The last week saw Santa rally for the Indian market, as it getting into the Christmas spirit with both the festive colours adorning trading terminals. After bleeding red on Monday, the exchanges lit up green, recovering significantly from their lows. Finally, the Nifty managed to settle above 17,000 levels.
As we enter the last week of the calendar year 2021, it is expected to remain volatile ahead of the expiry of the December month derivatives contract and updates on COVID cases.
Let us look at the key developments this week.
Ahead of IPO listing
In this week three IPOs are going to list. HP Adhesives will make its debut on the bourses on December 27 after closing the public issue on December 17. The issue price has been fixed at Rs274 per share.
Pharma company Supriya Lifescience is going to list equity shares on December 28 with the offer price is fixed at Rs274 per share. The Rs700-crore public issue was opened for subscription during December 16-20.
Cash management company CMS Info Systems will be the last listing of the year 2021, scheduled on December 31. The offer price is expected to be in the upper price band of Rs216 per share and the issue closed on December 23.
Macroeconomic data in focus
Monthly data on infrastructure output and Quarterly current account numbers are due on Friday. Deposit and bank loan growth for the fortnight ended December 17, and foreign exchange reserves for the week ended December 24 will also be released on the same day.
FII remain net sellers
FIIs remained net sellers for yet another week ended December 24, offloading Rs6,589cr worth of shares, taking the total monthly selling to Rs33,276cr in December.
Omicron cases in India
Omicron cases in India rose to 415 in the last 24 hours. In terms of total coronavirus cases, India recorded 7,189 new infections and 387 deaths in the last 24 hours ending 8 am Saturday. Maharashtra reported 31 new Omicron variant cases; the state tally reaches 141, as per the Health Department. Delhi recorded 290 fresh coronavirus cases, one fatality; positivity rate at 0.55 per cent. Mumbai reports 922 new Covid cases, 2 deaths, and 326 recoveries today with an active caseload at 4,295.
Prime Minister Narendra Modi said individual alertness and discipline are a big strength of the country in the fight against the Omicron variant.
Global cues to watch out
United States: Separate monthly data on home sales and crude oil stocks are due on Wednesday.
Jobs data is due on Thursday.
Europe: Monthly housing numbers will be released on Thursday.
Asia: Data on retail sales in Japan is due on Monday. Separate data on unemployment and industrial production in the country is due on Tuesday. China's manufacturing PMI numbers are due on Friday.
Gold & Silver outlook
MCX Gold remained mostly sideward during the week. On the daily chart, the price remained around 20EMA. The 20EMA and 50EMA are in the bullish crossover. Momentum indicator, RSI on the daily timeframe is in the bearish crossover. Therefore, the price may remain sideward during the next few days. On the lower end, immediate support is visible at 47500, below which price may correct towards 46800. On the higher end resistance is visible at 49500/50300.
MCX Silver price remained sideward during the week. The price closed above 20EMA on the daily chart. However, the price has remained below the 50-day exponential moving average. The 20EMA and 50EMA are in the bearish crossover. RSI on the daily timeframe is in the bullish crossover. The bias is expected to remain sideward to positive over the short term. Support is seen at 60500 whereas resistance is visible at 63000/64000.Q