Weekly Wrap-Up (DEC 11 – DEC 15, 2023)

Indian Markets Extend Winning Streak for the 7th Consecutive Week, Reach New Milestones

The Indian markets maintained their winning momentum for the seventh straight week, reaching new all-time highs by the week ending December 15. This surge was driven by favorable global and domestic factors, such as a dovish Fed stance, increased Foreign Institutional Investor (FII) activity, improved macroeconomic data, and the major global central banks keeping policy rates unchanged.

Indices Weekly Performance

During the current week, the BSE Sensex recorded a 2.37 percent increase, concluding at 71,483 after reaching an all-time high of 71,605.76. Simultaneously, the Nifty50 saw a gain of 2.32 percent, closing at 21,456 and achieving a new milestone of 21,492.30. Over the week, both benchmarks exhibited substantial growth, each registering a gain of 6.5 percent.

Indices Analysis

Nifty 50 :

Nifty 50 indices continued to the rally this week after fed results it give upside momentum by providing new ATH . The structure are as follow :-

From Monday to Wednesday Nifty performed sideways and remained in range of 200 pts.

On Thursday, Nifty opened gap up and continued the upside rally .

On Friday, Nifty opened in green and provided 270 pts rally in a day

Now , if we observe Nifty on daily time it has consolidated for 6 days after previous rally and now provided an upside move .

BANK NIFTY:

BANK NIFTY as same followed by nifty structure and provided a rally after giving both side both side volatility last week .

As on Monday, BN opened flat and faced a sellside volume and formed a inverted hammer by closing in 52 pts gains

As on Tuesday, BN opened flattish and traded in selling pressure by providing net loss of 215 points.

On Wednesday BN opened flat and traded under selling pressure for the first half and then recovered from days low.

As on Thursday BN opened gap up ad provided a breakout by 640 points of net gains.

On Friday BN continued the positive upside move by gaining 411 ppints with new ATH 48,219

Now overall Bank nifty has provided both side volatility in the firs half of week and then after news and impact it followed the Positive uptrend structure with rest markets.

Nifty Chart

The Nifty’s upward momentum persists with the bulls maintaining control in the market. Achieving a new all-time high, the index has marked its seventh consecutive weekly gain. The prevailing sentiment appears strongly in favor of the bulls, as indicated by the absence of any reversal signals on the technical charts. Resistance is observed at 21,500, while a potential further rally in the Nifty could occur upon breaching this level. Support is currently positioned at 21,300.

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INDIA VIX

India VIX, with a value of 13.12, experienced a positive change of 5.27% over the course of the week.

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Sectoral Performance

All the sectoral indices ended in the green with Nifty Information Technology adding 7.16 percent, Nifty PSU Bank adding 5.17 percent Metal indices rising 5.06 percent, and Nifty Realty index gaining 3.84 percent.

FII & DII Weekly Activity

Overall FII’s have been net sellers in cash markets while DII’s are positive by being net buyers this week.

Global Market

GIFT Nifty :- Gift Nifty has closed with a gains of 457.0 pts

Dow Jones :- DJI has closed with a gains a 1057.29 pts

Nasdaq :- Nasdaq has has closed with gains 538.76 pts

S&P 500:- SPX has closed with a gains of 114.82 pts

Overall globals have end in a net gain forming a positive market this week.

Currency Indices

The Indian rupee has recovered this week as the INR gained 42 paise versus USD, to end at 82.97 in the week ended December 15 against December 8 closing at 83.39.

Poll of the week

Last week’s poll:

Q. Who pays tax on dividend income?

a) Dividend-paying company
b) Investor

Last week’s poll answer: b) Investor

Commodity Market

Throughout this Week, gold exhibited bullish movements, forming a bullish candle and closing 0.73% positive. The U.S. Federal Reserve’s plan to lower borrowing costs next year dented the dollar and Treasury yields, boosting demand for safe-haven assets like gold. The current resistance level (R1) is placed at 63097, and the support level (S1) is placed at 61873.

Crude oil exhibited strong upward movements, forming a long-bodied bullish candle. Throughout the Week, it displayed bullish momentum, supported by dovish signals from the US Federal Reserve, a weaker dollar, and a robust forecast for global oil demand in 2024. The current resistance level (R1) is placed at 6100, and the support level (S1) is placed at 5800.

Did You Know: The Rule of 72 and Doubling Your Investments??

Have you ever wondered how long it takes for an investment to double based on its Compounded Annual Growth Rate (CAGR)? Well, there’s an intriguing concept known as the “Rule of 72” that can provide a quick estimate.

The Rule of 72 in Action:

If a share boasts a 20% CAGR, it implies that its value is set to double in approximately 5 years. How do we arrive at this calculation? Let’s delve into the Rule of 72.

Unveiling the Rule of 72 Formula:

Time to Double = 72 / CAGR

For instance, with a 20% CAGR:

Time to Double = 72 / 20 = 3.6 years

This formula offers a handy way to gauge how swiftly your investment could potentially double.

A Word of Caution:

While the Rule of 72 provides a useful rule of thumb, it’s crucial to remember that past performance doesn’t guarantee future results. The financial markets are dynamic, and various factors can influence investment outcomes. Always approach financial decisions with careful consideration and a realistic understanding of associated risks.

So, the next time you’re evaluating investment prospects, keep the Rule of 72 in mind – a simple yet powerful tool for estimating the growth trajectory of your investments.

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Happy Learning,

Team Navia

DISCLAIMER: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Brokerage will not exceed the SEBI prescribed limit.