The crash has finally happened. It was a bloodbath in the market yesterday. Intelligent traders minted money. The reports from the UK says that the new strain of COVID is 70% more transmissible than the previous one. Some officials said that the existing vaccine will be effective for the new strain also, which is a great relief, if true.
The US Congress has agreed to a $900 billion economic stimulus package. It includes direct payment to Americans, jobless benefits, funds for businesses and vaccine distribution.
Tata Motors is set to increase prices of commercial vehicles from January 2021. The company said that steady rise in material and other input costs, impact of forex and transition to BS6 norms, have all increased the cost of manufacturing.
JSW Steel Italy to acquire 30.73% of GSI Lucchini, for 1 million Euros(Rs 9 crore) in a deal with Industrial Development Corporation, South Africa. The acquisition has been made to strengthen the company’s presence in overseas markets.
Skills and Talent Development company, NIIT, to consider buyback of equity shares at its board meeting on December 24.
Lupin has received approval for Rufinamide Oral Suspension from USFDA. It has an estimated annual sales of $124.5 million in the U.S.
Future Enterprises has again defaulted on payment of interest of Rs 13.91 crore over its Non-Convertible Debentures(NCD).
Wendt is planning to sell 94,704 shares or 4.74% of the total equity through an offer for sale. The floor price is at Rs 2,200 per share, which is a discount of almost 31% to Monday’s closing price. The OFS opens for non-retail investors today and for retail investors tomorrow.
Asian Paints promoter entity Smiti Holding and Trading Company has again released pledge on 9 lakh shares.
What to expect today?
Yesterday was huge, historic and impactful. It was the crash that was promised. NIFTY fell by more than 600 points in a day! The last time such a thing happened was during the original COVID crash! You can read all about yesterday’s movements here.
Bank Nifty was no better, falling more than 1500 points and stooping to 29,200 levels.
The US markets recovered a bit and ended mixed. The European markets are 2-3% down. Asian markets are mostly down, but only by small amounts. SGX NIFTY is trading higher at 13,430, which is nearly 150 points higher, indicating a gap up opening in the Indian Market.
India VIX has gone up by 25%. There is volatility and uncertainty in the market. I think we have to watch the market and identify the trend to understand where it would go.
Huge OI shifts have happened and it suggests resistance at 13,500 and support at 13,000.
But, I don’t think we should go by that. Looking at SGX NIFTY levels, 13,500 might get breached today itself. We will have to wait, watch and see.
Highest Call Open Interest at 14,000, followed by 13,800. Highest Put Open Interest at 13,000, followed by 13,500. The number of call option contracts are way too higher than the put option contracts, thereby indicating the bearishness in the market.
Foreign institutional investors (FIIs) net sold shares worth Rs 323 crore, and domestic institutional investors (DIIs) net bought shares worth Rs 486 crore in the Indian equity market.
The single bad news trumped over all the good news in the market yesterday. It is highly uncertain times in the market now. I think even the smart money does not know what to do. FIIs have started to sell and DIIs have started to buy. Retailers caught in fear and worry among all this. Market has been on a crazy ride till now. Hold tight, I think the market might get even crazier.
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