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As Sensex, Nifty plunge over 4% so far in 2022 on global uncertainty, is it time to buy yet or wait and watch?

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BSE Sensex and NSE Nifty 50 ended lower for the sixth straight session on Wednesday ahead of weekly and monthly F&O expiry. BSE Sensex plunged 509 points or nearly 1 per cent to 56,598, while NSE Nifty 50 crashed 0.9 per cent or 149 points to settle at 16589. Analysts say that owing to the global uncertainty, the stock market is likely to remain under pressure in the near-term. Monthly F&O expiry on Thursday and the upcoming RBI MPC meeting outcome will be keenly watched by the investors. So far in the year, both BSE Sensex and NSE Nifty 50 have plunged more than 4 per cent, turning negative for 2022. Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said that the overall market trend seems to be weak and there is no confirmation of any buying emerging from the lows. If the 50-share index breaches 16800 support, then there may be a possibility of a minor pullback rally near 16800-16750 levels in the next 1-2 sessions, Shetti added.

Also read: Petrol, Diesel Price Today, 29 Sep 2022: Fuel prices unchanged; check rates in Delhi, Mumbai, other cities

Sanjiv Bhasin, Director, IIFL Securities, told FinancialExpress.com that investors must buy the fear as inflation is headed down and the rally in dollar is overdone. He added that India may see the return of flows by next month. “We will outperform on the upside in any global rally which could start by mid-October,” Bhasin said.

Rajesh Palviya, VP – Technical and Derivative Research, Axis Securities, told FinancialExpress.com that investors should buy in a staggered manner in the Indian market as sectorial rotation is going to happen. Palviya said that the stock market is now focusing on the defensive sectors and low beta stocks in this volatile market. “Investors can focus on Pharma, FMCG, chemicals and Midcap IT stocks in the current market scenario,” he advised.

Ajit Mishra, VP – Senior Technical Analyst, Religare Broking, told FinancialExpress.com that investors shouldn’t worry about the recent stock market correction. They can rather look at buying opportunities in the sectors such as banking, auto, FMCG and financials which were leading in the recent up move. “Nifty has immediate support at 16800 and next at 16650. On the higher side, 17200 would act as a hurdle in case of a rebound,” Mishra said.

Also read: Rupee to depreciate further on strong dollar, recession fears, USDINR may head towards 83 in coming sessions

Milan Vaishnav, CMT, MSTA and founder of Gemstone Equity Research, told FinancialExpress.com that it’s time that one can start picking up quality stocks at current levels on a highly selective basis. Key levels to watch out for in near term in Nifty is 17000 and 39000 in Bank Nifty index.

The recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.

Wall Street ends volatile session higher with focus firmly on US Fed rate hike decision

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Wall Street’s main indexes ended a seesaw session higher on Monday, as investors turned their attention to this week’s policy meeting at the Federal Reserve and how aggressively it will hike interest rates. Even more so than the Ukraine war or corporate earnings, the actions of the U.S. central bank are driving market sentiment as traders try to position themselves for a rising interest rate environment. The S&P 500 and the Nasdaq rebounded from logging their worst weekly percentage drop since June on Friday, as markets fully priced in at least a 75 basis point rise in rates at the end of Fed’s Sept. 20-21 policy meeting, with Fed funds futures showing a 15% chance of a whopping 100 bps increase.

Unexpectedly hot August inflation data last week also raised bets on increased rate hikes down the road, with the terminal rate for U.S. fed funds now at 4.46%. “This is all about what’s going to happen on Wednesday, and what comes out of the Fed’s hands on Wednesday, so I think people are just going to wait and see until then,” said Josh Markman, partner at Bel Air Investment Advisors.

“We had a poor print when the CPI came in, so the Fed – who is behind the 8-ball – is now trying to get ahead of the curve and curb inflation, and that (awareness) is driving equity markets.” Reflecting the caution for new bets ahead of the Fed meeting, just 9.58 million shares traded on U.S. exchanges on Monday, the sixth lightest day for trading volume this year.

Focus will also be on new economic projections, due to be published alongside the Fed’s policy statement at 2 p.m. ET (1800 GMT) on Wednesday. Worries of Fed tightening have dragged the S&P 500 down 18.2% this year, with a recent dire earnings report from delivery firm FedEx Corp, an inverted U.S. Treasury yield curve and warnings from the World Bank and the IMF about an impending global economic slowdown adding to the woes. Goldman Sachs cut its forecast for 2023 U.S. GDP late on Friday as it projects a more aggressive Fed and sees that pushing the jobless rate higher than it previously expected.

“The Fed will continue to plough along, we’ll get 75 (bps) on Wednesday, but what comes next and whether they are going to pause or not after Wednesday, that is going to be the interesting part,” said Bel Air’s Markman. The Dow Jones Industrial Average rose 197.26 points, or 0.64%, to 31,019.68, the S&P 500 gained 26.56 points, or 0.69%, to 3,899.89 and the Nasdaq Composite added 86.62 points, or 0.76%, to 11,535.02. A majority of the 11 S&P 500 sectors rose. One exception was healthcare, down 0.6% as it was weighed by a fall in shares of vaccine maker Moderna Inc a day after President Joe Biden said in a CBS interview that “the pandemic is over”. Industrial stocks rebounded 1.4% after a sharp drop on Friday, while banks gained 1.9%.

Also Read: Adani Group, Dish TV, Natco Pharma, Bombay Dyeing, CEAT stocks in focus on 20 September

Tech heavyweights Apple Inc and Tesla Inc rose 2.5% and 1.9%, respectively, to provide the biggest boost to the S&P 500 and the Nasdaq. Take-Two Interactive Software Inc closed up 0.7%, having recovered from a slump earlier in the day caused by confirmation that a hacker had leaked the early footage of Grand Theft Auto VI, the next installment of the best-selling videogame. Meanwhile, Knowbe4 Inc jumped 28.2% to $22.17, its highest close since May 4, after the cybersecurity firm said that Vista Equity Partners had offered to take it private for $24 per share, valuing the company at $4.22 billion. The S&P 500 posted one new 52-week high and 28 new lows; the Nasdaq Composite recorded 29 new highs and 378 new lows.

2020-like share market rally unlikely again, but these sectors may gain well in 2021

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BSE Sensex and NSE Nifty 50 have almost doubled from respective March lows. Earlier this week, headline indices rose to all-time highs, taking the market capitalisation of the BSE-listed companies to Rs 199 lakh crore. Even as indices trade near record highs, Kunal Sanghavi, CFO, HDFC Securities, told Financial Express Online that 2021 may not be a repeat of the 2020 rally. According to him, 2021 will be a lot more different than 2020, as there will be no similar kind of rise from lows or the V-shaped recovery in 2021. Moreover, even short-term volatility cannot be ruled out in this calendar year. However, there are a few sectors that may offer good returns from a long-term investment horizon, Kunal Sanghavi said.

Winning sectors

The investment in right sectors will definitely appreciate from the current levels as the year 2020 formed a good base. As short-term corrections in the middle are very much on the cards, one needs to have cautious approach from a short-term perspective.

2020 vs 2008: What changed, what didn’t

Last year 2020 was a replica of what happened in 2008, Sanghavi said, drawing parallels between the two major drawdown periods. Both times, markets witnessed huge corrections and panic was at its peak. During such times, institutions globally invested their surplus cash. “While looking at certain liquidity parameters, during 2008-09, we saw liquidity was at its highest in 2009 and then it got stabilised. Now, 2018-2020 has been a period of slack and now we are seeing a rebound from an overall perspective,” he said.

Sanghavi advised that one will have to factor in the increase in the overall GDP, as India moves toward the Prime Minister’s dream of achieving a $5 trillion dollar economy. India has already crossed the $2.7 dollar economy, so far. “The vision which we are trying to achieve is leading to a lot of surplus money in the ecosystem,” he added.

From a long-term perspective, Sanghavi believes that this is the right time for the investors to enter the stock markets as global liquidity has been at its highest. After rallying to the all-time highs, equity benchmarks succumbed to profit-booking. From the record high hit yesterday, BSE Sensex has tumbled 1,045 points or 2 per cent on Friday, while the broader Nifty index plunged to 14,453, falling over 300 points.

Share Market HIGHLIGHTS: Sensex ends 262 pts down, Nifty at 17718 ahead of Fed meet outcome; Reliance gains

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Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and NSE Nifty 50 ended in the red on Wednesday ahead of US Fed policy meeting outcome. BSE Sensex fell 263 points or 0.4 per cent to 59,457, while NSE Nifty 50 ended 98 points or 0.6 per cent down at 17718. Stocks of Hindustan Unilever Ltd (HUL), ITC, Bajaj Finance, Tech Mahindra, M&M, Reliance Industries and Nestle India were the top Sensex gainers. On the contrary, IndusInd Bank, UltraTech Cement, Power Grid Corporation of India, L&T, NTPC, HCL Tech, Dr Reddy’s were among top index laggards. Sectorally, Bank Nifty index fell 0.6 per cent to settle at 41,203.45, India VIX, the volatility index, gained 2.8 per cent to settle at 19.33 levels. The two-day Federal Open Market Committee (FOMC) meeting of the US Federal Reserve which began on Tuesday will conclude today. The committee headed by Fed Chair Jerome Powell is expected to announce a 75 bps interest rate hike, with many economists not ruling out a 100 bps increase.

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Share Market Today | Sensex, Nifty, BSE, NSE, Share Prices, Stock Market News Updates

15:38 (IST) 21 Sep 2022 Closing bell: Sensex, Nifty end in red

BSE Sensex fell 263 points or 0.4 per cent to 59,457, while NSE Nifty 50 ended 98 points or 0.6 per cent down at 17718

15:25 (IST) 21 Sep 2022 Adani Enterprises, ACC, Ambuja Cements share prices tank over 7% after share pledge by Adani group

Adani Enterprises, ACC, and Ambuja Cements share prices tanked more than 7 per cent intraday on Wednesday, a day after the ports-to-power conglomerate announced to pledge shares of these two cement companies. Adani Enterprises share price tanked nearly 7 per cent to Rs 3572.65 apiece, ACC shares tumbled 7.2 per cent to Rs 533, and Ambuja Cements fell 7.4 per cent to Rs 2523.25 apiece. Read full story

13:46 (IST) 21 Sep 2022 Festive season likely to boost auto, hospitality, consumer durable industries; rural demand outlook mixed

The upcoming festive season is expected to boost the auto, hospitality, and consumer durable industry on the back of strong demand. However, the operating margins of FMCG companies are likely to remain under pressure in spite of the drop in input costs. This is because demand recovery from rural India, which accounts for around 40% of FMCG sales, has still not recovered, according to Teresa John, Research Analyst (Economist), Nirmal Bang. Additionally, the southwest monsoon is also expected to delay recovery in rural demand. At the same time, in spite of a persistent decline in input costs amid falling commodity prices, marketers of daily essentials, groceries, and packaged commodities do not intend to lower prices in October ahead of the festive season. Read full story

12:21 (IST) 21 Sep 2022 Bank Nifty index falls over 1%

Bank Nifty index was down 1.2 per cent to trade at 40, 975 levels

12:10 (IST) 21 Sep 2022 FabIndia IPO: India’s first ESG-focused public issue

Students of NMIMS Navi Mumbai Campus prepared a white paper on the increasing importance of ESG investing and its role in the investment decision of institutional and retail investors. According to the white paper, over 80% of institutional investors have made it mandatory to include ESG in their future decisions. The investors are looking to invest responsibly and seek ESG compliance reports from companies to assess their long-term options on various parameters. The white paper put the spotlight on the upcoming FabIndia IPO and cites it as a great example for the Indian corporate industry. Terming it India’s first ESG-focused IPO the report highlights several inclusive policies and sustainable practices of the company.

12:02 (IST) 21 Sep 2022 Gold Price Today, 21 Sep 2022: Gold rate flat on muted global cues, investors await US Fed meet decision

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver rate were trading flat in India on Wednesday, as prices remained steady in global markets. On Multi Commodity Exchange, gold October futures were ruling at Rs 49,216 per 10 gram, up Rs 41. Silver December futures were trading at Rs 56,684 per kg, up Rs 341 or 0.6 per cent. Globally, yellow metal lingered near recent lows as investors prepared for the likelihood of another super-sized interest rate hike from the U.S. Federal Reserve in its effort to tame soaring inflation. Read full story

10:22 (IST) 21 Sep 2022 Buy GAIL, HDFC, Dr Reddy’s, Tata Comm stocks for near-term gains, charts show strength; Nifty support at 17700

We are of the view that the short-term support has shifted to 17700/59400 from 17500/58800. A dismissal of 17700/59400 could accelerate the selling pressure. As a result, below 17700/59400 the chances of hitting 17600-17500/59000-58800 would turn bright. On the flip side, above 17700/59400 the index could retest the level of 17950-17800/60000-60300. Read full story

10:09 (IST) 21 Sep 2022 Petrol, Diesel Price Today, 21 Sep 2022: Fuel cost steady; check rates in Delhi, Mumbai, Noida, other cities

Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Lucknow: The price of petrol and diesel has been kept steady on 21 September 2022 (Wednesday), keeping costs steady for more than three months now. Petrol rate and diesel rate in Delhi are at Rs 96.72 and Rs 89.62 a litre, respectively. In Mumbai, petrol is retailing at Rs 106.31 per litre and diesel at Rs 94.27 per litre. The last country-wide change in price came on 21 May 2022, when Finance Minister Nirmala Sitharaman announced a cut in excise duty on petrol by Rs 8 per litre and Rs 6 per litre on diesel. Read full story

09:42 (IST) 21 Sep 2022 Rupee likely to trade volatile amid risk aversion in equity markets; USDINR to trade sideways in this range

Rupee is likely to remain volatile on Wednesday amid risk aversion in global markets, falling crude prices. USDINR(Spot) is expected to trade sideways and quote in the range of 79.40 and 80.05, according to forex analysts. In the previous session, rupee consolidated in a narrow range and settled higher against the US dollar as investors await the US Fed’s policy statement for further cues. At the interbank forex market, the local unit opened at 79.70 against the greenback, and ended at 79.74, up 7 paise from its previous close. Note that RBI has been intervening to protect the rupee which has run down currency reserves. India’s foreign exchange reserves have declined by $90 billion from their September 2021 peak of $641 billion, a drop of 13.9%, according to RBI data.

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09:26 (IST) 21 Sep 2022 Bank Nifty falls

Bank Nifty index was down 0.3 per cent to 41339 levels

09:25 (IST) 21 Sep 2022 ICICI Bank, HDFC, Wipro top Sensex laggards

IndusInd Bank, Infosys, HDFC, TCS, ICICI Bank, Kotak Mahindra Bank, Wipro, HCL Tech were among top index draggers

09:24 (IST) 21 Sep 2022 Nestle, M&M, HUL top Sensex gainers

Stocks of Nestle India, M&M, Hindustan Unilever Ltd (HUL), Tata Steel, Bharti Airtel, Maruti Suzuki, Sun Pharma, ITC, were among top Sensex gainers

09:22 (IST) 21 Sep 2022 Sensex, Nifty trade weak as investors eye US Fed meet outcome

BSE Sensex was trading muted against the previous close, while NSE Nifty 50 crossed 17800

09:13 (IST) 21 Sep 2022 Sensex, Nifty fall in pre-open

BSE Sensex and NSE Nifty 50 were trading weak in pre open on Wednesday, on the back of weak global cues ahead of US Fed meet decision

08:31 (IST) 21 Sep 2022 Indian markets could open lower, in line with mostly negative Asian markets

Asian stocks opened lower on Wednesday after US shares declined and Treasury yields held near multiyear highs as investors position for a hefty interest rate hike from a hawkish Federal Reserve. Indian equity markets ended with strong gains on Sept 21. Strong global cues and steady foreign flows are helping Indian markets outperform its emerging market and Asian peers. From the day’s high of 17919, Nifty witnessed profit booking and fell more than 130 points in the closing hours to finish the day near 17816, up 1.1%. Short term support for the Nifty is seen at 17541, which happens to be the upgap support. Resistance for Nifty is seen at 17919.

~Deepak Jasani, Head of Retail Research, HDFC Securities

08:22 (IST) 21 Sep 2022 Nifty short term support shifts to 17700

“Relief rally continued for the second straight session, which is indicative that investors are finding local stocks attractive after every short-term correction. Even as there are talks of global recession at some point, the Indian economy is holding up really well in times of uncertainty, which is prompting investors to bet on our growth story. However, Nifty, near the 20-day SMA (Simple Moving Average), has formed Hammer candlestick formation which is broadly negative for the market. We are of the view that the short term support has shifted to 17700 from 17500. If the index slips below 17700, accelerated selling pressure will drag it down to 17600-17500 levels. On the flip side, above 17700, the index could retest the level of 17950-17800.”

~Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

08:21 (IST) 21 Sep 2022 Breakout from 17500-18100 range to give directional move in Nifty

Indian equity markets ended with strong gains on Tuesday. Strong global cues and steady foreign flows are helping Indian markets outperform its emerging market and Asian peers. From the day’s high of 17919, Nifty witnessed profit booking and fell more than 130 points in the closing hours to finish the day near 17780.  Short term support for the Nifty is seen at 17500 odd levels, which happens to be 34 days EMA. Resistance for Nifty is seen at 18100 odd levels. For the last 6 weeks, Nifty has been into a tight consolidation zone. Breakout from 17500-18100 range would give directional move in the Nifty.”

~Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities

08:20 (IST) 21 Sep 2022 Will bears drag Nifty towards 17450 or bull rally to continue? 5 things to know before market opening bell

Benchmark indices BSE Sensex, NSE Nifty 50 are expected to open in the red as trends in SGX Nifty indicate a negative opening for Indian equities with a loss of 80 points. “On Wednesday, FOMC and Bank of Japan would be announcing their interest rate decision followed by Bank of England on Thursday. If the Fed raises the interest rate by 75 bps in line with market expectation, then we can expect the positive momentum to continue, and Nifty may inch towards 18000. However Powell’s commentary would also be significant as it would give indication of the longevity of the rate hike cycle,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

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07:36 (IST) 21 Sep 2022 Asian markets in red, tracking Wall Street losses

Shares in the Asia-Pacific opened lower Wednesday, following Wall Street’s negative lead ahead of the Federal Reserve’s expected rate hike. The Nikkei 225 in Japan dropped 1% in early trade, while the Topix index fell 0.94%. In Australia, the S&P/ASX 200 slipped 0.32%. South Korea’s Kospi declined 0.35%. MCSI’s broadest index of Asia-Pacific shares outside Japan shed 0.17%.

07:35 (IST) 21 Sep 2022 Wall Street stocks tumble ahead of Fed meet outcome

Wall Street ended Tuesday lower as the eve of a U.S. Federal Reserve meeting expected to bring another large interest rate hike brought further evidence of the impact on corporate America from the inflation that the U.S. central bank wants to tame. The Dow Jones Industrial Average fell 313.45 points, or 1.01%, to 30,706.23, the S&P 500 lost 43.96 points, or 1.13%, to 3,855.93 and the Nasdaq Composite dropped 109.97 points, or 0.95%, to 11,425.05.

07:35 (IST) 21 Sep 2022 SGX Nifty signals a negative start for Indian markets

Nifty futures traded 89.5 points, or 0.50 per cent lower on the Singapore Exchange at 17,705.50, signaling that Dalal Street was headed for a negative start.

Share Market LIVE: Sensex ends below 60000 as bears prowl D-St, Nifty at 17877 on F&O expiry day

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Share Market News Today | Sensex, Nifty, Share Prices LIVE: BSE Sensex and NSE Nifty 50 fell more than half a per cent on Thursday, a day of weekly F&O expiry day. BSE Sensex fell 412 points or 0.7 per cent to end at 59,934, while NSE Nifty 50 slipped 126 points or 0.7 per cent to finish trade at 17,877.40. Stocks of Maruti Suzuki, Power Grid Corporation of India, NTPC, Housing Development Finance Corporation (HDFC), Bharti Airtel, L&T were among top index gainers. On the flip side, Tech Mahindra, Infosys, Tata Steel, Bajaj Finserv, Axis Bank, IndusInd Bank, and Titan Company were among top Sensex laggards. Bank Nifty index fell 0.5 per cent to settle at 41,209.

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Market Today | Sensex, Nifty, BSE, NSE, Share Prices, Stock Market News Live Updates 15 September Thursday

15:54 (IST) 15 Sep 2022 Sensex, Nifty end in red on F&O expiry day

BSE Sensex and NSE Nifty 50 fell more than half a per cent on Thursday, a day of weekly F&O expiry day

14:49 (IST) 15 Sep 2022 Maruti Suzuki top BSE Sensex gainer

Maruti Suzuki was the top BSE Sensex gainer, up nearly 3 per cent, followed by Power Grid Corporation of India, NTPC, HDFC, SBI, and ICICI Bank

14:28 (IST) 15 Sep 2022 Nifty Bank at new high

Banks like HDFC, ICICI, SBIN, Kotak and BOB are the major constituents of Bank Nifty and are well placed with superior fundamentals. The economy is witnessing a strong credit environment with improving capacity utilisation and capacity expansion. A healthy credit growth is one of the triggers of better performance of banks. Moreover, a healthy balance sheet, minuscule stress formation and lower credit cost lead to strong profitability. We believe the banks to witness NIMs improvement as the share of floating rate loans are increasing. The sound balance sheet, strong credit growth, healthy margins and lower credit cost are likely to be fruitful for the banking sector. The large bank may take the competitive advantage factoring the technological advancement. Among large banks, BOB and ICICI are our top picks. Ajit Kabi, Banking Analyst at LKP Securities

13:16 (IST) 15 Sep 2022 Harsha Engineers International IPO Update

The public issue of Harsha Engineers International has seen a healthy subscription so far. Investors have bought 9.3 crore equity shares against an offer size of 1.68 crores, helping the offer subscribe 5.52 times on September 15, the second day of bidding. Non-institutional investors looked aggressive from the day one itself, putting in bids 11.75 times the allotted quota, while retail investors have bought shares 5.96 times the portion set aside for them and employees booked 4.46 times. The part set aside for qualified institutional buyers was subscribed 9 percent so far on Thursday.

13:15 (IST) 15 Sep 2022 BSE 500: Top losers

Vakrangee has slumped nearly 9 per cent was the top loser among the BSE 500 stocks so far. It is followed by HUDCO, GR Infraproject, Phoenix Mills and PB Fintech, down 5-7 per cent each.

13:14 (IST) 15 Sep 2022 BSE 500: Top gainers

CEAT has zoomed nearly 9 per cent and was the top gainer among the BSE 500 stocks so far on Thursday. It is followed by JM Financial, Kalyan Jewellers, Mahindra CIE and Poly Medicure, up 5-7 per cent each.

13:13 (IST) 15 Sep 2022 Fed hiking rates may move Dollar index to levels of 112.60 -113.30: Emkay Wealth

As per a report by Emkay Wealth Management titled ‘Navigator’, the aggressive rate action by the US Fed to tame the inflation has led to a sharp appreciation in the US dollar. The continuous tightening by the Fed will push Dollar index to levels of 112.60-113.30. On the lower side, 106.40 and 104.50 are strong support levels for the Dollar index. The European Central Bank is on a rate tightening phase, and the aggressive hikes will take the Euro-Dollar to its original levels of 0.75-0.80.

13:00 (IST) 15 Sep 2022 Ceat hits over 4-year high on healthy outlook

Shares of CEAT edged higher by 10 per cent to over four-year high of Rs 1,516.15 on the BSE in Thursday’s intra-day trade, on healthy business outlook. The stock of leading tyre company traded at its highest level since May 2018. Earlier, it had hit a record high of Rs 2,030 in January 2018.

12:18 (IST) 15 Sep 2022 HDFC securities Retail Research Fundamental Picks

Birla Corporation

Buy in Rs 1082-1095 band and add on dips to Rs 1007-1027 band

Base Case Fair Value: Rs 1192

Bull Case Fair Value: Rs 1289

Time Horizon: 2-3 quarters

Patanjali Foods

Buy in Rs. 1341-1363 band and add more on dips in Rs. 1180-1200 band

Base Case Fair Value: Rs 1490

Bull Case Fair Value: Rs 1602

Time Horizon: 2 quarters

12:11 (IST) 15 Sep 2022 PVR shares slip 5% after mega block deals; stock down 17% from 52-week high

Four investors in movie theatre chain PVR offloaded 7.7% stake in the company via block deals, according to reports.

12:09 (IST) 15 Sep 2022 Sensex in red

Sensex pared early gains and slipped into red. The index dips 300 points to trade below 60,000

11:20 (IST) 15 Sep 2022 GR Infraprojects share price falls 4%

The promoters of GR Infraprojects Ltd will offload up to 6.8% stake or around 65 lakh shares through an offer for sale (OFS) on September 15-16, as per a regulatory filing submitted by the company on September 14.

11:16 (IST) 15 Sep 2022 Nifty Bank erases gains, slips in red

Nifty Bank erased gains and slipped in the red. The index fell nearly 500 points from intraday high

11:14 (IST) 15 Sep 2022 IT stocks bleed

Nifty IT index fell over 1 per cent, dragged by Tech Mahindra, Infosys, HCL Technologies, TCS and Wipro.

11:13 (IST) 15 Sep 2022 Nifty may fall in near-term if 17946 support breaches; Buy these 2 stocks to pocket gains, charts show upmove

On Wednesday, the Nifty did in fact correct from its recent highs of 18088, thereby making a double top pattern on the intra day 15 min chart. Further downsides are likely once the immediate support of 17946 is broken. Downside targets in this scenario are at 17771. The bulls would gain control only if the recent highs of 18092 are taken out. The below picks are for the next 15-26 trading sessions. Read full story

10:49 (IST) 15 Sep 2022 Gold Price Today, 15 Sep 2022: MCX gold looks vulnerable till 49500, sell on rise; check support, resistance

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were trading weak in India on Thursday, on the back of weak global cues. On Multi commodity Exchange, gold October futures were ruling Rs 195 or 0.4 per cent down at Rs 49,823 per 10 gram, as against the previous close of Rs 50,018. Silver December futures were trading Rs 113 or 0.2 per cent down at Rs 56,873 per kg. Globally, yellow metal prices inched lower as a firmer dollar and expectations of big interest rate hikes from the U.S. Federal Reserve diminished the metal’s appeal, according to Reuters. Read full story

10:35 (IST) 15 Sep 2022 Bank Nifty support at 40000, Nifty to trade flat on today’s expiry; use Call Ladder for 22 Sep F&O expiry

Nifty Put options OI distribution shows that 17,900 has highest OI concentration followed by 17,800 & 17,700 which may act as support for current expiry and on the Call front 18,200 followed by 18,100 & 18,300 witnessed significant OI concentration and may act as resistance for current expiry. Options data suggest an immediate trading range between 17,800 and 18,200 levels & 18000 acting as pivotal level. Read full story

10:20 (IST) 15 Sep 2022 Balaji Amines up 2.5%

The company said the Phase 1 of 90-acre greenfield project (Unit IV) has been completed. The di-methyl carbonate, propylene carbonate, and propylene glycol plant will be ready to commence commercial production by the end of September 2022. In addition, it has also started construction in phase 2 of greenfield project (Unit IV) for 2 plants. The company has already received environmental clearance for this expansion.

10:18 (IST) 15 Sep 2022 Dull lisitng for Tamilnad Mercantile Bank; long-term investors should wait for some quarters to let the dust settle

“Tamilnad Mercantile Bank has debuted at Rs 495 on NSE i.e. ~6% below its issue price. The precarious legal challenges, the lack of complete clarity on the management’s long-term performance, and less than stellar subscription numbers are some of the reasons for its negative listing. Those who applied for listing gains can maintain a stop loss of Rs 470. Long-term investors should wait for some quarters to let the dust settle, and in the meanwhile, we suggest investors go for the existing listed banks where the management’s track record and performance during multiple credit cycles are visible. In short, large-sized banks and a few mid-sized banks are the best to ride on the upcoming credit and economic growth cycle.”

~Santosh Meena, Head of Research, Swastika Investmart Ltd

10:12 (IST) 15 Sep 2022 Fitch cuts India’s FY23 GDP growth forecast to 7%; high inflation, policy tightening dampen economic prospects

Fitch Ratings on Thursday slashed its India’s economic growth (GDP) forecast for the current fiscal to 7 per cent from the previous estimate of 7.8 per cent. The global ratings agency expects the economy to grow 7 per cent in 2022-23, with the next financial year also slowing to 6.7 per cent from the earlier estimate of 7.4 per cent. “The (Indian) economy recovered in 2Q22 with growth of 13.5 per cent year-on-year, but this was below our June expectation of an increase of 18.5 per cent. Seasonally adjusted estimates show a 3.3 per cent quarter-on-quarter decline in 2Q22 though this seems to be at odds with high-frequency indicators,” Fitch said.

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10:09 (IST) 15 Sep 2022 Bank Nifty hits new all-time high of 41,840.15

Bank Nifty index hit a new all-time high of Rs 41,840.15, rising over 400 points on weekly F&O expiry day.

10:01 (IST) 15 Sep 2022 Tamilnad Mercantile Bank IPO: Flat listing on BSE, NSE; stock debuts at Rs 510 per share

Tamilnad Mercantile Bank’s shares saw a flat listing on the stock exchanges today amid the tepid market momentum. Shares of the company began trading on the BSE at Rs 510 apiece from the IPO price of Rs 500-525 apiece per share. At the time of listing, the company had a market capitalisation of Rs 8,075.92 crore. The company launched its Rs 831-crore initial public offering (IPO) from September 5-7, 2022. The public issue was subscribed 2.86 times over the 87 lakh shares that were on offer during the subscription period. Read full story

09:32 (IST) 15 Sep 2022 Petrol, Diesel Price Today, 15 Sep 2022: Fuel cost static; check rates in Delhi, Noida, Mumbai, other cities

Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Lucknow: The price of petrol and diesel has been kept steady on Thursday, 15 September 2022, keeping costs steady for more than three months now. Petrol and diesel in Delhi is priced at Rs 96.72 and Rs 89.62 a litre, respectively. In Mumbai, petrol is retailing at Rs 106.31 per litre and diesel at Rs 94.27 per litre. The last country-wide change in price came on 21 May 2022, when Finance Minister Nirmala Sitharaman announced a cut in excise duty on petrol by Rs 8 per litre, and Rs 6 per litre on diesel. Read full story

09:26 (IST) 15 Sep 2022 Fitch cuts India’s GDP growth forecast

Global rating agency Fitch has lowered India’s economic growth forecast for fiscal 2022-23 (FY23) as measured by gross domestic product (GDP) to 7% from its June 2022 estimate of 7.8%. It now expects the GDP to slow further to 6.7% in FY24 as compared to its earlier forecast of 7.4%.

09:26 (IST) 15 Sep 2022 Nifty, Sensex open higher amid positive global cues

Sensex up 286.03 points or 0.47% at 60,633

Nifty up 82.20 points or 0.46% at 18,086

09:16 (IST) 15 Sep 2022 Exercise some caution arising from high valuation

“There are two broad market trends now. One, globally markets have turned weak on renewed inflation concerns and the market consensus is that the Fed’s terminal rate would be clearly above 4%. This will weigh on global markets. Two, India’s outperformance is strong and consistent. This has fundamental support from a strong economy and good earnings visibility. There is a clear message from the performance of S&P 500 (down 18% YTD) and Nifty (up 3.6% YTD). This divergence in performance between global and Indian markets has steam to sustain in the near-term. Yesterday’s strong market performance validates the success of the ‘buy on dips’ strategy. Buyers are chasing banks, autos, FMCG, telecom and construction related segments which are likely to come out with good results in the coming quarters. Even while remaining invested, investors should exercise some caution arising from high valuation.”

~V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

09:14 (IST) 15 Sep 2022 Nifty needs to stabilize above 17701 for a bright chance of its recovery to 18605

“After yesterday’s retreat, local shares are likely to start on a positive note tracking recovery in most of the Asian indices following overnight uptick in the US markets. Intra-day, the markets may waver as the nervous theme could play out in the backdrop of consensus that inflation is falling more slowly than expected. Strong inflation numbers have revived bets for faster interest rate hikes by the central banks across the globe. However, India’s wholesale inflation easing to 10-month low, a pause in the US treasury yield rally, and US dollar slipping overnight could offer a temporary reprieve to Nifty bulls. Technically, Nifty needs to stabilize above 17701 mark for a bright chance of its recovery to 18605 mark.”

~ Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities

08:34 (IST) 15 Sep 2022 PVR shares in focus, investors to offload 7.7% stake through block deal

Four investors in movie theatre chain PVR Ltd are reportedly offloading a 7.7% stake in the company via block deal on September 15. The investors who will be selling the stake in the company are – Multiples PE, Grey Birch, Plenty PE and Berry Invt. The offer price for the block deal will be in the range of Rs 1852 to Rs 1929 per share, sources said, adding that Kotak Securities will be the broker for the deal.

08:11 (IST) 15 Sep 2022 Trade deficit widens, August exports revised higher to $33.92 billion

India’s merchandise exports for August have been raised to $33.92 billion from the preliminary estimate of $33 billion, data released by the commerce ministry on September 14 showed. As per the latest data, imports in August amounted to $61.9 billion, marginally higher than the preliminary estimate of $61.68 billion. As such, the merchandise trade deficit for last month was lowered to $27.98 billion from $28.68 billion as per preliminary data released on September 3. The trade deficit in August 2021 was $11.71 billion.

08:10 (IST) 15 Sep 2022 Oil rises on weakening dollar, potential supply disruptions

Oil prices edged upwards in early Asian trade on Thursday, as supply concerns and a looming rail stoppage in the United States, the world’s biggest crude consumer, supported markets. Brent crude futures rose 38 cents, or 0.4%, to $94.48 a barrel by 0013 GMT, while US West Texas Intermediate crude rose 46 cents, or 0.5%, to $88.94. The International Energy Agency (IEA) said Wednesday it expects widespread switching from gas to oil for heating purposes, saying it will average 700,000 barrels per day (bpd) in October 2022 to March 2023 – double the level of a year ago. That, along with overall expectations for weak supply growth, also helped boost the market.

08:09 (IST) 15 Sep 2022 Momentum in mid cap Cement stocks likely to continue

“Yesterday, action was seen in sectors like Banking, Cement, Media, Metals, and FMCG. Cement stocks were in limelight on the back of news of Adani owned Ambuja Cement looking to raise Rs10,000 crore for capex as well as acquisition plans. The momentum in mid cap Cement stocks is likely to continue on the back of expectation of increased M&A activities by bigger players due to changing industry-dynamics. Sharp rally was also seen in Vedanta after the company formed a JV with Foxconn for a semiconductor project in Gujarat. Technology stocks, however, are seeing pressure after there were downgrades by foreign brokers on the back of expectation of slower growth due to aggressive rate hike in US and news of big tech companies laying off people.”

~Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services

07:57 (IST) 15 Sep 2022 Wholesale inflation drops to 11-month low in August

India’s inflation based on the Wholesale Price Index (WPI) declined to a 11-month low of 12.41% in August, the commerce ministry said on September 14. WPI inflation was 13.93% in July. In August 2021, it stood at 11.64%. Another month of double-digit increase in wholesale prices in August 2022 means the WPI inflation has remained above the 10% mark for 17 months in a row. The marked decline in WPI inflation in August was driven by a drop in fuel prices, with ‘fuel and power’ inflation falling to 33.67% from 43.75% in July.

07:56 (IST) 15 Sep 2022 Stocks in focus today

Tamilnad Mercantile Bank: Tamilnad Mercantile Bank shares will debut on stock exchanges BSE, NSE today.

Tata Steel: Tata Steel will raise Rs 2,000 crore through the issuance of non-convertible debentures (NCDs) on a private placement basis.

Paytm: ED on Wednesday carried out fresh raids on Paytm and some other agencies in connection with an ongoing money laundering probe linked to alleged financial irregularities by instant app-based loan companies “controlled” by Chinese persons.

Read full story

07:55 (IST) 15 Sep 2022 Bulls may attempt a comeback to push Nifty above 18100; 5 key things to know before market opening bell

Early trends on SGX Nifty hinted that Indian equity markets are likely to open marginally higher on Thursday, weekly F&O expiry day. Nifty futures traded 27 points, or 0.15% higher at 18,017 on the Singapore Exchange, signaling that domestic benchmark indices BSE Sensex, NSE Nifty 50 were for a positive start. “The biggest catalysts and next direction for Nifty depends on the FOMC monetary policy meeting on September 20-21. For Thursday’s session, Nifty sees major hurdles at the 18115 mark. Above the same, aggressive buying could be seen with the next goal post at the psychological 18605 mark,” said Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities.

Read full story

07:52 (IST) 15 Sep 2022 Asian shares edge higher

Shares in the Asia-Pacific region also rose mildly today. Japan’s Nikkei 225 rose 0.16% and the Topix index was up 0.15%. South Korea’s Kospi added 0.11% and Australia’s S&P/ASX 0.55% higher. China’s Shanghai Composite gained 0.35%, and the Shenzhen Component was fractionally higher. Hong Kong’s Hang Seng index added 0.45%.

07:51 (IST) 15 Sep 2022 US stocks end higher amid volatility

Wall Street ended a directionless session higher on Wednesday as an on-target inflation report largely stanched the flow of Tuesday’s sell-off and investors hit the ‘pause’ button. The Dow Jones Industrial Average rose 30.12 points, or 0.1%, to 31,135.09, the S&P 500 gained 13.32 points, or 0.34%, to 3,946.01 and the Nasdaq Composite added 86.10 points, or 0.74%, to 11,719.68.

07:50 (IST) 15 Sep 2022 SGX Nifty hints at a positive start

Nifty futures were trading 27 points, or 0.15% higher at 18,017 on the Singapore Exchange, signaling that Dalal Street was headed for a positive start.

The Eight Former Indian Navy Officers in Qatar: A Complex Scenario

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The case of the eight former Indian Navy officers working in Qatar has garnered significant attention and raised various questions. These officers, namely Captain Navtej Singh Gill, Captain Saurabh Vasisht, Commander Purenendu Tiwari, Captain Birendra Kumar Verma, Commander Sugunakar Pakala, Commander Sanjeev Gupta, Commander Amit Nagpal, and Sailor Ragesh, found themselves at the centre of a complex and sensitive situation when they were detained in Qatar. Their arrests were not only a shock to the Indian government but also stirred concerns about the state of India-Qatar relations.

Background:

The story begins with these eight veterans working at Dahra Global Technologies and Consultancy Services, a defence services provider company owned by an Omani national, a retired squadron leader of the Royal Omani Air Force. The company’s website, which has since been taken down following media reports of the arrests in October 2022, once stated that it provided training, logistics, and maintenance services to the Qatari Emiri Naval Force (QENF).

Commander Purnendu Tiwari (retd), who served as the Managing Director of the company, was honoured with the Pravasi Bharatiya Samman award in 2019 for his contributions to strengthening the bilateral relationship between India and Qatar. This recognition marked a significant achievement as he was the only person from the Indian armed forces to receive this prestigious award. His contributions were acknowledged in Doha by then Indian Ambassador P Kumaran, along with a former head of the Qatar defence forces’ International Military Cooperation. This event took place at the Indian Cultural Centre, and it was attended by Captain Kapil Kaushik, the defence attaché at the Embassy of India at the time.

The Dahra website also featured certificates from Kumaran and his successor, Ambassador Deepak Mittal, commending the company’s efforts in promoting good relations between the two countries. Most of the detained individuals had been working at Dahra for four to six years when they were taken into custody.

The Arrests and Legal Process since 2022:

The eight former Indian Navy officers were taken into custody by the Qatari State Security Bureau, the country’s intelligence agency. The Indian Embassy in Qatar only became aware of these arrests in mid-September, and it was not until September 30 that the detainees were allowed brief telephonic contact with their family members. The first official consular access, granted by the Indian embassy, was provided on October 3, over a month after their initial detention. Subsequently, they were allowed weekly phone calls to connect with their families. A second consular access was granted at the end of December.

The charges against these individuals have not been disclosed, but their prolonged solitary confinement has led to speculation that they may be detained in connection with a security-related offense. The lack of information and transparency in this case has not only concerned their families and the Indian government but has also left observers questioning why New Delhi has not been able to engage with the Qatari leadership in a more direct and candid manner.

India-Qatar Relations:

This apparent lack of communication is surprising given the historically friendly relations between India and Qatar. These relations have continued to flourish over the years. The visit of Prime Minister Manmohan Singh to Qatar in November 2008 marked a turning point, becoming the first by an Indian Prime Minister. Subsequently, the Qatari Emir, Sheikh Tamim Bin Hamad Al Thani, visited India in 2015, and Prime Minister Narendra Modi reciprocated with his visit to Qatar in 2016. Indian External Affairs Minister Dr. S. Jaishankar has visited Qatar multiple times. This growing rapport signifies the importance of the bilateral relationship between these two nations.

The economic aspect of their relationship is noteworthy, as in 2021, India ranked among the top four export destinations for Qatar. Additionally, India is among the top three sources of Qatar’s imports. The bilateral trade between the two countries is valued at US$15 billion, with a significant portion of it attributed to liquefied natural gas (LNG) and liquefied petroleum gas (LPG) exports from Qatar, worth over U$13 billion.

Defence cooperation is also a pivotal element of the India-Qatar partnership. The India-Qatar Defence Cooperation Agreement, signed during Prime Minister Manmohan Singh’s visit in 2008, was extended for another five years in 2018, marking a critical development. The agreement included provisions for the training of the QENF by India and mutual visits, underlining the significance of defence cooperation in the relationship.

Indian Naval and Coast Guard ships have made regular visits to Qatar, and QENF delegates participated in maritime exercises in India. The two nations had also planned to celebrate the 50th anniversary of the establishment of diplomatic relations in 2023.

Challenges in the Relationship:

Despite the generally positive trajectory of India-Qatar relations, recent challenges have emerged. One notable challenge arose in June after BJP spokesperson Nupur Sharma’s remarks against the Prophet on a TV show. Qatar was the first country to object to these remarks and demanded a public apology from India, which created tension in the relationship. The Indian Ambassador was summoned, and a lunch hosted by the Emir was cancelled, further complicating matters. India’s swift action in sacking Sharma to contain the situation ultimately mitigated the fallout.

The imprisonment of the eight former Navy officers marks another significant challenge in the relationship. The fact that New Delhi was caught off guard by these arrests in a country where around 800,000 Indians live and work raises concerns about the depth of communication and cooperation between the two nations. Indians constitute the largest expatriate community in Qatar, making this situation all the more significant.

To the Indian expatriate community and the wider world, New Delhi’s perceived inability to resolve this issue promptly sends a message that all may not be well in the India-Qatar relationship. It also leads to questions about whether this issue and the difficulty in resolving it are connected to the previous blasphemy controversy.

The Way Forward:

Efforts have been made to address the situation. In late October, Prime Minister Narendra Modi spoke with the Emir, accepting his Diwali greetings and conveying India’s good wishes for a successful FIFA World Cup tournament scheduled to be held in Qatar. Vice President Jagdeep Dhankhar’s visit for the FIFA inaugural in November had raised expectations that he would address the issue of the detained former Navy officers. However, it appears that this did not happen.

There is an existing agreement between India and Qatar regarding the transfer of convicted prisoners to India, allowing them to serve their sentences in places where their families can visit.

The case of the Indian nationals took a significant turn with their first trial in late March. According to reports, these former naval officers were senior employees of Dahra Global Technologies and Consulting Services, a company advising on a Qatari programme aimed at obtaining advanced Italian-made submarines capable of evading radar detection.

Qatar had signed a memorandum of understanding (MoU) in 2020 with the Italian-based shipbuilding firm Fincantieri SpA for the construction of submarines and the establishment of a naval base and fleet maintenance. However, it appears that the MoU has not yet been implemented. Fincantieri has clarified that they currently have no contracts for submarines with Qatar, but they are continuing work on other vessels, based on a 2016 agreement with the Qatari Ministry of Defence.

In conclusion, the situation of the eight former Indian Navy officers detained in Qatar remains intricate and raises various questions about the India-Qatar relationship.

Futures trade in agricultural items doesn’t lead to price changes: Study

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The suspension of futures trade in several agricultural items on the commodity exchanges last year have had no impact on the retail price volatility, according to a study conducted by three researchers, including one from Indian Institute of Management (IIM), Udaipur.

Stating that suspension from futures market is often justified on the grounds of speculative activity emanating from trade in futures market, the study titled ‘Assessing the impact of commodity derivative suspension’ has stated that it has not found any role of futures market trading on price changes. Nor does it find any empirical evidence of impact of suspension of trade on price behaviours.

“These points towards the lack of any impact of derivatives contract suspension on mustard oil prices,” the study which focused on two commodities – mustard and chana, has noted. “The analysis shows that prices of mustand oil would have had a similar trend even without the suspension,” the study said.

In the case of chana, the futures trade of which was banned in August last year, price volatility has been minimal post and prior to the imposition of suspension.

Detailed price movements and other information of mustard and chana was analyzed as their demand is largely met through domestic production.

Also read: India’s job market outlook strong for Oct-Dec; 54 per cent companies plan to hire

Since 2005, the government so far has suspended 17 futures contracts for curbing inflationary trend.

To curb inflation, on December 20, 2021, commodity exchange regulator Securities and Exchange Board of India had banned futures trade of wheat, paddy (non-basmati), chana, mustard seeds, soya bean, crude palm oil and moong for one year. Earlier, mustard seed and chana (gram) futures trade were suspended on October 8, 2021 and August 16, 2021

Stating that the suspension of futures trade such as mustard seed and other commodities discourages the growth of domestic agri-derivatives markets, the study has noted that the move prevents India from setting global price benchmarks, despite being the major producer and consumer of several agricultural commodities.

Calling for removal of a ban on futures trade for development of agri-derivatives market, the study has suggested that there should be strict market surveillance and effective enforcement, transparency and timely availability of information on trends in production and stocks, which removed fear of market volatility.

The suspension of futures trade hinders the growth in development of quality networks under the Warehousing Development and Regulatory Authority ambit which ensures transparency and traceability of stocks of agricultural commodities through electronic-negotiable warehouse receipt (e-NWR) issued to the farmers.

According to Vijaya Lakshmi Nandendla, joint secretary, ministry of agriculture, said that there is a need to create more awareness and understanding about the derivatives market where price risk can be hedged amongst key stakeholders including farmers in the agricultural value chain.

The study was carried out on behalf of NCDEX investors protection fund trust. The objective of the study was to assess the impact of various policy decisions on the development of the spot and derivatives market.

The study was carried out by Nidhi Aggarwarl, IIM, Udaipur, Tirtha Chatterjee, Jindal School of Government and Public Policy and Karan Sehgal from Universidad Carlos III de Madrid.

India defers govt bond index inclusion to next year; $30 bln opportunity pushed back due to operational issues

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India has deferred the planned inclusion of the government bonds in the JP Morgan emerging market global index to next year, as was being speculated on the street. The bond inclusion in the global index may have been pushed back to early 2023, as the Government of India still needs to address various operational issues, Reuters reported citing unidentified sources. Earlier, Goldman Sachs and Morgan Stanley had predicted the bond index inclusion would happen only in the 2nd or 3rd quarter of the next year. The Indian government began considering listing its securities for an inclusion in global bond indices in 2013. However, restrictions on foreign investments in Indian debt meant that the country had to roll out a number of steps before its securities could be eligible.

Goldman Sachs said India bonds could be included in the index with a 10 per cent weightage, the maximum for a country in the index, resulting in potential inflows of $30 billion from the move. Meanwhile, Barclays also said India could possibly be added to the Bloomberg Global Aggregate bond index.

If successful, India would be the last major emerging market to be added to the JP Morgan index, according to Reuters. Earlier this month, Morgan Stanley estimated that India’s inclusion could result in additional flows of as much as $30 billion within 10 months into the Indian government bond market. Last year, Morgan Stanley predicted that it could generate $170 billion to $250 billion of inflows over the next decade. “Most of JPMorgan’s index investors are in favour of including India in the index, but think issues such as investor verification and settlement rules need to be ironed out first,” Reuters reported citing three unidentified sources.

Bonds listed on global indices are settled through international platforms, including Euroclear, outside a country’s borders. It may be noted that Russia’s exclusion from the JPMorgan gauges came after it invaded Ukraine. In the Government Bond Index – Emerging Markets Global Diversified, or GBI-EM index, Russia had a weight of about 8 per cent before it was removed, and now there are seven countries with a weight of 10 per cent each and 13 countries sharing the remaining 30 per cent, according to the Morgan Stanley note.

Earlier this month, Bloomberg noted that India was ‘on track’ to be placed on index watch for inclusion in JPMorgan’s bond index.

Buy these two stocks for near term gains as equity indices look set to jump further

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By Subash Gangadharan

Markets have bounced back strongly after the sharp selloff seen last Monday. The Nifty index made a long-legged Doji candlestick bullish reversal pattern on the weekly chart last week. This indicates that the bulls have overpowered the bears as the markets had recovered most of the losses seen during the early part of last week. This week too the Nifty has continued to surge higher to new life highs.The short term uptrend is, however, looking matured as the short term moving averages on the intraday charts have started to flatten. This indicates that markets could rise a bit more from current levels and consolidate in a range for the near term.Crucial supports to watch for a short term trend reversal are at 13864-13842.The below picks are for the next 15-26 trading sessions

Today, the stock also closed above the 20 day SMA, a sign of short term strength. Short term momentum readings like the 14-day RSI too has bounced back and is showing strength.

We believe the stock is ready to continue the next leg of its underlying uptrend and has the potential to move higher in the coming sessions. We, therefore, recommend a Buy between the 7560-7615 levels. CMP is 7609. Stop-loss is at 7430 while targets are at 8000.

Buy Balkrishna Industries

After correcting from a high of 1720 touched in early December 2020, Balkrishna Industries found support at the 50 day SMA around the 1515 levels. The stock has since then gradually climbed higher making higher tops and higher bottoms in the process.

Today, the stock broke out of the 1550-1590 trading range on the back of above-average volumes and also closed above the 20-day SMA in the process. Short term momentum indicators like the 14-day RSI too have bounced back from oversold levels. This augurs well for the uptrend to continue.

We believe the stock is ready to move higher in the coming weeks. We, therefore, recommend a Buy between the 1590-1625 levels. CMP is 1620. Stop-loss is at 1550 while targets are at 1760.

(Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC Securities. The views expressed are the author’s own. Please consult your financial advisor before investing.) 

Will bears drag Nifty to 16800 or bounceback on cards? 5 things to know before share market opening bell

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After Monday’s rout, the Indian share market may witness a slight bounce back amid mixed global cues. Early trends in the SGX Nifty hinted at a flat to positive opening for NSE Nifty 50 and BSE Sensex. “The RBI’s decision and the outlook would hold great importance post the rate hikes announced by many Central Banks globally following the US Fed aggressive outcome. Even the monthly F&O expiry this Thursday would keep the markets volatile. Fragile global factors and FII outflows would continue to keep the pressure on the market and thus 17000 level would act as a key support level, below which the weakness could intensify,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Also Read: Infosys, Embassy REIT, Jubilant FoodWorks, Mahindra Logistics, Forbes & Co, Orient Bell stocks in focus

Nifty technical view: “A long bear candle was formed on the daily chart with an opening downside gap. Technically, this market action indicates a sharp down-trended movement in the market. After a decisive downside breakout of the immediate support of minor up trend line at 17500 levels, the Nifty is now sliding down to the crucial lower support around 16800 levels as per the concept of change in polarity. There is a higher possibility of an upside bounce from the lower support in the short term. The short-term trend of Nifty is sharply down, and the weakness is expected to continue for the next 1-2 sessions,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Nifty, Bank Nifty levels to watch for: “Nifty has breached psychological 17000 levels, as 17250-17320 will now act as immediate resistance, whereas support is placed around the 16800 levels. On daily charts, Bank Nifty has formed three black crow patterns, indicating that bears have taken control. Nonetheless the 39800 level is crossed and sell on rise is advised for the short term. India VIX, meanwhile closed at 21.89 levels as it surged over 6.31 per cent intraday. Dips should be utilized to accumulate quality stocks,” said Om Mehra, Technical Associate, Choice Broking.

Rupee: The rupee plunged 58 paise to close at an all-time low of 81.67 (provisional) against the US dollar on Monday as the strengthening of the American currency overseas and risk-averse sentiment among investors weighed on the local unit. Moreover, escalation of geopolitical risks due to the Russia-Ukraine conflict, a negative trend in domestic equities, and significant foreign fund outflows lowered investors’ risk appetite further dragging the domestic currency, according to forex traders.

Also Read: Sensex ends at 2-month low, Nifty support shifts to 200-day SMA at 16850; use volatility to buy quality stocks

Stocks under F&O ban on NSE: Vodafone Idea, Zee Entertainment Enterprises, and Punjab National Bank are the three stocks under the NSE F&O ban list for 27 September. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 per cent of the market-wide position limit.