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Market Update

* The equity market experienced significant intra-day volatility today. The Sensex saw a fluctuation of over 2,000 points, or 2.5%, while the Nifty had a swing of more than 600 points, or 2.5%, between its day's high and low. After a 2% drop, Nifty touched an intra-day low of 24,180, but ended nearly 1% higher by the close, thanks to a strong recovery in the later part of the session. The rise was driven by buying interest in heavyweights like Bharti Airtel, Infosys, ITC, Hindustan Unilever, Titan, and Reliance Industries, which lifted the Nifty by 219 points, or 0.9%, to settle at 24,768.30, after reaching a low of 24,180 and a high of 24,792. The Sensex also recovered its losses, jumping 843 points, or 1%, to close at 82,133, after hitting a low of 80,082 and a high of 82,213.

* The market was supported by a drop in domestic inflation to 5.48%, from a 14-month high of 6.21%, along with strong October IIP data and expectations of an interest rate cut by the US Federal Reserve next month. Telecom, IT, cement, and FMCG stocks were among the top gainers. However, shares of Steel Authority of India and other metal stocks traded lower due to concerns over the rising dollar index, the US Fed's cautious stance, and higher-than-expected wholesale inflation.

* Globally, Asian and European equities fell, as traders were disappointed by the lack of details from a Chinese economic conference, and risk appetite waned ahead of next week's US Federal Reserve meeting.

Technical Outlook:

* Nifty Index opened negative and slipped below 24200 zones after breaking all immediate support zones but witnessed a complete change as bulls took over with aggression. It moved by more than 600 points and inched towards 24800 levels to close near its day’s higher band with gains of around 220 points. It formed a bullish candle on daily and weekly frame with longer lower shadow indicating strong buying at lower levels. Now it has to continue to hold 24700 zones for the next up move towards 25000 then 25200 zones whereas supports can be seen at 24500 and 24300 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.86% at 24860 levels. Positive setup seen in Bharti Airtel, Ramco Cements, Ultratech Cement, Indian Hotel, Kotak Bank, JK Cement, Shree Cement, HCL Tech, Laurus Labs, Max Healthcare, OFSS and Bajaj Finance while weakness in NMDC, OIL, Adani Green, Lupin, Exide Industries, Astral, Escorts, Cipla, Zydus Life, RBL Bank, Aarti Industries, HFCL and SBI Life.

* On option front, Maximum Call OI is at 26000 then 25000 strike while Maximum Put OI is at 24500 then 24000 strike. Call writing is seen at 25100 then 24800 strike while Put writing is seen at 24400 then 24500 strike. Option data suggests a broader trading range in between 24300 to 25200 zones while an immediate range between 24500 to 25000 levels.

* Zomato’s Blinkit Launches ‘Bistro’ to Compete in India’s 10-Minute Food Delivery Market - Company’s grocery delivery app Blinkit has launched a new app ‘Bistro’. The app comes with a commitment to delivering food, snacks, and beverages to its customers in a 10-minute swift delivery model

* Ashok Leyland – Company will increase the prices of its commercial vehicles by as much as 3% from January, to offset the impact of higher input costs.

* Sri Lanka says Adani port project to continue despite US charges - Adani Group's port project in Sri Lanka will go ahead despite US charges against its founder and sudden changes to its financing

* Modi’s $6 Billion Submarine Building Plan Stalls After Sea Tests – India’s $6 billion plan to build submarines has stalled because of contractor complaints over whether proper procedures were followed during tests at sea, delaying the navy’s efforts to bolster its capabilities as China expands its presence in the Indian Ocean. Government bid to build six conventional diesel-electric subs is now delayed by a year and further delays are expected.

* Uttam Sugar: Company’s credit ratings have been revised by CARE Ratings. Long-term bank facilities rating improved from BBB+ to A-

* Larsen: Indian Light Tank manufactured by company, achieves major milestone by firing at high altitude

Global Market Update

* European Market - European stocks open on a flat note following a slump in Asian shares, as a Chinese economic conference readout disappointed traders and risk appetite waned ahead of next week’s Federal Reserve meeting. UK, France and Germany Index are trading flat to positive

* Asian Market - Asian equities fell Friday as a lack of details from a Chinese economic conference disappointed some traders and risk appetite weakened ahead of next week’s Federal Reserve meeting. A gauge of Asian stocks is headed for the worst week in nearly a month, with Japanese and Australian shares falling after selling on Wall Street Thursday. China, Japan and Hong Kong Index declined between 1-2%

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