News Shots

The news that the whole world was waiting to hear is finally out – a successful COVID 19 vaccine test has been completed with 90% effectiveness! Phase 3 trials have been completed in ten thousands of subjects. It has been developed by US based Pfizer and German based BioNTech. 

The Global markets soared high after the news hit the market. The European markets especially moved the most (5-8%!) because Europe was the most severely hit by COVID and European markets are still below pre COVID levels, underperforming their US and Indian counterparts.

Prestige Estates Projects has agreed to sell a large portfolio of office, retail and hotel properties to global investment firm Blackstone for an enterprise value of Rs 9,160 crore.

Indiamart Intermesh posted a nearly eight-fold jump in its consolidated net profit at Rs 70 crore for the second quarter ended September 30, 2020.

Tata Steel has entered into a memorandum of understanding (MoU) with Hindustan Zinc to procure the firm’s complete domestic zinc requirements, according to a statement. This initiative would bolster the idea of Aatmanirbhar Bharat with one of the largest companies choosing to become vocal for local.

Future Lifestyle Fashions reported default on payments for its non-convertible debentures (NCDs). In a regulatory filing, the company said it has defaulted on “Payment of annual interest of Rs 30.93 crore for the period between 10 November 2019 to 09 November 2020.”

JK Cement Ltd reported almost three-fold jump in consolidated net profit at Rs 221.55 crore.

Indian Oil Corp (IOC), the nation’s top oil firm said it has commissioned its 120th aviation fuel station at Darbhanga in Bihar.

Ashok Leyland expects commercial vehicle (CV) sales to pick up in the remaining months of the current fiscal year after witnessing huge decline in volumes in the first half owing to the coronavirus pandemic.

Oil India reported 42 per cent fall in September quarter net profit largely on account of lower oil prices and one-time expense it incurred on controlling a blowout in Assam.

Hinduja Global Solutions (HGS) – The BPO arm of the diversified Hinduja Group reported a 65.6 per cent rise in consolidated net profit at Rs 81.3 crore in September 2020 quarter.

Some Major Q2 Results to be Announced Today:

  • Aarti Industries
  • Alkyl Amines
  • Bata India
  • Chalet Hotels
  • Gillette
  • Hindalco
  • Motherson Sumi
  • NDTV
  • Tata Power
  • V-Mart Retail

What to expect today?

Yesterday, NIFTY opened with a huge gap up and then rallied from 12,400 to 12,470, after Biden won the US Presidential election. In fact, NIFTY hit its all time high yesterday! Click here for a detailed analysis of yesterday’s market and stock movements. 

Bank Nifty has reached 27,600, outperforming NIFTY and all other indices. Hopefully you remember this discussion from yesterday – “The interesting observation here is – NIFTY has reached back to its all time high. Many major banks including heavy weight HDFC Bank are at its all time high. But, Bank Nifty is still nearly 5000 points away from it’s all time high”

Today and some days to follow will be all about the COVID 19 vaccine announcement by Pfizer. This was the news the whole world was waiting to hear. However good the markets were performing, there was always a constant fear and uncertainty due to COVID. Now since that is taken care of, markets can operate with more confidence.

Europe, as mentioned in the beginning, is up 6-8! US is up 2-3%. NASDAQ is down 1.5%. Asian markets are mostly up (1-2%). SGX NIFTY is trading at 12,655, which is 158 points higher, indicating a gap up opening in the Indian Market. 

One observation is – US markets opened with a gap up and continued to move down and closed lower. Also, Asian markets have opened with a gap up but are consolidating after that. So, after NIFTY opens with a gap up, wait for trend confirmation and then trade accordingly.

NIFTY is likely to trade between 12600 and 12,800. There might be profit booking/sell off at some point. Do expect volatility.

Highest Call Open Interest at 13,000, followed by 12,500. Highest Put Open Interest at 12,000, followed by 11,500. 

Foreign institutional investors (FIIs) net bought shares worth Rs 4,548.39 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 3,036.31 crore.

Bihar Election results to be out today – NDA is likely to lose as per exit polls. But this will be a non event in the market.

Do embrace the vaccine news and the greenery in your portfolio. Follow us on marketfeed app’s livefeed section to get real time updates from the market. All the best for the day!