The Nifty index snapped its four-session losing streak on Friday, closing 0.58% higher at 25,966.40. However, the week ended with a decline of 0.3%. With the extended Christmas holiday, trading activity is expected to remain subdued across major global markets, but Indian markets will resume trading on Monday with a host of key events that may influence sentiment.
Investors are advised to remain pragmatic until there is greater clarity regarding prevailing trends. The index is encountering constraints in making substantial moves, which is evident by the inside bar formation on the weekly chart.
Major markets, including the US, will go on an extended holiday, while some countries will observe market holidays on December 26. The Friday cues remain positive with major indices on Wall Street ending with strong gains.
The BSE 500 index will see a major overhaul with 32 new stocks being added, replacing as many scrips. The changes will become effective on December 22 and are part of the semi-annual reconstitution based on the stocks' market capitalisation, free-float, and liquidity.
Foreign Institutional Investors (FIIs) have turned net buyers for the past three sessions, buying Indian equities worth Rs 1,830.89 crore on Friday. Domestic Institutional Investors (DIIs) purchased shares worth Rs 5,722.89 crore.
Eleven issues will hit the Street this week, raising Rs 750 crore. The lone mainboard IPO of Gujarat Kidney & Super Speciality will open for bidding on Monday with a price band of Rs 108-114.
The formation of a Doji candle on the Nifty weekly chart suggests weakness and indecision. The index found support at its 50-DMA during the week and recovered to close above the 25,900 level.
The rupee gained 97 paise or over 1% against the dollar on Friday, closing at 89.27. The RBI's possible intervention at the end of Friday's trade helped the currency gain sharply.
Remember, this is a perspective, not a prediction. Do your own research and consider your own risk tolerance before making any investment decisions.
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