Rohit Singre, Senior Technical Analyst at LKP Securities:
Index closed a week at 17746 with loss of nearly two percent and formed a bearish candle on weekly chart hinting weakness in the markets. Now next good support for the market is coming near 17600 zone if managed to hold above-said levels one can expect a good pull back in the index again towards 18k mark but if failed to hold then we may see more drag down in Nifty towards 17300-17000 mark. The immediate hurdle is coming near 17830-17940 zone where one can again lock their gains in longs.
Ajit Mishra, VP - Research, Religare Broking:
The bears continued to dominate and dragged the index lower as weak global cues impacted sentiment. Besides, the subdued listing of Paytm added to the pressure as the session progressed. The scheduled weekly expiry further added to the volatility. Finally, the Nifty index ended lower by 0.7% to close at 17,764. The broader markets also witnessed selling pressure and lost over one percent each. Amongst the sectors, auto, metal and IT were the top losers.
We reiterate our cautious view on the markets, given the feeble global cues. Besides, the charts are also indicating the prevailing corrective move to extend further, with immediate support at 17,500 or lower in Nifty. In case of a rebound, the 17,900-18,000 zone would act as a resistance. Considering the scenario, traders should limit leveraged positions and maintain a few shorts also.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Market sentiment remained weak for the third straight session as factors such as rising inflation numbers and higher valuations are weighing on investors' minds, resulting in a correction in key indices.
On weekly charts, the Nifty has formed a strong bearish candle which is largely negative. In addition, the index has broken the important support level of 17800 and closed below the same.
For the traders, 17950 would be the immediate hurdle. If the index rises above the level, a pull-back momentum can continue up to 18025-18150-18200 levels. On the flip side, trading below the 50 days SMA or 17900, the index could slip up to 17600-17500 levels. Contra traders can take a long bet near 17500 with a strict support stop loss at 17425.
Meanwhile, after a long time, the Bank Nifty traded below the 50 day SMA which is broadly negative. The texture suggests 38500 and 39000 could act as important resistance levels in the short run.
Mohit Nigam, Head - PMS, Hem Securities:
On the technical front 17,700 and 18,000 are near term support and resistance in Nifty 50 and for Bank Nifty, 37,680 may act as immediate support while 38,396 is seen as resistance level.
Palak Kothari, Research Associate at Choice Broking:
On the weekly expiry day, the index opened on a negative note and traded with negative bias throughout the sessions, and closed the session at 17764.80 levels with a loss of 133 points. While Bank Nifty closed the session at 37976.25 level with a loss of 65.30 points. On the sectoral front, all closed on a red note while the Nifty Auto and Metal were the top losers.
Technically, the index has given a breakdown of the rising trend line & given closing below 50 DMA, which suggests weakness for the next trading sessions. From the last four trading sessions, the index has been trading with lower highs & lower lows, which points out some corrections for the next trading session.
However, the Index has taken support from the lower band of Bollinger, breaching below can show further downside. Furthermore, the index has given closing below 21 DMA as well as the Stochastic & MACD indicator is trading negative crossover, which points to weakness in the counter for the next trading sessions. At present, the index has a support level of 17650, while resistance is at 18000 levels.
Vinod Nair, Head of Research at Geojit Financial Services:
Weak listing of India’s largest IPO and soft global market amid rising inflation woes impacted domestic sentiment. In the context of a weak global market, contraction extended in metal and crude oil prices weighing down the Indian market.
The auto sector was also under pressure as the industry reported weak festive sales numbers owing to poor demand for two-wheelers and supply shortage in semiconductors.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
The markets bounced swiftly from around the 17600 level as that is the lower end of the current range and the short-term support for the Nifty.
If we break that level, the short-term trend will turn down and the bears will take over. That could take the markets down to 17200.
On the upside the resistance is at 18150 and until we do not get past that, the current range-bound movement will continue.
Market Close:
Benchmark indices ended lower for the third consecutive session on November 18, with selling seen auto, metal, IT, pharma, realty names.
At close, the Sensex was down 433.05 points or 0.72% at 59,575.28, and the Nifty was down 133.90 points or 0.75% at 17,764.80. About 997 shares have advanced, 2252 shares declined, and 133 shares are unchanged.
SBI, Power Grid Corp, HDFC Bank, IOC and Divis Labs were among major gainers on the Nifty, while losers were Tata Motors, Tech Mahindra, M&M, HCL Technologies and L&T.
All the sectors ended in the red with auto and metal indices lost over 2 percent each. The BSE midcap and smallcap indices fell 1.5 percent each.
Go Fashion IPO subscribed 5.39 times on second day of bidding
The public issue of Go Fashion, which sells women's bottom-wear under brand Go Colors, has received good response from investors with 5.39 times subscription on November 18, the second day of bidding.
Investors have put in bids for 4.35 crore equity shares against the offer size of 80.79 lakh equity shares, as per the subscription data.
Retail investors have been active from the day one of bidding, buying shares 22.27 times their reserved portion, while the part set aside for non-institutional investors is subscribed 1.77 times so far and that of qualified institutional buyers has seen 1.57 times subscription.
Dollar dips from 16-month highs as rally takes a pause
The dollar slipped back from a 16-month peak on Thursday, losing ground on the euro and Australian and New Zealand dollars as traders assessed whether the U.S. currency's recent surge was starting to stall.
The dollar has rallied in recent weeks as traders bet on tighter U.S. monetary policy. Stronger-than-expected inflation numbers in the United States last month and punchy retail sales data this week have added to those bets.
And while volatility in FX markets remains low, it is markets' assessment of global central banks' differing responses to rising inflation that is driving currencies.
Paytm share price falls over 20% post debut with discount
Paytm operator One 97 Communications share price fell more than 20 percent intraday after a debut with discount.
The share had a moderate listing on the bourses on November 18 as it fell 9 percent on debut.
The stock opened at Rs 1,950 on the National Stock Exchange and the listing price on the BSE was Rs 1,955, against issue price of Rs 2,150.
One 97 Communications was quoting at Rs 1,564.00, down Rs 586.00, or 27.26 percent.
JPMorgan view on Vedanta
Foreign broking firm JPMorgan has kept overweight call on Vedanta with a target at Rs 400 per share.
If the company demerges businesses into separate listed entities, there may be 4 listed companies, however most likely, it could be a de-merger with mirror shareholding of the existing company, it added.
Vedanta was quoting at Rs 308.85, down Rs 29.55, or 8.73 percent.
Oil at six-week low as China readies crude oil reserve release
Oil prices slid to six-week lows on Thursday as China said it was moving to release strategic reserves after a Reuters report that the United States was asking large consuming nations to consider a coordinated stockpile release to lower prices.
The bid by the U.S. to shock markets, asking China to join a coordinated action for the first time, comes as inflationary pressures, partly driven by surging energy prices, start to produce a political backlash, as the world fitfully recovers from the worst health crisis in a century.
Brent crude was down 83 cents, or 1%, to $79.87 a barrel by 0749 GMT, after earlier dropping to $79.28, the lowest since Oct. 7.
Market at 3 PM
Benchmark indices erased some of the intraday losses but still trading in the negative territory with Nifty around 18000 level.
The Sensex was down 207.32 points or 0.35% at 59801.01, and the Nifty was down 88.20 points or 0.49% at 17810.50.About 949 shares have advanced, 2150 shares declined, and 100 shares are unchanged.
SBI, Power Grid Corp, HDFC Bank, IOC and Reliance Industries were among major gainers on the Nifty, while losers were Tata Motors, Tech Mahindra, M&M, HCL Technologies and Tata Steel.
Tech Mahindra acquires digital engineering quality assurance provider Lodestone
Tech Mahindra has acquired Lodestone, a leading digital engineering quality assurance provider for new age digital companies.
The acquisition sets up Tech Mahindra as a leader in the digital engineering space by enhancing its capability to provide end-to-end quality assurance services across hardware, software, and data layers.
Tech Mahindra was quoting at Rs 1,584.00, down Rs 33.90, or 2.10 percent on the BSE.
European markets are trading flat with FTSE down marginally in the red
Go Fashion IPO updates
The public issue of Go Fashion, which sells women's bottom-wear under brand Go Colors, has received good response from investors with 3.98 times subscription on November 18, the second day of bidding.
Investors have put in bids for 3.21 crore equity shares against the offer size of 80.79 lakh equity shares, as per the subscription data. Retail investors have been active from the day one of bidding, buying shares 18.80 times their reserved portion, while the part set aside for non-institutional investors is subscribed 1.48 times so far and that of qualified institutional buyers has seen 29 percent subscription.
Market update at 2 PM
Sensex is down 240.88 points or 0.40% at 59767.45, and the Nifty shed 96.70 points or 0.54% at 17802. Tata Motors, Eicher Motors and HCL Tech are the top losers while One 97 Communications, Escorts and Tata Motors are the most active stocks.
Among the sectors, auto and metals are down 2 percent each while the PSU Bank index is trading in the green. The midcap and smallcap indices are down over a percent each.
BSE Smallcap index fell over 1 percent dragged by the Zensar Technologies, Aurum Proptech, PDS Multinational Fashions
Bharat Rasayan issues commercial papers of Rs 50 crore
Bharat Rasayan has issued commercial papers of Rs 50 crore value dated November 18, 2021, having maturity on February 16, 2022, which have been rated "CARE A1+" by a leading rating agency.
The company has appointed HDFC Bank Limited as Issuing & Paying Agent for this issuance
Bharat Rasayan was quoting at Rs 9,945.50, down Rs 64.80, or 0.65 percent.
HDFC Mutual Fund announces NFO – HDFC Multi Cap Fund
HDFC Asset Management Company has announced launch of New Fund Offer – HDFC Multi Cap Fund for investors looking to diversify their portfolio with a disciplined exposure to large cap, mid cap, and small cap segments.
The Scheme will make mandatory allocation of minimum 25% of its total assets each in large, mid, and small cap companies, while the balance 25% of its total assets will be allocated based on market view of the fund manager. The NFO will open on November 23, 2021, and will close on December 7, 2021.
Market at 1 PM
Benchmark indices erased some of the intraday losses but still trading lower with Nifty below 17800.
The Sensex was down 487.71 points or 0.81% at 59520.62, and the Nifty was down 163.70 points or 0.91% at 17735. About 797 shares have advanced, 2234 shares declined, and 103 shares are unchanged.
NCC receives 3 new orders worth of Rs 2167 crore in November
NCC has received three new orders totaling to Rs 2167 crore (exclusive of GST) so far in the month of November, 2021. All three orders pertain to building division and are received from a State Government agency and do not include any internal orders.
NCC was quoting at Rs 77.85, down Rs 1.00, or 1.27 percent on the BSE.
Macrotech Developers raises Rs 4,000 crore via QIP:
Realty firm Macrotech Developers has raised Rs 4,000 crore through sale of shares to institutional investors and will use this fund for business growth and reduction of debt, a top company official said on Thursday.
In an interview with PTI, Macrotech Developers Managing Director and CEO Abhishek Lodha said: "We have raised Rs 4,000 crore through QIP (qualified institutional placement) process. The demand was for more than Rs 12,000 crore worth shares from domestic and global investors.”
The company has raised this amount in less than six months of its initial public offer (IPO) of Rs 2,500 crore, he said.
Macrotech Developers was quoting at Rs 1,368.00, down Rs 62.75, or 4.39 percent.
Santosh Meena, Head of Research, Swastika Investmart:
Paytm, the biggest IPO in India so far debuted the secondary market on a weaker note as compared to our expectations of a flat listing. The company has a huge customer base with strong brand positioning and it has an early mover advantage in digital payment services however it is still a loss-making company and very aggressively priced, therefore we saw a tepid response in terms of subscriptions.
It is difficult to value such kind companies for time being but by the time market will understand the way to value such kinds of businesses where the market will focus on how fast it will become profitable and how well it will use its strength to explore new businesses like Credit card and Payment banking.
I would suggest only aggressive investors hold this stock for the long term amid uncertainty where I believe Bajaj Finserv is a much better option to play on Fintech businesses because Bajaj Finserv has a proven track record with great comfort of valuations compared to Paytm. Those who played for listing gain should keep a stop loss below 1720 which is 20% lower than the issue price.
BSE Midcap index fell nearly 2 percent dragged by the Tata Power, JSW Energy, Ashik Leyland:
Market Update:
Benchmark indices extended the fall and trading at day's low with Nifty around 17,700.
The Sensex was down 574.03 points or 0.96% at 59,434.30, and the Nifty was down 189.70 points or 1.06% at 17,709. About 787 shares have advanced, 2230 shares declined, and 92 shares are unchanged.
Escorts touches 52-week high after Japanese firm to raise stake in company
Escorts touched a 52-week high of Rs 1,793.15, rising 9 percent on November 18 after company board approved further stake acquisition by Kubota Corporation.
Escorts board approved to increase in shareholding in the company by Kubota Corporation.
The company board in its meeting held on November 18 approved the raising of equity capital aggregating to Rs 1872 crore through preferential issue of 93,63,726 equity shares of face value Rs 10 at Rs 2,000 per share (including a premium of Rs 1,990 for each equity share), to Kubota Corporation, Japan.
Amit Pabari, MD at crforex:
In absence of fresh market triggers, the Indian rupee to trade in a range of 74.10-74.50 levels as a slight pullback in the US inflation expectations and mixed comments over the Fed rate hike weighed on the market sentiment and dragged the US dollar down to 95.73 levels for now.
The lingering concern over quickening of rate hikes by the Fed over inflationary pressures remains bothersome. In absence of any RBI intervention, technically, the next support for the pair is near 73.80-74.00 while 74.50 remains a strong resistance, keeping the pair consolidated between 73.80-74.50 levels for now.
BSE Oil & Gas index fell 1 percent dragged by the Gujarat Gas, ONGC, GAIL India
Go Fashion IPO subscribed 3.39 times on second day of bidding
The public issue of Go Fashion, which sells women's bottom-wear under brand Go Colors, has received good response from investors with 3.39 times subscription on November 18, the second day of bidding.
Investors have put in bids for 2.74 crore equity shares against the offer size of 80.79 lakh equity shares, as per the subscription data.
Retail investors have been active from the day one of bidding, buying shares 16.33 times their reserved portion, while the part set aside for non-institutional investors is subscribed 1.02 times so far and that of qualified institutional buyers has seen 27 percent subscription.
Santosh Meena, Head of Research, Swastika Investmart:
Sapphire was listed with moderate gain in line with our expectations. Sapphire Food is a loss-making company however we have seen successful companies in the market from similar spaces.
If we talk about the valuations then it is coming out with 7XFY21 sales while recently listed Devyani International is trading at 14XFY21, therefore it is coming out with attractive valuations compared to its peers and it has strong brand names under its umbrella.
Aggressive investors can hold this stock for the long term as the business outlook is encouraging while short-term traders can keep a stop loss of Rs 1100 for the near term target of Rs 1500.
BSE Healthcare index fell 1 percent dragged by the Kopran, Panacea Biotec, Max Healthcare Institute
Supreme Court allows govt stake sale in Hindustan Zinc
Hindustan Zinc share price rose nearly 4 percent to Rs 344.90 after Supreme Court allowed government stake sale in the company.
Supreme Court has allowed government stake sale in the company. However, the government is entitled to make a decision on divesting its stake, reported CNBC-TV18.
Supreme Court directed CBI probe into the 2002 divestment of government stake in the company.
Rahul Sharma, Co-Founder, Equity99:
Paytm lists at a 9% discount and has corrected almost 25% post listing. It was incidental from the weak response received from the public as the retail portion was subscribed only 1.66 times & NII 0.24 times.
Also, it`s a loss-making company as it declared a net loss of Rs 4230 crore, Rs 2942 crore & Rs 1701 crore, respectively for FY19, FY 20 & FY21.
Short-term investors might remain in this counter as we might see some pullback but we don`t expect any momentum in long-term, so long-term investors may take the exit and wait for declines and to check the roadmap of development in the coming days before adding to the portfolios.
Go Fashion IPO updates
The public issue of Go Fashion, which sells women's bottom-wear under brand Go Colors, has received good response from investors with 3.22 times subscription on November 18, the second day of bidding.
Investors have put in bids for 2.59 crore equity shares against the offer size of 80.79 lakh equity shares, as per the subscription data. Retail investors have been active from the day one of bidding, buying shares 15.43 times their reserved portion, while the part set aside for non-institutional investors is subscribed 98 percent so far and that of qualified institutional buyers has seen 27 percent subscription.
Market update at 11 AM
: Sensex is down 372.22 points or 0.62% at 59636.11, and the Nifty shed 128 points or 0.72% at 17770.70.
Likhita Chepa, Senior Research Analyst, Capitalvia Global Research
The Indian benchmarks started today on a flat note amid weak global cues coupled with rising inflation. Traders may take note of the DEA Secretary statement that India needs to double the capital expenditure in the medium term from about 5-6 percent of Gross Domestic Product currently to fund expenditure.
Some support may come in the day as Finance Minister said there are clear signs of growth in the economy and asked industry to offer jobs to reduce income disparity and to ramp up investment in manufacturing.
Our research suggests that the levels of 17700-17900 may act as support level in the market.
Rajesh Exports bags prestigious order worth Rs 782 crore
Rajesh Exports has bagged a prestigious order worth Rs 782 crore of designer range of jewellery from Germany. The said order is to be completed by March 2022, company said in the press release.
Company will be executing the order from its own manufacturing facility. Company is confident of executing this order well within the time frame on the back of its expertise, skilled craftsmen, artisans & its exceptionally strong backward integrated infrastructure, it added.
Rajesh Exports was quoting at Rs 724.80, down Rs 18.40, or 2.48 percent on the BSE.
Nifty IT index shed 1 percent dragged by the Coforge, L&T Infotech, HCL Technologies
Go Fashion IPO sees 2.68 times subscription on second day of bidding
The public issue of Go Fashion, which sells women's bottom-wear brand under Go Colors, has received good response from investors as it has been seeing a 2.68 times subscription on November 18, the second day of bidding.
Investors have put in bids for 2.16 crore equity shares against the offer size of 80.79 lakh equity shares, as per the subscription data.
Retail investors have been active from the day one of bidding, buying shares 13.22 times their reserved portion, while a part set aside for non-institutional investors was subscribed 52 percent and that of qualified institutional buyers saw 25 percent subscription.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The markets are in a definite range which is between 17600 and 18100. Even though this might be a wide range, the movements are volatile and traders should abstain from trading until we do not get past either levels.
A breakout on the upside or a breakdown on the downside will result in a 400-500 point move.
Nifty Metal index shed over 1 percent dragged by the Vedanta, Hindustan Zinc, Welspun Corp
BSE Auto index slipped 2 percent dragged by the Tata Motors, Ashok Leyland, Bosch
DLF selected again for Dow Jones Sustainability Indices
DLF Limited has once again been selected to be a constituent of the Dow Jones Sustainability Emerging Markets Index, the company said in a statement.
It is the only real estate company from India to be included in this index and joins a distinguished league of 15 companies from India which have been recognized for their ESG initiatives and practices.
The Dow Jones Sustainability Indices is the world’s leading provider of ratings that evaluate publicly listed companies against Environmental, Social and Governance (ESG) criteria. Only the most sustainable companies in each industry are considered for inclusion in the list.
This is the 2nd consecutive year that DLF Limited is included in the index.
DLF was quoting at Rs 411.55, down Rs 6.35, or 1.52 percent.
Sapphire Foods lists at Rs 1,360 vs IPO price Rs 1,180
KFC and Pizza Hut operator Sapphire Foods started off a first day trade with a decent premium of 15 percent on November 18, which is largely on expected lines.
The stock listed at Rs 1360.75 on the BSE and the opening tick on the National Stock Exchange was Rs 1,368, against issue price of Rs 1,180.
The initial public offering of Sapphire Foods had received good response from investors as it was subscribed 6.62 times during November 9-11, 2021. The portion set aside for qualified institutional buyers was booked 7.5 times and that of non-institutional investors saw 3.46 times subscription. Retail investors had bought shares 8.7 times the reserved portion.
Paytm operator One97 Communications debut at Rs 1,950
Paytm operator One 97 Communications had a disappointing listing on the bourses on November 18 as it fell 9 percent on debut. The stock opened at Rs 1,950 on the National Stock Exchange and the listing price on the BSE was Rs 1,955, against issue price of Rs 2,150.
The leading digital payments platform's initial public offering saw a tepid response from investors as it was subscribed 1.89 times. Net net qualified institutional investors supported the issue during November 8-10, subscribing for shares 2.79 times the portion set aside for them.
Canada Pension Plan invests Rs 787 crore in Phoenix Mills
Phoenix Mills share price rose 5 percent to Rs 1,144.95 on November 18 after Canada Pension Plan Investment Board has invested Rs 787 crore in company's subsidiary.
CPP Investments has, on November 16, 2021, completed its first tranche of investment in Plutocrat Commercial Real Estate Private Limited (PCREPL) on private placement basis and by way of secondary acquisition of equity shares held by the company in PCREPL aggregating to Rs 787 crore," company said in the release.
GMR emerges winning bidder for Kualanamu International Airport:
GMR Airports (GAL), a subsidiary of GMR Infrastructure, today announced as the winning bidder for the development and operation of Kualanamu International Airport in Medan, Indonesia.
GMR Airports Limited and its wholly owned subsidiary, GMR Airports International B.V had bid for the project as consortium.
GMR Infrastructure was quoting at Rs 39.95, up Rs 0.15, or 0.38 percent.
