Last expiry of the year! Volatility to the peak?

Good Morning Everyone, The last derivative expiry of the year is today and of course, with the low volumes in the market, we might see huge volatility in the market today.

Global cues are strong as US markets again hit an all-time high yesterday. But FII selling in India continues.

I expect the market to expire between 17100 to 17300 unless there is any major news in the market.

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Nifty opened flat yesterday and was completely volatile for the day and closed lower at 17213.

On the daily timeframe, Nifty has formed an indecisive candle.

The Smallcap index was up by 0.25% led by Graphite India up by 6.94%, Radico up by 5.22%, Intellect up by 4.75%, and the top losers were IDBI down 2.51%, BAJAJELEC down 2.12%, CEATLTD down by 2.05%.

The Midcap index was up 0.08% led by IDEA up 4.36%, TVS Motor up 2.04%, AUBANK up 2.04%.

The Nifty 50 was down 0.11%, but top gainers were Eichermotors up 3.41%, Bajajauto up 2.93%, Sunpharma up 2.33%. The top losers were SBIN down 1.73%, ITC down 1.57%, Coal India down 1.51%.

Pharma and Auto sector was the only positive sector yesterday which was up by 1.71% and 0.42% while media and metals were top losers.

Global Markets:

Stocks closed a volatile session higher on Wall Street Wednesday, as S&P 500 notched another record high. It rose 0.1 percent. The Dow Jones rose 0.2 percent, and tech-heavy Nasdaq declined over 0.1 percent.

Asian shares were trading mixed this morning while overnight gains led to a record close for S&P 500. MSCI's broadest index of Asia-Pacific shares outside Japan is up 0.3 percent. Japan's Nikkei index declined 0.07 percent. Chinese blue chips were up 0.17 percent. Hong Kong’s HSI rose half a percent. South Korea’s Kospi was up 0.07 percent as well. Elsewhere, Australian shares were down 0.07 percent.

Indian Market:

Trends on the SGX Nifty indicate a flat to a positive start to Nifty today. However, 17100 will be major support on the downside and 17300 will continue to act as a resistance.

The telecom tariff hike along with the recent relief package offers sufficient headroom for the industry to undertake deleveraging as well as fund capex for 5G tech upgrade, ICRA said on Wednesday, revising the outlook on telecom services sector to 'stable' from 'negative'. The hikes coupled with consistent upgradation of subscribers to 4G from 2G and increase in usage of services is expected to boost industry ARPU (average revenue per user) to around Rs 170 by the end of FY2023, it said.

Delay in loan repayments and defaults are rising in the fintech-led consumer credit space, according to the Reserve Bank of India's annual Financial Stability Report. Delinquency levels were at 1.82 percent of loans sanctioned by fintech in September 2020 and that number increased to 4.56 percent in September this year, according to data by credit information company TransUnion CIBIL.

The data is based on repayments due past 90 days, which in banking are categorised as non-performing assets. At 4.56 percent, fintech loan delinquencies are much higher than that of private sector banks and non-banking financial companies or housing finance companies.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 975.23 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 1,006.93 crore in the Indian equity market on December 29

Stock Specific News:

Indian Hotels Company | After acquiring the balance 14.28 percent equity stake in ELEL Hotels and Investments, ELEL has become a wholly-owned subsidiary of Indian Hotels Company.

Financial Services Companies | RBI has released the Financial Stability Report which shows that bad loans are set to rise but even in the worst-case scenario, gross NPAs across the banking system won't hit double-digits by September next year.

Varun Beverages | The company has incorporated a new entity 'Varun Beverages RDC SAS' in the Democratic Republic of Congo to carry on the business of manufacturing, selling, trading, and distribution of carbonated and non-carbonated beverages.

Bharat Petroleum Corporation Ltd | Life Insurance Corporation of India acquired over 2 percent stake in the company through open market transactions. With this, LIC's shareholding in BPCL has increased to 7.03 percent from 5.01 percent earlier.

Puravankara | The company will sell a 49 percent stake in arm Keppel Puravankara Development to Keppel Investment for Rs 112 crore.

Kimia Biosciences | The company has been validated for the supply of pharmaceutical raw material (Bilastine) to Bangladesh by the Government of Bangladesh. This certificate of source validation is sound for 3 years from the date of issue.

Deep Industries | The company has received an order from GSPC LNG for the hiring of gas compression services at GSPC LNG Terminal, Mundra, Gujarat, for 5 years. The total estimated value of the contract is approximate Rs 44.40 crore.

KPI Global Infrastructure | The company has received confirmation of the order for executing a solar power project of 10 MWDC capacity from Colourtex Industries, Surat under the 'captive power producer (CPP)' segment.

IRB Infrastructure Developers | The company has raised Rs 5,346.6 crore as it has approved allotment of 25,24,50,000 equity shares at a price of Rs 211.79 per share to Cintra INR Investments BV and Bricklayers Investment Pte Ltd.

BASF India | The company has reached an agreement to divest its manufacturing site in Quincy, Florida, and the associated attapulgite business for $60 million to Clariant.

Sigachi Industries | Foreign investor 3 Sigma Global Fund sold nearly half of its stake in the company, selling 2.46 lakh equity shares at Rs 403.4 per share on the NSE, and offloading 3 lakh equity shares at Rs 402.01 per share on the BSE, the bulk deals data showed.

HP Adhesives | Foreign investor Nexus Global Opportunities Fund exited the company by selling 3,04,923 equity shares in the company at Rs 369.2 per share on the BSE, the bulk deals data showed. BW Traders bought 1,09,394 equity shares in the company at Rs 364.47 per share, however, Rajasthan Global Securities sold 2.23 lakh shares at Rs 364.6 per share on the NSE.

Swelect Energy Systems | ICRA has downgraded the rating on the company's long term - fund based term loan to BBB+/Stable, from A-/Negative

Blue Dart Express | ICRA has reaffirmed the long-term rating at AA and short-term rating at A1+ assigned to the company's banking facilities. The outlook on the long-term rating is stable.