Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
The Nifty had reached the support zone of 40 WEMA & the weekly lower Bollinger Band after the sharp decline on December 20. From these support parameters the index witnessed a bounce on December 21. With this bounce the index attempted to fill up a gap which was created on the daily chart recently.
The benchmark index partially filled up the gap of 16840 – 16966 & faced resistance near the upper end of the gap. The overall structure shows that the Nifty is set for a short term consolidation in the range of 16400-17000. Any dip towards the lower end of the range will be a staggered buying opportunity for positional traders.
Vinod Nair, Head of Research at Geojit Financial Services:
Indian market is attempting to recover from yesterday’s heavy selloff, domestic indices staged a gap-up opening on bargain hunting supported by positive sentiments across global markets.
Although concerns surrounding the impact of Omicron & FII selling still lingers, investors are trading cautiously and are optimistic. Gains in IT, commodities and metal stocks lifted the indices higher.
Rohit Singre, Senior Technical Analyst at LKP Securities:
Index opened a day with a good gap but again we have witnessed profit booking from higher-end resulting index erased some of its gains & closed a day at 16770 with gains of one percent & formed a Doji candle on the daily chart which represents indecision in the markets.
On the higher side index has a strong hurdle zone around 16850-16950 and any decisive break above mentioned zones can attract more bulls which can push the index to northwards but if continued to trade below said resistance then one can also witness profit booking towards immediate support zone of 16630-16500 zone.
Rupee Close:
Indian rupee ended higher by 31 paise at 75.60 on Tuesday against previous day close of 75.91.
The dollar hovered below recent highs on Tuesday having lost ground overnight after a blow to Democratic spending plans in Washington, but worries about the Omicron coronavirus variant kept risk currencies in check.
Market Close
Benchmark indices broke the two-day losing streak and ended higher on December 21 with Nifty above 16,700 level.
At close, the Sensex was up 497 points or 0.89% at 56,319.01, and the Nifty was up 156.60 points or 0.94% at 16,770.80. About 2204 shares have advanced, 1033 shares declined, and 111 shares are unchanged.
HCL Technologies, Wipro, UPL, Adani Ports and Tata Steel were among the top Nifty gainers. Losers Power Grid Corporation, Axis Bank, Bajaj Finance, Cipla and SBI.
All the sectoral indices ended in the green with realty, capital goods, pharma, energy, IT and metal indices added 1-3 percent. BSE midcap and smallcap indices gained over 1 percent each.
UBS keeps buy on Godrej Consumer Products:
Foreign research firm UBS has kept the buy call on Godrej Consumer Products with a target at Rs 1,175 per share.
The new MD & CEO, outlined strategy for next 3-5 years. He intends increasing investments by reduction in overheads & lower discounts/BTL spends.
The company to focus on category development, driven by higher A&P spends, sampling & distribution. The company expects gross & EBITDA margins to recover only in FY23.
Godrej Consumer Products was quoting at Rs 936.75, up Rs 48.40, or 5.45 percent on the BSE.
JM Financial initiates buy rating on Nykaa; target Rs 2480
We value Nykaa using DCF valuation methodology with explicit forecasts until FY41 to align to the long-term penetration story.
Using 10.5% cost of capital and 6.0% perpetuity growth rate, we derive Dec’22 target price of Rs 2,480 per share (~27% upside from CMP) and initiate coverage with a buy rating.
FSN E-Commerce Ventures Nykaa was quoting at Rs 1,968.40, up Rs 23.10, or 1.19 percent on the BSE.
BSE Capital Goods index rose 1 percent supported by the ABB, Timken India, Schaeffler India
Market at 3 PM
Benchmark indices erased some of the intraday gains but still trading higher with Nifty above 16700 level.
The Sensex was up 512.39 points or 0.92% at 56334.40, and the Nifty was up 155.50 points or 0.94% at 16769.70. About 2119 shares have advanced, 962 shares declined, and 90 shares are unchanged.
CMS Info Systems IPO subscribed 29% on day 1
The initial public offering of CMS Info Systems has been subscribed 29 percent, so far, on the first day of bidding, on December 21. It has received bids for 1.08 crore equity shares, against the IPO size of 3.75 crore equity shares.
Retail investors have put in bids for 57 percent of shares reserved for them. Non-institutional investors portion booked 1 percent, while qualified institutional investors are yet to put in bids for the offer.
Aayush Agrawal, Senior Analyst, Swastika Investmart on Metro Brands IPO:
Metro Brands has shown growth, profitability, and financial discipline in the past, but the sector is widely underrated. The company has an asset-light business model and derives most of its revenues from third parties.
We are seeing a change in IPO sentiment amid a slight decline in the market, and the last two debutants witnessed profit bookings post-listing, as well we are seeing a decline in the GMP for upcoming IPOs. We may see a discount listing of Metro Brands given that its GMP trades at a discount of 10-15% currently.
Market at 2 PM
Market erased some of the intraday gains but still trading higher with Nifty around 16,800.
The Sensex was up 677.85 points or 1.21% at 56499.86, and the Nifty was up 202.10 points or 1.22% at 16816.30. About 2280 shares have advanced, 788 shares declined, and 82 shares are unchanged.
Indian Oil Corporation acquires 4.93% stake in Indian Gas Exchange
Indian Oil Corporation board has accorded approval for investment proposal of new crude oil pipeline system with nameplate capacity of 17.5 MMTPA from Mundra to Panipat alongwith with augmentation of crude oil tank farm at Mundra, at an estimated cost of Rs 9,028 crore.
The project will meet the enhanced crude oil requirement arising out of capacity expansion of Panipat Refinery from 15 MMTPA to 25
MMTPA.
The board also accorded approval for acquisition of 36,93,750 equity shares of the face value of Rs 10 each equivalent to 4.93% of the share capital in Indian Gas Exchange Limited (IGX).
Indian Oil Corporation was quoting at Rs 110.15, up Rs 1.25, or 1.15 percent on the BSE.
Exide Industries to set up multi-gigawatt lithium-ion cell manufacturing plant
Exide Industries has decided to set up a multi-gigawatt lithium-ion cell manufacturing plant. It also plans to apply for and participate in the Production-Linked Incentive Scheme for National Programme on Advanced Chemistry Cell (ACC) battery Storage, issued by the Ministry of Heavy Industries.
Exide Industries was quoting at Rs 159.50, up Rs 4.20, or 2.70 percent on the BSE.
BSE Midcap index added nearly 2 percent led by the Aditya Birla Fashion and Retail, Vodafone Idea, AU Small Finance Bank
Strides Pharma Science commissions vaccine manufacturing facility at Bengaluru
Stelis Biopharma Limited (Stelis), the biotech division of Strides Pharma Science has commissioned its large-scale fully integrated vaccine manufacturing facility at Bengaluru, India.
Strides Pharma Science was quoting at Rs 417.95, up Rs 6.05, or 1.47 percent on the BSE.
Market Update at 1 PM
Benchmark indices were holding on the gains with Nifty above 16900.
The Sensex was up 1,032.02 points or 1.85% at 56854.03, and the Nifty was up 305.80 points or 1.84% at 16920. About 2355 shares have advanced, 705 shares declined, and 72 shares are unchanged.
Buzzing:
Godrej Consumer Products share price rose 6 percent to Rs 948 on December 21, breaking 4-day losing streak.
At 12:27 hrs Godrej Consumer Products was quoting at Rs 929.10, up Rs 40.75, or 4.59 percent on the BSE.
The share touched a 52-week high of Rs 1,138.50 and a 52-week low of Rs 644 on 03 September, 2021 and 24 February, 2021, respectively.
Currently, it is trading 18.39 percent below its 52-week high and 44.27 percent above its 52-week low.
Shilpa Medicare launches Prucalshil Orally Disintegrating strips in India
Shilpa Medicare has launched PRUCALSHIL (Prucalopride) Orally Disintegrating Strips 1 mg and 2 mg’ in India, a unique formulation developed for the first time in the World.
The company has developed a novel ‘Orally Disintegrating Strip (ODS)’ formulation for Prucalopride and obtained subsequent approval from Drug Control General of India, company said in he release.
Shilpa Medicare was quoting at Rs 551.85, up Rs 22.90, or 4.33 percent.
Piramal Enterprises arm Piramal Pharma acquires 27.8% stake in Yapan Bio
Piramal Pharma, subsidiary of Piramal Enterprises has entered into agreements and acquired 27.78% stake in Yapan Bio Private for an investment of Rs 101.77 crore (cash consideration).
Piramal Enterprises was quoting at Rs 2,550.05, up Rs 96.80, or 3.95 percent on the BSE.
Market at 12 PM
Benchmark indices extended the intraday gains with Nifty above 16900.
The Sensex was up 998.04 points or 1.79% at 56820.05, and the Nifty was up 301.30 points or 1.81% at 16915.50. About 2342 shares have advanced, 661 shares declined, and 82 shares are unchanged.
Nifty PSU Bank index rose nearly 2 percent led by the Bank of India, J&K Bank, Indian Bank
Data Patterns IPO share allotment today
After receiving a strong response for its initial public offering on December 13-15, Data Patterns India will finalise the basis of its share allotment today.
The issue of the defense and electronics solutions provider was subscribed 119.6 times, with retail investors’ portion subscribed 23 times. Qualified institutional buyers and non-institutional investors bid for a whopping 190 and 254 times the portion of shares reserved for them, respectively.
The company will raise Rs 588 crore through the public issue. Of this, Rs 240 crore as a fresh issue will be utilized for capex expenditure, debt repayment and funding of working capital requirement.
Amarjeet Maurya - AVP - Mid Caps, Angel One:
On the listing day, we are expecting a slightly weak listing of Metro brands due to company already commanding higher valuation and fear of new Covid variant omicron (will increase the possibility of lockdown).
However, we are positive on stock for the long term on the back of asset light business, strong brands and wide range of products. Every dip in share prices provides buying opportunities to long term investors.
Jefferies maintains ‘buy’ on Gujarat Gas
Gujarat Gas share price rose 3 percent to Rs 631.60 on December 21 after foreign research firm Jefferies has maintained buy rating with a target price at Rs 830 per share.
The recent Morbi channel checks suggest volumes at 6.50-7/5.70 mmscmd in November/ December, while volumes have been range-bound in order to mitigate exposure to high spot LNG prices, said Jefferies.
The underlying demand seems to be robust at 8-8.5 mmscmd, however, the medium-term volume outlook remains intact, it added.
Market at 11 AM
Benchmark indices were trading higher with Nifty above 16800 and Sensex rising more than 800 points.
The Sensex was up 941.08 points or 1.69% at 56763.09, and the Nifty was up 278.60 points or 1.68% at 16892.80. About 2256 shares have advanced, 681 shares declined, and 89 shares are unchanged.
Gaurav Garg, Head of Research, Capitalvia Global Research
The Indian Benchmarks made an optimistic opening tracking gains in other Asian markets. Traders will be taking encouragement as Commerce Ministry official said Indian exports showed a turnaround after December last year and are still strong.
Support may come in the market as the Asian Development Bank (ADB) will provide USD 350 million loan to improve access to urban service in India by accelerating policy action and reforms.
Market participants may show some concern with rising inflation and unemployment amid rising cases of Omicron variant of Corona virus.
Our research suggests that the levels of 16350 and 16850 may act as support and resistance levels respectively. If the market breaches the level of 16850, we can expect the market to trade till the range of 17000-17100. Technical indicators also support positivity in the market.
BSE Smallcap index rose 1 percent led by the KIOCL, Prozone Intu Properties, Future Enterprises DVR
Santosh Meena, Head of Research, Swastika Investmart:
Financially, MapMyIndia is doing well and its business model is sustainable. In spite of the fact that the IPO was purely OFS based, it attracted investors and got subscribed 154 times. The new edge technologies, such as SaaS, PaaS, and MaaS platform providers, are poised to have a bright future.
The IPO got listed at Rs 1565 per share, which is a 51.50% premium over the issue price of Rs 1033. Investors who applied for the IPO's listing gain should put a stop loss of Rs 1480 and long-term investors who got allotments should continue to hold the stock. New investors can also look for buying in the dips.
CMS Info Systems IPO subscribed 10% on day 1
The initial public offering of CMS Info Systems has been subscribed 10 percent, so far, on the first day of bidding. It has received bids for 38.76 equity shares, against the IPO size of 3.75 crore equity shares.
Retail investors have put in bids for 21 percent of shares reserved for them. Non-institutional investors and qualified institutional investors are yet to put in bids for the offer.
Nifty IT index gained 2 percent supported by the HCL Technologies, Coforge, Wipro
Rupee Opens:
Indian rupee opened 19 paise higher at 75.72 per dollar on Tuesday against previous close of 75.91.
The US dollar fell 0.01% yesterday as senator Joe Manchin said he would not support $1.75 trillion domestic investment bill. However, a sharp fall was cushioned on risk aversion in the global markets and surge in US treasury yields. Market sentiments were hurt on fears that fast spreading Omicron variant may push governments across the globe to impose restrictions, which could derail the global economic recovery, said ICICI Direct.
Rupee future maturing on December 29 appreciated by 0.22% on softening crude oil prices. However, sharp gains were prevented on a strong dollar and selloff in global markets, it added.
Adani Enterprises gets LoAs from UPEIDA for 3 Greenfield Ganga Expressway Projects
Adani Enterprises (AEL) participated in the competitive bidding process invited by UPEIDA for development, financing and construction of Ganga Expressway on PPP basis.
Adani Group has been awarded three Greenfield Ganga Expressway Projects under DBFOT (Toll) basis of 594 kms from UPEIDA in the state of Uttar Pradesh.
Adani Enterprises was quoting at Rs 1,626.00, up Rs 34.10, or 2.14 percent on the BSE.
Market at 10
Benchmark indices extended the early gains and trading at day's high with Nifty above 16800.
The Sensex was up 685.52 points or 1.23% at 56507.53, and the Nifty was up 206.10 points or 1.24% at 16820.30. About 2146 shares have advanced, 632 shares declined, and 95 shares are unchanged.
MapmyIndia lists with 53% premium
CE Info Systems, popularly known for its brand MapmyIndia, made a strong debut on the bourses on December 21 despite volatility in the equity market, listing with a premium of 53 percent.
The stock opened at Rs 1,581 on the BSE against the issue price of Rs 1,033 per share, while on the National Stock Exchange, the opening price was Rs 1,565.
Healthy subscription to its IPO and robust financials supported the stock price today.
BSE Realty index rose over 1 percent supported by the Macrotech Developers, Indiabulls Real Estate, Sunteck Realty
L&T to acquire stake in Intelliflux Controls INC
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Larsen & Toubro International FZE, a wholly owned subsidiary of Larsen & Toubro has entered into a share purchase agreement on December 20, 2021 to purchase, stake in Intelliflux Controls INC., a Delaware Corporation.
The cost of said acquisition is Rs USD 2 million and will get completed by December 21, 2021.
Larsen & Toubro was quoting at Rs 1,822.20, up Rs 24.35, or 1.35 percent on the BSE.
Wipro signs an agreement to acquire Texas based company Edgile
Wipro has signed an agreement to acquire Austin, Texas headquartered Edgile, a transformational cybersecurity consulting provider that focuses on risk and compliance, information and cloud security, and digital identity,company said in its release.
Edgile is recognized by security and risk leaders for its unique business-aligned cybersecurity capability, deep understanding of the changing regulatory environment and enabling cloud transformations that help secure the modern enterprise.
In addition, the company’s “strategy-first” approach and “Quick Start” solutions will allow the combined entity to deliver enhanced value in strategic cybersecurity services, company said.
Wipro was quoting at Rs 681.10, up Rs 14.75, or 2.21 percent on the BSE.
Nifty Metal index added 3 percent led by the NALCO, APL Apollo Tubes, Ratnamani Metals
HP Adhesives share allotment likely tomorrow
Adhesives and sealants company HP Adhesives will finalise the basis of its share allotment on December 22 after the company received healthy response for its initial public offer on December 15-17.
The company’s IPO was subscribed 20.96 times, attracting bids for 5.29 crore equity shares against an issue size of 25.28 lakh shares.
While retail investors bid for 81 times the reserved portion, the non-institutional investors’ portion was subscribed 19 times and qualified institutional investors bid for 1.82 times.
Gainers and Losers on the BSE Sensex in the early trade:
Market Opens:
Indian indices opened strong on December 21 with Nifty above on the back of supportive Asian markets.
At 09:16 IST, the Sensex was up 471.25 points or 0.84% at 56293.26, and the Nifty was up 133 points or 0.80% at 16747.20. About 1351 shares have advanced, 525 shares declined, and 71 shares are unchanged.
Wipro, Bajaj Finserv, Tata Steel, Hindalco Industries and Bajaj Finance were among major gainers on the Nifty, while losers were Cipla, Dr Reddy’s Labs, Shree Cements and Eicher Motors.
ICICI Direct
The Indian markets are likely to open gap up tracking positive Asian cues as investors are looking to pick up stocks at a bargain following the recent weakness.
US markets ended lower on the back of fears of fast spreading Omicron variant and increasing cases.
Market at pre-open:
Benchmark indices are trading higher in the pre-opening session amid positive Asian markets.
At 09:02 IST, the Sensex was up 454.94 points or 0.81% at 56276.95, and the Nifty was up 48.10 points or 0.29% at 16662.30.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 3,565.36 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 2,764.02 crore in the Indian equity market on December 20, as per provisional data available on the NSE.
