Month: October 2021

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Sensex snaps 4-day losing streak, Bank Nifty posts record closing; fresh up move in Nifty possible above 18300

BSE Sensex and Nifty 50 snapped a 4-day losing streak as banking shares extended gains on Monday. BSE Sensex recouped all the losses and gained 145 points or 0.24 per cent to end at 60,967, while NSE’s Nifty closed above 18,100, up 10.50 points. ICICI Bank was top the contributor to the indices gain, followed by Axis Bank, State Bank of India (SBI), Mahindra & Mahindra (M&M), and Dr. Reddy’s Laboratories, among others. Broader markets underperformed the equity benchmarks. BSE MidCap index declined 1.7 per cent or 422 points to end at 25,145. While the BSE SmallCap index tanked nearly 2 per cent or 500 points to settle at 27,836. India VIX, the volatility index, gained 0.4 per cent to finish at 17.61 levels. Analysts say that the Nifty has formed resistance near the 18225-18300 zone, and fresh move will be possible only above 18300 levels

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

Markets were volatile and non-directional intra-day but Nifty found support near 18000, which helped indices to reverse losses. Technically, post short-term correction, the index consistently took support between 18000-18050 or near 20 day SMA. On intraday charts, the index has maintained a lower top formation which is broadly negative for the Nifty. We are of the view that the short term structure is weak but a quick pullback rally is not ruled out, if the index succeeds to trade 18000-18050 levels. Once again, 18050 could act as a sacrosanct support level for the day traders, and above the same, we can expect an extension of a pullback rally up to 18250-18310. On the flip side, below 18050 or below 20 day SMA, the uptrend would be vulnerable.

Vinod Nair, Head of Research, Geojit Financial Services

Market opened weak, however strong support from Banking stocks helped to balance the bearish pressure and lifted the indices to trade on a flat note. Improved asset quality and business growth based on key Q2 earnings aided the banking sector to improve the outlook leading to outperformance. Global markets were steady in anticipation of robust quarter earnings in the backdrop of inflation fears and possible tightening of monetary policy in the next policies.

Rohit Singre, Senior Technical Analyst, LKP Securities

Index managed to close a day at 18125 with minimal gains and formed a hammer sort of candle pattern on the daily chart which is bullish reversal candle pattern by nature. The good support zone is formed near 18030-17970 zone if managed to hold above-said levels then we may see some more extension in current pullback & any dip near mentioned support zone will be again buying opportunity, on the higher side index has formed resistance near 18225-18300 zone fresh move possible only above 18300 zone.

Gaurav Udani, CEO & Founder, ThincRedBlu Securities

From last few trading sessions, the Nifty has been making lower Highs and lower lows, which is a bearish sign. Nifty closed flat at 18125 after taking resistance at 18240. Nifty has support in 17980-18020 range and resistance in the 18220-18240 range. Traders are advised to be cautious in long positions and maintain strict stoploss.

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No application for virtual internship to be entertained: Sebi

Capital market regulator Sebi on Wednesday said it will not entertain any application for virtual internship in its legal department after the government relaxed COVID-19 restrictions.

“Upon relaxation of the government advisory relating to complete/partial lockdown and lifting of travel restrictions on account of COVID-19, the internship program shall be as per the eligibility criteria and other terms as provided in the advertisement dated March 4, 2020,” Sebi said in a notice.”No application for virtual internship shall be entertained,” it added.

On March 4, 2020, the Securities and Exchange Board of India (Sebi) had invited applications for an internship programme in its legal department. The heads of the department or the course coordinators of the respective law schools or universities in-charge of the internship program need to submit applications recommending not more than three applicants from their law school in a given quarter, Sebi had said. No individual applications will be accepted, it had added.

Laying down the eligibility criteria, Sebi had said, the applicant should be student of a law school or university which is recognised by the Bar Council of India and should have completed at least three years of the five-year LLB course or two years of the three-year LLB course.Besides, students pursuing LLM are also eligible.

Among other criteria, the applicant should have secured minimum of 60 per cent aggregate marks or equivalent cumulative grade points average in the previous semester results.”A stipend of Rs 10,000 shall be provided upon satisfactory and successful completion of the internship,” the regulator had said.

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Sensex, Nifty end 7-day gaining streak; experts advise caution, suggest defensive bets

Sensex, Nifty witnessed a volatile trading session on Tuesday, ending in the red after having touched fresh all-time highs earlier in the day. S&P BSE Sensex finished 50 points or 0.08% lower at 61,716, while NSE Nifty 50 ended the day at 18,418. Broader markets fared worse than the benchmark indices. Bank nifty touched 40,000 but closed lower at 39,540. Nifty Realty index closed 4.76% lower and the Nifty PSU Bank index was 3.74% lower. Nifty IT closed with gains. Technical analysts believe investors should now wait and watch while avoiding hasty trading decisions.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments –

“The Nifty failed to close above the 18600 level, instead there was a sharp fall from the day’s high. The support lies at 18200 and unless we do not break that on a closing basis, the overall trend continues to remain positive. The current scenario would be summarized as a wait and watch situation and hence hasty trading decisions should be avoided.”

Sachin Gupta, AVP, Research, Choice Broking –

On the technical front, the nifty index has formed a long bearish candle at the top of the trend, which indicates a further reversal in the counter. However, the index has taken immediate support at upper Bollinger Band formation on the daily chart. While on an hourly chart, the stochastic has also tested the oversold zone. At present, the Index has immediate support at the 18200 level while resistance comes at 18600 levels.

Rohit Singre, Senior Technical Analyst at LKP Securities –

“Profit booking has been witnessed in today’s session since the start of the day. The index managed to close the day at 18419 with a loss of half percent and formed a bearish candle on the daily chart after forming a doji candle yesterday. Going forwards 18480-18530 will be a strong hurdle on the higher side until we don’t cross above mentioned resistance. We may not see a bullish move or we may see more drag down in the index towards the immediate support zone 18350-18250 zone.”

Gaurav Udani, CEO & Founder, ThincRedBlu Securities –

On daily charts Nifty has made a bearish pattern and charts are suggesting that the correction in Nifty may continue in the next few trading sessions. Nifty has support at 18350 and 18225 levels. Nifty will face resistance in the 18480 to 18530 range. Traders are suggested book profits and keep strict stop loss in the current markets.”

Vinod Nair, Head of Research at Geojit Financial Services –

“The Indian market was showcasing strong resilience however the stretched rally booked some gains by the end of the trading day. Our advice is to transform personal equity portfolios into a balanced basket with high weightage on defensive stocks & sectors. The Indian market is expected to get more stocks & sector-specific as market parameters are extremely stretched. While moving to defensives, though near-term trend can be dull, one can give decent weightage to sectors like manufacturing, power, tourism, chemicals, renewables energy & products on a long-term basis.”

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Adani Wilmar, Nykaa, Star Health, and Allied Insurance, among 6 IPOs approved by SEBI

Rakesh Jhunjhunwala-owned Star Health Insurance, e-commerce brand Nykaa, and Adani Group’s FMCG unit Adani Wilmar are some of the companies to have received the green light from capital market’s regulator SEBI for their respective IPOs last week. Apart from the above-mentioned firms, Penna Cement Industries, Latent View Analytics, and Sigachi Industries too have received Sebi’s observations, clearing the way for them to raise funds through. In total, SEBI approved 6 IPO papers in the previous week while observations of 52 are yet to be issued by the market watchdog. SEBI’s observations are necessary for any company to proceed with its IPO.

Nykaa: The internet marketplace for cosmetics had filed for its IPO in August this year. Nykaa plans to raise Rs 525 crore through a fresh issue of equity shares, while promoters of the company are looking to sell 4.31 crore equity shares. Selling shareholders include promoters Sanjay Nayar Family Trust, and investors such as TPG Growth IV, Lighthouse India Fund III, Lighthouse India III Employee Trust, Yogesh Agencies & Investments Private Limited, JM Financial and Investment Consultancy Services, Sunil Kant Munjal, Harindarpal Singh Banga jointly with Indra Banga and others. Of the total issue, 75% will be reserved for Qualified Institutional Buyers.

Star Health and Allied Insurance: Big Bull Rakesh Jhunjhunwala-owned Star Health and Allied Insurance had filed draft papers with SEBI in July this year. The company is looking to raise more than Rs 2,000 crore through the IPO, which will include a fresh issue of equity shares and an offer for sale (OFS) by existing shareholders and even some promoters of the company. The big bull owns 7.68 crore equity shares of Start Health and Allied Insurance, translating to a 14% stake. 75% of the issue will be reserved for Qualified Institutional Buyers.

Adani Wilmar: Adani Group’s FMCG brand is looking to raise a massive Rs 4,500 crore from the market through the IPO. Adani Wilmar, a joint venture between Adani Group and Singapore-based Wilmar, was formed in 1999. It sells cooking oils under the Fortune brand as well as various other food products like rice and sugar. The IPO will be entirely a fresh issue of shares with a reservation for Adani Enterprise shareholders.

Other IPOs that have been approved include Penna Cement Industries’ Rs 1,550 crore IPO. Along with this, Latent View Analytic’s Rs 600 crore IPO and public issue of Sigachi Industries has been approved by the market regulator.

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