noon state of mind Sensex and Nifty are in a period of consolidation, although trading is flat

 noon state of mind Sensex and Nifty are in a period of consolidation, although trading is flat

According to analysts, chasing overpriced mid- and small-cap companies that have climbed too high, too quickly because of individual investors' excitement would be perilous.

On December 19, the major equity indices Sensex and Nifty saw a little decline in trading as they took a break after reaching all-time highs in the previous few days.

The market will continue to be in a consolidation phase as the Christmas season approaches. After the strong advance over the last two weeks, the indexes will benefit from this pause.

At 11:43 am, the Nifty was down 2 points, or 0.01%, at 21,416.70, while the Sensex was up 27.86 points, or 0.04 percent, at 71,342.95. A little over 1,642 shares increased, 1,502 shares decreased, and 82 shares stayed the same.

Due to losses in midcap and smallcap indexes, the overall market trend was negative. The Nifty Midcap 100 was down 0.4% while the Nifty Smallcap 100 index was down 0.26 percent.

regional patterns

Late on December 18, the administration reduced the windfall profit tax on domestically produced fuel and crude oil exports. The tax on crude oil produced domestically is now just Rs 1,300 per tonne, down from Rs 5,000.

With the drop, the Nifty Oil and Gas index saw a half-percent rise in trade.

The consumer durables and fast-moving consumer goods indexes were also higher, rising as much as 1.2%. Metals and IT both decreased by more than 1%.

basic methodology

It would be dangerous to follow overpriced mid- and smallcaps, which have gained much, much quicker owing to the excitement of individual investors, according to VK Vijayakumar, chief investment strategist at Geojit Financial Services. Instead, investors might adopt a strategy of purchasing on dips.

On dips, investors may purchase premium largecap stocks. PSU banks, which have favorable valuations, are another source of security, he added. Early in the new year is probably when institutions will start their next wave of purchases.

technological methodology

The Nifty may find support around 21,320, 21,250, and 21,220 in that order. Higher levels may encounter immediate resistance around 21,500, then 21,650, and 21,700, according to Choice Broking Research Analyst Deven Mehta.

The Bank Nifty's charts suggest that 47,700, 47,600, and 47,500 might be potential support levels. If the index rises, he predicted that 48,000 would be the first significant resistance level, followed by 48,150 and 48,220.

in the clear

There is now further cause for alarm for market observers who have been carefully monitoring the Israel-Hamas conflict and the war between Russia and Ukraine.

Four major shipping companies have been forced to halt operations on the heavily traveled route due to an increase in ship assaults in the Red Sea.

Following an assault on the Norwegian-owned ship in the Red Sea, US authorities said that the strike originated in Yemeni territory under the authority of the Houthi movement, which is affiliated with Iran. Since the start of the Gaza War, a number of ships have been sailing into the sea, and the assault on Swan Atlantic was the most recent.

Ten percent of the world's exports of consumer goods, grains, and oil pass via the Red Sea, making it a crucial conduit for global commerce. However, during the Israel-Hamas conflict, the hazards associated with shipping along this route escalated as Iran-backed Houthi rebels in Yemen assaulted ships carrying Palestinian supporters on route to Israel.

Long-term interruptions might exacerbate supply issues already present by upsetting commerce, supply networks, and oil supplies.

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significant Nifty gainers

ITC, Coal India, Tata Consumer Products, and Nestle India

significant nifty losers

Hero MotoCorp, Adani Ports, Hindalco, and Wipro

Sensex major gainers

Nestle, NTPC, ITC, and Reliance

Significant Sensex decliners

Tata Steel, Wipro, HCL Tech, and TCS

stock movements

Kynes Technologies: A day after the business announced the opening of its qualified institutional placement (QIP) offering, shares increased by more than 5% in early trading. CNBC-TV18 reports that the business intends to use QIP to finance Rs 1,400 crore.

Apollo Tyres: Following the modification in the block transaction of 3.6 percent equity, or 2.3 crore shares, the stock increased by 4.3 percent. The probable seller was foreign portfolio investor White Iris Investments, albeit the buyers and sellers were not immediately recognized.

India Glycols: Following the company's announcement that it has secured orders totaling Rs 1,164 crore for the supply of ethanol under the ethanol mixed petrol project, the stock increased 13% to Rs 794 in early trading.