News Shots

England warns new Covid-19 virus strain ‘out of control’. All UK flights banned. Lockdown has also been implemented there.

Union Health Minister Dr Harsh Vardhan said on December 20 that Indians may start getting COVID-19 vaccine shots in January 2021.

Oil fell in early Asian trading after posting a seventh weekly gain. Concerns of a mutation of Covid-19 discovered in the UK exists. Fear of increased speed of transmission of the virus and more lockdown measures drove prices down.

Reliance Industries and BP (British Petroleum) have announced the first gas from Asia’s deepest project. This project is expected to meet 15% of India’s gas demand by 2023. 

Infosys has divested 1/3rd of its holding in Whoop Inc, the human performance company headquartered in Boston, USA for $10 million(Rs 74 crore). The company had made a minority investment in Whoop worth $3 million in December 2015, thus getting a good return on investment.

Zomato has closed a fundraise of $253.4 million from four different investors. The transactions valued Zomato at a post-money valuation of $3.9 billion(~Rs 29,000 crore). On a fully converted and diluted basis, Info Edge’s effective stake in Zomato stands at 19.3%.

KPR Mills is setting up a new sugar mill with the sugar capacity of 10,000 tonnes(TCD). Initial investment is Rs 500 crores.

Canara Bank has issued a clarification on the news over the alleged fraud of over Rs 7,900 crore by a company named Transstroy India. The bank says that its share in the amount lent by a consortium of 14 banks stands at just Rs 678 crore and that complete provisions have been made on the same as per RBI guidelines.

Lupin has received approval from the U.S. FDA for a cholesterol-related drug Colesevelam Hydrochloride tablets. As of the 12-months ending September 2020, the drug had a market size of $159 million(~Rs 760 crore)  in the United States.

PVR board has approved raising Rs 800 crore through various methods.

IDBI Bank has managed to raise Rs 1,435 crore through its QIP, which was subscribed by 44 Qualified Institutional Buyers.

Punjab National Bank raises over Rs 3,788 crore through its QIP issue. Approves the issue of over 106 crore shares at an issue price of Rs 35.5 per share. PNB QIP issue fell short of target by 46%. 

Oberoi Realty’s subsidiary, Evenstar Hotels, has purchased and taken possession of a hotel property situated at Dr. Annie Besant Road, Worli, Mumbai, for a sum of Rs 1,040 crore. The hotel property is a 221 key ‘5-Star’ hotel. It will be operated and managed under the Ritz-Carlton brand.

What to expect today?

Last week was another week of gain for NIFTY – its 7th consecutive week. You can read all about Friday’s movements here.

Bank Nifty has been heavily consolidating between 30,000 and 31,000 (30,800 specifically). 

The US and the European markets had all closed in the red on Friday. Following the new deadly COVID strain news from the UK, all Asian markets are down. SGX NIFTY is trading at 13,724, which is 50 points lower, indicating a flat to gap down opening in the Indian Market.

All looked good in the market with the US announcing stimulus, the Reliance-BP deal, the unending FII fund inflow, positive IT results, and it was expected that NIFTY will cross 13,800 and might even test 14,000 by this expiry.

But looking at the Asian markets and SGX NIFTY, it seems that the markets around the globe are taking the new strain of COVID in the UK seriously and are reacting to it.

The greatest question in my mind is – “Will fear kick in and investors start booking profits?”. If that is the case, it might trigger the crash that was long impending. What do you think? Let me know your thoughts in the comment section.

NIFTY is likely to trade between 13,650 and 13,850. 

Highest Call Open Interest at 14,000, followed by 13,800. Highest Put Open Interest at 13,700, followed by 13,500. Do watch out for a shift in OI if there is a correction today.

Foreign institutional investors (FIIs) net bought shares worth Rs 2,500 crore, and domestic institutional investors (DIIs) net sold shares worth Rs 2,600 crore in the Indian equity market on Friday.

Reliance, after the great news, can move up. The news was not factored in completely on Friday. Reliance moving up can definitely help NIFTY move up.

Bank Nifty was expected to break out from 31,000 with the help of HDFC Bank and ICICI Bank moving together. Let’s see if that happens.

With all the good news on one side and the UK COVID strain on the other side, it indeed is confusing times in the market. We have to watch if FII money is still flowing in. If that stops or reduces, then brace yourselves to witness a correction.

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