Fresh covid worries spooks Indian equity markets, Nifty and Sensex down over 4% this week
It was an action-packed week with the markets witnessing a literal roller coaster ride. After making a low of 16,983 on Tuesday, Nifty bounced back 10 17,402 levels on Wednesday and Thursday trading sessions on strong global cues to finally close at 17,210 level. Positive domestic economic data also boosted sentiment. However, the index saw a fall on Friday as news around the spread of the Omicron virus weighed on sentiments.
On a weekly level, Nifty and Sensex both ended with marginal gains of 1% and 1.09% respectively. Nifty ended the week at 17196.7, up 170.25 pts while BSE Sensex closed at 57696.46, up 622.57 pts.
|Top Loser(Nifty 50)|
|Top Gainer (Nifty 50)|
🔭 Market outlook
There is a possibility of further weakness in Nifty this week down to 16,800 levels. If we look at the daily chart of Nifty, it is trading below the level of short-term moving averages now holding the level of 100 SMA. On the weekly front, Nifty has made a “Doji” candle and is trading near the level of the short-term moving average. If you combine both the data points and analyze them, some short pressure may be on the cards on up moves. Moreover, Indian Vix is also trading at a high level of 18-20, which suggests volatility in the coming week.
To witness a bounce back towards 17,400 and 17,550 levels Nifty will have to cross the 17,250 level. On the downside, if it goes below 17,050 then it can touch 16,800 and 16,650 levels.
Bank Nifty Outlook
On the daily chart, you can see the Bank Nifty is trading near the 200 SMA and on the weekly chart the index has made “Doji” candle. If you combine both the data points and analyze it, Bank Nifty shows more weakness compared to Nifty. This week Bank Nifty closed at 36,353 levels. In the coming trading session if it holds below 36,050 then weakness could take it to 35,700 and 35,300 levels, whereas minor resistance on the upside is capped around 36,800-36,950 levels.
💰 Stocks to watch
Buy Voltas CMP 1246, TGT 1275/1320, SL 1225 Duration 1-2 weeks
Voltas is forming Bullish engulfing formation after its last 6 weeks of correction on its previous horizontal support line on a weekly chart. Stock is in under formation of double bottom price pattern formation on the daily chart and successfully closed above all the moving averages after the pause of a day. Leading Indicator is at 56.10 showing strength in the counter for a more upward journey.
CMP 349, TGT 362/400, SL 340 Duration 2-3 Weeks The counter has come out of the trading range of a month and successfully closed above its previous high of 345. This breakaway gap with more than average volume shows conviction in the gap direction. Leading Indicator RSI signals strength in the counter and MACD is also above zero line corroborative upward move strength.
📺 Quick bites
Few Headlines That Should Be on Your Radar
- Infrastructure engineering, procurement and construction (EPC) major KEC International bagged new orders worth ₹10.7 bn across various businesses.
- India’s GDP grew at 8.4% in the July to September quarter of 2021 compared to a 7.4% contraction a year ago. It was up by 20.1% in the last quarter.
- The output of eight core sectors grew 7.5% in October as compared to a growth of 4.5% in September. The figure was at -0.5% in October 2020.
- India’s services sector expanded as services Purchasing Managers Index (PMI) was reported at 58.1 in November.
- Petrol prices in Delhi now cost ₹95.41 per liter, down from ₹103.97 after the state government reduced the VAT.
- IEX rose as much as 15% on Friday, ahead of its record date for its 2:1 bonus issue that is scheduled for Monday.
- Reliance Jio Infocomm raised its prepaid tariffs by 21% from 1st December, 2021
- Maruti Suzuki plans to hike prices of its cars in January 2022 because of rise in input costs.
- ZyCoV-D vaccine by Zydus Cadila will be launched first in Bihar, Jharkhand, Maharashtra, Punjab, Tamil Nadu, Uttar Pradesh, and West Bengal.
- Canara Bank raised around ₹1,500 crores via Basel-III bonds.
- Coal India’s production rose by 4% to 53.8 million tonnes in November year-on-year.
- RBI has granted its approval to Life Insurance Corporation of India (LIC) to increase holding in Kotak Mahindra Bank up to 9.99%.
- Dr. Reddy’s Laboratories is in talks with partners to export domestically made doses of the Sputnik vaccine.
🚀 IPO Corner
- Upcoming IPOs:
- Rategain Travel Technologies Limited IPO
Date: 07 Dec to 09 Dec
Price Band: ₹405-425
Issue Size: ₹1336 Cr
- Ongoing IPOs
Anand Rathi Wealth Limited IPO was subscribed ___ times at the end of Day 2 of bidding.(need to add subscribe data. Till 3:30 it was 2.74 times)
- IPOs closed this week
- Tega Industries Limited IPO was subscribed 219 times on the last day of bidding.
- Star Health and Allied Insurance Company Ltd IPO was subscribed 0.79 times on the last day of bidding. Retail investors subscribed to the issue 1.1 times the reserved portion.
- Go Fashion makes strong debut on the bourses. The company’s shares listed at 91% premium over its issue price bringing cheers to the investors.
🔌EV and Sustainability Corner
Key sustainability news from India Inc includes renewable energy, net-zero commitments, electric vehicles.
- Motherson Sumi Systems Limited (MSSL) enters 2021 Dow Jones Sustainability Emerging Markets Index, for the first time. Mahindra and Mahindra and Eicher Motors are the other two companies from the auto segment to be a part of DJSI 2021.
- Tata Power bags India’s largest solar and battery project worth ₹945 crores. They will build a 100 MW EPC (engineering, procurement and construction) solar project, along with 120 MWh utility scale Battery Energy Storage System in 18 months in Chattisgarh. After this contract the utility scale EPC order book of Tata Power Solar will be at 4.4GW (DC) capacity with a value of ~₹9,000 crore.
- FMCG major Hindustan Unilever (HUL) has eliminated coal usage across its operations and replaced it with green alternatives such as biomass and biodiesel, the company said in a release. This is a significant milestone for the company in its commitment towards achieving zero emissions in its operations by 2030
- L&T and ReNew Power, India’s leading renewable energy company, partner to develop green hydrogen projects in India. Green hydrogen is a promising alternate fuel and an important lever for achieving a cleaner future, the company said in a press release on its website.
- ONGC inks MoU with Solar Energy Corporation of India (SECI) to develop renewable, ESG projects including solar, wind, solar parks, EV value chain, and green hydrogen.
- Tata Power to install charging points for electric vehicles (EVs) at over 30 villas and heritage bunglows of hotel chain amã Stays & Trails. amã Stays & Trails is a unit of Tata group’s Indian Hotels Company (IHCL).
- Morgan Stanley Capital International (MSCI) dropped Adani Ports from some of its climate change indices.
- Union Minister for Road Transport and Highways Nitin Gadkari said during the Agenda Aaj Tak 2021 conclave that electric vehicles (scooters, auto-rickshaws and cars) will cost equal to petrol and diesel vehicles in the next two years.
- Tata Power gets shareholders’ approval to amend a scheme of arrangement to keep Tata Power Solar Systems Ltd (TPSSL) as an independent entity, contrary to its earlier plan to merge it with itself. The various policies introduced by the government to promote and encourage entities engaged in solar manufacturing will help TPSSL further expand its existing manufacturing capacities and create more shareholder value. Therefore, it would be commercially prudent and desirable to keep TPSSL as a separate entity rather than merging it with the company.
- ONGC is considering India’s first 200-300 MW demonstration Wind offshore power project for which feasibility study is carried out jointly with NTPC ltd.
- Adani Ports plans to start copper smelter and solar panel manufacturing at its SEZ land in Mundra port.
- Shriram City Union Finance foresees a rise in the average loan ticket size due to the increasing demand for electric vehicles (EVs). The company recorded highest-ever 2-wheeler loans of Rs 1,022 cr in November. The Chennai-based leading two-wheeler NBFC is a part of Shriram Group.
- Mahanadi Coalfields Ltd (MCL) is planning to set up a 50-megawatt solar power plant in Odisha’s Sambalpur district at a cost of ₹301.92 crore. The green project is part of the miner’s goal to achieve carbon neutrality by 2024.