The surge in coronavirus cases in Europe once again threatened to disrupt trade and travel, which spooked investors and dragged Asian markets lower this week, including the key Indian benchmark indices.
The week started on a weak note with Sensex shaving off 1170 points on Monday, owing to weak global cues (thanks to fresh Covid-19 cases in Europe and lockdowns), global inflation fears, and valuation worries. Volatility was seen throughout the week, and the falling of Reliance-Armco deal coupled with weak Paytm listing and a U-turn on the farm laws by the government also dented investor sentiments.
European countries expanded covid-19 booster vaccinations and tightened curbs overnight towards the end of the week. World Health Organisation (WHO) has flagged a new variant of virus, which is heavily mutated, in South Africa. As covid risks rise and the dollar continues to strengthen, foreign investors are moving their money back to the safe haven market of the US and selling off their positions in other markets like India. During the week, FIIs sold shares worth ₹12,650.62 crores.
Nifty closed the week at 17,026.45 down 738.35 points or 4.16% while Sensex shaved off 2528.86 points ending at 57,107.15 or down 4.24%. Maruti Suzuki emerged as the top loser of the week down 11.61% followed by IndusInd Bank that was down 10.6% and Tata Motors down 9.6%. Among the top gainers were Cipla up 8.6% and Power Grid up 4.9%. Among the sector indices, Nifty Auto saw the biggest fall, down 8.41%. All the sectoral indices, barring Nifty Pharma and Nifty Healthcare Index, ended the week in the red.
|Top Gainers (Nifty 50)|
|Top Losers (Nifty 50)|
🔭 Market outlook
This week witnessed huge selling pressure in the market due to fear of covid-19 new variant. If we look at the daily chart of Nifty, which is trading below the level of short-term moving averages, it broke the level of 100 SMA.
On the weekly front, the index also broke the lower channel line and is now chasing the short-term moving averages. When you combine both data points, there is an indication of pressure on higher levels. Now, Nifty has to cross the 17,200 level to see a bounce towards 17,350 and 17,500 levels. While on the downside support, if it crosses below 16,850 then it can test the level of 16,650 and 16,500 levels.
Bank Nifty Outlook
On the daily chart, you can see the Bank Nifty is trading near the 200 SMA. On the weekly chart, the Bank Nifty has broken short-term moving averages. If you combine both the data points and analyze it, Bank Nifty shows more weakness compared to Nifty. This week Bank Nifty closed at 36,050 levels. In coming trading sessions, if it holds below 35,700 then weakness could take it to 35,400 and 35,100, whereas minor resistance on the upside is capped around 36,400-36,550 levels.
💰 Stocks to watch
CMP 2933, TGT 3115, SL 2860
Duration 1-2 weeks
Expected Return: 6-8%
On the weekly chart, PI Industries stock is witnessing Morning Star formation with follow-through green candle closing above candlestick formation of Nov. 18, 2021. On a daily time, the frame counter is depicting Inverse H&S bullish reversal price pattern formation revealing the target projection of 3115/3160.
Buy Alkem Laboratories
CMP 3562, TGT 3777/3951, SL 3240
Duration 2-3 Weeks
Expected Return 6% -10%
Alkem Laboratories’ stock is trading in an upward sloping channel on a weekly chart and witnessing ‘Hammer’ -A Bullish Reversal Candlestick formation on trendline support of a channel. Leading Indicator RSI at 51.65 confirming an uptrend and the extended price strength towards the northward direction.
📺 Quick bites
- Airtel wins subscribers in Sept adding 2.74 lakh mobile subscribers in September, according to data released by TRAI. Reliance Jio lost 1.9 crore users and Vodafone Idea lost 10.77 lakh users during the month. The subscriber base of Jio stood at 42.48 crore, Airtel at 35.44 crore, and Vodafone Idea at 26.99 crore.
- Mumbai GST zone has detected tax evasion of ₹265 crore by JSW Steel, as per a media report.
- Bharti Airtel Conducts India’s first 5G Trial in the 700 MHz Band with Nokia.
- Telecom companies hiking tariffs. Vodafone Idea decided to hike its prepaid tariffs in the range of 20-25%. Airtel also announced prepaid tariff hikes.
- ITC has initiated clinical trials for developing a nasal spray intended for coronavirus prevention, according to media reports.
- ITC will acquire a 16% stake in Mother Sparsh, a D2C Ayurvedic, and natural personal care brand, for ₹20 crore through a share subscription agreement.
- The board of JSW Energy has approved reorganisation of green (renewable) and grey (thermal) businesses. All existing and upcoming renewable energy businesses will be housed under JSW Energy Neo, a wholly owned subsidiary of the company. This move will help the company in building and streamlining its renewable portfolio and setting up a holding structure that will be efficient for fund-raising and unlocking value for shareholders.
- Airtel has conducted India’s first 5G trial in the 700 MHz spectrum band in partnership with Nokia.
- Bank of Baroda has raised ₹1,997 crore by issuing Basel III-compliant bonds.
- Sundaram Asset Management Company Limited received the regulatory approval to acquire the asset management business of Principal Asset Management Pvt Ltd.
🚀 IPO Corner
- Star Health: Opens 30 Nov until 2 Dec; price band of ₹870-900
- Tega Industries: Opens 1 Dec until 3 Dec; price band ₹443-453
- VLCC Health Care has received SEBI’s nod for IPO
- Pharmacy retail chain MedPlus get SEBI nod to launch IPO
- Go Fashion, whose IPO concluded recently, to debut the markets this week
- Latent View Analytics IPO listed at ₹512.2 on NSE compared to its offer price of ₹197, translating into a listing gain of 159.9%. The IPO made a debut on 23rd November and was a positive surprise after Paytm’s poor listing.
- Life sciences company Tarsons Products listed at ₹682 on NSE – a 3.02% premium over its issue price of ₹662. The stock closed the day 23.63% higher at ₹818.40. This is the 52nd company to list on the mainboard in 2021.
🔌EV and Sustainability Corner
- Greaves Cotton e-mobility arm opens its largest EV production facility in Tamil Nadu The plant is part of the Rs700cr investment roadmap laid by Greaves Electric Mobility. The 35-acre plant built to preserve the green terrain surrounding the site is located in the Industrial Centre of Tamil Nadu and will serve as an electric mobility hub for both domestic and export markets.
- TVS Motor will invest ₹1,200 crore in future technologies and electric vehicles over the next four years, the company announced.
- M&M becomes the first Indian company to feature in the Dow Jones Sustainability Index, after it entered the World Index list of companies in the DJSI 2021.
- Thrissur-based ESAF Small Finance Bank launches electric vehicle loan scheme ‘Go green’. These loans are available at low-interest rate, zero foreclosure charges, minimal processing fee and zero documentation charges.
- MG Motor India has collaborated with CleanMax to become the first passenger car company to adopt wind-solar hybrid energy.
- Bounce, the scooter rental app, is planning to launch its first consumer electric scooter on December 2, 2021, as per media reports.