December 5, 2023

Ab Ki Baar… 21,000 Ke Paar!

Tale of the Tape

Hello boys and girls. Markets continued to scale new highs! 🚀

Nifty and Sensex closed up for a 6th consecutive day. Strong macroeconomic data, an election surprise and the cool-off in oil prices cheered investors. Midcaps (+0.5%) and Smallcaps (+0.1%) also extended their unbeaten run. The advance-decline ratio was split evenly. ✌️

Most sectors ended in the green. Oil & Gas and Metals were up big time gaining +3% each. Banks (+1.3%) and NBFCs (+0.9%) also added strength. IT (-0.6%) stocks lagged behind. 📉

Elections and the stock market have a unique relationship. Find out what the recent landslide victory by the BJP means for stocks in our top story below. 💯

Adani Group stocks were on fire today. Adani Energy Solution, Adani Green and Adani Total Gas were locked in a 20% upper circuit. Check out their mind-blowing charts below. 🤯

MamaEarth crashed -6% after 63 lakh shares (2% equity) changed hands in a major block deal. Reports indicate that VC firm Fireside Ventures is the seller. 🤝

HCL Tech (-1%) traded lower. Global brokerage firm Nomura sees a further -9% cut from current levels. 📉

Apollo Hospital (-1%) was under pressure after being accused of illegal organ trade. 🚨

JSW Infra jumped +4% after acquiring a majority stake in PNP port for Rs 270 cr. 💸

Hindustan Construction Company (+7%) will sell its Swiss subsidiary for Rs 928 cr. 👍

Brigade Enterprises (+3%) will develop a high-end residential project in Mysore with an estimated revenue potential of Rs 300 cr. 🏗️

Here are the closing prints:

Nifty	20,855	+0.8%
Sensex	69,396	+0.6%
Bank Nifty	47,012	+1.3%

Pre-Election Rally

The Bharatiya Janata Party (BJP) tightened its grip on the 2024 general elections with a thumping victory in three key states. The reaction: markets are at an all-time high; Nifty has soared +600 points (+2.9%) in just 2 days. But, what does any of this mean and why should you understand its importance? 🤔

Large funds and institutions aka the Big Guys love political stability. Seems pretty obvious right? It creates a sense of certainty in terms of policy making, welfare initiatives and the direction of the overall economy. So, this clearly establishes that markets wanted the BJP to win! But, in the run-up to the elections and post voting several experts were predicting a tough fight. To everyone’s surprise, the BJP came out on top and with a stronger mandate boosting the ruling party’s prospects in next year’s general elections. 💪

History suggests that this is setting the stage for a bumper pre-election rally. Since 1999, markets have given positive returns in the range of 9% to 36% in the 6 months leading up to the elections. Dolat Capital is bullish on the consumption and infrastructure sectors. Their top picks include – L&T, Siemens, ABB India, Britannia, ITC and Titan. 📈

Stocktwits Specials

Thank you all for loving our Investor Portfolio series!! On high public demand, we cover the top holdings and latest portfolio changes of ace investor Ashish Kacholia! 🚀

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Chartbusters

Adani Group stocks extended their winning streak. Adani Energy Solution, Adani Green and Adani Total Gas were locked in a 20% upper circuit. That’s insane! 🤯

Earlier today, Bloomberg sources revealed that the US Govt dismissed Hindenburg’s allegations in connection with the Sri Lankan port deal. The International Department of Financial Corporation or DFC did not find any wrongdoing in its investigation, said a senior US official. Separately, Adani Green announced that it has raised $1.36 billion to build the world’s largest renewable energy park in Gujarat. ⚡

Winner Winner Chicken Dinner

Congratulations Kumar Phuyal for winning the Community Star of the Month! ⭐

Kumar’s top pick, EMS Ltd, has rallied +45% in the past month! Here are a few investment & trading ideas shared by him on Stocktwits that you must check out: 😎

$KFINTECH.NSE: https://stocktwits.com/kumarphuyal/message/549658188
$BHEL.NSE: https://stocktwits.com/kumarphuyal/message/552227956

Kumar is a part-time trader and has been actively trading in the markets since 2021. He mostly trades value stocks but sometimes does momentum trades as well, and is largely focused on the cash segment. Follow him for more awesome trading insights like these. Here’s the link:

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Disclaimer: Kumar Phuyal is not a SEBI registered advisor and you should not construe any information discussed herein to constitute investment advice. Consult your financial advisor prior to making any actual investment or trading decisions.