FIRST TRADE: Equity indices open higher; Sensex adds 187 points, Nifty up at 23,784

Indian equities in a holiday-shortened week opened on the last expiry day of the calendar year 2024.  At the open, both the key indices Sensex and Nifty opened higher by .24 per cent at 78,660.17 and 23,784.1, respectively.

Sectorally, broad-based buying was seen with private banks and financial services stocks leading the gains. Realty, though, traded with minor weakness.

In the previous session, FIIs net sold Indian equities worth Rs 2,454.21 crore, while in December so far they net sold Rs 6,744.14 crore in the cash market.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "RBI’s latest projection of 6.8 per cent GDP growth in Q3 FY25 based on trends in high frequency data is positive news. But the downward revision of FY25 GDP growth to 6.4 cer cent from the initial projection of 7.2 per cent growth is a reflection of the poor assessment of the economy by the central bank."

Realistically this has to be followed up by a rate cut by the MPC in February. The economy also needs fiscal stimulus now to achieve a growth rate of 6.6 per cent  in FY26, added Vijaykumar.

Nifty Technicals

Akshay Chinchalkar, Head of Research, Axis Securities said, "The Nifty fell for the sixth day in seven, as early session gains failed to stick. Monday's bullish harami formation wasn't activated on Tuesday as prices failed to take out the prior day's high. The first two trading days of the week have generated successive candles with long shadows showing indecision continues to prevail."

Technically speaking, the 23880 - 24070 area offers resistance while support lies between 23500 and 23640. Options trends at Tuesday's close showed that implied volatility for nearby OTM calls set to expire on Jan 2nd dropped less than it fell for similar distance OTM puts, which means some traders are looking for a larger bounce toward 24000 as the window that covers the "Santa Claus effect" gets underway, he added.

Asian markets

The key MSCI Asia ex-Japan index traded flat with a positive bias at 575.46.  Asian stocks mostly traded in the green in Thursday's session extending gains made earlier in the week.