Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities:
Markets plunged sharply on worries of rising Coronavirus cases in the west and reports of a new Covid variant. Due to weak global market conditions, we saw investors booking profit at higher levels.
The Nifty has formed a long bearish candle and after a lengthy correction it is currently trading near the 100-day SMA. On daily charts, the index has broken the important support level of 17200 and closed below the same. While the short term formation is weak, a quick pullback rally is not ruled out if the Nifty succeeds to trade above the 100-day SMA.
For day traders, 17150 or 100-day SMA would be the immediate hurdle above the same. On the flip side, trading below 17150, the index could decline up to 16900-16750 levels.
Contra traders can take a long bet near 16750 with a strict support stop loss at 16625. Meanwhile, the Bank Nifty closed below the 100-day SMA which is broadly negative. For the index, 37000 and 37700 could act as important resistance levels in the short run.
Joseph Thomas, Head of Research, Emkay Wealth Management:
The frontline indexes nosedived on a day of unprecedented selling across sectors and market caps. The movements in the domestic market has been in sympathy with the movements in other Asian markets as well, and quickly followed by Europe at opening.
The tapering of bond purchases by the Fed and the rising inflation fuelled the speculations of an early hike in rates by the Fed, that is, even before the conclusion of the tapering of bond purchases. These developments lent some strength to the US Dollar, and also prompted exit from emerging markets by FPIs.
The markets are expected to remain volatile with reports of surging infections in the next wave of the pandemic especially in some of the European countries.
Ajit Mishra, VP - Research, Religare Broking:
Markets plunged sharply on global COVID fears and lost nearly 3%. The bears were in control from the beginning as a new variant of COVID raised concerns globally and they further tightened their grip as the session progressed. Selling pressure was widespread and all sectors barring pharma ended with deep cuts. The broader indices also witnessed a similar trend and lost nearly 3% each.
Though the COVID is not new to the market, the reaction is largely in response to the news of a different variant while the US and Europe are already struggling. The way markets have closed on Friday, we expect more pain in the coming sessions.
Apart from the global COVID-related update, markets will also be eyeing the domestic data like auto sales, GDP numbers, etc for cues.
Since Nifty has slipped below the critical support zone of 17,150, the next crucial support comes at 16,700. Traders should continue with the bearish bias and use the bounce to create shorts.
Investors, on the other hand, should see this as an opportunity and start accumulating quality stocks in a staggered manner.
Sachin Gupta, AVP, Research at Choice Broking:
The benchmark index crashed badly on the last trading day of the week, after a gap-down opening, the index continued the fall and retreated almost 3% in a day to close at 17026.50 levels while Bank Nifty has drifted more than 3.5%, settling at 36025.50 levels.
Technically, the index has continued the breakdown of the Head & Shoulder pattern after retesting the neckline, which indicates bearishness in the index. Moreover, the index has moved below 100 days SMA and also formed a Bearish Marubozu candle on the daily chart.
However, the momentum indicator RSI & Stochastic has been trading at oversold territory. At present, the Nifty has support at 16,700 levels while resistance at 17,300 levels.
Vinod Nair, Head of Research at Geojit Financial Services:
Triggered by the new covid variant in South Africa, domestic markets plummeted into negative territory following weak global peers.
Existing inflation fears coupled with worries of an aggressive policy tightening by the US Fed Reserve also added to today’s catastrophic session.
On the domestic front, broad-based sell off was witnessed as investors dumped covid-sensitive stocks while focus was shifted towards the pharma sector amid growing concerns over the new variant with higher mutations.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
Today's closing has left the markets at a crucial juncture. If we break today's low, the index can easily slide to 16400-16500.
The upside now has multiple resistance levels and we are definitely in a short-medium term bear market. Any up move should be utilized to find opportunities to go short on the markets.
Market Close
: Benchmark indices slipped nearly 3 percent each on November 26 on the back of weak Asian markets and new coronavirus variant fears.
At close, the Sensex was down 1,687.94 points or 2.87% at 57,107.15, and the Nifty was down 509.80 points or 2.91% at 17,026.50. About 964 shares have advanced, 2163 shares declined, and 80 shares are unchanged.
JSW Steel, Hindalco Industries, Tata Motors, IndusInd Bank and Adani Ports were among major losers on the Nifty, while gainers included Cipla, Dr Reddy's Labs, Divis Labs, Nestle and TCS.
Among sectors, except pharma (up nearly 2 percent), all othwer sectoral indices lost 1-6 percent. The BSE midcap index shed 3.2 percent and the smallcap index fell 2.6 percent.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Markets saw sharp correction this week amid renewed concerns pertaining to covid. BSE Sensex and Nifty declined close to 4% this week and are down by ~8% from their highs.
Correction in the market was broad-based with BSE Midcap and BSE Smallcap index also witnessing a decline. Amongst sectors, the BSE Auto index was a major underperformer having declined more than 7% this week. BSE Realty, BSE Bankex, and BSE Capital goods index were other underperformers, declining in excess of 4% during the week. Despite weakness in the equity markets, the BSE Pharma index saw positive returns.
The new variant of covid is presenting challenges in the form of lockdowns and travel bans. Apart from covid related concerns, inflation remains a worry for countries across the globe. FII’s have been net sellers this week. Equity markets in the near term will closely follow the impact of new covid variant, inflation data, and Central Bank policies.
Germany to ban most travel from South Africa over new COVID-19 variant
Germany will ban most travel from South Africa to halt the spread of a new Covid-19 variant with a large number of mutations, acting Health Minister Jens Spahn said Friday.
The new rules, starting Friday night, will affect South Africa and "probably neighbouring nations", Spahn said, with only German nationals allowed entry. They must quarantine 14 days upon arrival even if vaccinated.
"The last thing we need now is an introduced new variant that causes even more problems," Spahn said.
BSE Power index fell 3 percent dragged by the Tata Power, BHEL, NTPC
Amit Gupta, Fund Manager – PMS, ICICI Securities
Nervousness on the new variant of Corona virus and expectations of US increasing the pace of tapering have led to recent market weakness. This trend may take some time to recover as the WHO meeting on the new mutant variant impact and hospitalization rates in US and Europe will be watched by the market very closely.
India is on higher earnings growth trajectory and this is the only major risk which can spoil the sentiments. The current dollar strength also suggests the risk-off sentiments and is leading to FII flows currently.
Nifty has new base at 16,000-16,500 now which may be tested in this weakness.
The recent commodity prices correction can lower the raw material cost for certain sectors like Consumer and help them to recover after a period of consolidation.
Market Updates at 3 PM
Benchmark indices were trading lower in the final hour of trading on November 26 with Nifty below 17200 and Sensex down over 1300 points.
The Sensex was down 1,398.46 points or 2.38% at 57396.63, and the Nifty was down 430.10 points or 2.45% at 17106.20. About 976 shares have advanced, 2100 shares declined, and 88 shares are unchanged.
Unichem Laboratories share price rises 19%
Unichem Laboratories share price rose more than 19 percent to Rs 246.45 on November 26 after credit rating agency ICRA reaffirmed the long-term rating of bank facilities of the company.
ICRA, the credit rating agency has reaffirmed the long-term rating on the Rs 176 crore bank facilities of Unichem Laboratories to [ICRA] A.
The outlook on the long term rating has been revised to negative from stable.
Likhita Chepa, Senior Research Analyst, Capitalvia Global Research:
Indian equity benchmarks continued their bearish movement in noon session. Domestic market impacted by negative cues from other Asian markets coupled with detection of a new and possibly vaccine-oriented coronavirus variant.
57200 levels may act as support in the market. If the market unable to sustained the level of 57200, we can expect the market to trade below the level of 56800-56300.
European markets crash; FTSE, CAC, DAX fall 3-4% each
Ircon International bags projects worth Rs 1,462 crore
Ircon International has emerged lowest bidder in constuction of eight lane access controlled expressway from Shirsad to Akloli Section- SPUR of Vadodara Mumbai Expressway in the state of Maharashtra on
Hybrid Annuity Mode under Bhartmala Pariyojana (Phase 11- Pacakge-XIV). The project is fioated by National Highways Authority of India and value of the project is approx. Rs 1124 crore. The completion period of the project is two years. The stock was trading at Rs 45.75, down Rs 0.45, or 0.97 percent. It has touched an intraday high of Rs 46.25 and an intraday low of Rs 45.40.
Market update at 2 PM
Sensex is down 1,499.56 points or 2.55% at 57295.53, and the Nifty crashed 453.50 points or 2.59% at 17082.80.
India rupee at 3-week low
The Indian rupee dropped to its lowest level in three weeks and bond yields fell on Friday as concerns over a new COVID variant spooked markets across the globe.
Shares and currencies in Asia's emerging markets fell sharply as investors fled riskier assets after the detection of the significant new mutation, which in-turn strengthened safe-haven assets like the dollar.
The partially convertible rupee was trading 74.71/72 per dollar at 0736 GMT compared to its close of 74.51. It touched a low of 74.5850 earlier, its lowest since November 2.
The benchmark 10-year bond yield was trading at 6.32%, down 5 basis points from its close on Thursday.
urionpro
A
Solutions enters into definitive agreement for acquisition stake in Toshi Automatic SystemsAurionpro Solutions has entered into a definitive agreement for acquisition of majority stake (51%) in Toshi Automatic Systems Pvt. Ltd., a Ghaziabad, Uattar Pradesh based company and an innovator with products and solutions in Industrial, Public Safety, Mass Transit segments.
aurionPro Solutions was quoting at Rs 228.10, up Rs 10.85, or 4.99 percent on the BSE.
Brent slumps under $80 as investors wary of new variant, Q1 surplus
Brent slid nearly 4% to below $80 a barrel on Friday as a new COVID-19 variant spooked investors, adding to concerns that a global supply surplus could swell in the first quarter following the release of crude reserves by the United States and others.
Oil fell in tandem with other financial markets on fears that the new variant could slow economic growth and restrict movement again.
Brent crude futures extended declines for a third session, falling $3.16, or 3.8%, to $79.06 a barrel by 0733 GMT. U.S. West Texas Intermediate (WTI) crude was down $3.45, or 4.4%, at $74.94 a barrel. There was no settlement for WTI on Thursday because of the Thanksgiving holiday.
BSE Midcap index shed over 2 percent dragged by the Indian Hotels, Cholamandalam Investment, Shriram Transport Finance
Buzzing
Indian Metals & Ferro Alloys share price was up 3 percent on November 26 after the company's board approved a bonus share issue.
The board of directors of Indian Metals & Ferro Alloys at their meeting held on November 26, 2021, approved the issue of bonus equity shares in the ratio of one new equity bonus share of Rs 10 each for every one existing shares of Rs 10 each held by the shareholders on the record date, subject to shareholders' apporval.
The company has fixed January 10, 2022 as the record date for ascertaining the eligibility of shareholders entitled to bonus shares.
Market at 1 PM
Market recovers a bit from the day's low point but still trading lower with Nifty below 17200 and Sensex down with over 1100 points
The Sensex was down 1,163.65 points or 1.98% at 57631.44, and the Nifty was down 347 points or 1.98% at 17189.30. About 1039 shares have advanced, 1960 shares declined, and 111 shares are unchanged.
Indiabulls
Housing Finance jumps 9%, despite stake dilution by BNP Paribas, Societe GeneraleIndiabulls Housing Finance share price surged over 9 percent in the afternoon session on November 26. The stock has been on the radar after Brickwork Ratings India revised its outlook to ‘stable’ from ‘negative’.
Foreign portfolio investors BNP Paribas Arbitrage and Societe Generale, however, offloaded a 1.1 percent equity stake in Indiabulls Housing Finance through open market transactions on November 25.
BNP Paribas Arbitrage sold 23,59,500 equity shares in Indiabulls Housing Finance at Rs 221.75 apiece and Societe Generale offloaded 27,40,400 equity shares in the company at Rs 221.34 each on the NSE, the bulk deals data showed.
BNP Paribas Arbitrage held a 1.56 percent stake and Societe Generale had 1.27 percent in Indiabulls Housing as of September 2021.
BSE Smallcap index fell over 1 percent dragged by the PVR, Chalet Hotels, Inox Leisure
Motilal Oswal on Reliance Industries:
RIL, in the last year, has seen strong deleveraging on the back of value unlocking in the Consumer business, which has aided valuations.
The Consumer biz – RJio and Reliance Retail are richly valued given their strong growth potential. We see price hikes in the Telecom business and revival in the Retail business – led by strong growth potential in JioMart – as key levers for the stock over the next two years.
RIL is trading at 11.9x FY23E EV/EBITDA and 19.2x FY23E P/E. Using SOTP, we value the stock at Rs 2,900 and reiterate buy.
India to tighten COVID-19 testing for tourists amid new variant concerns
India issued an advisory to all states to rigorously test and screen international travellers from South Africa and other "at risk" countries amidst concerns over a new coronavirus variant, after easing some of its travel restrictions earlier this month.
The federal health ministry said reports of mutations in the new variant, identified as B.1.1.529, had "serious public health implications".
"This variant is reported to have a significantly high number of mutations, and thus, has serious public health implications for the country in view of recently relaxed visa restrictions and opening up of international travel," health secretary Rajesh Bhushan said in a letter to states issued late on Thursday.
Market at 12 PM
Benchmark indices were trading near the day's low with Nifty below 17200 and Sensex falling over 1200 points.
The Sensex was down 1,295.10 points or 2.20% at 57,499.99, and the Nifty was down 390.50 points or 2.23% at 17,145.80. About 973 shares have advanced, 1989 shares declined, and 116 shares are unchanged.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The index has opened with a gap down this morning. If we sustain the gap and break the lows, we can slide further to 17100 which is the next level of support.
However, it is well established now that the current trend is down and all up moves are opportunities to short the Nifty. The upside is capped by multiple levels of resistance, the most important one being 17600.
Nifty PSU Bank index fell 3 percent dragged by the Canara Bank, SBI, Bank of Baroda, Union Bank of India
Santosh Meena, Head of Research, Swastika Investmart:
Tarsons Products saw a good response from the investors and the IPO was subscribed 77 times. The IPO was priced at 34x on annualized Q1FY22 at the upper price band of Rs 662. However, the company's share price got settled at Rs 682 with a minor gain of 3%.
Tarsons Products is backed by a strong management team with great brand awareness and high-quality goods. It is one of the leading life sciences suppliers in India. The company aims to be debt fee post the IPO and is planning for CAPEX which will further increase the revenues.
We may see profit booking in the stock eyeing the global cues on the concerns of New variant of Covid-19. However, it is expected that we may see demand for the products of Tarsons.
The investors who applied for listing gain can keep a stop loss of Rs 590 while long-term investors can hold the stock. Risk-taking investors can also buy the stock with the same stop loss.
BSE Realty index fell 5 percent dragged by the Phoenix Mills, DLF, Oberoi Realty
Buzzing:
Indiabulls Housing Finance share price added over 2 percent intraday on November 26. The stock has been on the radar after Brickwork Ratings India revised its outlook to ‘stable’ from ‘negative’.
In a regulatory filing, Indiabulls Housing Finance announced that the credit rating agency has reaffirmed its long-term rating at ‘BWR AA+’. The housing finance company’s perpetual debt rating has also been reaffirmed at ‘BWR AA’.
Foreign portfolio investors BNP Paribas Arbitrage and Societe Generale, however, offloaded a 1.1 percent equity stake in Indiabulls Housing Finance through open market transactions on November 25.
Market Update:
Benchmark indices recovered from the day's low point but still trading lower with Nifty below 17200.
The Sensex was down 1,236.98 points or 2.10% at 57558.11, and the Nifty was down 374.20 points or 2.13% at 17162.10. About 842 shares have advanced, 2093 shares declined, and 94 shares are unchanged.
Airline and hotel stocks remained under pressure on November 26 on worries over a new coronavirus variant that has been detected in South Africa.
The hotel and airline stocks fell 3-6 percent intraday on November 26 on fears of this new vaccine-resistant variant. It may be noted that both these sectors were badly affected during the pandemic period as there were restrictions to travel between the countries.
The Centre, on November 25, asked all states and union territories to conduct rigorous screening and testing of all international travelers coming from or transiting through South Africa, Hong Kong and Botswana, where a new COVID-19 variant of serious public health implications has been reported.
Interglobe aviation is down 7.3%, Spicejet is trading down 6.5% while Indian Hotels Comonay is down 8.3%.
Likhita Chepa, Senior Research Analyst, Capitalvia Global Research:
The Indian benchmarks has a gap down opening today tracking weak Asian markets. Traders will be concerned as WHO flags new Covid-19 strain. Foreign portfolio investors (FPIs) remained net sellers for Rs 2300.65 crore in the Indian markets.
There will be some cautiousness as ICRA report said that Reserve Bank of India’s revision of bad loan recognition and upgradation norms could bring a sharp spike in non-performing assets of non-banking finance companies (NBFCs) in the country.
Some support may come as investments in Indian capital through participatory notes (P-notes) rose to Rs 1.02 lakh crore till October end.
The levels of 17200 may act as an important support level in the market. If the market sustained above the support of 17200, we can expect it to trade in the range of 17200-17500.
BSE Auto index slipped 3 percent dragged by the Tata Motors, Motherson Sumi, Ashok Leyland
Rupee Opens:
Indian rupee opened marginally lower at 74.58 per dollar on against previous close of 74.51.
US dollar declined 0.09% yesterday but remained near its 16- month high on expectations the US Federal Reserve will hike rates sooner to tackle inflation. Further, a sharp fall was cushioned on hawkish FOMC meeting minutes and robust economic data from the US, said ICICI Direct.
Rupee future maturing on November 26 depreciated by 0.10% yesterday on strong dollar and persistent FII outflows. However, a sharp fall was prevented on softening of crude oil prices and positive domestic markets, it added.
Indian GDP likely boosted in July-September as lockdowns lifted: Poll
India’s economic recovery likely strengthened in the previous quarter, boosted by services activity that recovered after pandemic-related mobility restrictions were eased, a Reuters poll of economists found.
The November 22-25 poll of 44 economists put the median year-on-year growth forecast at 8.4% in the July-September period. The Indian economy expanded 1.6% and 20.1% in the Jan-March and April-June quarters, respectively.
Nifty Bank index shed 2.5 percent dragged by the Bandhan Bank, RBL Bank, Federal Bank
Prashanth Tapse, Vice President (Research) at Mehta Equities:
Following to Asian trades Indian markets are over reacting to the concern over a new Covid variant found in South Africa last night followed by few EU countries under full lockdown scenario.
Traders in fear are selling riskier assets like equities, which could result in increased equity outflows from FII.
We believe India is not in panic mode and investors should make use of this selloff as a buying opportunity. The new variant should not be a great matter of concern for us and we suggest investors with suitable risk appetite to consider and start allocating money into markets who have missed the rallies.
Market at 10 AM
Benchmark indices extended the opening losses with Nifty below 17300 on worries over a new coronavirus variant that has been detected in South Africa.
The Sensex was down 933.48 points or 1.59% at 57861.61, and the Nifty was down 280.80 points or 1.60% at 17255.50. About 972 shares have advanced, 1830 shares declined, and 93 shares are unchanged.
Tarsons Products shares list with 5% premium at Rs 700
Life sciences company Tarsons Products saw a tepid debut on the bourses as the stock was listed with a 5.74 percent premium on November 26. This is the 52nd company to list on the mainboard in 2021.
Tarsons Products stock opened at Rs 700 on the BSE, while the opening price on the National Stock Exchange was Rs 682.
Centre issues advisory to states, UTs over South Africa variant
The Centre, on November 25, asked all states and union territories to conduct rigorous screening and testing of all international travellers coming from or transiting through South Africa, Hong Kong and Botswana, where a new COVID-19 variant of serious public health implications has been reported.
In a letter address to additional chief secretary/principal secretary/secretary (Health) of all states and union territories, Union Health Secretary Rajesh Bhushan asked them to ensure that samples of travellers turning positive are sent to designated genome sequencing laboratories promptly.
Saudi Arabia to lift travel ban on Indians from December 1
Saudi Arabia has lifted the travel ban on people from India and five more nations effective from December 1, and allowed direct entry for fully vaccinated expatriates, revoking the mandatory 14-day quarantine outside the country.
The Saudi interior ministry has, however, maintained that a five-day quarantine was a must for the entrants, irrespective of their vaccination status, with all measures subject to constant evaluation by the country’s health authorities. The other five countries it listed are Pakistan, Brazil, Vietnam, Egypt and Indonesia.
Nifty Pharma index rose 1 percent led by the Pfizer, Alkem Laboratories, Granules India
Godrej Properties buys 16-acres land parcel at Sarjapur, Bengaluru
Godrej Properties has purchased a land measuring approximately 16 acres at a strategically located and fastest developing micro-market of Sarjapur, (Bengaluru) to develop a mid-income project, company said in the press release.
The project is estimated to have a developable potential of approximately 1.5 million square feet saleable area comprising primarily of residential apartments of various configurations, it added.
Godrej Properties was quoting at Rs 2,170.85, down Rs 69.00, or 3.08 percent on the BSE.
