“We are top heavy at this point in time. 14150 is the current resistance level and if we can get past that 14200-14250 is a possibility. However, it is recommended that we maintain a cautious stance and trade with lighter quantities on the buy side with strict stops. The risk reward is currently skewed and we should wait for dips or corrections and then evaluate the markets. Accumulation of long positions should ideally happen on corrections,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
The Indian Rupee closed higher against the US Dollar, Due to a broad decline in the dollar index. The minutes of the December Fed meeting due this week could reinforce that dovish stance which could continue to weigh on the greenback. FPI bought $168 million in local equity to help domestic pair to be on the higher side. However rising Covid-19 cases push investors towards safe haven, Technically USDINR Spot took the support of 72.80 and is facing the resistance of 73.20 levels. Closing above 73.20 will indicate that bullish trade will continue towards 73.50 – 73.60 level. Support for the pair is 72.80 levels below it can go 72.50 levels: Kshitij Purohit, Lead Currency & Commodities at CapitalVia Global Research Ltd.- Investment Advisor
“Frenzied buying by FIIs is supporting the market even at high levels of valuations. An unhealthy trend in recent days is the rally in low-grade stocks. Many new retail investors are recklessly buying these “cats & dogs” without any consideration for fundamentals. This is a risky game fraught with the potential for huge losses. There is safety in quality large-caps in IT, pharma, private sector banking, consumer goods and select autos. Quality stocks will bounce back even if there is a sharp correction. But low-grade stocks will turn illiquid resulting in huge losses. Retail investors should exercise caution,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The Georgia Senate runoffs are to happen today. Markets will keep a close eye on the outcome. If Democrats win both seats, they would effectively gain control of the Senate too and that would be negative for the US Dollar and positive for risk assets in general. Nationalized banks supported USD/INR around 72.90 yesterday. One of the side effects of RBI managing FX, Rates and Liquidity is the extreme dislocation we are seeing in the forwards today. While 1y T-bill is at 3.45%, 1y forward is at 4.60%. Carry to Vol is extremely attractive at this point. However, whenever the 3m Carry to Vol has risen to such an extent in the past, we have seen a bout of Rupee weakness. Rupee is expected to open around 73.05 and trade a 72.90-73.25 range. The Rupee appreciated yesterday for the seventh straight session: Abhishek Goenka, Founder and CEO, IFA Global
Only seven Sensex participants were trading with gains on Tuesday morning. These included TCS, HDFC, and HCL Technologies as the top gainers.
In March 2020, almost every market crashed when the world went into lockdown due to the coronavirus pandemic. Even cryptocurrencies weren’t spared the panic. However, the cryptocurrency market has been one of the first to bounce right back and how! If one had invested Rs 3.7 lakh ($4,945) at that time to buy just one Bitcoin (BTC), as of 4 January this year that one BTC would have been worth nearly Rs 26 lakh – an almost 7x return in nine months.
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Sensex gave up 48,000 on the Opening Bell on Tuesday but soon recovered some losses. Nifty was nearing 14,100. Broader markets were down in the red, underperforming benchmark indices.
Sensex reclaimed 48,000 but was in the red while Nifty was just above 14,050 in the pre-open session on Tuesday morning.
Sensex and Nifty were down in the red on Tuesday morning during the pre-open session. Sensex gave up 48,000 but soon recovered some losses to regain the levels.
IT major HCL Technologies has completed the acquisition of DWS Australia. Earlier last year, HCL Technologies had informed the bourses that the acquisition would cost the firm $158 million Australian Dollars.
Nifty futures were trading 78 points down at 14,097.50 on Singaporean Exchange, hinting at a gap-down start for BSE Sensex and Nifty 50 on Tuesday. Spike in COVID-19 cases and runoff elections in Georgia sent the global stocks lower. Senate runoff in Georgia is likely to impact the upcoming economic policies of US President Joe Biden.
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Indian Union Budget 2021-22: Finance Minister Nirmala Sitharaman, last year in her budget presentation 2020, announced the decision to abolish the Dividend Distribution Tax (DDT), while making dividend payment taxable at the hand of the recipient. The move was among the most talked-about decisions of the government at the beginning of 2020. Although this helped the cash-starved India Inc save some and increase cash-flow, for investors this meant more taxes. This was also trouble for promoters with high shareholdings, as a higher dividend would result in them paying more as taxes.
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HDFC: Housing Development Finance Corporation said its disbursements in the individual loan category have grown by 26 per cent during the third quarter.JSPL Steel operations reported their highest ever monthly production volumes with 7.27 lakh tonnes during December 2020.
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Most Put OI is at 13,500 strike with 20.81 lakh contracts. This is followed by 14,00 strike with 19.38 lakh contracts.
For the January series, maximum Call Open Interest (OI) is placed at 14,00 strike with 21.08 lakh contracts, with 6,225 fresh call writings. This is followed by 14,500 with 13.57 lakh contracts.
SGX Nifty has trimmed some of its losses but still sits deep in red, down 100 points on Tuesday morning.
The Nifty 50 index is likely to hit 15,800 levels by December 2021, implying a rally of over 12 per cent from the recent record high level, says brokerage firm Jefferies India. It expects NSE’s Nifty to deliver double-digit returns of 12.45 per cent on the back of strong economic revival in 2021/22 aided by housing market revival, and corporate earnings growth of 37 per cent in FY22 and 22 per cent in FY23. “A supportive global backdrop helps us start 2021 with a bullish view on Nifty,” the foreign brokerage firm said in a recent note. It maintains a positive stance on cyclical recovery in India, which it says is due to growing evidence that the housing cycle has bottomed out and is now set for a multi-year upswing.
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AMFI has moved stocks such as NMDC, MRF, United Breweries, and MRF among others to the midcap space. Max Healthcare is the new entrant to the midcap category.
In the latest list of stock classification release by AMFI, Yes Bank, Adani Enterprises, Gland Pharma, PI Industries, and Jubilant FoodWorks have been re-classified as large cap stocks.