Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
For the time being, the markets are directionless. Yesterday's fall has made traders nervous and since the volatility is high, the stops will be large too. It is therefore advised to wait and watch for a few days till a clear direction is confirmed. 13,100-13,150 is medium-term support for the Nifty and if that were to break, we could slide down to 12,800.
Market At Close
Market Recovers Sharply From Lows To Close At Day’s High
IT Stocks Lead Market Higher; Infosys, TCS & HCL Tech Top Contributors
Nifty IT At 52-week High; Goldman Sachs Expects 3rd Wave Of IT Outsourcing Cycle
Nifty Gains 273 Points From Lows To Close 134 Points Higher At 13,466
Sensex Moves 894 Pts Higher From Lows To End 453 Pts In The Green At 46,007
Nifty Bank Regains 649 points From Intra-day Low To Close 169 Pts Higher At 29,626
Midcap Index Gains In-line With Benchmarks, Up 168 Points To 19,965
Market Breadth Improves To Favour Advances At Close; Advance-Decline Ratio At 1:1
Pharma Rises On Improvement In Key Pdt Prescriptions In US; Sun & Cipla Top Gainers
IGLR Surges Over 6% On Shift To PNG For Industries In Delhi
Hotel & Mltiplex Stocks Under Pressure After Maha Govt’s Night Curfew; PVR Down 6%
IndiGo Recovers 10% From Lows While Spicejet Remains Under Pressure
Closing Bell: Sensex, Nifty end higher after a volatile session; IT, pharma stocks lead
Indian indices ended higher after a volatile session on Tuesday led mainly by gains in IT and pharma stocks. Meanwhile, global peers remained cautious as the news of a new fast-spreading strain of the coronavirus in Britain that could slow global economic recovery weighed on the sentiment.
The Sensex ended 453 points higher at 46,006 while the Nifty rose 138 points to settle at 13,466. Broader markets were in-line with benchmarks with the midcap and smallcap indices up around 1 percent each.
The volatility index fell over 5.5 percent today to its highest in more than five weeks on Tuesday in a holiday-shortened trading week.
On the Nifty50 index, Adani Ports, HCL Tech, Tech Mahindra, Infosys and GAIL were the top gainers while Kotak Bank, HDFC, Bajaj Finance, UltraTech Cement and IndusInd Bank led the losses.
All sectors were in the green for the day. The Nifty IT index surged the most, up over 3 percent while the pharma index added 2 percent for the day. The Nifty Metal index was also up over 1 percent and the bank and auto indices gained 0.6 percent and 0.9 percent, respectively for the day.
Market Watch: Mehraboon J Irani, Gini Gems Consultants
On IT
This is the story that the entire market has been liking for the large part of 2020. The feel-good factor is there as far as IT stocks go. The momentum is also in favour of valuation beyond the point, at the moment cannot be questioned. It would not be a bad decision even now - besides the run up which we have seen in the stocks - to put some more money into IT stocks. This is still a sector in which people can look at favorably. Among the frontline stocks, I like HCL Technologies, among midcaps I would go with Tech Mahindra, Tata Elxsi, L&T Technologies Services and L&T Infotech. Something like Happiest Minds can possibly outperform others.
On L&T
If an investor believes that I want to have a lovely name like Larsen and Toubro (L&T) in the portfolio and I am not in a hurry to sell, he can continue to hold on. But at the present level, putting an incremental money, there are many stocks in the market that can possibly outperform L&T. So if there is an investor believing in the longer-term doesn’t believe that it should outperform the market over the next 15-30-45 years then possibly he can buy into L&T now. After the run up I think somebody who is trying to outperform the indices on a weekly or a monthly basis, L&T would definitely not be the best choice if one is looking at the next one-two months’ time.
ICRA upgrades rating of JSPL | Credit rating agency ICRA has upgraded its Rating from BBB (-) with “Stable” outlook to BBB (+) with “Stable” outlook on the Long Term Bank Facilities and Non-Convertible Debentures and from “A3” to “A2” for short term facilities of Jindal Steel and Power. The ratings are upgraded to [ICRA] BBB (+) with Stable outlook for long term facilities and Non-Convertible Debentures and [ICRA] A2 for short term facilities.
Global stocks steady as worries over new COVID-19 strain ease
European stocks steadied on Tuesday, after heavy losses a day earlier sparked by fears over a highly infectious new strain of COVID-19, as Washington approved an $892 billion pandemic relief package.
The broad Euro STOXX 600 gained 1.2 percent, on course for its biggest one-day jump in over five weeks. German and French indexes both added 1.3 percent.
London's blue chips turned positive, too, recovering early losses even as Britain adjusts to strict lockdowns imposed to curb the spread of the new strain of coronavirus. They were last up 0.3 percent
Countries across the world shut their borders to the UK on Monday because of fears over the new variant of the disease, snarling one of Europe's most important trade routes just days before Britain is set to leave the European Union.
Market Update | Indian market sees a sharp recovery. Sensex up more than 660 points & Nifty up 200 points from lows. Nifty Bank recovers 500 points pulled by ICICI Bank.
Market Watch: Shrikant Chouhan, Kotak Securities
Nestle is seeing a lot of activity. The stock is not finding any selling pressure from higher levels. In fact, whenever there is any uptick in the market, we are seeing some uptick. So, I am of the view that the stock is heading for at least Rs 19,000 levels in the short term. Here we can keep stop loss very close to around Rs 18,000. So Nestle is a buy even at this price with a target of Rs 19,000.
Bharti Airtel saw very less impact when the market was falling. It was comfortably trading close to Rs 500 levels and after hitting the levels of Rs 490, the stock is again moving towards levels of Rs 530-535. So Bharti Airtel is also a buy at this price with a stop loss at Rs 495.
Yash Gupta Equity Research Associate, Angel Broking
Indian indices are volatile on the back of global market clues along with fear of new coronavirus strain in the UK. India and other countries have taken some steps to stop this virus from entering the country. We expect the market to be very volatile and VIX again at 25.16. We suggest short term traders be very cautious and trade only with stop loss.
Dr Reddy s seeks approval from Health Canada for Favipiravir
Dr Reddy’s Laboratories Ltd, Canada-based Appili Therapeutics and Dubai-based Global Response Aid FZCO (GRA) on Tuesday said Dr Reddy’s Canada has filed an application on behalf of the consortium for Reeqonus (favipiravir) Tablets for treating COVID-19 in the North American country. The application was filed under Health Canada’s ”Interim Order Respecting the Importation, Sale and Advertising of Drugs for Use in Relation to COVID-19,” a release from the city-based drug maker said.
Reequnus is also known as Avigan (favipiravir) Tablets developed by Fujifilm Toyama Chemical Co., Ltd. ”We are pleased to work with our partners at GRA and Appili to be the first in Canada to file an application for oral solid tablets for COVID-19 treatment under Health Canadas Interim Order,” Vinod Ramachandran Vice President and General Manager, Dr. Reddys Laboratories Canada Inc said. Read more here.
Delhi HC dismisses Zee Entertainment plea | Delhi High Court has dismissed the plea of Zee Entertainment Enterprises seeking a stay on IndusInd Bank’s demand of Rs 83 crore. Delhi High Court allowed IndusInd Bank to raise demand of Rs 83 crore against Zee for Siti default.
Antony Waste Handling Cell IPO | The public offer for Antony Waste Handling Cell has been subscribed 2.4 times so far on Tuesday, the second day of bidding process. The Rs 300 crore public issue has received bids for 1.61 crore equity shares as compared to IPO size of 66.66 lakh equity shares (excluding anchor book), the subscription data available on the exchanges showed.
Buzzing | Shares of Sadbhav Engineering rallied over 10 percent after the company announced that it was declared the lowest bidder by Gujarat Metro Rail Corporation for a project. The project is for the construction of 11.6 km elevated viaduct from Kadarsha Ni Nal to Dream City dead-end including ramp for depot entry near Dream City and 10 Stations for Surat Metro Rail Project.
IDBI Bank tanks 19% post allotment of shares to QIBs
Shares of IDBI Bank shed 19 percent on Tuesday post the allotment of shares to its qualified institutional buyers (QIBs). 37.18 crore shares were allotted by the lender for its QIBs after the launch of its qualified institutional placement (QIP). The stock fell as much as 19.1 percent to its day's low of Rs 30.80 per share on BSE. It was the fourth consecutive session of decline. The stock has lost 27 percent in just these 4 days. In a meeting held on December 19, the firm approved the issue and allotment of the shares to the 44 eligible QIBs. The shares were issued at Rs 38.60, a discount of 5 percent to the floor price of Rs 40.63 apiece.
IndiGo, SpiceJet shares slip as new COVID strain halts flight services to UK
The shares of InterGlobe Aviation and SpiceJet were trading lower on Tuesday after the government of India suspended flight services to the UK until December 31. The shares of SpiceJet were trading 8.53 percent lower at Rs 83.65 apiece while InterGlobe Aviation was trading 2.04 percent lower at Rs 1,476.40 apiece on the BSE. The announcement was due to the discovery of a new strain of COVID-19 in the UK which led to several nations restricting flight services to and from Britain. Along with India, other countries including Ireland, Germany, France, Italy, the Netherlands and Belgium have already announced restrictions on travel to the UK. More here
Market Watch: Rahul Sharma, Equity99 Advisors
“Godrej Agrovet is doing really good and on weekly charts it is very strong. All the momentum as oscillators are showing strength and the stock is ready to give breakout. But today is a volatile session and so buying on declines will be the strategy till the level of Rs 500. Stop loss is placed at Rs 480 and the 3 months target is Rs 575 and Rs 590.”
“Bharat Electronics (BEL) overall setup is looking good. Structure is very much bullish. Positive moves are expected from here. Although yesterday the stock crashed, but now declines is the position for buying to the level Rs 100, keeping stop loss of Rs 94 with a target price of Rs 130 by February 2021.”
Market quote by VK Vijayakumar, Chief Investment Strategist at Geojit Financial
"A point repeatedly emphasized has been the vulnerability of the market at high valuations. When the market runs up too much too fast a crash like what happened on Monday becomes inevitable. Those investors who have increased the cash component in their portfolios can consider buying into top quality IT & financials for medium-term appreciation. The concerns regarding the new strain of the virus seems a bit exaggerated. But further lockdowns in the West can impact the expected growth recovery"
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The index opened in the green but is unable to sustain; the breaking of 13,500 yesterday has happened on the back of very high volumes. That being said, traders should not take an unnecessary risk by investing in long or short trades. We are at a precarious juncture and the markets would take a few sessions to stabilize before a direction emerges.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking
Any bounce back towards 13,450 – 13,550 is likely to get sold into; whereas on the lower side, Nifty has reached its first level of retracement i.e. the ‘89-EMA’ level (13,100) on the ‘180-minutes’ chart. Ideally, the next level of the natural profit booking is around 12,800, which is the ‘200-SMA’ level on the same time frame chart. But before this, yesterday’s low of 13,130, would be seen as immediate support for the index.
Traders are continuously advised to stay light and avoid taking contradictory bets in the coming session. With a larger view, this correction should be interpreted as a healthy sign and it will certainly provide better opportunities to enter marquee names on correction. But for momentum traders, the way chart structure seems distorted; it has certainly dented the recent optimism.
Asian stocks slip as new COVID-19 strain darkens recovery prospects
Asian shares slipped on Tuesday, extending a pullback from multi-year highs hit last week on renewed fears a highly infectious new strain of COVID-19 that shut down much of Britain could lead to a slower global economic recovery. Australian S&P/ASX 200 widened losses to be down 0.67 percent. Japan’s Nikkei 225 slipped 0.85 percent. MSCI’s gauge of Asia Pacific stocks outside Japan fell 0.21 percent. China’s benchmark CSI300 Index and Hang Seng Index both opened down 0.2 percent.
”An escalation of European COVID-19 restrictions in response to fears around a new variant, which is supposed to be faster spreading, should, and did, of course, elicit a negative reaction from prices via the near-term global growth impact,” said Stephen Innes, Chief Global Market Strategist at Axi. ”Illiquid conditions will persist through year-end, but dips like this could present more of an opportunity to fade than anything else,” he said. More here
