Markets triggered surprised selling on Friday with prices opening below crucial support of 17312 which turned out to be the support line of Rising Wedge (Nifty in USD terms) and FII topped it with massive selling of around Rs 8000 cr which took away fire power of domestic participants to hold market. The pillar of strength namely Bank Nifty and Nifty Metal Index have already developed wider crack after declining 4-5% on Friday and algo selling will be activated in Bank Nifty when it breaches below 200 DMA which is placed 35703. The Nifty in USD terms clearly indicate further downside of 23% in days to come and real selling will start when Domestic retail participants begins unwinding their portfolios. Adding to it, after Friday’s decline, even Nifty Non IT index has activated rising wedge breakdown which holds 82% within Nifty. This will add more fuel to selling fire.
Stocks fell sharply in a holiday-shortened session Friday in which the Dow posted its worst day (down 2.5%) since Oct 2020. The pandemic and COVID variants remain one of the biggest risks to markets, and are likely to continue to inject volatility over the next few weeks. Oil prices took a big hit during the week, as new COVID-19 variant cases raised fears of demand slowdown when the supply started increasing. The FII selling intensified in the month of November given the valuation concerns and rising expectations of early rate hikes in the US.
Stocks in news
RIL in focus- Jio announces 20 pct increase in prepaid tariffs effective Dec 1.
Auto Sales – Will be keenly watched as chip shortage issue is likely to hit PV sales growth.
Kotak Bank, IndusInd Bank in Focus promoters can raise or keep the stake at 26 pct vs 15 pct earlier.
MD and CEO Vipin Sondhi of Ashok Leyland has expressed his intention to resign from the posts effective December 31.
PNB Housing Finance- reports indicate Baring PE Asian offers to buy Carlyle stake in Co
MSCI to drop Adani Port, REC and IPCA from its 4 climate indices. BEL, SRF, Tata Power amongst 6 companies likely to be added.
Tyre companies to be in focus as Indian natural rubber prices now at an 8-year high, and inching towards the Rs 200/kg
Tata group is in talks with three states to invest up to $300 mn to set up a semiconductor assembly and test unit.
ITC to pick up 16% stake in Mother Sparsh
IPO & Listing – Go Fashion will make a debut on the bourses on Nov 30. Further Star Health IPO opens on 30th Nov.
Economic data – GDP and PMI data will be released during the week.
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