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US market down! Do we see a Nifty reversal now?

Good Morning, Everyone, Nifty went into a consolidation mode yesterday, end closed in small Red. Many analysts have written it as a reversal, which could be true for the short term, but I continue to be bullish for the mid to long term, as I have always been saying.

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Global Markets:

The US market fell last evening after it opened after a holiday weekend. The Dow Jones Industrial Average was down 274.89 points, or 0.78%, at 35,094.20, the S&P 500 was down 17.94 points, or 0.40%, at 4,517.49, and the Nasdaq Composite was up 4.98 points, or 0.03%, at 15,368.50. September is traditionally one of the weakest months of the year for stock market performance.

European equity markets slipped from recent highs on Tuesday a few of the deals in the telecom sector led by Deutsche Telekom was offset by caution ahead of a European Central Bank meeting later this week. The pan-European STOXX 600 index slipped 0.3 percent, a day after nearing a record high. British, French, and German benchmarks were down up to 0.2 percent in the early hours.

Shares in Asia-Pacific fell in Wednesday morning trade, with Japan revising upward its estimates for second-quarter growth. In Japan, the Nikkei 225 dipped 0.12% while the Topix index declined fractionally.

Indian Market:

Trends on the SGX Nifty indicate yet another gap-up opening slightly above 17400, which looks hard to sustain with the weakness in the market. 17350 & 17300 will continue to be strong support for Nifty, which if broken will lead to some selling for a few days. Similarly, 17400 will act as stiff resistance for now if Nifty looks at going upwards.

Forty-two stocks in the BSE 500 index clocked 52-week highs, including Bharti Airtel, Asian Paints, HCL Tech, Nestle, Tata Consumer, Tata Elxsi, Titan, Wipro, and UltraTech. Dabur, Brigade, Cummins, ICICI Prudential Life, Linde, Havells, Mindtree, Mphasis, Persistent, and Voltasalso hit the milestone.

Domestic rating agency India Ratings on Tuesday maintained a stable outlook on the banking sector for 2021-22 while it expects an increase in stressed assets in retail and MSME segments by end-March. It estimates gross non-performing assets (GNPA) of the banking sector to be at 8.6 percent and stressed assets at 10.3 per cent for fiscal 2021-22.

"We have maintained a stable outlook on the overall banking sector for the rest of FY22, supported by the continuing systemic support that has helped manage the system-wide COVID-19 linked stress," the rating agency said in its mid-year banks outlook released on Tuesday.

The Securities and Exchange Board of India (SEBI) on September 7 introduced T+1 (Trade plus 1 day) rolling settlement cycle for stocks on an optional basis. The new rule will come into force on January 1, 2022. The regulatory change has been adopted after the market regulator received requests from various stakeholders to further shorten the settlement cycle.

"Based on discussions with Market Infrastructure Institutions (Stock Exchanges, Clearing Corporations and Depositories), it has been decided to provide flexibility to Stock Exchanges to offer either T+1 or T+2 settlement cycle," SEBI in its circular said.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 145.45 crore, while domestic institutional investors (DIIs) net offloaded shares worth Rs 136.57 crore in the Indian equity market on September 7

Stock Specific Data:

Wipro | The company has announced a partnership with Securonix to deliver managed security services.

HDFC Life Insurance Company | The company has convened an extraordinary general meeting (EGM) of its shareholders on September 29 to seek their approval for the issuance of preference shares to Exide Industries in the Rs 6,687-crore deal to acquire Exide Life.

Cipla | The company has written to the National Pharmaceutical Pricing Authority (NPPA) to allow price hike of certain respiratory drugs citing a substantial increase in the cost of a critical ingredient called propellant P227.

Dr Reddy’s Laboratories | The company has initiated the supply of the first dose component of the Russian COVID-19 vaccine Sputnik V to partner hospitals all over the country.

TVS Motor Company | The company has appointed ETG Logistics (ETGL) as its new distributor in South Africa as part of its expansion plan in the country.

IDFC First Bank | The Reserve Bank of India has granted its approval for the re-appointment of V Vaidyanathan as the Managing Director & Chief Executive Officer of the bank for a period of three years effective from December 19, 2021.

Setco Automotive | Piramal Enterprises and Bain Capital Credit promoted India Resurgence Fund will invest Rs 615 crore in Setco Group.

EID Parry India | The company has approved the setting up of a 120 KLPD grain/sugar syrup/molasses-based Distillery at the Sankili unit in Andhra Pradesh.

Bajaj Consumer Care | ICICI Prudential Asset Management Company sold 1.5 lakh equity shares in the company via open market transaction, reducing shareholding to 3.83 percent from 3.93 percent earlier.

ICRA | Life Insurance Corporation of India sold more than 2.07 lakh equity shares in the company via open market transaction, reducing shareholding to 5.81 percent from 7.96 percent earlier.


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