Nifty today: SGX Nifty gains 14 points; here’s what changed for market while you were sleeping

Domestic stocks may take a breather after rallying in the previous two sessions, thanks to mixed signals from other Asian markets. All eyes would be on the Rs 596 crore MTAR IPO opening today.

Here’s the breaking down of the pre-market actions:

State of Markets

SGX Nifty signals positive start

Nifty futures on the Singapore Exchange traded 14 points, or 0.09 per cent, higher at 14,997 in signs that Dalal Street was headed for a positive start on Wednesday.

Tech View: Nifty hurdle at 20-DMA

Nifty50 on Tuesday climbed over 1 per cent and settled above the 14,900 mark. The index formed a bullish candle on the daily chart, with a long lower wick, suggesting that every intraday selling got bought into. Analysts said the 15,000 level will be a key hurdle for Nifty50 to watch out for.

Asian shares mixed in early trade

Asian shares were trading mostly mixed on Wednesday. Japan’s Nikkei fell 0.18 per cent to 29,355.64.China’s Shanghai Composite rose 0.42 per cent to 3,523.20. Hong Kong’s Hang Seng climbed 1.13 per cent to 29,425. Korea’s Kospi edged 0.3 per cent lower.

US stocks settled lower

Stocks closed lower on Wall Street after a wobbly day, giving back some of their big gains from a day earlier. The S&P 500 fell 31.53 points to 3,870.29. The Dow Jones Industrial Average lost 143.99 points, or 0.5 per cent, to 31,391.52. The tech-heavy Nasdaq composite dropped 230.04 points, or 1.7 per cent, to 13,358.79.

MTAR IPO to hit market today

The Rs 596 crore IPO by a precision engineering company MTAR Technologies hit the market today. On Tuesday, the company raised Rs 178.92 crore from 15 anchor investors at Rs. 575 per share including Nomura Funds Ireland, Jupiter South Asia Investment, White Oak Capital and Goldman Sachs India.

FIIs buy Rs 2,223 crore worth stocks

Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 2,223 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 854 crore, data suggests.

Money markets

Rupee: The rupee rose by 18 paise to close at 73.37 against the US dollar on Tuesday, ending its three-day losing streak on the back of gains in domestic equities amid improving risk appetite.

10-year bonds: India 10-year bond yield rose 0.43 per cent to 6.23 after trading in 6.18-6.23 range.

Call rates: The overnight call money rate weighted average stood at 3.21 per cent, according to RBI data. It moved in a range of 1.90-3.50 per cent.

Data/events to watch

  • India Markit Services PMI Feb (10:30 am)
  • US Total Vehicle Sales Feb (05:30 am)
  • Japan Jibun Bank Services PMI Final Feb (06:00 am)
  • China Caixin Services PMI Feb (07:15 am)
  • Euro Area Markit Services PMI Final Feb (02:30 pm)
  • UK Markit/CIPS UK Services PMI Final Feb (03:00 pm)
  • UK Budget 2021 (06:00 pm)


RBI intervenes to arrest rupee slide… RBI is said to have intervened lately in the currency market to arrest the rupee’s slide that, many believe, owes more to speculative trade than the business fundamentals of a fast-reviving economy. The central bank is reportedly selling dollars on a large scale after nearly three quarters to stem the local unit’s value erosion, dealers said. The rupee ended a three-day losing streak, climbing 18 paise to 73.37 to a dollar. Since February 25, the day before the US Treasury benchmark hit a recent high of 1.62%, the rupee has lost nearly 1.5% to the dollar.

NBFCs, HFCs told to check money laundering… RBI has asked several NBFCs, housing finance companies and co-operative banks to get their house in order over the anti-money laundering monitoring mechanism and risk-based assessment, two people with knowledge of the matter said. The central bank has raised concerns around these mechanisms for at least 50 entities, and asked them to complete these tasks by the end of March.

S&P red-flags Covid spike… Global ratings agency S&P is closely monitoring the recent spike in Covid-19 cases in India and the reimposition of restrictions on movement and behaviour, Andrew Wood, its director of sovereign and international public finance ratings, said. The agency raised concerns over the potential cooling impact the resurgence in cases could have on India’s economic recovery if it turned into a more broad-based trend.

India’s exports dipped in Feb… India’s exports dipped 0.3% to $27.7 billion, largely due to lower global oil prices, while imports rose 7% to $40.6 billion, resulting in a higher trade deficit. Preliminary numbers released by the commerce department on Tuesday estimated trade deficit at $12.9 billion, compared to $9.9 billion in the corresponding period last year, but a tad lower than January 2021 level of $14.5 billion.

Spectrum sale fetches govt Rs 78K cr… India’s first spectrum auction in five years ended on day two, with the government mopping up ₹77,814 crore. The government will get ₹19,000-20,000 crore in upfront payment this month, and around ₹10,000 crore in the next fiscal. Reliance Jio, which faced a mustbuy situation in18 circles to ensure continued service, bid for 488.35 MHz of bandwidth worth ₹57,122.65 crore, and accounted for 73% of the total auction proceeds. Bharti Airtel bought 355.45 MHz of spectrum for ₹18,698.75 crore, and Vodafone Idea, financially the weakest of the three private telcos, paid ₹1,993.40 crore to buy 11.8 MHz of airwaves across five circles.

FMCG firms eye online-only brands… Large, traditional fast-moving consumer goods (FMCG) companies such as Nestle, Reckitt Benckiser, Wipro Consumer Care, Marico and Tata Consumer said they are intensifying focus on online-only brands and businesses. They are either setting up dedicated venture funds or investing in smaller startups that sell through online channels to consumers in response to ecommerce sales doubling and niche, evolving categories that emerged amid the pandemic.

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Nifty: A break above 13,777 may take Nifty to 13,924

MUMBAI: The Nifty could move toward a new high of 13,924 if it breaks and sustains above the record high of 13,777.50, having come within kissing distance of it intraday on Thursday, derivative data show. Some analysts are not ruling out a dip before the market makes a tryst with a new high.

Nifty’s range next week based on the 13,700 call and put value is 13,476-13,924. The index closed up 1.1 per cent at 13,749.25 at the end of the holiday shortened week.

The record high of 13,777.5 was made on December 21, before the Nifty plunged to 13,131.45 during the same session on fears of a more deadly Covid variant, which spooked global markets.

From there, the Nifty has recovered and hit an intraday high of 13,771.75 on Thursday. The strong closing at the end of the week suggests more strength, feel analysts like Abhishek Karande, CMT senior analyst, Reliance Securities.

“There could be a dip before the market moves higher,” feels Karande.

“A strong closing today means the market is consolidating in 13,131-13,777.5 before testing the band’s upper end,” said Sunil Pachisia, director, institutional sales, Pratibhuti Vinihit. “It’s important for a conclusive break above the record for the market to test newer highs.”

Huge intraday put selling was witnessed at 13,700 and 13,600 strikes expiring on December 31, which underscores the bullish sentiment as sellers expect the market to remain above the put level sold minus the premium received from the put buyers.

December 31 expiry Nifty options’ put call ratio was 1.49, implying more put than call selling, a bullish indicator.

The rally since the March 24 low has been driven by highest-ever FII flows of ₹2.13 lakh crore in the fiscal year through December 23.

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Nifty Analysis: Tech View: Nifty bulls defending support, but upside looks limited

NEW DELHI: Nifty50 on Tuesday tested its immediate support range at 13,450-470, before recovering and closing in the black. With this, the index formed an indecisive Doji candle on the daily chart for the fourth consecutive day. The bulls seem to be defending the support levels rigorously, but the upside seems limited, analysts said.

“The bulls are constantly protecting the 13,400-13,450 zone in intraday declines. On the upside, the bears are protecting the 13,550-13,600 zone. Moreover, multiple Doji and Hanging Man candlestick patterns on the daily chart suggest lack of momentum in the uptrend. A trade below 13,400 level may trigger sharp corrections in Nifty to 13,200-13,100 levels. The RSI is also suggesting lack of momentum on the upside,” said Aditya Agarwala, Senior Technical Analyst at YES Securities.

For the day, Nifty closed at 13,567, up 9.70 points or 0.07 per cent.

“For the fourth straight session, we have witnessed such a move where the market has recovered from the lows and ended with the formation of a Doji candle. Although this does not reflect any trend reversal, the 13,400-13,600 zone now becomes a crucial range and a breakout of the same would lead to the next leg of directional move. A move above the 13,600 level may lead to an extension of this trend towards 13,750 level, which is the 127 per cent retracement level of the previous correction on the weekly charts,” said Ruchit Jain of Angel Broking.

The hourly momentum indicator has completed its correction cycle and is set for a new cycle on the upside from the equilibrium line, said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan.

Check out the candlestick formations in the latest trading sessions

“The junction of 40-hour exponential moving average and the hourly lower Bollinger Band is attracting fresh buying interest. These observations suggest Nifty maintains its upward trajectory with a short-term target at 13,700,” he said.

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Nifty: Market most bullish in over a decade: All but one Nifty stocks top 200-DMA

Share indices are up about 77 per cent after hitting their lowest levels in March, primarily due to the liquidity support thanks to easy monetary policies of global central banks.


Tata Steel, Tata Motors, IndusInd Bank, Hindalco Industries, JSW Steel, Bajaj Finance, Bajaj Finserv and M&M are trading 42-67 per cent above their 200-DMAs — the farthest away from the technical level.

Mumbai: The Indian stock market is in the midst of an unusual phase where 98 per cent of its bluechips are trading above a long-term trend indicator. Out of the 50 stocks on the benchmark Nifty, 49 were above their 200-Day Moving Average on Tuesday — a phenomenon not seen since September 2009 — underscoring the broadbased strength of the recent upmove that has helped the market reach new milestones.Tata Steel, Tata Motors, IndusInd Bank,

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Nifty: ETMarkets Morning Podcast: Nifty expected to climb 200 points further

Hi there! Welcome to ETMarkets Morning, the show about money, business and markets. I am Nandini Sanyal, and here is what we have to start your day.

>> Analysts project another 200-pt gain for Nifty
>> 5 midcaps set to become largecaps
>> In a first for PSUs, IRFC IPO to have anchor book
>> Airtel beats Jio in user addition

And there is more. But first, a quick glance at the state of the markets…

>> Nifty futures on the Singapore Exchange traded 28 points lower at 7 am (IST), signalling weakness ahead on Dalal Street.

>> A gauge of Asian shares hit a record peak on Monday on hopes of a much-needed US stimulus package before year-end as coronavirus vaccines roll out. Japan’s Nikkei added 0.1%, South Korea’s Kospi 0.4% and Australia’s S&P/ASX 200 0.8%.

>> On Wall Street, stock indices reached fresh all-time highs on Friday with the Dow rising 0.8%, the S&P500 gaining 0.9% and the Nasdaq 0.7%.

>> The rupee snapped its two-day losing streak to close 13 paise higher at 73.80 against the US dollar on Friday, as RBI maintained status quo on the benchmark interest rate for the third time in a row.

>> The US dollar was little changed against a basket of major currencies, after hitting a two-and-a-half-year low last week. The pound fell 0.2%. The risk-sensitive Australian dollar was mildly positive.

>> Crude prices hovered near their highest since March. US crude was off 13 cents at $46.13 a barrel while Brent was down at $49.10.

>> On Friday, gold futures snapped a three-day winning streak and fell 0.2% to Rs 49,209 per 10 gm on MCX, while silver futures edged 0.3% higher to Rs 63,848 a kg. In international markets, spot gold slipped to trade at $1,837 an ounce, still up a hefty 21% for the year.

All in all, the trade setup on Dalal Street looks weak. On Friday, Nifty50 formed higher highs and lows for the fifth session in a row, signalling a bullish bias.

LET ME NOW GIVE YOU A HEADS-UP on some of the top news we are tracking at this hour.

… Technical analysts are expecting another 200-point gain for benchmark Nifty in the coming days after the index crossed the 13,200 mark last week — a level which was seen as a strong hurdle. Analysts expect the 50-pack to find support in the 13,100-13,150 range.

… Indian Railway Finance Corporation is likely to launch its initial public offering this month to raise about Rs 4,600 crore. For the first time, the PSU has made provisions for allotment to anchor investors, which will help garner much more value for the IPO. The IPO will consist of a fresh issue of 1,180 million equity shares and an offer for sale of 594 million equity shares by the government

… Shares of Yes Bank, Adani Enterprises, PI Industries, Hindustan Aeronautics and Jubilant Food-Works are likely to get upgraded as part of the half-yearly market-cap categorisation by mutual fund industry body AMFI, which is expected to release a fresh list by January 5, said ICICI Securities. The brokerage has assigned a high probability to the first four and a low probability for Jubilant FoodWorks.

… The administrator at DHFL has sent formal letters to the four existing bidders of the troubled mortgage financier, seeking revised purchase offers for the fourth time. Potential buyers need to respond by December 14. Lenders to DHFL expect the Adani group and Oaktree Capital to submit new offers. The Piramal Group, one of the four that remained until round three, is yet to firm up its mind on the type of bid to be made. Lenders expect the fourth round of bids to lift the offer price by about 5-10%.

… Rates on short-term money market instruments, such as select commercial papers, treasury bills and tri-party repo, have fallen below RBI’s reverse repurchase gauge, making it difficult for mutual funds that invest in short-term debt to make money from their so-called liquid schemes. The reverse repo rate, at which commercial banks park their excess cash with the central bank, is currently at 3.35%. Debt-based liquid funds yielded 0.76% in the past three months, and 3.75% in the year to date, show data from Value Research Online. Fund managers are not permitted to invest in long-term papers in liquid plans.

… Prices of televisions, refrigerators, washing machines, air-conditioners and microwave ovens are set to rise by up to 20% this month due to a 15-40% increase in input costs, making it among the biggest one-shot hikes, industry executives said. Copper, zinc, aluminum, steel, plastic and foaming agents have become dearer, while ocean freight costs have risen 40-50%, they said. Prices of television panels are up 30-100% due to a global shortage, necessitating the increase.


>> Bharti Airtel added as many as 3.8 million active mobile users in September, helped by the strongest mobile broadband user additions among the Big 3 telcos, outpacing Jio’s 0.7 million additions, while Vi continued to cede ground

>> State run non-banking finance company IFCI Ltd may be put up for strategic sale, which means transfer of management control. The government currently holds 61.2% stake in IFCI, valued at about Rs 850 crore at the current market price of Rs 7.25 a share.

>> Realty developer DLF Ltd will make its rental yielding commercial assets ready for a real estate investment trust (REIT) by March 2022, a top company executive said.

>> Vodafone Idea has reacted to a spate of exits, including at senior levels, giving all employees an extra month’s pay as a one-time ex-gratia payout with the November 2020 salary

That’s it for now. For all the market news through the day, do track Have a great day ahead! Bye-bye

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Nifty: Dalal Street week ahead: Market to remain stock & sector specific; watch Dollar Index

The domestic stock market added more strength and piled up incremental gains during the week gone by. Nifty has not only stayed above the crucial two-year-long pattern resistance trend line, but also added some directional bias to it by moving higher.

The market stayed much less volatile than expected, which added consensus to the directional move. After staying in a 450-point trading range during the truncated week, the index ended with gains for the fifth week in a row.

The benchmark Nifty50 closed with net weekly gains of 289 points, or 2.23 per cent. As Nifty moves past the two-year-long trend line pattern resistance, it has shifted the support higher to 12,800 level. This means even if Nifty tests the 12,800 level in the near future due to profit taking, the trend would remain intact.

It would reverse only if Nifty slips below the 12,850-12,800 zone. However, this reading does not take away from the fact that the rally has been powered mainly by FII flows due to severe weakness in the dollar. Any pullback in the DXY (Dollar Index) has a potential to disrupt the rally.

Volatility has dropped as the India VIX has slipped 9.03 per cent to 18.03. The market is likely to see some consolidation at higher levels in the coming week. With the market now in the uncharted territory, the 13,300 and 13,485 levels are likely to act as resistance, while supports will come in at 13,100 and 12,850 levels.


There are high possibilities that the trading range may widen in the coming days. The weekly RSI stood at 72.21; it remains in the mildly overbought zone above the 70 mark. It has marked a fresh 14-period high, which is a bullish signal. However, it remains neutral and does not show any divergence against the price. The weekly MACD is bullish and remains above the signal line.
The slightly widening slope of the Histogram showed an acceleration in the momentum over the past couple of weeks. Apart from a white body that occurred, no other important formations were seen on the candles.

The coming week is likely to be crucial and will keep us on our toes. FII flows remain strong and that is causing an unabated rise in the market.

The Dollar Index has been miserably weak, and this is aiding FII flows to emerging markets in general, and India in particular. That said, it will now be important to keep a close eye on the Dollar Index, which is likely to remain oversold in the near term. There is a possibility of some technical rebound within the downtrend, which may cause a minor disruption in the ongoing trend.

Given the current technical setup, we do not recommend initiating heavy shorts, but to keep chasing the momentum in an extremely watchful way. The market will remain highly stock and sector specific and one should stick to those stocks and sectors which are exhibiting either strong or improving relative strength against the broader market. A cautiously optimistic approach is advised for the week ahead.

In our look at the Relative Rotation Graphs®, we compared various sectoral indices against CNX500 (Nifty500 Index), which represents over 95 per cent of the free-float market-cap of all the listed stocks.

Graph 2Agencies
Graph 3Agencies

A review of the Relative Rotation Graphs (RRG) showed Bank Nifty, Financial Services and Services Sector Indices are placed in the leading quadrant. The Metal Index has entered the leading quadrant following a strong rotation from the weakening quadrant. The Realty Index has also entered the leading quadrant following strong rollover from the improving quadrant. These sectors are set to show strong relative outperformance against the broader Nifty500 index collectively.

Nifty IT and Auto Indices are in the weakening quadrant along with the IT and the Midcap100 Indices.

While staying in the lagging quadrant, Nifty Commodities and Energy groups trying to improve their relative momentum along with the Infra index. Nifty PSE and PSU Bank indices are getting rolled over strongly and moving in the improving quadrant. The FMCG and Consumption indices, however, seems to be taking a breather.

The Pharma and Media Indices are languishing in the lagging quadrant and may exhibit relative underperformance against the broader market.

Important Note: The RRGTM charts show relative strength and momentum in a group of stocks. In the above chart, they show relative performance against the Nifty500 Index (broader market) and should not be used directly as buy or sell signals.

(Milan Vaishnav, CMT, MSTA is a Consultant Technical Analyst and founder of Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at

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Nifty today: SGX Nifty down 20 points; here’s what changed for market while you were sleeping

US equity indices hit record highs in overnight trade, and domestic stocks are on the verge of hitting their fresh highs. But a ‘Hanging Man’ candle on Nifty50 daily chart does not suggest strong upside for the domestic market.

Here’s breaking down the pre-market actions:


SGX Nifty signals tepid start
Nifty futures on the Singapore Exchange traded 19.5 points, or 0.15 per cent, lower at 13,131.50, in signs that Dalal Street was headed for a tepid start on Wednesday.

Tech View: Nifty hurdle near 13,250
Nifty50 closed near its all-time high of 13,145 level on Tuesday. The index formed a bullish candle on the daily chart, which resembled a Hanging Man candle. It also formed a higher high and low for the second straight session. That said, analysts believe a decisive bounce is unlikely for the index unless it takes out the 13,250 level.

Burger King India IPO to kick off today

Burger King India is all set to open its initial public offer (IPO) today. The company on Tuesday raised Rs 364.5 crore from anchor investors. The Rs 810 crore offer would comprise of Rs 450 crore of fresh issue and offer for sale of up to 6 crore shares equity shares by promoter QSR Asia and would be sold in Rs 59-60 price range. At the upper price band, OFS is valued at Rs 360 crore.

Asian markets mixed in early trade
Asian markets were mixed on Wednesday even as Wall Street indices closed at record highs. MSCI’s gauge of stocks across the globe gained 0.09 per cent. In early trade, Australia’s S&P ASX 200 rose about 0.11 per cent. Nikkei 225 index fell 0.17 per cent while Hong Kong’s Hang Seng index declined 0.41 per cent.

Oil prices drop on US stock build
Oil prices extended losses on Wednesday, hit by a surprise build in oil inventories in the United States and as OPEC and its allies left markets in limbo by delaying a formal meeting to decide whether to increase output in January. Brent crude oil futures were down by 27 cents, or 0.6 per cent, at $47.15 a barrel, while West Texas Intermediate crude was down by 29 cents, or 0.7 per cent, at $44.26.

Wall Street stocks hit record highs
The S&P 500 index closed up 1.1 percent at 3,660 on Tuesday after hitting a record high at 3,678. The Nasdaq Composite Index, which counts on the performance of US tech stock giants such as Facebook, Apple, Amazon, Netflix and Google, settled up 1.3 per cent at 12,355 after an all-time high of 12,405. The Dow Jones Industrial Average rose 0.6 per cent to 29,824.

FIIs buy Rs 3,242 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 3,242crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 1,043.21 crore, data suggests.


Rupee: The rupee surged 37 paise to settle at 73.68 against the US dollar on Tuesday, buoyed by foreign fund inflows into domestic equities.

10-year bonds: India 10-year bond yield rose 0.32 per cent to 5.93 after trading in 5.90-5.93 range.


  • Australia GDP Growth Rate QoQ Q3 (06:00 am)
  • Japan Consumer Confidence Nov (10:30 am)
  • BoE FPC Meeting (03:00 pm)
  • Euro Area Unemployment Rate Oct (03:30 pm)
  • US MBA Mortgage Applications 27 Nov (05:30 pm)
  • US Fed Chair Powell Testimony (08:30 pm)
  • OPEC+ Informal Meeting (10:00 pm)
  • ECB Non-Monetary Policy Meeting (10:00 pm)


RBI policy review begins today… The RBI’s MPC will review its money policy on December2-4. The central bank is best served by maintaining the policy approach outlined in the October statement, even as it likely acknowledges some optimistic turn in growth indicators and sticky inflation, investment banker Barclays said last week. “We expect the RBI’s monetary policy committee to keep rates steady, even though we expect its inflation and growth forecasts to be revised higher,” Barclays said.

More evidence of economic turnaround… India’s economic turnaround narrative was bolstered by November data for goods and services tax (GST) collections, passenger car sales, the manufacturing PMI, railway freight loading and the Nomura India Business Resumption Index (NIBRI). If this momentum is sustained, India could return to growth in the March quarter, economists said, urging the government to provide more fiscal stimulus to sustain demand. “November was a busier month than October,” said Nomura economists Sonal Varma and Aurodeep Nandi.

India Inc on hiring mode… India Inc’s hiring plans are firming up and the pandemic-caused freeze in recruitments has probably bottomed out, shows a Teamlease Employment Outlook Survey shared exclusively with ET. The survey covered 137 companies in 21 sectors. Notable among sectors that want to hire are IT, healthcare, ecommerce and tech startups, educational services and banking, financial services and insurance (BFSI). Teamlease’s hiring intent metric measures the proportion of companies planning to recruit in a quarter

Extended Diwali for top brands… Diwali festivities don’t seem to have ended for some top brands and retailers. They say demand for television sets, appliances, laptops, smartphones and apparel continues to be brisk in the post-Diwali period, unlike the past, when sales would fall drastically immediately after the festive season. Top brands and retail chains such as LG, Samsung, Apple, Vivo, Realme, Bosch, Siemens, Croma, Levi’s, Reliance Retail and Vijay Sales expanded sales 10-20% in the first 15 days after Diwali, which was in mid-November, over the year earlier, industry executives said.

PV sales up for fourth straight month… Indian passenger vehicle sales increased for the fourth straight month as pent-up demand, need for personal mobility solutions, lower impact of coronavirus pandemic and sustained income in rural areas continued to boost sales in November. Industry estimates around 2,86,000 passenger vehicles were sold last month, an increase of 9% over 2,63,773 units sold in the year-ago period, shows data available with industry body the Society of Indian Automobile Manufacturers. Market leader Maruti Suzuki registered a 2.4% dip with 1,35,775 units sold. Korean rival Hyundai Motor India saw a growth of 9.4% to 48,800 units.

Diesel demand drops in Nov… Diesel demand dropped 7% in November from a year earlier after rebounding to above pre-pandemic levels in October, showing uneven recovery trajectory. Petrol sales, however, grew 5% year-on-year, as per the provisional sales data by state-run oil companies that control nearly 90% of the fuel retail market. Cooking gas consumption rose 4.6%. Jet fuel demand recovery stayed sluggish with sales 48% lower in November from a year earlier as international flights remain restricted.

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Why is Sensex falling: Sensex slips 45 points amid doubts over Covid vaccine; Nifty tests 13,000

NEW DELHI: Auto and pharma names saw buying in Friday’s session but could not give enough lift to the benchmark indices as selling in RIL and IT stocks pushed them below the flatline amid rising doubts over AstraZeneca vaccine.

Volatility came further down, indicating waning nervousness among the traders but it still remains relatively elevated. Analysts are expecting the market to consolidate after a massive rally.

“Markets are likely to consolidate around the current levels in the short run. However, in the medium term, markets are likely to turn increasingly volatile. Valuations are high and therefore upside is limited. Stick to bluechips, particularly in performing sectors like IT and financials. If Sensex moves beyond 45,000, increase cash levels. Invest in mid-small-caps through mutual funds,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Factors driving markets

  • AstraZeneca vaccine faces questions: Efficacy of the vaccine is now facing more intense scrutiny, which experts say could delay its approval. Several scientists have raised doubts about the robustness of results showing the shot was 90 per cent effective in a sub-group of trial participants who, by error initially, received a half dose followed by a full dose.
  • More stimulus coming?: Raising the prospect for further stimulus, the European Central Bank’s chief economist warned that tolerating “a longer phase of even lower inflation” would hurt consumption and investment.
  • Trump all but concedes: Trump said on Thursday he will leave the White House if the Electoral College votes for Biden, the closest he has come to conceding the Nov. 3 election, even as he repeated his unfounded claims of massive voter fraud.

How are bluechips doing

After opening with gains, benchmark indices drifted lower. At 10.05 am, BSE flagship Sensex was down 45.47 points or 0.10 per cent to 44,214.27. NSE benchmark Nifty followed and dipped 16.65 points or 0.13 per cent to 12,970.
“The resistance level for the Nifty is at 13,050 and if we can cross that, we could head to 13,200 by next week. A strong support lies at 12,800 and thereafter at 12,500. It is only post the breaking of 12,500 that we would consider a short term correction. Until then, the trend remains bullish with a strong upside momentum,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

In the 50-share pack Nifty, Tata Motors was the biggest gainer, up 4.58 per cent. Bajaj Auto, NTPC, Britannia Industries, GAIL, Bajaj Finance, Maruti Suzuki and L&T were among other gainers.

HDFC Life Insurance was the top loser in the pack, down 1.9 per cent. Power Grid, TCS, HDFC, SBI, Reliance Industries, Wipro, UltraTech Cement and Infosys were other losers.

Broader markets

Broader market indices saw buying outperforming their headline peers in morning trade. Nifty Smallcap rose 0.60 per cent while Nifty Midcap added 1.23 per cent. Broadest index on NSE, Nifty 500 was up 0.14 per cent.

Gujarat State Petronet, Adani Gas, Gujarat Gas, Wockhardt, Vakrangee and Rallis India were among major gainers from the space while Alok Industries, Strides Pharma, DCM Shriram, Future Retail, Indiabulls Housing Finance and Vodafone Idea were under selling pressure.

Global markets

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.11 per cent but remained with striking distance of a life-time peak touched this week. Australian shares were down 0.56 per cent. Japan’s Nikkei fell 0.12 per cent in choppy trade.

Shares in China rose 0.37 per cent after data showed Chinese industrial profits hit a nine-year high. South Korean stocks also rose 0.05 per cent. US S&P 500 e-mini stock futures fell 0.29 per cent in Asian trade.

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Market update: Sensex up 600 points, Nifty around 12,380

Rupee close

Rupee ended at 74.04 against US dollar, was up by 4 paise.


Sensex, Nifty50 at lifetime high: Why investors should exercise caution

Indian stock markets were exuberant on Monday morning, along with rest of Asia, as trading began after Joe Biden was called the next President of the United States. The Sensex went past its previous life-time high of 42,273.87 recorded on January 17, 2020, to hit 42,566.3 in the morning. Nifty50 too scaled the fresh peak of 12,451.8.

Other Asian indices such as the Nikkei and the Hang Seng were also up over 1.5 per as a Biden victory is seen as the beginning of a new phase of more harmonious trade relations between the US and other Asian nations. There are also hopes of another stimulus package from the US before the end of the year, that is pushing stocks higher.

While the initial spurt in stocks is not surprising, there are few reasons why investors need to temper their optimism from hereon.

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Stock update

Shares of Divi’s Laboratories on Monday gained 7 per cent after the firm reported a 45.63 per cent rise in consolidated net profit for the quarter ended September 30.

The stock rose by 6.92 per cent to Rs 3,461.80 on the BSE.

On the NSE, it jumped 6.98 per cent to Rs 3,463.40.

The drug firm on Saturday reported a 45.63 per cent rise in its consolidated net profit at Rs 519.59 crore for the quarter ended September 30, mainly on account of robust sales.

The company had posted a net profit of Rs 356.78 crore for the corresponding period of the previous fiscal, Divi’s Laboratories said in a filing to BSE. – PTI

Company update

L&T Finance Holdings on Monday said its board has approved raising of up to ₹3,000 crore through a rights issue.


Company update

Drug firm Granules India said its board has approved a proposal to set up a subsidiary in Hyderabad to build a greenfield facility for formulations business.


Rupee call

Today, the domestic currency opened with a gap-up at 73.94, thereby crossing over the barrier at 74. The nearest hurdle that the rupee can face is at 73.85. If the positive momentum sustains and INR can breach this level, it might appreciate to 73.7. But if the local currency declines and slip below 74, it could weaken to 74.25. Subsequent support is at 74.5.


Rupee open

Rupee rises 14 paise to 73.94 against US dollar in early trade.

Opening bell

Rallying over 650 points, equity benchmark Sensex hit its record intra-day level in early trade on Monday, driven by broad-based gains amid massive foreign fund inflow and positive cues from global markets.

After touching its lifetime peak of 42,566.34 in the opening session, the 30-share BSE index was trading 627.21 points or 1.50 per cent higher at 42,520.27.

Similarly, the broader NSE Nifty too claimed a fresh high of 12,451.80. Later, it was trading with 178 points or 1.45 per cent gain at 12,441.55.

All Sensex components were trading in the positive territory. ICICI Bank was the top gainer, surging around 3 per cent, followed by Infosys, HCL Tech, Axis Bank, Bharti Airtel and Bajaj Finance.

In the previous session, Sensex ended 552.90 points or 1.34 per cent higher at 41,893.06, and the broader NSE Nifty surged 143.25 points or 1.18 per cent to 12,263.55.

Foreign institutional investors remained net buyers in the capital market as they purchased shares worth Rs 4,869.87 crore on Friday, according to provisional exchange data.

“Trade set up in the domestic market looks to be strong on favourable global cues,” said Arjun Yash Mahajan Head Institutional Business at Reliance Securities.

Financials have mainly supported the domestic market rally in last week mainly led by strong 2Q numbers, steady asset qualities and improving collection efficiencies, he added.

Wall Street notched its best weekly performance last week since April as key indices in the US registered weekly gains of 7-9 per cent, he said.

Democrat Joe Biden has defeated incumbent US President Donald Trump in the bitterly-fought presidential election.

Most market participants are hoping the Biden regime would spell good news for Indian companies, especially IT, and domestic financial markets.

Coming back to domestic factors, investors will also focus on industrial production and inflation data, scheduled to be announced on Thursday.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading up to 2.41 per cent higher in mid-session deals.

Meanwhile, international oil benchmark Brent crude was trading 2.66 per cent higher at USD 40.50 per barrel.

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Nifty: F&O: Nifty chart patterns show total bear grip on the market

By Chandan Taparia

Nifty opened positive on Wednesday and surpassed previous day’s high, but couldn’t hold at higher levels. It descended throughout the day to touch an intraday low of 11,685 before closing 160 points lower. The index formed a Bearish Engulfing and a Bearish Belt Hold kind of patterns on the daily scale, which signalled that the bears had a complete grip throughout the day.

The index has turned highly volatile in the last few sessions and got stuck in a wider trading range in which every decline got bought into, while multiple hurdles were intact in the 11,950-12,020 zone. Now, the index has to cross and hold above 11,777 level to witness a bounce towards 11,900 and then 12,020 levels, while on the downside, major support exists at 11,666 and below. Fresh selling could emerge towards the 11,550-11,500 zone.

India VIX moved up 4.86 per cent from 22.19 to 23.28 levels. Volatility needs to cool down below 20 level for the market to stabilise, taking into account any spike ahead of the US election.

On the options front, maximum Put open interest stood at 11,500 level followed by 11,000, while maximum Call OI was seen at 12,000 followed by 11,900 levels. There was Call writing at strike prices 12,000 and 11,800 and Put writing at 11,450 and 11,600 levels. Options data suggested a wider trading range between 11,600 and 11,900 levels.

Bank Nifty opened flat, but failed to hold above the immediate hurdle at 24,750 level and drifted towards 24,050 level. The index witnessed around 700-point decline from higher levels and negated the bullish price structure of the previous session. The index formed a Bearish Belt Hold candle on the daily scale as it continued to make higher lows for five weeks. Now, it has to hold above 24,250 level to witness a bounce towards 24,750 and while a key support was seen in the 24,000-23,900 zone.

Nifty futures closed negative at 11,719 level with a loss of 1.34 per cent. The trade setup looked positive Marico, Siemens, Adani Enterprises, L&T, Havells and Maruti but weak in DLF, MindTree, Indiabulls Housing, Federal Bank IndusInd Bank, IndiGo, SBI, Lupin, Sun Pharma and UBL.

(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)

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