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Global weakness to follow in India?

Good Morning, Everyone, We saw the Nifty opening strong and going above 17300, but that did not sustain after Moderna's CEO came out saying that the vaccine they produce may not be really effective for the Omicron variant of Corona.

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On the daily timeframe, Nifty has created a negatively biased candle, which might lead to some more weakness in the market.

Global markets fell immediately and we could see a big sell-off in US markets too.

US market is also facing more challenges from inflation, as it is at an all-time high and the Fed came out saying that this inflation is not transitionary and hence led to more fall in the US market.

The only good news can be that the Asian market has rebounded this morning and is leading to a gap-up opening in Nifty today. But the major concern still remains as FIIs have been selling at every rise in the market and bringing it lower.

Let us see if Nifty can sustain above 17000, however, if not sustained, the next support for Nifty is at 16750 and if that is broken, then 16500.

On the upper side, the Nifty is facing resistance at 17200, 17300, and 17500. Only a close above 17200 can be considered to be a reversal as of now.

Today being Wednesday, we could see peak volatility in the market, and I will use this opportunity to sell on rising.

Sector Watch:

All sectors except IT, realty, Pharma & FMCG were down yesterday.

Top Gainers:

Powergrid, Shreecem were among the top gainers yesterday.

Top Losers:

Tata Steel and Kotak bank fell the most yesterday among the top losers.

Global Markets:

The US stock markets fell on Tuesday after Fed Chair Jerome Powell said the central bank will consider halting its bond purchases meant to lower long-term rates sooner than expected.

The concerns over the omicron variant that it would hit the global economy also dampened the investors' appetite. Short-term Treasury yields rose as investors moved up expectations for a Fed rate hike.

The S&P 500 fell 88.27 points, or 1.9%, to 4,567.

The Dow Jones Industrial Average fell 652.22 points, or 1.9%, to 34,483.72.

The Nasdaq fell 245.14 points, or 1.6%, to 15,537.69.

The Russell 2000 index of smaller companies fell 43.07 points, or 1.9%, to 2,198.91.

Asian shares were mixed this morning as investors stateside monitored the risks of the Omicron variant. MSCI's broadest index of Asia-Pacific shares outside Japan was trading 0.6 percent higher. Japan's Nikkei index gained 0.3 percent. Chinese blue chips were flat. And South Korea’s Kospi rose over 1 percent. Elsewhere, Australian shares were down over 0.61 percent.

Indian Market:

Trends on the SGX Nifty indicate a flat to positive opening in the Nifty this morning. However, we need to watch if that can be sustained.

India’s real or inflation-adjusted gross domestic product (GDP) grew 8.4 percent during July-September, swinging sharply to the positive quadrant compared to the previous year’s 7.4 percent fall.

The GDP for July-September in 2021 at constant 2011-12 prices stood at Rs 35,73,451 crore, which was 0.3 percent higher than Rs 35,61,530 crore in 2019-20. This is a big leap compared to the first quarter (April-June), when real GDP grew 20.1 percent, compared to 2020-21, but was still 9 percent lower than the 2019-20 GDP levels of the same quarter.

S&P Global Ratings on Tuesday kept India’s economic growth forecast for the fiscal year to March 2022 unchanged at 9.5 percent but raised its predictions for the subsequent year on broadening out of the recovery.

“India is learning to live with the virus. Following the peak in COVID-19 cases around mid-year, the stringency index has declined, mobility has recovered, and consumer and business confidence has improved,” S&P Global Ratings said in a report.

The combined output of eight core industries has surged 7.5 percent in October as compared to the same period last year, showed the official data released on November 30. The cumulative output, apart from registering a year-on-year growth, has also marked a sequential growth as the core industries grew by 4.4 percent in September 2021.

“The combined Index of eight core industries stood at 136.2 in October 2021, which increased by 7.5 percent (provisional) as compared to the index of October 2020,” the commerce and industries ministry said in an official release.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 5,445.25 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 5,350.23 crore in the Indian equity market on November 30

Stock Specific News:

Maruti Suzuki India | The company is expecting an adverse impact on vehicle production in December 2021 in both Haryana and its contract manufacturing company, Suzuki Motor Gujarat in Gujarat, given the supply constraint of electronic components due to the semiconductor shortage situation.

NMDC | The company has fixed the price of lump ore at Rs 5,200 per tonne and fines at Rs 4,560 per tonne.

UltraTech Cement | The cement maker has reportedly commenced mining of coal from Bicharpur coal mines in Madhya Pradesh. Coal extracted from the Bircharpur mines is to be used for UltraTech Cement’s internal consumption and will reduce some dependence on coal purchases.

NTPC | Unit-4 of 250 MW capacity of Nabinagar Thermal Power Project (4X250 MW) of subsidiary Bhartiya Rail Bijlee Company is declared on the commercial operation. With this, the commercial capacity of NTPC group will become 67,907.5 MW.

Coal India | The coal major plans to invest Rs 19,650 crore by FY24 to increase coal transportation capacity by 330 million tonnes (mt) by constructing rail links and setting up joint ventures, a report said.

Hathway Cable & Datacom | The company has acquired the balance 3.64 percent stake in subsidiary Hathway Kokan Crystal for Rs 54,880. Now Hathway Kokan Crystal has become a wholly-owned subsidiary of the company.

PTC Industries | The company's wholly-owned subsidiary, Aerolloy Technologies, has received an International Certification for the manufacture of Titanium and Nickel Super Alloy Castings for Aerospace applications.

Strides Pharma Science | SBI Funds Management sold 66,400 equity shares of the company through open market transactions on November 29. With this, the shareholding has fallen to 5.42 percent from 5.50 percent earlier.

Rail Vikas Nigam | The company signed an agreement with the Economic Policy Research Institute of KYRGYZ Republic, Government of Kyrgyzstan, for the development of railway corridor projects in Kyrgyz Republic to connect from Bishkek to Karakechenskoye.

Zomato | The food delivery company unveiled Zomato Wings, a platform to help restaurants raise investments, as per a media report.

TCS | The company launched TCS Assessment and Migration Factory, a set of tools, accelerators, and services that enable customers to shift their mainframe workloads to the new AWS Mainframe Modernization (M2) platform.

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