(Image Source: Groww)
The stock market is winding down the year with mixed energy on Monday. Nifty is holding steady around 26,000 to 26,250, while Bank Nifty trades between 58,600 and 59,500. Several stocks are in focus today after major company announcements, acquisitions, and new business deals that will drive trading across NSE and BSE.
Coforge Dominates With Encora Acquisition and Big Fundraising
Coforge is the biggest story today. The IT company announced it is buying Encora from investment firms Advent International and Warburg Pincus for $2.35 billion, or about Rs 17,032 crore. Coforge will raise up to $550 million through a stock sale to help pay for this deal.
This is Coforge’s biggest move in years. The company will instantly become much larger and gain global customers and talent. The board met and approved the fundraising plan. They will meet again on December 31 to decide if Coforge needs to raise more money through bonds. Investors will watch carefully to see if buying Encora is worth the price and if the stock sale dilutes existing shareholders.
Hotel and Infrastructure Companies Making Deals
Viceroy Hotels approved buying SLN Terminus Hotels and Resorts for Rs 206 crore. This adds another property to Viceroy’s chain during a time when hotel companies are buying each other.
Lloyds Enterprises raised Rs 361 crore through loans to pay for converting stock warrants into shares. The company’s subsidiary is also taking 100% control of Techno Industries, a manufacturing company. These moves show Lloyds is actively buying other businesses in metals and manufacturing.
Ceigall India’s subsidiary got approval from the National Highways Authority of India to operate a six-lane highway project in Punjab worth Rs 613 crore. The project can now generate revenue after receiving approval on December 22.
Mid-Cap Stocks Getting New Orders
Diamond Power Infrastructure won a contract worth Rs 66.18 crore to supply power cables. Avantel won a Rs 4.16 crore contract from India’s Defence Ministry to maintain communication equipment.
These orders matter because they show the companies are winning business and earning steady revenue. Investors gain confidence that these mid-cap companies are growing and profitable.
Two Stocks Worth Buying Right Now
SBI Securities analysts flagged two stocks to watch this week. Karur Vysya Bank broke above the 255-258 price zone on strong buying. The momentum indicators moved decisively above 60, showing bulls are in control. Analysts suggest buying the stock around 260-264 with a safety level at 254, targeting 280 in the coming weeks.
Gujarat Mineral Development Corporation also made the top picks list. The company should benefit as India spends more on infrastructure and commodity prices firm up.
The Future of Market
Nifty needs to break past 26,250 to aim higher toward 26,500 and 26,650. If Nifty falls, support comes in at 25,900-25,850. Bank Nifty has clear support at 58,600-58,700 and resistance at 59,400-59,500. If Bank Nifty breaks above 60,000, bulls will get excited. A drop below 58,500 would show weakness.
Domestic investors have been buying steadily, with over Rs 62,000 crore flowing in during December. This buying support has helped the market not fall much. Market volatility is very low right now, suggesting surprises could move stocks quickly.
For trading today, the smart move is to buy when stocks dip toward support levels rather than chase them higher. It is the year-end cleanup period where traders lock in profits at highs. Sideways trading in ranges is likely unless major news hits the market.
