Market update | Bajaj Auto, Titan, M&M are the main winners, while ONGC, IndusInd Bank and Maruti Suzuki are the main losers among BSE Sensex.
Chandan Taparia, Derivatives and Technical Analyst, MOFSL
The first trade is to buy from REC Ltd. In recent trading sessions, we have seen purchases from selective utilities and REC has gained about 18 percent to expiration to expiration with accumulation of long positions. Recommend buying on REC with a stop loss of Rs 113 and expecting it to move towards Rs 125.
The second operation is Shriram Transport Finance, this stock is doing well and continually records higher highs and lows on the weekly scale. This stock has seen significant bullish movement and short coverage cannot be ruled out in recent trading sessions to expiration. Therefore, we recommend buying with a stop loss of Rs 1,015 for an upside target towards the levels of Rs 1,090-1,100.
The third store that sell UPL. Here, the trend is clearly negative, making the highs and lows lower and the stocks have the potential to fall below Rs 400, so it is recommended to sell with a stop loss of Rs 430 for the target. down from the Rs 395 levels.
DHFL | The company has posted a net loss of Rs 2,122.7 million in the second quarter of fiscal 21 versus a loss of Rs 6,640.2 million in the prior year period. The company’s revenue increased 4.7 percent to Rs 2,204.8 crore from Rs 2,106.7 crore year-on-year.
IL&FS | The company has received a binding offer to acquire its energy advisory firm IL&FS Energy Development Co Ltd (IEDCL). IL&FS has invited more EoIs for the company under the Swiss Challenge method.
The market opens | The Indian market opened higher on Thursday, driven by gains in banking, metals and auto stocks. As of 09:16 IST, the Sensex was up 113.07 points or 0.26 percent at 43,941.17, and the Nifty was up 33.90 points or 0.26 percent at 12,892.30. The broader markets, Nifty Smallcap100 and Nifty Midcap100 also traded higher.
More than half a dozen companies plan to launch IPOs in December; Ms. Bectors Food, Burger King, Kalyan Jewelers pending
Almost 10 unlisted companies plan to launch their initial public offering (IPO) before the end of the year amid bullish market sentiment. Almost 25 billion rupees has already been raised for the 25 IPOs listed this year, which is much more than those listed a year ago. Companies online to list are Mrs Bectors Food, LIC, ESAF Small Finance Bank, Nazara Technologies, Burger King, RailTel, Kalyan Jewelers, NSE, Zomato, among others.
This year it remained positive for the primary market despite the economy stagnating in the face of the COVID-19 lockdown. Surprisingly, in 2020 the majority of IPOs were opened at a premium that indicates the enormous appetite of investors.
Route Mobile continued to be the top performer this year, trading more than 40 percent profit with its shareholders since the day it was listed. Currently, the stock is trading nearly 175 percent higher than its issue price. Second in line is Happiest Minds Technologies, which is trading around 90 percent above its issue price, followed by Rossari BioTech and Gland Pharma. Read more here.
Lakshmi Vilas bank moratorium will be lifted on November 27
After the government approved the merger of the struggling Lakshmi Vilas Bank (LVB) with DBS Bank India Ltd (DBIL), the Reserve Bank of India (RBI) said on Wednesday that the moratorium on the troubled private sector lender will be will raise on November 27. Additionally, LVB branches will operate as branches of DBS Bank India from November 27, 2020.
“Clients, including depositors of Lakshmi Vilas Bank Ltd. will be able to operate their accounts as clients of DBS Bank India Ltd. as of November 27, 2020,” the notice read.
On November 17, the RBI had imposed a moratorium on LVB that restricted withdrawals to 25,000 rupees per depositor until December 16.
Earlier on Wednesday, the union cabinet approved LVB’s merger with DBS Bank India Ltd, union minister Prakash Javadekar told reporters, adding that the decision will provide comfort to 20 lakh depositors and protect the services of 4,000 employees. Read more here.
Asian stocks tumble as investors pause for breath after massive rally
Asian stocks fell slightly on Thursday as rally in global markets took a breather, and investors shifted their focus from vaccine hopes to disappointing US labor data. Investors held back from extending a rally in equities It had been fueled by optimism about vaccines. Stocks closed in but missed the all-time high of the previous session, while oil continued to rise and the dollar lost some of its safe-haven glow.
Traders turned to riskier assets, including some funded in other currencies, following positive news about COVID-19 vaccines and a seemingly normal US power transition earlier this week. The reported nomination of former Fed chair Janet Yellen to Treasury secretary has also emboldened those risk bets and weighed further on the dollar. Australia’s S & P / ASX 200 fell 0.12 percent, while Japan’s Nikkei 225 Index fell 0.16 percent. Hong Kong’s Hang Seng Index futures rose 0.16 percent. E-mini futures for the S&P 500 fell 0.10 percent. Keep reading.
FII inflows exceed Rs 50 billion in November; become net positive by 2020
Setting a new record, foreign institutional investors (FII) have infused more than Rs 50,900 crore into Indian markets so far this November, the highest in a single month. With this huge sum, the FII have become net positive for the year 2020 in the domestic market.
According to interim data available on the exchanges, FIIs have purchased shares worth 55,552.64 crore as of November 24. The total inflows in the year 2020 so far amount to Rs 96,766 crore.
This helped the Sensex and Nifty benchmarks reach record levels. The Nifty has recovered more than 74 percent from its March lows and is trading above 13,000 levels. It only took 14 trading sessions for the Nifty to rise to 13,000 from the 12,000 level. Read more here.
Sebi Withdraws Proposal To Increase Margin Requirement For Non-F&O Stocks In Spot Market
The capital market regulator Securities and Exchange Board of India (SEBI) has withdrawn a proposal to increase the margin requirement for non-futures and options (F&O) stocks in the spot market. On March 20 of this year, the market regulator proposed increasing the margin requirement for non-F&O stocks to 40 percent in a phased manner.
Here’s a quick update on what happened in the markets on Wednesday.
The Indian market fell from its all-time highs to close lower on Wednesday after investors posted gains. Banking and financial stocks trailed the most, while IT and pharmaceutical stocks also weighed on the indices. At the close, the Sensex closed 695 points lower at 43,828.10 while the Nifty50 index stood at 12,858.40, 197 points less. 43 of the 50 Nifty shares ended up losing. The broader markets underperformed the benchmark indices, with the Nifty Midcap 100 Index closing 2 percent lower, while the Nifty Smallcap 100 Index finishing 1 percent lower. Except for the PSU index, all industry indices finished in negative territory today. Nifty Realty was the worst performing sector of the day, down 2.4 percent, followed by Nifty Pharma (-2.18 percent) and Nifty Auto (-1.9 percent).
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