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Is the ‘gap-down’ opening in the Sensex and Nifty on December 19 signalling a rebound in the market? The indices opened gap down 1.3% on Thursday after the US Fed tempered the market’s expectations of interest rate cuts. A gap-down happens when a stock opens at a much lower price than where it closed the day before, leaving a ‘gap’ on the price chart that’s considered a sign of investor panic. The Sensex and Nifty fell 1.5% the next day. According to Samco Securities, the initial fall on Thursday was the 107th instance since 2000 and the 41st since April 2020 when the indices opened with a gap-down of 1%. 116580710The brokerage said since 2020, the Nifty had rebounded 73-83% out of the 40 occasions of similar gap-downs over the next two months. Similarly, since 2000, the index has bounced on 67% of the 106 occasions over the subsequent two months. “If this historical trend persists, the current drop could represent a strategic buying opportunity for investors,” said Samco’s analyst Raj Gaikar.

Although technical charts indicate a bearish trend, analysts expect a bounce back in the Nifty from its current 200-day moving average (DMA) towards 24,000 and 24,170 levels. Analysts recommend stocks like Aurobindo Pharma, Dr Reddy’s, Lupin, ITC, Marico, Radio Khaitan, KPR Mills, Kfin Tech, and Care Ratings for long positions.JATIN GEDIA TECHNICAL RESEARCH ANALYST, MIRAE ASSET SHAREKHANWhere is the Nifty headed this week? Nifty is trading around the 200-day exponential moving average (23,691), which is likely to provide some relief after a 4.7% correction last week. Positive global cues should act as a supporting factor. In the very short term, the fall appears overstretched as the relative strength index on the hourly time frame has an oversold reading thus increasing the probability of a counter-trend pullback. The pullback rally is likely towards 24,000–24,170 which coincides with the gap area formed on Dec 19, and the highest concentration of call open interest is also placed at 24,000 strike. India VIX is above 15, and a cool-off shall aid the counter trend pullback to sustain. What should investors do? Consider accumulating stocks with high dividend yield, for instance, Coal India and Indian Oil. We expect pharma, FMCG, and IT stocks to do well. Aurobindo Pharma, Dr Reddy’s, and Lupin from the pharma space are looking positive. ITC, Marico, and Radio Khaitan from the FMCG pack are looking bullish. Buy Dr Reddy at Rs 1,343 with a stop loss of Rs 1,320 for a target of Rs 1,421. Buy ICICI General Insurance at Rs 1,902 with a stop loss of Rs 1,860 for a target of Rs 1,965.SAMEET CHAVAN HEAD RESEARCH - TECHNICAL & DERIVATIVES, ANGEL ONEWhere is the Nifty headed this week? We see prices precisely placed at a crucial multi-month upward-sloping trend line. This is crucial because this trend-line has proved its mettle in providing a cushion to all signifi cant declines from October 2023. But, since this time we have closed below the pivotal zone of 200-DMA with some intent, the next potential support could be seen around the recent swing low around 23,200-23,100, while a decisive breach is likely to open further downside towards 22,800 in the near period. The formation of a strong bearish candle on the weekly chart certainly showcases a turnaround move, with bounces to be seen as opportunities to exit longs. The zone of 23,800–24,000 is likely to be seen as an intermediate hurdle. What should investors do? It is advised to approach markets with proper risk management and refrain from taking complacent bets for the time being. We recommend buying Care Ratings on a decline at around Rs 1,300–1,270 for a target of Rs 1,540. Traders can participate by following strict stop loss at Rs 1,140. Short Axis Bank around Rs 1,085 –1,100 for a target of Rs 1,025 with stop loss at Rs 1,128. Short UltraTech Cement on a bounce up to Rs 11,500- 11,600 for a target of Rs 11,100. A strict stop loss needs to be placed at Rs 11,825.PRITESH MEHTA EXECUTIVE VP – RESEARCH, YES SECURITIESWhere is Nifty headed? With the greenback threatening to break on the upside alongside weakness in the MSCI Emerging Markets index and deterioration of our customised breadth, the index is expected to challenge the low seen in November 2024. Immediate support is seen near the threedigit Gann number of 233(00). Changes in the above-mentioned trends/structure are likely to cap any reversal rallies off lows. What should investors do? Though Bank Nifty is trading fi rmly above the midpoint of the current three-digit Gann channel (48,500) which coincides with multiple lows in the second-half of 2024, the ratio of Bank vs Nifty failed to surpass June 2024 and reversed the previous week. Moreover, our intermarket analysis implies underperformance of equities vs gold & Nifty GS composite index. In such a setup, recovery tends to be shallow. Our customised textiles and capital markets indices are showing relative strength. We expect an upside of 8-10% in KPR Mills, and Kfi n Tech; and strength is likely to persist in select IT stocks like Wipro and HCL Tech.

Consumers moved thousands of crores worth of electronics shopping online this year, including for large appliances, a trend strengthened by the entry of quick commerce into the segment.Online channels accounted for 34% of the consumer electronics sales in the country this year, up from 32% in 2023, shows data from market researcher NielsenIQ. This 2 percentage point increase means sales of around ₹11,000 crore have shifted to ecommerce from offline retail, the researcher said.Online sales of all electronic products including smartphones, laptops, TVs, air-conditioners and refrigerators are estimated to be Rs 2 lakh crore in calendar 2024, it said.Indian consumers are increasingly buying large appliances such as washing machines and ACs online as they are now comfortable to forsake touch and feel, NielsenIQ said. Quick commerce players such as Zomato's Blinkit, Zepto, Swiggy Instamart and BigBasket are fast expanding into electronics and durables, adding one category after another. They have also begun servicing orders for kitchen appliances and other small domestic appliances beyond smartphones. This has started to reflect in the shift towards online sales, said Sharang Pant, commercial leader, tech and durables, NielsenIQ India."Consumers have evolved in their purchase journey and are ready to buy without touch and feel since, as in many cases, they know which brand and variant they want to buy or have researched offline," Pant said."Our data shows that of all consumers who research offline for options, one in five end up buying the final product online," he added.For IT products including laptops and tablets, the contribution of online sales is up from 40% in 2023 to 43% this year till October, NielsenIQ data showed. For washing machines, the share of online to total sales has increased from 22% to 24% during the same period. It rose to 12% from 10% for ACs and to 18% from 17% for refrigerators.The data covers the month-long festive period which ended in October this year with Diwali.Haier India president Satish NS said online channels are covering newer geographies where the reach of store distribution has been weak, such as the Northeast. "Quick commerce can potentially become a big channel for small-ticket products since it fulfils the impulse need," he said. "But for premium products, most still prefer in-store purchases."NielsenIQ confirmed this, saying unit sales salience of online is higher than value salience, indicating consumers are still buying more of entry and mass products online while preferring offline purchase for high value categories and premium models.116575911As long as ecommerce platforms are able to provide the right amount of product information supported by promotional offers such as EMIs and cash back, consumers are willing to transact online, said Lenovo India director, ecommerce, Amit Chatrath. The company is reporting 50% growth in online sales year-on-year, he said.NielsenIQ's consumer survey shows that 33% of shoppers are buying new electronic products online compared to 26% in 2021.Pant said while smartphone online sales volume continues to grow at a healthy pace, its value share within total ecommerce has come down as consumers are now purchasing more of other large appliances online. The share of smartphones to overall online sales fell by three percentage points year on year to 36.7% during the 2024 festive season.Swiggy Instamart CEO Amitesh Jha told analysts earlier this month that it will expand into more non-grocery categories such as small home appliances and electronics to improve average bill value and higher gross margin.