Sensex fell 143 points to close at 45,959 while Nifty 50 ended the day’s trade at 13,478. Index heavyweights like Reliance Industires, HDFC Bank, ICICI Bank all closed in the red.
Only Nifty FMCG, Nifty Metal, and Nifty Realty were trading in the green ahead of Thursday’s closing bell, rest all the sectoral indices were in the red.
Share price of FMCG major ITC fell 14% between June and October. However, since the end of October the stock price has zoomed 30%.
Nestle India shares are up 4% while ITC stocks have gained over 3% during the day making them the top Sensex gainers just ahead of closing.
Global investment bank Macquarie’s Asia equity strategist Viktor Shvets is overweight on India by 60 basis points, down from 130 basis points in December of 2019. Despite trimming the weight assigned to India, Viktor Shvets has not moved lower into the underweight category even though he terms India as the most expensive emerging market with one of the deepest likely downgrade cycles. For still remaining overweight on India, despite the sharp surge in equities since March, Viktor Shvets cites three reasons in a recent report.
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Sensex trimmed losses and moved above 45,900 just ahead of the closing bell on Thursday. Nifty 50 was nearing 13,500.
Edelweiss Wealth Management today announced a significant increase of 70% per cent Y-O-Y in its user base in India for Edelweiss Mobile Trader (EMT), its proprietary mobile trading application. The growth has been led by Tier II and Tier III cities that saw a growth of over 87% Y-O-Y. Interestingly, women trading on the app have grown by 127% Y-O-Y while the accounts being opened via the app grew over 300% in Q2 FY21 as compared to Q2 FY20.
IRCTC stock down by 7.5% as company announced OFS (Offer for sale) up to 2.40 crores shares with option of additional sell of 0.8 lakhs shares with floor price of Rs1367. Promoter of the company “Ministry of Railways, Government of India” coming up with OFS of 15% of total issued equity share capital, promoter has an option to sell additional 5% so total OFS could be 20% of equity share capital. Company has fixed OFS has cutoff date for Non-retail investor 10th December 2020 and 11th December for Retail investors. 10% of OFS has been reserved for Retail investors and 5% reserved for Employees. Company has fixed the floor price of Rs 1367 for OFS which is down by 8.86% from CMP of 1500: Yash Gupta Equity Research Associate, Angel Broking Ltd
Wall Street has rolled out the welcome mat for companies going public this year, boosting proceeds from initial public offerings to the highest level in six years. IPOs slowed sharply in the spring due to the pandemic, but they surged in the summer as the market recovered from a steep slump and rallied to new highs. And so far, betting on IPOs has paid off.
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Bread and biscuits maker Mrs Bectors Food Specialities will launch its initial public offer (IPO) on 16 December 2020. The company is looking to raise Rs 540.54 crore through this issue. The issue will remain open for three days till 18 December 2020. The IPO would comprise of a fresh issue of equity shares worth Rs 40.54 crore and an offer for sale (OFS) by existing shareholders worth Rs 500 crore.
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With a vaccine shot now being administered to thousands across the globe, the return to the old normal looks closer than ever. Stock markets might already be pricing in the recovery that 2021 will bring with itself as the fight against the pandemic enters its final leg. Many are now sounding the alarm bell and asking investors to trade cautiously as markets enter the overbought territory. However, brokerage and research firm ICICI Direct believes that sectors which were most affected by the lockdown will now be the prime beneficiaries as we crawl our way back.
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Long build up in the Nifty and in Bank Nifty Futures, rise in PCR on the back of put writing at 13400 levels and long build up by FIIS’ in the index future segment indicates that one should remain optimistic for the market. Therefore, our advise is remain bullish with the strict SL of 13400 levels. On the higher side resistance is seen around 13600-13700 levels where Calls have been written In the Bank Nifty our advice is to remain bullish with the stop loss of 30300 levels. On the higher side, resistance is seen in the vicinity of 30900-31100 levels.
~ HDFC Securities
“On Wednesday, WTI Crude ended marginally lower by 0.18 percent to close at $45.5 per barrel after witnessing a sudden spike in the U.S. Crude inventory levels overshadowed the optimism infused by the potential vaccine. As per reports from the Energy Information Administration, U.S. Crude inventory levels increased by 15.2 million barrels against the analysts’ projection of a 1.4 million-barrel drop. However, the downfall in Oil prices was limited after the OPEC and Russia agreed to a marginal increase in 500,000 barrels per day from January 2021 onwards. As for today traders can go for sell in Crude Oil at Rs 3400 levels with the stop loss of Rs 3470 levels for the target of 33280 levels,” said Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking.
Domestically, equities have been outperforming reaching new highs amid rebound in the Indian economic outlook especially after the sharp revival in the GDP that was seen in the Q2 which has been a driving factor to attract foreign inflows in the country. Joining the queue of investment, Amazon is considering a nearly $100 million investment in pharmacy chain Apollo Pharmacy. Hence, losses in rupee, if any due to weakness in peers and mild strength in dollar shall be capped near 74.00 levels. Strength on the other side is limited to 73.50 levels as evident from the past two sessions due to RBI’s intervention. Overall, until rupee is trading between a narrow range of 73.40-74.00 levels, it is advisable to buy on, dips between 73.40-73.50 levels and sell on upticks above 73.80-74.00 for near term exposures: Amit Pabari, managing director, CR Forex Advisors
The central government has released the sixth weekly instalment of Rs 6,000 crore to the states to meet the GST compensation shortfall, the government said on Wednesday. This amount has been borrowed at the interest rate of 4.2%.
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‘The Nifty has definitely reacted from the resistance corridor of 13400-13700. Yesterday we were trading closer to the upper end of the range, today we are around the lower end of the range. If the markets need to breakdown or correct sharply, it would need to break 13100 which is a strong support for the index. Until then, the trend continues to remain bullish,” said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Maruti Suzuki India, and Power Grid India were the only two Sensex stocks that gained over 1% on Thursday morning.
Sensex falls below 46,000 on Thursday’s opening bell while Nifty 50 was seen trading below 13,500. IRCTC shares tanked 11% Yes Bank gains 8%.
Sensex moved over 100 lower on Thursday morning to sit below 46,000. Nifty slipped 40 points to 13,488.
After gaining briefly, Sensex and Nifty turned red in Thursday’s pre-open session. Sensex gave up 46,000 while Nifty moved below 13,500.
Sensex was above 46,100 while the 50-stock NSE Nifty was holding above 13,500.
Benchmark indices in recent years have been driven largely by a handful of stocks. But the trend is changing somewhat as the recent rally has been relatively broad-based. After being beaten down in March, bank stocks are propelling the indices to new highs, taking over the baton from the Reliance Industries and IT firms. More stocks are now contributing to the performance of the benchmark indices.
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Nifty futures were trading 56.50 points down at 13,508.5 in early trade on Singaporean Exchange, indicating a gap-down start for BSE Sensex and Nifty 50 on Thursday. In the previous session, Sensex ended at 46,103.50, up 495 points and the Nifty settled 136 points up at 13,529.10. The weekly expiry of F&O contracts is likley to keep the markets volatile today. Newsflow related to COVID-19 vaccine, oil prices, rupee trajectory and other global cues will sway market sentiment.
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‘Nifty continues its upward climb with little signs of a reversal soon. In fact today’s rise has come with an upgap between 13435-13449. It will be interesting to watch as to whether this upgap is filled soon or whether today’s gap is an exhaustion gap which indicates that we are close to a top,” said Deepak Jasani – Head Retail Research, HDFC Securities.
“Our markets reached yet another milestone of 13500 with ease and banking as well as Reliance were the major charioteer of the move today. Since we are in an uncharted territory, sky’s the limit for our market; but in our sense, we have now reached the extreme most zone, at least for the current vertical move. With a broader view, 14000 and beyond levels are very much possible, but for a time being, 13500 – 13600 are the extreme levels as per few fibonacci ratios,” Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking.
Maximum Put OI for contracts ending December 31 is at 13,000 strike with 38.46 lakh contracts. This is followed by 12,800 strike with 22.64 lakh contracts.
For the December series, maximum Call Open Interest (OI) is placed at 13,000 strike with 25.15 lakh contracts, followed by 18.76 lakh contracts at 13,500 strike. For the weekly expiry today, maximum Call OI is at 13,600 strike with 35.83 lakh contracts.
The Nifty has been continuously moving higher almost for six weeks after finding support at the 50-day SMA. The Nifty also remains above the 20 day SMA. While the long term uptrend is intact and long term momentum readings are not overbought, the short term momentum readings like the 14-day RSI have entered overbought territory as it is currently at 78.93. Also the rise seen in the last two weeks has almost been vertical.
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Domestic equity market benchmarks BSE Sensex and Nifty 50 were staring at a negative opening on Thursday, as suggested by trends on SGX Nifty. Nifty futures were trading 64 points lower at 13,529 on Singaporean Exchange. In the previous session, headline indices scaled to fresh highs fuelled by foreign fund inflows and positive cues from global markets.
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With India charting a strong economic recovery and showing signs of taming the spread of infections, equity strategist Chris Wood has found more reasons to be bullish on India. This week the global equity strategy head at Jefferies will increase India’s weightage in Greed & Fear’s Asia Pacific ex-Japan relative-return portfolio by one percentage point. This is despite the domestic stock market trading at premium valuations, which he says has a tendency to decline.
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“Further uptrend may continue which could lift the index to 13665. However, on intraday time frame, the index is in an overbought zone and high chances of an immediate correction is not ruled out if index trades below 13450. Hence, dismissal of 13450 could possibly open correction wave up to 13400-13350. Banking and FMCG stocks will be on focus for next few trading sessions,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.
India’s largest IT services firm Tata Consultancy Services (TCS) on Wednesday said its up to Rs 16,000-crore share buyback programme will commence on December 18 and close on January 1, 2021. Last month, TCS shareholders had approved a proposal to buy back up to 5,33,33,333 equity shares of the company at Rs 3,000 per scrip for an aggregate amount not exceeding Rs 16,000 crore.
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The government is looking to sell 3.2 crore equity shares of IRCTC through an offer for sale begining today. The floor price of the OFS has been set at Rs 1,367 per share a 15% discount to yesterday’s closing price. The OFS will open for non-retail investors today.
