22%, Zensartech up 6.79%, while the top losers were PVR down 3.85%, FSL down 2.3%, and JB Chempharm down 1.23%

The Midcap index was up 1.18%, led by Astral up 4.19%, Apollo Tyre up 3.4%, ExideInd up 3.15%, while the top losers were AUBank down 1.81%, Trent down 1.53%, SRTRANSFIN down 0.83%

The Nifty index was up 0.86% led by Sunpharma up 3.09%, Asian paint up 2.83%, M&M up 2.59%, while the top losers were Powrgrid down 0.34% followed by Indusind bank down 0.27%

Global Markets:

Stocks closed mixed on Wall Street Tuesday, leaving S&P 500 just shy of the record high it clocked a day before. It fell 0.1 percent. The Dow Jones rose 0.3 percent, and tech-heavy Nasdaq declined over half a percent.

Asian shares were trading mixed this morning as traders assessed the impact of the Omicron variant. MSCI's broadest index of Asia-Pacific shares outside Japan is down 0.4 percent. Japan's Nikkei index declined over 0.8 percent. Chinese blue chips were down 0.35 percent. Hong Kong’s HSI declined 0.8 percent. South Korea’s Kospi was down 0.8 percent as well. Elsewhere, Australian shares rose nearly 1 percent.

Indian Market:

The Indian market may open flat today as global peers traded mixed. The SGX Nifty indicated a flat start for the domestic market as it was trading 14 points lower at 17,274, at 8:18 am. Among major pre-market cues today, Nasdaq closed half a percent lower, crude oil is close to a one-month high, and Bitcoin is down 4 percent.

Scheduled commercial banks (SCB) gross non-performing assets (NPAs) declined from 8.2 percent in March 2020 to 7.3 percent in March 2021, and further to 6.9 percent by September 2021, the RBI said in its report on Trend and Progress of Banking in India 2020-21 released on December 28.

Also, the return on assets (RoA) of SCBs improved from 0.2 percent in March 2020 to 0.7 percent in March 2021, aided by stable income and a decline in expenditure, the report said.

The report has presented the performance of the banking sector, including co-operative banks, and non-banking financial institutions during 2020-21 and 2021-22 so far.

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 207.31 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 567.47 crore in the Indian equity market on December 28

Stock Specific News:

Mahindra and Mahindra | M&M's wholly-owned subsidiary, Mahindra Engineering and Chemical Products, has agreed to sell its entire stake aggregating to 49 percent of the paid-up equity share capital held in MahindraTsubaki Conveyor Systems.

Aurobindo Pharma | The Drugs Controller General of India's granted permission to manufacture and market the company's generic version of Molnupiravir, to be sold as Molnaflu, licensed from MSD and Ridgeback.

Dr Reddy's Laboratories | The company has received emergency-use authorisation from the Drugs Controller General of India to manufacture and market the oral anti-viral drug Molnupiravir capsules for the treatment of adult patients with COVID-19.

Natco Pharma | The company received approval for the drug Molnupiravir, which will be sold under the brand name MOLNUNAT, for the treatment of Covid-19 in India.

Financial Services companies | RBI has warned that the impact of the pandemic is showing up in muted credit growth as banks remain largely risk-averse. The central bank has also warned that stress could rise and going ahead, the bank's asset quality could get dented and it specifically warned that NBFC asset quality could see a further hit. This said, banks and non-bank lenders, such as Kotak Mahindra Bank, HDFC Bank, State Bank of India, ICICI Bank, Axis Bank, RBL Bank, Punjab National Bank, and others, will be in focus.

GR Infraprojects | The company has emerged as an L-1 bidder for the tender invited by Noida Metro Rail Corporation. The order is for part design and construction of elevated viaduct and five elevated stations, of Noida-Greater Noida Metro Rail Project.

Mishtann Foods | The company signed an agreement with the Gujarat Government for the proposed project of manufacturing grain-based ethanol in Gujarat.

Vakrangee | The company has announced a strategic tie-up with Nayara Energy. The company will set up Vakrangee Kendra outlets across the network of Nayara Energy and the tie-up will ramp up the physical network of Vakrangee Kendra outlets in urban and rural areas.

India Grid Trust | The consortium of IndiGrid 1 and IndiGrid 2, wholly-owned subsidiaries of India Grid Trust, has completed the acquisition of 100 percent paid-up capital and management control of Kallam Transmission, from REC Power Development and Consultancy.

Equitas Small Finance Bank | The lender has re-appointed Vasudevan P N as the Managing Director and Chief Executive Officer of Equitas Small Finance Bank.

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