Calm before the storm? Where is Nifty headed?
Good Morning everyone, The Nifty closed almost flat yesterday after some small move on both sides, but as I had told you, since 17400 is broken, we are seeing some bearishness in the Nifty for this week. Along with that, we have the FOMC meeting in US today, results of which will come tonight. With rising inflation in US, there are expectation of the US govt. planning to reduce support to the economy and the interest rates might rise too. Also the Indian WPI inflation data came in yesterday, which was higher than expectation. With such jitters in mind, we might see some sell off today. As of now, I will consider 17200 as the next support for the Nifty on the lower side and 17400 will now act as a resistance. If any of them is broken, we can see a movement to either side today.
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On the daily chart Nifty has formed an indecisive candle. That could lead to unexpected behaviour in the market.
Index Watch:
Except Small caps and Nex 50, all other index closed in Red yesterday. Which again indicates the selling by FII's in the large and mid caps. However, the FII selling was much lower yesterday.
Sector Watch:
Media and Pharma sector was up more than 1% yesterday. IT & Metals too closed in green but with a small margin.
Top Gainers:
Powergrid was the top gainer yesterday, followed by Divis lab and Axisbank.
Top Losers:
The top loser for the day was ITC after their investors meet, due to concerns over high taxation on cigarettes. This was followed by Bajaj finance and Tata consumer.
Global Markets:
Stocks closed lower on Wall Street Tuesday as latest inflation report showed wholesale prices jumped in November from a year ago. Federal Reserve policymakers have begun the 2-day meet and are expected to speed up the withdrawal of crisis time economic measures. The tech-heavy Nasdaq fell the most, down 1 percent. The Dow Jones and the S&P 500 fell 0.3 and 0.7 percent, respectively.
Asian shares were mixed this morning following WHO’s warning that Omicron is spreading faster than other variants. MSCI's broadest index of Asia-Pacific shares outside Japan was flat. Japan's Nikkei index rose 0.2 percent. Chinese blue chips were down 0.1 percent. Hong Kong’s HSI rose 0.2 percent. South Korea’s Kospi was flat but red. Elsewhere, Australian shares declined half a percent.
Indian Market:
Trends on the SGX Nifty indicate a flat start to the Nifty today.
India's merchandise exports jumped 27.16 per cent to USD 30.04 billion in November on the back of good performance by sectors like petroleum products, engineering goods and electronic items, official data showed on Tuesday.
The exports stood at USD 23.62 billion in November 2020. Imports in November were at USD 52.94 billion, showing an increase of 56.58 per cent over inbound shipments of USD 33.81 billion in the year-ago month.
NSE Indices Ltd, the index services subsidiary of the National Stock Exchange of India (NSE), on December 14 announced the launch of Nifty India Digital Index to track stocks exposed to the "digital theme".
"The new index aims to track the performance of portfolio of stocks that broadly represent the digital theme within basic industries like software, e-commerce, IT-enabled services, industrial electronics and telecom services companies," NSE Indices said in a press release.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 763.18 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 425.43 crore in the Indian equity market on December 14
Stock Specific News:
Bharti Airtel | The telco is collaborating with Capgemini to bring 5G based enterprise grade solutions in India.
ITC | The cigarette-to-hotels conglomerate, at its first analyst meet on Tuesday, expressed willingness to list its IT arm, make selective acquisitions in consumer goods, and demerge the hotels business.
Mold-Tek Packaging | The company launched QIP issue on Tuesday and has approved a floor price of Rs 722.40 per equity share for the issue.
GR Infraprojects | The company said the project "Development of Purvanchal Expressway (Package-IV) from Sidhi Ganeshpur to Sansarpur in Uttar Pradesh on EPC basis" has been provisionally completed. Subsidiaries GR Amritsar Bathinda Highway and GR Ludhiana Rupnagar Highway have executed the concession agreement with the National Highways Authority of India.
Tamilnadu PetroProducts | CARE upgraded credit rating on the company's long-term bank facilities to A from A-, with a stable outlook.
Deepak Nitrite | The company's board of directors will meet on December 22 to consider raising funds.
SMS Lifesciences India | The company has executed a Share Purchase Agreement and Share-Subscription Agreement with ChemWerth Inc. USA, strategic investor and their associates on Monday, for divestment up to 10 percent stake in Mahi Drugs, and raising fresh equity in Mahi Drugs, on a private placement basis.
Aptus Value Housing Finance India | ICRA has upgraded the company's credit rating to 'AA-' from 'A+' while reviewing the existing ratings.
Ansal Housing | Housing Development Finance Corporation invokes a pledge on 50 lakh shares of Ansal Housing, aggregating 8.42 percent of its paid-up share capital.
Adani Green Energy | The company has signed a power purchase agreement with Solar Energy Corp of India to supply 4.66 gigawatts of renewable power.