Is this the end of fall in Nifty?
Good Morning Everyone, Finally after so many days of fall, the Nifty could at least close with a small green yesterday, thanks to the big buying by DIIs even when the FIIs kept selling. There was special support given by Reliance after it announced a 20% hike in their tariffs and also Kotak bank was strong after LIC got approval to increase its stake in Kotak Bank and there was a general positivity in the IT sector, especially when HCL went up ay more than 2% after many days of consolidation. The Nifty has to stay above 17000, for now, to start rising up, but if the support at 17000 is broken, then we might see some more fall.
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If you look at yesterday's chart, we can see the sudden sell-off in the first 5 minutes, and then the Nifty took some support and started moving up and closed almost flat or slightly up.
On the daily timeline, Nifty has formed a candle with a positive bias.
Sector Watch:
Only the Financial Services and IT sector closed in green, while all other sectors were in red yesterday.
Top Gainers:
Kotak bank was the top gainer for the reason mentioned at the start of this report, followed by HCL Tech.
Top Losers:
BPCL was down by 2.56%, followed by Sun Pharma, which was down b 2.33%.
Global Markets:
The S&P 500 recovered more than half its drop from Friday even as the investors were waiting for more clues about just how much damage the new Coronavirus strain may do to the economy.
Bond yields and crude oil also recovered chunks of Friday's knee-jerk reaction to run toward safety and away from risky investments.
On Monday:
The S&P 500 rose 60.65 points, or 1.3%, to 4,655.27.
The Dow Jones Industrial Average rose 236.60 points, or 0.7%, to 35,135.94.
The Nasdaq rose 291.18 points, or 1.9%, to 15,782.83.
The Russell 2000 index of smaller companies fell 3.96 points, or 0.2%, to 2,241.98.
Shares in Asia-Pacific mostly rose this morning, as Japanese stocks led gains regionally, with investors reacting to the release of Chinese factory activity data for November.
Japan’s Nikkei 225 gained 1.26% while the Topix index climbed 1.41%.
Indian Market:
Trends on the SGX Nifty indicate a flat to a positive start to the day.
Leading rating agency India Ratings expects the economy to grow 8.3 percent in Q2 and close the year with 9.4 percent in FY'22, which is 10 bps lower than the consensus forecast. The agency has attributed the higher growth to the nine consecutive quarters of over 3 percent agriculture growth, which has brightened consumer spending and the resultant uptick in private final consumption expenditure, which is likely to clip at around 10 percent in September quarter of the current fiscal.
Another major reason is the near three-fold jump in vaccination, which soared to 890.21 million as of October-end from 335.72 million at June-end. The government will announce the numbers on Tuesday.
Oil prices climbed on Tuesday, extending a rebound from last week's plunge on growing expectations major producers would pause plans to add crude supply in January amid uncertainty over the severity of the Omicron coronavirus variant.
The Omicron variant of COVID-19 adds new uncertainties to the global economic outlook but much will depend on its speed of transmission, hospitalisation and death rates, and also the effectiveness of vaccines, Moody’s Analytics said on Monday.
Women’s bottom-wear brand Go Colors operator Go Fashion is likely to debut with a 65-70 percent premium on the bourses on November 30, given the IPO subscription and demand in grey market. The company held an 8 percent share in the organized women’s bottom-wear market in FY20. It has a healthy, asset-light business model and had operating cash flows despite volatility in profit in the last three fiscals.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 3,332.21 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 4,611.41 crore in the Indian equity market on November 29
Stock Specific News:
Axis Bank | Fitch affirmed the long-term issuer default rating of Axis Bank at 'BB+' with a ‘negative’ outlook.
ICICI Bank | Fitch affirmed the rating on ICICI Bank at 'BB+' and outlook ‘negative’.
Punjab National Bank | The lender has approved investing in ‘Open Network for Digital Commerce’ as a Promoter Entity.
Tatva Chintan Pharma Chem | As a part of future needs, the company has acquired an industrial land admeasuring 50,399.16 square meters at Dahej-III GIDC Estate, Gujarat.
Ratnamani Metals & Tubes | The company has received new domestic orders aggregating to Rs 297.87 crore from the oil and gas sector. These orders are to be executed between February 2022 and January 2023.
James Warren Tea | The company approved a proposal to buy back shares worth Rs 24.86 crore at a price of Rs 295 per share.
Reliance Capital | Reserve Bank of India (RBI) has superseded the board of directors of Reliance Capital in view of defaults by the company in meeting the payment obligations to its creditors and serious governance concerns which Board has not been able to address effectively. RBI will shortly initiate the process of resolution of the company under the Insolvency and Bankruptcy Code, 2016, and Nageswar Rao is appointed as the Administrator.
Sayaji Hotels | Subsidiary Sayaji Hotels Management has signed and entered into 8 management agreements/franchise agreements/ term sheets for the expansion purpose by having new properties in Madhya Pradesh, Maharashtra, and Gujarat.
KSS | The company has approved selling its entire equity shareholding in material wholly-owned subsidiary K Sera Sera Box Office to Birla Financial Distribution.
Kotak Mahindra Bank | Reserve Bank of India (RBI) raised the permissible promoter holding in private banks to up to 26 percent from 15 percent. Additionally, LIC got approval from the RBI to raise its stake in Kotak Mahindra Bank up to 10 percent from 5 percent as of September-end. With this, the stock closed 2.38 percent higher.