News Shots

There were multiple reports about DCGI denying emergency approvals of Serum Institute, Bharat Biotech COVID vaccines on the grounds of insufficient data and safety  concerns. But later, the Ministry of Health tweeted clarifying that these reports were fake. We had talked about both updates on yesterday’s Stock Market Show.

Pfizer-BioNTech vaccine was approved in Canada yesterday. The company is planning to have different pricing on its Covid-19 vaccine for different countries, as they aim to make the vaccine available across the world.

The protesting farmers have called for boycotting Reliance Jio mobile network, petrol pumps, shops and services.

The promoter, Indian government, is planning to sell up to 20% stake in Indian Railway Catering and Tourism Corp (IRCTC) through an Offer for Sale (OFS). The floor price is set at Rs 1,367/share, which is a 15% discount to yesterday’s closing price. The OFS for non-retail investors opens on December 10 while retail investors can participate on December 11.

Maruti Suzuki India said that they will increase the prices of vehicles from January to balance out the negative impact of rising input costs (eg: Steel prices have been increasing constantly).

The share buyback of Tata Consultancy Services(TCS) worth Rs 16,000-crore share will start on December 18 and close on January 1, 2021. The price for buyback is set at Rs 3,000/share.

Automaker Mahindra & Mahindra has increased its stake in Finland-based arm Sampo Rosenlew Oy to 79.13% with the acquisition of additional shares for Rs 31.15 crore. The company is well known for its agricultural and forestry machines.

RBL Bank and ICICI Prudential Life Insurance have teamed up to sell insurance policies to RBL bank’s customers.

Adani Logistics on Wednesday again sold 8.85 lakh shares of Snowman Logistics at Rs 58.17 per share. Definitely not a great sign.

What to expect today?

Yesterday, NIFTY was on an uptrend breaking 13,500 and even testing 13,550. It was a day of the heavy weights where Reliance, HDFC Bank, Kotak Bank etc took the market up. Click here for a detailed analysis of yesterday’s market and stock movements. 

Bank Nifty, has crossed 30,500 and even tested 30,800. PSU Banks fell yesterday but HDFC, Kotak etc gained considerably to take Bank NIFTY up.

We were discussing this in the last few day – “NIFTY and Bank Nifty are at such highs even after the 2 heavy weights RELIANCE and HDFCBANK pulling them down. When these start to move up, we can see a larger rally in the market.” And this is exactly what happened in the market yesterday, taking it above 13,500.

US is majorly down (NASDAQ is nearly 2% down!) as there are some problems regarding the stimulus. Europe is also down. Asian markets are mostly down. SGX NIFTY is trading at 13,507, which is 20 points lower, indicating a flat to gap down opening in the Indian Market. 

NIFTY is likely to trade between 13,400 and 13,550. 

Highest Call Open Interest at 13,600, followed by 13,700. Highest Put Open Interest at 13,000, followed by 13,400.

The sudden unusual shift in OI is unsettling. Suddenly there is a huge Call OI built up at 13,600, 13,650 and 13,700. There is a huge Put OI built up at 13,400 and even 13,500. OI analysis indicates bullishness in the market.

But then the US markets have fallen. The Asian markets seem to be following them. So, if NIFTY is moving below 13,500, all those who sold 13,500 PE will be in trouble and thus, we might see so much action in the market today.

We couldn’t witness much volatility yesterday. I guess all of it will kick in today.

Foreign institutional investors (FIIs) net bought shares worth Rs 3,564 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 2,493 crore in the Indian equity market.

In fact, market was up yesterday mostly because of  the movement in Reliance, HDFC Bank, Kotak Bank and Infosys. If they wouldn’t have moved up, it would have been a muted day. So, let’s keep a close watch on the said heavy weights today, also keeping in mind that the farmers have boycotted Reliance products.

NIFTY is creating all time highs every single day. Moving up 100 points every single day. An unbelievable, unrealistic rally. Participants are waiting for an opportunity to book profits. Following the sell off in the US market yesterday, can we see that in the Indian market today?

NIFTY has climbed 400 points in the last 4 days straight. It’s recommended that it cools down. And as mentioned, volatility is expected today. Let’s see what happens. Follow us on marketfeed app’s livefeed section to get real time updates from the market. All the best for the day!