News Shots

India’s GDP contracts by 23.9% in Q1, versus the expected 19%. Manufacturing, Construction and Trade sectors saw a massive contraction amongst all the sectors.

Adani Group acquires 74% stake in Mumbai Airport from GVK Group. This makes the group the second-largest private operator in India after the GMR group, which operates the Delhi and Hyderabad airports.

Defence Ministry inks Rs 5,000 cr project with L&T and Tata Aerospace & Defence. In another deal, BEML received an order worth Rs 842 crore from the Ministry of Defence.

Auto sales numbers for August are due today. The sales figures that have been recovering for the last couple of months may have reached the pre-Covid levels, analysts who track Indian auto industry said in their projection for August. So, Auto Stocks will be in focus today.

AGR Hearing in Supreme Court today at around noon. Telecom and Banking Stocks to be in focus. Reliance Industries is also to be affected.

Larsen & Toubro has announced the much awaited closure of its deal to sell its electrical and automation business to France headquartered-Schneider Electric, after the two companies announced the Rs 14,000 crore-deal in May 2018.

The Maharashtra government allowed hotels to operate at 100% capacity from September 2 through new guidelines issued on Monday, but decided to keep bars shut. Hotel stocks can be watched.

Biocon Biologics, a subsidiary of Biocon, and Mylan have launched Semglee (insulin glargine injection) in vial and pre-filled pen presentations in the US.

Drug firm Morepen Laboratories reported over two-fold jump in its consolidated net profit at Rs 19.36 crore for the quarter ended June, mainly on account of robust sales in the active pharmaceutical ingredient (API) segment.

Balkrishna Industries, off-highway tyre manufacturer, has inked sponsorship agreement with six IPL teams for the upcoming T20 tournament.

What to expect today?

There was bloodbath in the market yesterday. Last 2 weeks’ gains have been wiped off in a single day! All sectoral indices closed in red. Just 2 stocks out of Nifty50 closed higher. We haven’t witnessed such a day after the horrors of late March. I hope short sellers are sitting on a huge pile of profits. Click here for a detailed analysis of yesterday’s market and stock movements. 

A retracement was expected, as I wrote yesterday. But this was crazy. There is no need to be worried or to be in panic. The market will eventually reverse and move up again. What happened yesterday was just an anomaly. Few negative stimuli like Indo China border tensions, SEBI’s new unfriendly rules, GDP data etc triggered profit booking. It was profit booking rather than short selling.

With the AGR verdict expected today, volatility and uncertainty can be expected. But the market shall start moving up very soon.

US Markets are mostly up. Asian markets also closed higher. SGX NIFTY is currently trading at 11,436, which is 70 points higher, indicating a positive gap up opening in the Indian Market.

NIFTY is likely to trade between 11,340 and 11,550 today. There is support at 11,400, and 11,340 and resistance at 11,470 and 11,530.

Highest Call Open Interest at 12,000, followed by 11,500. Highest Put Open Interest at 11,000, followed by 11,300.

Foreign institutional investors (FIIs) net sold shares worth Rs 3,395 crore, whereas domestic institutional investors (DIIs) net bought shares worth Rs 681 crore in the Indian equity market. FIIs turned sellers after a long time!

Banks, Reliance, Automobiles and Telecom will be in focus today.

There will be bounceback opportunities in a lot of stocks. When a trend reversal is confirmed, it will be a great time to buy in dips for amazing swing trading opportunities.