Extreme volatility yesterday, but Nifty closed in green. Can it sustain the highs?

Good Morning Everyone, Yesterday the Nifty opened with a gap up at 18040 and went on to big selling to bottom out at 17836 and then came in the big buying to take up Nifty to above the day's opening and touching a high of 18087 and finally closing in green at 18068.

It was a very volatile day and many intraday traders would be stuck with losses in such a market. Thanks to our disciplined members in MPI Invest, we don't do aggressive intraday trading and are safe with our investment.

One major point to note is that in spite of major selling all these days, FIIs continue to sell yesterday too, but it was the DIIs who bought big yesterday and lifted up the Nifty.

As of today, 17900 could act as a big support to Nifty, and 18200 can be seen as a resistance for now.

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On the daily chart, Nifty has formed a bullish hammer, which indicates that the bulls are stronger at this level.

Sector Watch:

All sectors except Private banks and Pharma were up yesterday, giving overall positivity to the Nifty.

Top Gainers:

Our favorite Titan was the top gainer for the day after the amazing quarterly results that came in last week, followed by IOC which also announce its plan to foray into EV charging infrastructure.

HDFC touched its 52 weeks high as Housing finance companies (HFCs) are likely to witness a growth of 8-10 percent in fiscal 2022 helped by rising in the economy and higher demand, says a report.

Top Losers:

IndusInd Bank fell by 10% as the lender’s microfinance arm BFIL is facing flak over allegations linked to evergreening loans, as a pile of loans was disbursed in May without explicit consent of the borrower.

Divi’s Laboratories slipped over 6.3 per cent in trade on Monday. The drop was on worries related to the introduction of Pfizer’s anti-Covid oral drug and its impact on Divi’s revenues, a weak show of its generic business in the September quarter, and expensive valuations.

Mahindra shares fell ahead of its results, which we need to watch today. M&M is expected to report a fall of 5% in profit while revenue is seen rising 6.5% YoY. Margin may decline both YoY and QoQ due to higher raw material costs and inferior product mix

Global Markets:

Stocks closed modestly higher on Wall Street Monday, enough to mark record highs for the benchmarks. Dow Jones closed over 0.3 percent higher. The tech-heavy Nasdaq and S&P 500 also rose 0.1 percent.

Asian shares were mixed this morning following overnight gains on Wall Street. MSCI's broadest index of Asia-Pacific shares outside Japan declined 0.2 percent. Japan's Nikkei index rose 0.08 percent. Chinese blue chips were 0.3 percent higher. And South Korea’s Kospi declined 0.24 percent. Elsewhere, Australian shares also declined 0.12 percent.

Indian Market:

Trends on the SGX Nifty indicate a flat to negative opening for Nifty with weakness in the Asian markets. Let us wait and watch how things turn up in the day.

Domestic rating agency Brickwork Ratings on Monday revised its growth estimate for the country’s gross domestic product (GDP) to 10-10.5 percent in the current financial year from an earlier expectation of a 9 percent growth.

Many economic growth indicators are suggesting a faster-than-expected revival in economic activities, it said. “We revise our GDP estimates for FY22 to 10-10.5 percent from 9 percent estimated earlier,” the credit rating agency said in a report released on Monday.

Results today

Bosch, Mahindra & Mahindra, Power Grid Corporation, Astrazeneca Pharma, BHEL, HEG, Indraprastha Gas, MRF and Petronet LNG among 160 companies will release September quarter earnings on November 9.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 860.65 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 1,911.77 crore in the Indian equity market on November 8

Stock Specific News:

Reliance Industries | Reliance Eagleford Upstream Holding, a wholly-owned step-down subsidiary of RIL, announced the signing of agreements with Ensign Operating III to divest its interest in certain upstream assets in the Eagleford shale play of Texas, USA. With this transaction, RIL has divested all its shale gas assets and has exited from the shale gas business in North America.

Britannia India | The company reported a net profit of Rs 381.8 crore for the quarter ended September, missing Street estimates by a wide margin.

Aurobindo Pharma | The company's profit of Rs 696.7 crore and revenue of Rs 5,942 crore for Q2 FY22 were below market expectations.

Vedanta | Delisting of American Depositary Shares, representing equity shares, from New York Stock Exchange will become effective close of trading on NYSE on November 8, 2021.

Motherson Sumi Systems | The company's board of directors gave the approval to raise up to Rs 1,000 crore through the issuance of Non-Convertible Debentures.

Ujjivan Small Finance Bank | The bank reported a net loss of Rs 2.74 billion as against Rs 960 million. The lender's net and gross non-performing asset ratio deteriorated sequentially.

JBM Auto | The company has received prestigious orders for supply, operation, and maintenance of 200 air-conditioned fully built low-floor electric buses.

EID Parry (India) | The company reported a consolidated profit of Rs 470.35 crore in Q2 FY22 against Rs 562.70 crore a year ago, while revenue came in at Rs 6,978.41 crore as compared to Rs 5,836.21 crore in the corresponding quarter last year.