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US markets fall, will the same reflect on Nifty?

Good Morning Everyone, After many days, the Nifty was quite stable yesterday without much volatility, but then today being the weekly expiry of derivatives, we did expect some volatility today, but what if the worries increase overnight?

Well, the worry is of course rising as the first case of Omicron was reported in the US yesterday and the US markets fell more than 1%. The effect of the US market is also seen in India, as Nifty is set to open at a gap down today by almost 60 points low.

With weekly expiry today, the day will be volatile, however, 17000 is again an important level to watch, which if broken we might see Nifty flat to negative in the short term.

On the higher side, we still have 17200-17300 as the important resistance zones for this week.

One point to note will be that the FII sell quantity has reduced slightly and DIIs are buying really big, which shows higher confidence by the DIIs in the market. But today can be crucial for the same.

The Nifty opened with a gap up yesterday at 17104 and mostly stayed range-bound throughout the day as seen below. Was this the calm before the storm? that's what we need to see today.

On the daily time frame, the nifty has formed a small bullish candle, but can it withstand the negative global cues is what needs to be seen.

Broad Market Indices:

Among the indices, the Midcap 50 went up the highest yesterday, up by 1.42% and India VIX was down 8% to 19.45 now.

Sector Watch:

PSU banks led the day with a rise of 2.66% followed by Metals, which were beaten up in the last few days. While the Pharma sector fell after the Omicron scare subsided, but might rise today gain after the fresh scare from the US.

Top Gainers:

Indusind Bank, after many days of fall, gained 5% as buying interest was seen by investors. Tata motors went up after its sales figures for Nov 2021 were positive and more than expected.

Top Losers:

Most pharma stocks were in negative led by Cipla and Divis lab.

Global Markets:

Wall Street was already headed lower in the afternoon when the White House announced that the first confirmed case with the omicron variant had been found in the US, in a person who recently returned from South Africa.

The S&P 500 fell 53.96 points, or 1.2%, to 4,513.04.

The Dow Jones Industrial Average fell 461.68 points, or 1.3%, to 34,022.04.

The Nasdaq fell 283.64 points, or 1.8%, to 15,254.05.

The Russell 2000 index of smaller companies fell 51.49 points, or 2.3%, to 2,147.42.

Asian shares fell this morning as investors worried about the Omicron variant of coronavirus. MSCI's broadest index of Asia-Pacific shares outside Japan reversed earlier losses to trade 0.2 percent higher. Japan's Nikkei index lost 0.4 percent. Chinese blue chips were flat-to-negative. And South Korea’s Kospi rose 0.2 percent. Elsewhere, Australian shares slid over 0.4 percent.

South Korea's consumer inflation accelerated to a decade high in November, remaining above the central bank's 2% target for an eighth straight month and boosting the case for another interest rate hike next month.

November consumer prices jumped 3.7% from a year earlier, government data showed on Thursday, hitting the fastest growth since December 2011 and up from a 3.2% rise in October.

Indian Market:

Trends on the SGX Nifty indicate a negative gap-down opening in the Index.

India's manufacturing activity grew at the fastest pace in 10 months in November. Compiled by IHS Markit, the Purchasing Managers' Index rose to 57.6 in November from 55.9 in October. The reading was the highest since January.

India's merchandise exports rose 26.49 percent year-on-year to $29.88 billion in November on better performance by key sectors, while the trade deficit hit a record high of $23.27 billion as imports of crude oil and gold spiked.

Banks' slippages have declined quarter-over-quarter (QoQ). Total slippages were at Rs 79,951 crore in the Q2 of FY22, as compared to Rs 98,536 crore in the first quarter. The annualised slippage ratio also declined to 2.98 percent in Q2FY22 vs 3.75 percent in Q1FY22.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 2,765.84 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 3,467.02 crore in the Indian equity market on December 1

Stock Specific News:

RITES | The Railway Ministry informed the company that the new line between Belgaum and Dharwad via Kittur, the Shimoga-Shikaripura-Ranebennur line, and the Tumkur-Devangere via Chitradurga new line projects will not be executed by the company.

Maruti Suzuki India | The automaker's total sales for November fell over 9 percent Year-On-Year to 1.39 lakh units

Eicher Motors | The company's Royal Enfield sales came in at 51,654 units for November

Hero MotoCorp | The two-wheeler company's total sales stood at 3,49,393 units in November. In the corresponding period last year, Hero MotoCorp posted a total sales of 591,091 units.

Raymond | The company's board approved listing of engineering and auto parts business 'JK Files & Engineering Ltd' through Rs 800-crore IPO which will be an Offer for Sale. There will be no fresh issuance of shares.

Infosys | The technology major announced the extension of its strategic collaboration with Proximus to digitally transform, develop and maintain their IT applications with leading AI and automation solutions.

Mahindra Logistics | The company and LOGOS have announced a long-term lease agreement for 1.4 million square feet of warehouse facilities at the LOGOS Luhari Logistics Estate in Delhi NCR.

Bharti Airtel | The telecom operator is in early talks to acquire a majority stake in Dish TV India, as per a media report.

India Grid Trust | A consortium of subsidiaries IndiGrid 1 and IndiGrid 2 has received the Letter of Intent from REC Power Development and Consultancy to establish 'transmission system for evacuation of power from renewable projects in Osmanabad area (1 GW) in Maharashtra on 'build, own, operate and maintain' basis.

Parag Milk Foods | The officials of the Income-Tax Department visited the company's premises for search under section 132 of the Income-Tax Act, 1961, on November 25, 2021. The company officials are responding to all the queries raised by the authorities, Parag Milk Foods said.

IIFL Finance | Smallcap World Fund Inc acquired 1 crore equity shares in the company at Rs 300 per share, however, Hamblin Watsa Investment Counsel Limited A/C HWIC Asia Fund Class A Shares sold 1,21,65,000 equity shares in the company at Rs 300.04 per share on the BSE, the bulk deals data showed.

Axita Cotton | The company has received an order for Indian raw cotton valuing $806890.92 from Bangladesh.

Marathon Nextgen Realty | The company has approved the proposal of offer and issue of debt security in the form of non-convertible debentures, of Rs 450 crore, by way of private placement basis, in one or more tranches.

HFCL | The company appointed two industry veterans, Dr. Peter A Weimann as the CTO and Jochen Arms as the Vice President - Sales (DACH Europe) for the optical fiber & cable (OFC) business, in its two recently incorporated wholly-owned subsidiaries in USA and Netherlands to bolster its international presence and unleash non-linear growth for the company in the global markets.

Atul Auto | The company's sales in November 2021 declined 16.05 percent to 1,344 units, from 1,601 units in November 2020.

Tata Motors | The company registered total sales of 62,192 units in November 2021, growing by 25 percent over last year.

NMDC | The company announced iron ore production of 3.34 MT in November 2021 against 3.32 MT in November 2020, and sales of 2.88 MT against 3.3 MT in the same period.

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