The biggest fall in the last 7 months! Correction or reversal in the stock market?
Good Morning, Everyone, The Nifty fell 348 points (1.96%) as seen in the below image, the selling started right from the word go, and this was the biggest fall in a single day in the last 7 months in Nifty. The fall was majorly contributed by Reliance after they called off the deal with Saudi Aramco.
Weakness was also seen in the banks and financial sector as we could see the FIIs relentlessly selling in the Indian Market.
With major supports broken at 17500, we could see 17250 as the next major support. And on the upper side, 17800 and 18000 can be seen as the resistance.
As discussed in the weekly meet, this is a turbulent phase, and it's important that we stay calm and hold on to our safe holdings during this phase.
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On the Daily chart, you can see the long bearish candle that was formed, which indicates the major bearish sentiment in the market for the short term.
Sector Watch:
PSU banks and Realy were majorly down by almost 4% each followed by Auto and Media sectors.
Top Gainers:
Bharti airtel was up more than 3% after it announced tariff hikes. Steel stocks too were more stable throughout the day.
Top Losers:
Bajaj twins were down almost 5% each, followed by Tata Motors and Reliance which dragged the Nifty today.
Global Markets:
Overnight on Wall Street, the three main indices ended on a mixed note with the technology stocks-heavy Nasdaq Composite gauge dropping 1.3 percent. The S&P 500 fell 0.3 percent and the Dow Jones managed to eke out a gain of almost 0.1 percent.
Equities in other Asian markets largely declined following a jump in US Treasury yields as Federal Reserve Chairman Jerome Powell’s renomination to head the Federal Reserve fueled bets on quicker policy tightening. MSCI's broadest index of Asia Pacific shares outside Japan was down 0.7 percent. China's Shanghai Composite was up 0.2 percent. S&P 500 futures were flat in early Asian trade.
Indian Market:
Trends on the SGX Nifty indicate a gap-down opening to Nifty today. I will keenly watch 17250 as the next level to be breached if the market continues to be weak, and any movement upward crossing 17500 can keep the market stable for some time.
The country's GDP growth is likely to be around 8.1 percent in the second quarter of the current financial year and in the range of 9.3-9.6 per cent during fiscal 2022, according to an SBI research report. In the first quarter of FY22, the economy grew 20.1 per cent. For the fiscal 2022, RBI has estimated real GDP growth to be at 9.5 percent — 7.9 percent in Q2, 6.8 percent in Q3 and 6.1 percent in Q4.
The country's exports rose 18.8 percent to $20.01 billion during the three week period of this month (November 1-21), due to healthy growth in sectors such as petroleum products, engineering goods, chemicals and gems, and jewelry, according to the preliminary data of the commerce ministry. Imports during the period increased 45.34 percent to $35.11 billion as against $24.15 billion during the corresponding period last year, the data showed.
The exports are growing at a healthy rate and are expected to cross $400 billion by the end of the current fiscal. In October, the outbound shipments jumped 43 percent to $35.65 billion, while the trade deficit widened to $19.73 billion during the month.
Japanese and Indian officials are working on ways to release national reserves of crude oil in tandem with the United States and other major economies, but the timing of such a release remains unclear, seven government sources with knowledge of the plans told Reuters.
Such an announcement could come as early as November 23, according to a source familiar with the discussions, but White House and US energy department officials said no official decision on a release had been made.
US President Joe Biden has asked China, India, South Korea, and Japan for a coordinated oil stocks release as US gasoline prices soar and his approval ratings slump ahead of next year’s congressional elections.
Stock Specific News:
Latent View Analytics | The analytics major's shares will make a debut on the D-Street today. Analysts expect the shares to list at a premium over the issue price of Rs 197.
Quess Corp | The company has increased its stake in Stellarslog Technovation Private Ltd from 36.58 percent to 49 percent by investing approximately Rs 4 crore. Stellarslog Technovation Private Ltd continues to remain an associate of Quess Corp.
Raymond | The Raymond Group is working on reorganising its businesses into five core revenue streams, deploying professional boards to raise growth capital in the future, as per a media report.
Marico | The FMCG player is working on expanding its distribution network across pharmacies, beauty stores, and specialised food outlets in villages and adding a slew of new products, including honey and virgin coconut oil, to its portfolio, as per a news report.
Omaxe | CARE has revised its rating on the company's long-term bank facilities to BB/Stable from D/Stable.
Redington India | The company's step-down subsidiary, Arena Bilgisayar Sanayi Ve Ticaret, has concluded final consideration at $29 million for the acquisition of Brightstar Telekomünikasyon Dagitim and is expecting that the transaction will be completed latest by November 30, 2021.
Triveni Engineering and Industries | The company has signed a 10-year business agreement with GEAE Technology USA to locally manufacture the LM2500 gas turbine base and enclosure.
Mazagon Dock Shipbuilders | The Indian Navy has commissioned the first ship of Project 15B Class Destroyer, INS Vishakhapatnam, built by Mazagon Dock Shipbuilders.
Vedanta | The company’s promoters are looking to increase their stake in Vedanta at Rs 350 per share. The promoters look to acquire up to 17 crore shares that represent 4.57 percent equity.
Bharti Airtel | The company added 2.74 lakh mobile subscribers in September even as larger rival Reliance Jio lost 1.9 crore users and Vodafone Idea lost 10.77 lakh subscribers during the month, according to data released by telecom regulator TRAI.
Punjab National Bank | The bank said there had been no breach of its systems or pilferage of personal data of customers and account holders. The state-run lender, in a statement, said it had thoroughly checked its systems and that the reported attempt of the perpetrator was monitored and checked.
Maruti Suzuki | Appellate tribunal NCLAT on Monday stayed the Rs 200 crore penalty imposed by the Competition Commission on Maruti Suzuki but directed the carmaker to deposit 10 percent of the total amount within three weeks.
ONGC: Weeks after its second-highest-ranking official asked ONGC NSE -5.02 % to give away its largest producing oil and gas fields to foreign companies, the Petroleum Ministry clarified that production from existing fields has to be increased through all means including technology and involvement of the private sector companies in a transparent manner.
State Bank of India (SBI) | Fitch Ratings has affirmed SBI's long-term issuer default rating (IDR) at 'BBB-'. The outlook is negative. The agency also affirmed the bank's viability rating (VR) at 'BB'.
DLF | Realty major DLF said its rental arm has raised Rs 1,000 crore through debentures to refinance its existing debt.
Fino Payments Bank | Societe Generale sold 4,62,468 equity shares in the company at Rs 401.48 per share on the NSE, the bulk deals data showed.
Thangamayil Jewellery | DSP Mutual Fund acquired 5,00,001 equity shares in the company at Rs 1,322.1 per share on the NSE, however, promoters - Narayanan Balusamy Kumar, Das Balarama Govinda, and Balusamy Ramesh sold 1,66,667 equity shares each at the same price on the NSE, the bulk deals data showed.
Ajanta Soya | Dolly Khanna bought 1.4 lakh equity shares in the company at Rs 147.72 per share on the BSE, the bulk deals data showed.
ION Exchange | Plutus Wealth Management LLP sold 75,000 equity shares in the company at Rs 2,220 per share on the BSE, the bulk deals data showed.
Lyka Labs | Ipca Laboratories acquired 10.5 lakh equity shares in the company at Rs 123 per share, however, investors Shreyans Jashwantlal Shah sold 3.45 lakh equity shares and Vipul Priyakant Dalal sold 2,40,121 equity shares at the same price on the BSE, the bulk deals data showed.
Indian Energy Exchange | The company announced the resumption in the trading of Renewable Energy Certificates (REC) with effect from November 24, after a gap of almost 16 months. The last REC trade session took place in June 2020.