(Image: REUTERS)
Share Market News Today | Sensex, Nifty, Share Prices LIVE: Bears tightened their grip on Dalal Street on Friday as volatility soared higher. S&P BSE Sensex tanked more than 1,500 points to trade near 57,250 levels while Nifty 50 was down more than 450 points, hovering around 17100. Bank Nifty was down a whopping 3.2% at 36,110 while Broader markets mirrored the fall. India VIX was up 20%. Only Dr Reddy’s, TCS, and Nestle India were up with gains among Sensex constituents while the other stocks were down in red. Mahindra & Mahindra was down 5% as the worst Sensex drag, followed by Tata Steel, IndusInd Bank, and Maruti Suzuki India.
Midcap indices on NSE were down more than 3% each on Friday, Nifty Midcap 50 was down 3.8% while the Midcap 100 was down 3.28% and Midcap 150 was down 3%.
Nifty gave up the 17000 mark on Friday as the 50-stock index hit a low of 16,985 before registering a small pullback.
India VIX was up 24% on Friday, just ahead of the closing bell. The index breached 20 levels earlier in the day, for the first time in recent months.
Sensex was down more than 1600 points minutes ahead of the closing bell on Friday, Nifty was hovering just above 17000 mark.
Rollover for Nifty and BankNifty stood at 82.56% and 83.76% respectively. Surprisingly, stronger hands halted selling in index futures and opted to add some longs in recent correction and have rollover these longs in the next series. This has resulted in, Long Short Ratio surging from 54% to 70% now. However, they remained net sellers in equities for November month. Considering the rollover data, we believe most of the shorts are still intact and until we don’t see a sustainable move beyond 17800.
~ Sameet Chavan, Chief Analyst – Technical & Derivatives, Angel One
Nifty Pharma and Nifty Healthcare index were up in the green on Friday while all other sectoral indices were down with losses.
“I do not expect the Covid related sell-off to last long, even though the Pharma sector has started looking attractive. The broader market sell-off is tough to time with the holiday season coming on in global markets. However, as the longer-term expectations remain robust and recovery is strong whenever it comes, any dip is a good buying opportunity,” said Sonam Srivastava, Founder of Wright Research.
Tarson Products share hit the 20% upper circuit on the first day of trade today. Shares of the freshly listed company were at a high of Rs 840 per share.
The volatility index was up a massive 20% to breach 20 levels for the first time in recent months. Benchmark indices were down deep in red.
Aditya Birla Capital Limites and Honeywell Automation India Limited will be added to the Futures and Options list from December 31, NSE said in a circular.
Bank Nifty was down more than 1,100 points or 3% on Friday trading just below 36,200 mark.
“The sell-off today in the Asia market is said to be triggered by the new Covid variant. While the new variant has <100 cases worldwide, it is big news today. The sell-off in India from 18604 levels in October to (-)9% now is primarily driven by FIIs sell-off of Indian equities. Global investors have raised concern that the Indian market has become too expensive compared to emerging markets peers and are trading at a 31.6 PE multiple. In addition, the high energy prices could hurt emerging markets’ prospects. The announcement of the FED taper program and rising inflation is also a concern,” said Sonam Srivastava, Founder of Wright Research, SEBI Regd. PMS.
Nifty was above 17200 once again as benchmark indices trimmed some losses. The index was still over 1.88% in red.
Maruti Suzuki India and Tata Steel were down more than 4% each on Friday as the worst Sensex performers. These were followed by IndusInd Bank, Titan, HDFC, and Mahindra & Mahindra.
Bandhan Bank was among the worst banking stock on NSE on Friday as the scrip tanked 7.68%. This was followed by RBL Bank, IndusInd Bank, and State Bank of India.
“We reiterate that till the time we do not surpass 17900 – 18000, one should continue with a sell on rise strategy. Sooner or later it is likely to breach the key support of 17200 to slide below the 17000 mark,” said Sameet Chavan, Chief Analyst – Technical & Derivatives at Angel One.
The domestic benchmark – Nifty Index has gained ~25% YTD and has outpaced all the emerging markets. Since October 2021 end, while the Indian equities record-breaking rally has been losing steam, there are signs that local participants focus is shifting toward individual stocks from broad indices. Also interestingly in last two months, the FPIs were seen withdrawing money from the secondary markets (- USD 5.12bn) and deploying in primary markets (+ USD 3.78bn) largely.
~ Edelweiss
Key observation is that the index (Bank Nifty) since April 2020 has not corrected for more than one month barring one instance . In the current scenario with one month of decline already behind us, we expect the index to maintain the rhythm and form a higher base in the coming weeks.
~ ICICI Direct
The volatility index was up 18% on Friday while Sensex and Nifty tanked the most in recent months. India VIX was above 19 levels.
Zinc gained over 11 percent on the LME and about 9 percent on the MCX since October’21 following worries over disrupted supply amid resumption in global economic activities. Bleak demand from China, lockdown in Europe and bets over a tighter monetary policy might keep Zinc prices under pressure in the coming weeks.
Expect Zinc prices to trade lower towards Rs.260 per kg in a months’ time frame. (CMP : Rs.274)
~ Yash Sawant, Research Associate, Angel One
“Following to Asian trades Indian markets are overreacting to the concern over a new Covid variant found in South Africa last night followed by few EU countries under full lockdown scenario. Traders in fear are selling riskier assets like equities, which could result in increased equity outflows from FII. We believe India is not in panic mode and investors should make use of this selloff as a buying opportunity. The new variant should not be a great matter of concern for us and we suggest investors with suitable risk appetite to consider and start allocating money into markets who have missed the rallies,” said Prashanth Tapse, Vice President (Research) at Mehta Equities Ltd, a SEBI Certified Research Analyst.
The Indian Energy Exchange (IEX) has received shareholders’ approval for the issue of bonus shares and increase in authorised share capital. In a regulatory filing the company said the shareholders of the company have approved the resolutions as contained in the notice by requisite majority on November 25, 2021, through remote e-voting postal ballot process as set out in the postal ballot notice.
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“Equity markets have plunged almost 2% amid the emergence of a new, highly mutated Covid-19 variant. EU announced temporary ban of flights from South Africa and few EU countries are already under full lockdown scenario. Thus there is fear of this new variant spreading to other countries which might again derail the global economy. Already there is uncertainty as to when the US Fed will start raising interest rates. So markets might continue to reel under pressure and would actively track covid situation globally,” said Hemang Jani, Head of Equity Strategy & Senior Group VP, Broking & Distribution, Motilal Oswal.
Among sectoral indices, Nifty Pharma and Nifty Healthcare index were the only ones in green as investors rallied behind defensive bets. Both the sectoral indices were up more than 2% each.
Shares linked to the unlocking theme took a hit on Friday as investors gauged the surfacing of new covid-19 variant.
PVR – Down 6.7%
IndiGo – Down 8.5%
Indian Hotels – Down 7.6%
Barbeque Nation – Down 4.6%
Delta Corp – Down 6.4%
“Yesterday’s pullback after the early scare in the first half, and the inability to push beyond 17561 in the second half, despite several and strong up waves, confirms that consolidation is in play, rather than a directional move. Favoured view expects the same to continue today, without requiring to take a call on the chances of either 19k or 16k for now. During the day, it would be critical for Nifty to float above 17420 to maintain potential for a 17750-800 move. Inability to do so could clear path for 17000.”
~ Geojit Financial Services
Market had a positive start yesterday despite mixed global cues. In the initial trades, it looked a bit tentative as there was some hangover left of previous day’s late correction. Fortunately, all these nerves settled down in the first half an hour and then it was all big boy RELIANCE’s show thereafter. The stock kept surging throughout the day to mark whopping gains over 6% percent. It is needless to mention when this heavyweight moves in this fashion, it certainly takes the benchmark alongside it. If we look at the contributors list, this stock single-handedly pushed Nifty beyond 17500 as it contributed 104 points in Nifty.
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Only Dr Reddy’s was up with gains on BSE Sensex on Friday. The scrip was up 2% while bears tightened their grip on domestic markets.
Latent View Analytics share price was down 1.8% on Friday to trade at Rs 689 per share. Latent View is among the recently listed scrips on Dalal Street
Paytm share price was down 3.7% on Friday morning as the stock came under selling pressure amid bearish market momentum.
Tarsons Products shares were up 24% from the IPO price of Rs 662 per share on Friday, after nearly an hour of trade. The stock was up 18% from the listing price.
“The lack of faster retracement of the last decline signifies weak pullback that makes us believe retest of recent low of 17216 can not be ruled out. Over past 3 sessions index has retraced 38% of preceding four sessions decline (18210-17216). Since April 2020, there have been three major corrections (shown in adjoining chart) which measured average 9%. Buying in each of three corrections provided handsome returns for investors as index eventually scaled back to new highs. In current scenario, as Nifty has already corrected 7.5% from life highs of 18600 amid oversold placement of weekly stochastic (currently placed at 21), we expect markets to maintain this rhythm of arresting corrections within 9%. Thus, we expect Nifty to find strong buying demand in 16900-17100 zone,” said ICICI Direct.
India VIX, the volatility index, was up 14% on Friday as investors gauged the risk of new covid variant emerging. India VIX was above 19 levels after having dropped to below 15 levels earlier this month.
“The new virus strain news has taken markets by surprise. We have broken support of 17,216 & technically we should head lower. Multiple supports placed in the zone of 17,148 to 16,950. We have seen in the past that markets do not correct much due to Covid news & this may be a knee-jerk reaction which should settle in a day or two,” said Rahul Sharma, Director & Head – Research, JM Financial.
Sensex was down more than 1,200 points or 2% on Friday as bears forced Dalal Street lower. Nifty 50 was below 17,200, down more than 2%.
“(Bank Nifty) Index in the last three sessions witnessed a shallow retracement after recent decline signaling corrective bias. Hence after a negative opening use intraday pullback towards 37260 -37340 for creating short positions for the target of 37030, maintain a stoploss of 37460,” said ICICI Direct
“The lack of faster retracement signifies weak pullback of recent decline. Hence after a gap down opening use intraday pullback towards 17465-17495 for creating short position for target of 17378,” said ICICI Direct.
Bank Nifty index was down more than 2.5% on Friday, nearing 36,400 mark as bears dominate Dalal Street.
Tarsons Products shares rallied sharply on Friday, minutes after having made a tepid debut on the stock exchanges. The stock price rose 20% from the IPO price within minutes to trade at Rs 795 per share, after having listed at a lukewarm Rs 700 apiece.
A new coronavirus variant has been detected in South Africa that scientists say is a concern because of its high number of mutations and rapid spread among young people in Gauteng, the country’s most populous province, Health Minister Joe Phaahla has announced.
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