US markets rebound from the fall! Time for reversal in Nifty?
Good Morning Everyone, the most awaited announcement is finally over as the FED did chart out their tapering plans as in the coming months and it was better than expected. Read about it in the "Global markets" section.
We could see a reversal today after the panic sell off that happened yesterday. However, we can see 17400 acting as a resistance and then on the upper side we have 17600 as the major resistance for Nifty. However the major question is that, will the FIIs finally stop selling and start buying? If that happens, we could see some major rise in the market in coming days!
On the lower side, 17200 will act as support and 17000 will be the major resistance for now.
Looking at yesterday, as expected we saw huge volatility in the market and closed lower.
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On the daily timeframe, Nifty has formed a small bearish candle, which might be taken out today positively.
Index Watch:
Every Index fell yesterday with the broad based selling in the market, which shows the retailer participation also in the selling yesterday. However, Today will be time for them to buy and take the market up along with short covering as the market is set to see.
Sector Watch:
Auto sector was the only sector to close in green yesterday, whereas the Realty sector fell the most.
Global Markets:
Stocks rose steadily on Wall Street Wednesday after the Federal Reserve announced it would accelerate the pullback of economic stimulus and likely raise interest rates thrice next year to battle inflation. The tech-heavy Nasdaq rose over 2 percent. The Dow Jones and the S&P 500 rose over 1 and 1.5 percent, respectively.
The Federal Reserve said on Wednesday it would end its pandemic-era bond purchases in March and pave the way for three quarter-percentage-point interest rate hikes by the end of 2022 as the economy nears full employment and the US central bank copes with a surge of inflation.
"The economy no longer needs increasing amounts of policy support," Fed chair Jerome Powell said in a news conference in which he contrasted the near-depression conditions at the onset of the pandemic in 2020 with today's environment of rising prices and wages and rapid improvement in the job market.
Asian shares were mixed this morning as investors digested Fed’s indications of dialling back stimulus measures. MSCI's broadest index of Asia-Pacific shares outside Japan was flat and negative. Japan's Nikkei index rose over 1 percent. Chinese blue chips were flat. Hong Kong’s HSI declined 1 percent. South Korea’s Kospi was up 0.2 percent. Elsewhere, Australian shares declined over half a percent.
Indian Market:
Trends on the SGX Nifty indicates a big gap up opening in the market today. However, it needs to be seen if the FII's will support the market now after the FED policy announcement or will continue selling.
The new year will herald the return of normalcy and witness the growth momentum gaining steam, Bank of America said on Wednesday, pegging real GDP growth at 8.2% for financial year 2022-23.
Bank of America said the country had entered 2021 on an optimistic note with economic growth recovering and inflation well-contained but the second wave of the pandemic led to the return of supply shortages and exerted pressure on prices.
"We see 2022 as the year of much-awaited normalcy and normalisation for India. We expect growth recovery to gain steam, driven by consumption,” the brokerage said in its outlook for the new year.
Ratings agency ICRA on Wednesday revised downwards its growth forecast for the domestic passenger vehicles industry to 8-11% in the ongoing fiscal from the earlier 14-17% on account of the ongoing semiconductor shortage.
Similarly, for the two-wheeler segment, it said the volumes are expected to contract 1-4% in financial year 2021-22 against an earlier prediction of 6-8% growth as affordability and demand sentiments of target clientele have been hit sharply by the second wave of the pandemic.
The Reserve Bank of India (RBI) yesterday said it has allowed payments banks and small finance banks (SFBs) to conduct government business. "It has now been decided in consultation with the ministry of finance to make scheduled payments banks and scheduled small finance banks eligible to conduct government agency business," the RBI said in a notification.
"Any payment bank or small finance bank that intends to undertake government agency business may be appointed as an agent of RBI upon execution of an agreement with the central bank, provided that the overarching regulatory framework prescribed for these banks is complied with," the RBI added.
FII and DII
Foreign institutional investors (FIIs) net sold shares worth Rs 3,407 crore while domestic institutional investors (DIIs) net bought shares worth Rs 1,553 crore in the Indian equity market yesterday
Stock Specific News:
Adani Ports and Special Economic Zone | The company has signed a share purchase agreement with Adani Transmission for divestment of 100 percent equity stake of MPSEZ Utilities.
Wipro | The company will acquire LeanSwift Solutions for $21 million in an all-cash deal. The deal is expected to be completed by March 2022. Besides, the technology major has entered into a partnership with Italy-based UMPI, a smart lighting and building products maker, who will use the Wipro Sewage Monitor to empower water companies, municipalities in Europe.
Vodafone Idea | The telco is reportedly targeting a four-fold jump in annual capital expenditure to $2 billion, the company's top management has said, as it looks to take on stronger rivals.
Indiabulls Housing Finance | A block trade of 10-11 percent is likely today. Promoter Sameer Gehlaut is likely to sell his stake in the company while two large investors are expected to pick up 6-7 percent stake.
Vakrangee | The company partnered with Pharmeasy to provide online medicines & healthcare services across its platform.
Cipla | The company has acquired up to 33 percent of the partnership interest in Clean Max Auriga Power LLP. This agreement is in line with the company’s commitment to enhance the share of renewable power sources in its operation and to comply with the regulatory requirement for being a captive user under electricity laws.
Jubilant Industries | After the permission from National Capital Region and Adjoining Areas (Commission), subsidiary Jubilant Agri and Consumer Products has restarted manufacturing operations of its Sahibabad plant.
Sun Pharmaceutical Industries | The company's subsidiary has received final approval from the US FDA for its abbreviated new drug application for generic Amphotericin B Liposome for injection.
Power Grid Corporation of India | The board of directors has approved to pay Rs 7/share as interim dividend.
Sigachi Industries | The company and National Institute Of Pharmaceutical Education and Research have signed an agreement. Both parties have mutually agreed to extend assistance and support in the field of Innovation and Research.