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Nifty support seen near 20 bar moving average; buy and sell these two stocks to pocket gains

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By Vishal Wagh

The Nifty has seen a sharp sell-off from the levels of 17992. There were three days’ sell-off till 17345. Post that there was pullback till 17726 which also got sold off till 17166. It is the first indication of resistance in place near 18000 levels and any bounce below 18000 levels can be utilized to go short. On the last day of the week, the market witnessed a sell-off from the high of the day. It is a clear indication that the current bear market rally has come to halt. As far as RSI(14) and 9 EMA the same has started moving below 70 levels. Though the super trend (8,2.25) is also below the current bars thanks to pullback last week. As commonly used moving averages(20 Bar, 50 Bar, 100 Bar & 200 Bar) suggest, there is support near 20 bar MA.

The Nifty is sustaining above all MAs. The slope of 20 bar MA is flattening out and the differences between 20 and 50 bar started contracting. This is an additional signal that the Nifty may get some pressure on the higher side. 

Devyani International (Buy)

On a weekly chart, the stock has witnessed a sharp up move post 181 has been taken off on a closing basis. There is a throwback from highs of 215. Near 180 levels it has created a ‘Morning Star’ candlestick pattern. The RSI(14,9) has retraced to major levels of 55 and now quotes at 60.88 and above 9 EMA. As far as 20 Ema is concerned the slope is upwards. Super Trend(8,8.25) has moved upward suggesting a strong bullish trend is intact. On the higher side, 215 will work as resistance once it gets breached then it will come into uncharted territory. On the lower side, 176 should work as support levels. One can go long in the stock with a stop below 176.

Also read: CPI inflation may see marginal uptick to 6.75-6.9% on fall in crude oil prices, IIP may at come in at 5.7-5.9%

Balkrishna Industries (Sell)

Balkrishna Industries has given a breakdown from a symmetrical triangle. It is currently showing support around 100 EMA; once the support gets penetrated the next level of support is at 200 EMA. It is around 1661.80 at a given point in time. Balkrishind is on the verge of death cross as very short-term 20 EMA has got closer to short-term 50 EMA. Both of them have sloped downwards. RSI (14,9) is well below 45 and its EMA is also sloping downwards. All the above observations indicate bearishness in the counter. One can sell the future of Balkrishind with stop loss above 2167 levels for a target of 1661.

Note: All the levels are spot levels.

(Vishal Vasant Wagh, Research Head, Bonanza Portfolio. Views expressed are the author’s own.)

Gold Price Today, 20 Sep 2022: MCX gold falls ahead of US Fed policy decision; check support, resistance

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Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were trading tepid in India on Tuesday, on muted global cues as investors awaited US Fed policy outcome. On Multi Commodity Exchange, gold October futures were trading Rs 28 down at Rs 49,274 per 10 gram, as against the previous close of Rs 49,302. Silver December futures were ruling at Rs 56,897per kg, up Rs 213 or 0.4 per cent. Globally, yellow prices traded in a tight range as investors maintained a cautious stance ahead of this week’s policy meeting by the Federal Reserve where the U.S. central bank is likely to hike interest rates to tame high inflation, according to Reuters. Spot gold held its ground at $1,676.80 per ounce, while U.S. gold futures rose 0.5% at $1,686.70.

Also read: 5 big numbers from OYO’s renewed IPO filing; Rs 2140 cr loss in FY22, check other details

COMEX gold trades marginally higher above $1685/oz supported by a pause in the US dollar and bond yields amid positioning ahead of central bank decisions. Fed’s 0.75% rate hike has been factored in and market players are now assessing the possibility of a surprise move. While some believe there is a possibility of a bigger hike, we believe that the Fed may maintain the pace given signs of improvement in the inflation situation. Amid reduced expectations of a surprise move by the Fed, gold and other commodities have edged up and could see some extended gains.

Tapan Patel, Senior analyst — Commodities, HDFC Securities

Gold prices traded steady on Tuesday with spot gold prices at COMEX were trading near $1676 per ounce in the morning trade. MCX Gold October futures opened firm near Rs. 49438 per 10 gram in line with positive global prices. Gold prices kept range bound trading ahead of the US FOMC meet as the US FED will kickstart two days of meetings from today. The dollar index was marginal down which supported yellow metal to trade firm. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1660 and resistance at $1690 per ounce. MCX Gold October support lies at Rs. 49100 and resistance at Rs. 49700 per 10 gram.

Also read: Petrol, Diesel Price Today, 20 Sep 2022: Fuel cost steady; check rates in Noida, Delhi, Gurugram, other cities

Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services

Gold prices traded in a tight range, as investors maintained a cautious stance ahead of this week’s policy meeting by the Federal Reserve where the U.S. central bank is likely to hike interest rates to tame high inflation. The U.S. Fed, at the conclusion of its two-day policy meeting on Wednesday, is expected to raise interest rates by 75 basis points, with markets even seeing a ~20% chance for a 100 bps increase. Gold prices weakened, hovering toward a 29-month low hit on Friday, as the U.S. dollar and Treasury yields firmed on expectations of a hefty Fed rate hike. Dollar index hovered around its 20 year high, while U.S. Yields held close to its highest level in over a decade on Monday. This week apart from the Fed, focus will also be on the BOE policy meeting, speech from Governor Powell and preliminary PMI data points. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.30% to 957.95 tonnes on Monday from 960.85 tonnes on Friday. Broader trend on COMEX could be in the range of $1640-1705 and on domestic front prices could hover in the range of Rs 49,100-49,750.

Rahul Kalantri, VP Commodities, Mehta Equities

Gold and silver prices came off their intraday lows to end marginally lower on Monday lows, as higher U.S. dollar index and rising bond yields limited buying interest in the precious metals to start the trading week. For Tuesday, gold has support at $1664-1656, while resistance is at $1686-1798. Silver has support at $19.18-18.95, while resistance is at $19.62-19.85. In INR terms gold has support at Rs 49,020-48810, while resistance is at Rs49,480, 49,640. Silver has support at Rs55,750-55,240, while resistance is at Rs57,180–57,510.

(The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)

Life Insurance: Steady premium growth witnessed

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Private life insurers reported 8.9%/17.6% y-o-y growth in individual/total APE a (annualised premium equivalent) in Aug’22. Growth in individual/total APE in FY23-TD remains strong at 25.3/31% y-o-y. Life Insurance Corporation of India reported 12.5%/37% y-o-y growth in total APE in Jul’22/FY23-TD.

We witnessed disparate growth and margin performance among life insurers in Q1FY23. Tata AIA and Bajaj Allianz (BALIC) led the pack in terms of growth. Tata AIA also reported highest y-o-y growth in sum assured market share in FY23-TD. Overall VNB (value of new business) margin for players has mostly been boosted by higher non-par and lower ULIPs while retail protection remained muted in Q1FY23.

Individual/total APE grew 8.9%/18% for private life insurers in Aug’22: o In terms of total APE growth – BALIC (40% y-o-y), Tata AIA (54% y-o-y) and HDFC Life (19% y-o-y) were outperformers in Aug’22. IPRU Life reported growth of 10.5% y-o-y. SBI Life (SBLI) reported total APE growth of 1.8% y-o-y on adverse base. Max Life reported a decline of 11% y-o-y. Individual APE growth remains on similar trajectory – BALIC/Tata AIA /HDFC Life outperformed with 38%/52.3%/17% y-o-y growth while SBLI/IPRU Life/Max reported decline of 5.2%/ 14%/11.6% in Aug’22, respectively.

Overall sum assured declined 8% m-o-m while individual sum assured was up 4% m-o-m: In terms of total sum assured, Tata AIA saw maximum improvement in its market share from 4.6% in FY22-TD to 8.4% in FY23-TD followed by Kotak Life from 3.3% to 4.5%. In terms of individual sum assured, Tata AIA/SBI Life/BALIC witnessed highest improvement in their sum assured from 10.6%/7.3%/3.5% in FY22-TD to 19.4%/7.7%/4.2% in FY23-TD while HDLI/IPRU Life/ Max witnessed decline from 13.3%/ 12.1%/11.1% to 9%/ 8% /9% during the same period, respectively.

LIC lagged its private peers in terms of Aug’22 y-o-y growth but YTD performance has been very strong with 37% total APE growth and gain in market share. It reported 5.2% y-o-y growth in terms of individual APE vs 9% reported by private insurers.

SoftBank slashes valuation of OYO by 20% to $2.7 billion

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Japan’s SoftBank has cut the valuation of OYO Hotels on its books by more than 20%, Bloomberg reported on Thursday, citing sources. The downgrade comes at a time when the hotel aggregator is once again preparing for an initial public offering (IPO) early next year.

The Japanese investor, the largest shareholder in OYO, cut its estimated value for the firm to $2.7 billion in the June quarter from an earlier $3.4 billion after benchmarking it against peers with similar operations, the report said. OYO’s valuation had reached $10 billion in a 2019 funding round.

Also Read: Qualcomm-backed drone maker IdeaForge Technology weighs $125 million India IPO

On speculations that it is targeting an early 2023 IPO at a $5-billion valuation, OYO said, “We have not decided the exact timing for the IPO and the IPO valuation is also highly speculative.”

On September 19, OYO filed its earnings for FY22 and the April-June quarter of the current fiscal as addendum to its draft red herring prospectus filed earlier with the Securities and Exchange Board of India (Sebi). The hotel aggregator’s revenue from operations during the April-June period stood at Rs 1,459.3 crore, while losses were at Rs 414 crore. In FY22, with the lifting of Covid-led restrictions, its revenue from operations went up 20.7% to Rs 4,781.4 crore and losses narrowed to Rs 2,140 crore from Rs 4,103 crore in FY21.

OYO is still far behind its pre-Covid annual revenue of Rs 13,413 crore in FY20. It had registered a net loss of Rs 10,419 crore during that year.

Its total costs went up to Rs 6,984 crore in FY22 from Rs 6,937 crore in FY21. General administrative expenses at Rs 515.4 crore were down 44.4% from Rs 927 crore in FY21. The employee expenses, net of ESOP-based compensation reduced by 26.5% in FY22 to `1,117.2 crore.

Helped by travel resumption, the hospitality firm’s gross bookings value per hotel in Q1FY23 stood at Rs 3.25 lakh. During FY22, it was at Rs 2.21 lakh. Its storefronts during the April-June quarter was at 168,000 from 157,000 at the end of FY21.

Nifty slips into consolidation, finds support at 14,500; Charts suggest Bank Nifty will underperform

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By Milan Vaishnav, CMT, MSTA

After staying heavily spooked by rising bond yields and strengthening US dollar as its consequence, the Indian equity markets remained weak throughout the week barring the last day where it saw some technical rebound from the short-term oversold levels. Though the Index still away from violating the key levels on the higher time-frame charts, it has ended up violating few important levels on the daily chart. After suffering a negative close on four out of the past five days of the week, the headline index showed a 400-point rebound from the lows of the previous session and ended with a net loss of 286.95 points (-1.91%) on a weekly note.

Another relation that stays disturbed is the usually inverse relation that the Volatility Index, INDIAVIX, shares with NIFTY. Along with the markets, the INDIAVIX has also come off by another 7.92% to 19.99. In the week before this one, the INDIAVIX had come off by 15.07%. This inverse relation may get corrected; we may see the Index extending the technical pullback to a limited extent and can also expect volatility to increase over the coming days.

Nifty

Support placed at 14,500 for Nifty

The coming week will see the levels of 14,865 and 15,000 acting as resistance points. The supports come in lower at 14,500 and 14,380 levels.

The pattern analysis indicates that NIFTY has been trapped in a broad-ranged consolidation. Although it tested and violated a few key levels on the Daily charts, it is still 730-odd points away from the faster 20-Week MA which presently stands at 14,010 and tracks the rising trend line seen on the chart. The Bollinger bands, which had got wider than usual are seen beginning to contract; this indicates that the NIFTY may well stay in a broad range for a while and many not show any runaway up move.

What these pockets for opportunities

The defensive play has got quite evident in the markets. Select Auto stocks are seeing some relative strength but apart from that, the Energy, FMCG, Consumption and very select pharma stocks have started to show improvement in the relative performance. This trend is likely to work out in the coming week as well. The NIFTY may well see the technical rebound getting extended, but it is likely to say limited in its extent. We recommend avoiding shorts, staying highly stock-specific and keeping exposures at modest levels throughout the coming week.

Bank Nifty

BankNIFTY relatively underperformed the NIFTY in the previous week. While the front-line Index declined 286.95 points (-1.91%) on a weekly note, the BankNIFTY came off by 1335.05 points (-3.76%) on a weekly note.

The coming week is expected to see the BankNIFTY continuing to relatively underperform both NIFTY and the broader NIFTY500 Index. The Bank NIFTY has slipped inside the weakening quadrant on the weekly RRG; it is seen paring its relative momentum against the broader markets.

Bank Nifty

The movement during the coming week is likely to stay capped with 34,650 and 35,105 acting as potential resistance points; supports come in at 33,650 and 33,220 levels.

The weekly RSI is 63.87; it stays neutral and does not show any divergence against the price. The RSI has also shown a bearish failure swing; it went above 70, slipped below it. It rose again but could not take out its previous high and slipped again below the point where it had bounced. This has resulted in a mildly bearish failure swing on the RSI. The weekly MACD is bullish; however, the sharply narrowing slope of the histogram points at a likely negative crossover over the coming weeks.

BankNIFTY has taken out a triple top resistance near 32,000 levels; after testing the high point at 37,708; it has marked a potential near-term top for itself at this point. It is unlikely that a runaway rise is seen in this index.

(Milan Vaishnav, CMT, MSTA is a Consultant Technical Analyst and founder of Gemstone Equity Research & Advisory Services, Vadodara. The views expressed are the author’s own. Please consult your financial advisor before investing.)

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

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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. Since then, Maharashtra is the only state to have cut rates. The Maharashtra government had announced a cut in value-added tax (VAT) on petrol by Rs 5 a litre and by Rs 3 a litre for diesel in July.

Also read: Rupee likely to trade volatile amid risk aversion in equity markets; USDINR to trade sideways in this range

Petrol, diesel prices in Chennai, Kolkata, Bengaluru, Lucknow, Noida, Gurugram

Mumbai: Petrol price: Rs 106.31 per litre, Diesel price: 94.27 per litre

Delhi: Petrol price: Rs 96.72 per litre, Diesel price: Rs 89.62 per litre

Chennai: Petrol price: Rs 102.63 per litre, Diesel price: Rs 94.24 per litre

Kolkata: Petrol price: Rs 106.03 per litre, Diesel price: Rs 92.76 per litre

Bengaluru: Petrol: Rs 101.94 per litre, Diesel: Rs 87.89 per litre

Lucknow: Petrol: Rs 96.57 per litre, Diesel: Rs 89.76 per litre

Noida: Petrol: Rs 96.79 per litre, Diesel: Rs 89.96 per litre

Gurugram: Petrol: Rs 97.18 per litre, Diesel: Rs 90.05 per litre

Chandigarh: Petrol: Rs 96.20 per litre, Diesel: Rs 84.26 per litre

Also read: Will bears drag Nifty towards 17450 or bull rally to continue? 5 things to know before market opening bell

Public sector OMCs including Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices daily in line with international benchmark prices and foreign exchange rates. Any changes in petrol and diesel prices are implemented from 6 am every day. Retail petrol and diesel prices differ from state to state because of local taxes like VAT or freight charges.

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.

Live Updates

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.

Read full story

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.

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.