Market Highlights: Sensex surges 894 pts from day’s low to close in green, Nifty ends at 13,466; IT stocks aid rally

Sensex closed above the 46,000 mark while Nifty regained 13,400 on closing as both benchmark indices reversed intraday losses to mount a comeback on Tuesday.

BSE Midcap index was up 1.13% minutes before the closing bell on Tuesday, meanwhile, the Nifty Midcap 50 index was up 1.22%. On the other hand, Sensex was up 1% while Nifty gained 1.05%.

HCL Tech share price was up 5.2% minutes ahead of the closing bell. It was followed by Tech Mahindra and Infosys, up 4.25% and 3.97%, respectively. TCS, the remaining IT firm among Sensex participants, was up 2.17%.

India VIX or the fear gauge of domestic stock markets was down 4.8% just ahead of the closing bell on Tuesday. The index was at 22.06 levels, down from its previous closing levels of 23.19.

"Markets have been unable to recover from yesterday's mauling, with risks increasing for significantly extended lockdowns in several countries, uncertainty about transport links, and individual mobility flags red. Unfortunately, for energy bulls, crude oil is the favoured downside pawn often in play when lockdown headlines hit. And looking at oil price reaction in Asia this morning by all accounts, we could be headed for the second screening of the 'Nightmare before Christmas'. And while equities are holding up not experiencing the same rude awakening as oil, there is not much energy out here, and the lack of momentum speaks volumes," said Stephen Innes, Chief Global Market Strategist at Axi.

Amid COVID-19 pandemic, ICICI bank HDFC Bank and State Bank of India (SBI) are the three banks that transformed themselves almost overnight to serve their account holders (customers) this year. In doing so, they also trumped their newer counterparts including Axis Bank and Kotak Mahindra Bank, according to the BFSI Movers and Shakers 2020 Report by Wizikey.

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The Rs 300-crore Antony Waste Handling Cell’s initial public offer (IPO) has been subscribed 2.7 times so far on day two with retail investors subscribing their portion nearly 5 times. The solid waste management company had earlier launched its IPO in March this year but was withdrawn due to a weak response from investors. After the new strains of the coronavirus reported in the UK, Indian share markets reversed the gains made in the last couple of sessions.

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Only 2 Sensex constituents were trading with losses on Tuesday, less than an hour ahead of closing. These included, ONGC and Reliance Industries.

Information technology stocks were the top gainers on Dalal Street on Tuesday. The BSE IT index was up 2.9% with Birlasoft Ltd gaining 16%.

Coming back from intra-day lows, Sensex crosses 46,000 while Nifty was above 13,400. Broader markets were also mirroring the up move.

Embassy REIT stock down by 0.5% on institutional placement of units of Embassy Office Parks REIT. Embassy Office Parks REIT India’s first listed REIT and one of the largest in Asia by area, announced that the company has successfully completed a unit capital raise of ?36.8 billion ($501 million) through an Institutional Placement of units. Board has approved the issuance and allotment of 111,335,400 new units through this Institutional Placement in a meeting held earlier today, i.e., on December 22, 2020.Trading of these units is expected to commence on or around December 24, 2020 on NSE and BSE exchanges. The Institutional Placement launched on December 15, 2020 and witnessed strong demand from both existing as well as new institutional investors, including global and domestic investors, pension funds, insurers, and alternative asset managers. This is positive development for embassy reit and great to see the huge demand for REIT in India: Yash Gupta Equity Research Associate, Angel Broking Ltd

Sensex and Nifty reversed the trend and were seen trading with gains. Sensex surged over 100 points while Nifty 50 was above 13,350.

Bitcoin is again making headlines with the unreal upwards movement it has charted on the price charts in recent weeks. The crypto currency has gained nearly 400% since March this year and over 200% since the beginning of this pandemic struck year. Investor’s interest in bitcoin has been gaining steam in 2020 and it’s not just small investors, institutions too have joined in cheering it. Seeing these developments, Chris Wood, global head (equity strategy) at Jefferies, has decided to introduce Bitcoin in its long-only global portfolio.

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Snesex trimmed losses and was trading flat with a negative bias at 1:20 PM on Tuesday. Nifty was above 13,300 levels.

Dr Reddy’s Laboratories Ltd, Canada-based Appili Therapeutics and Dubai-based Global Response Aid FZCO (GRA) on Tuesday said Dr Reddy’s Canada has filed an application on behalf of the consortium for Reeqonus (favipiravir) Tablets for treating COVID-19 in the North American country.

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Airline stocks were in focus today after India joined the list of countries suspending flights from the UK amid new coronavirus strain fears. Spicejet, InterGlobe Aviation and Jet Airways stocks hit their respective lower circuits today. India has suspended all passenger flights connecting to the UK from Wednesday till December 31. The Civil Aviation Ministry also said that the passengers coming from the UK through flights till Tuesday midnight would be tested for COVID-19 on arrival at airports as a measure of abundant precaution.

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Bears seem to be control on Dalal Street yet again on Tuesday with both the benchmark indices failing to recover from lows. 

Domestic markets might be seeing some correction but are still trading at levels higher than their pre-coronavirus highs. Yesterday’s fall, analysts say, was aided by the threat of the new strain of the coronavirus in the United Kingdom while investors were looking for a reason to book their profits. But with the year ending many even believe that investors are closing their positions for this year and planning their trades for 2021. In the coming year, HDFC Securities believes that if Nifty rises substantially, the move would be gradual and measured. Here are the top stocks picks by HDFC Securities for 2021.

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In the NDF, USDINR made a high around 74.10 levels that were last seen a month ago. The next resistance zone for the pair is around 74.20 levels and the near term support will be at 73.80. Initial trading hour can be observed to gauge the momentum. If the rupee doesn’t move past 74.20, is advisable to sell as the pair has managed to move on the upper side of the range 73.40-74.00 levels. For buying, one can hold or buy at the money call option to keep downward participation open: Amit Pabari, managing director, CR Forex ADvisors

Gold prices were trading higher in India on Monday, following rates in the international market. On MCX, gold February futures were trading 0.21 per cent or Rs 104 higher at Rs 50,520 per 10 gram while silver March futures were ruling 0.83 per cent or Rs 575 up at Rs 69,593 per kg. In the international market, gold prices edged higher as agreement on the US stimulus package increased its safe-haven appeal. So far on a year-to-date (YTD) basis, MCX gold has gained 29.02 per cent.

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Sensex, Nifty trim some losses. Nifty was still below 13,300 levels while Sensex was down over 100 points.

"The index opened in the green but was unable to sustain; the breaking of 13500 yesterday has happened on the back of very high volumes. That being said, traders should not take unnecessary risk by investing into long or short trades. We are at a precarious juncture and the markets would take a few sessions to stabilise before a direction emerges," said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

Domestic equities and the Rupee got spooked on account of the global risk off. The Nifty shed 3% and the Rupee weakened to end the session at 74.00. It would be a bit premature to call yesterday's move a reversal of the recent trend. The move seemed more on account of traders rushing to take some profits off the risk positions rather than looking to pile on fresh risk off bets. However, the move in our view could cause the risk rally to lose momentum. Rupee is likely to open around 73.90 and trade a 73.75-74.15 range intraday.: Abhishek Goenka, Founder & CEO, IFA Global

The index opened in the green but is unable to sustain; the breaking of 13500 yesterday has happened on the back of very high volumes. That being said, traders should not take unnecessary risk by investing into long or short trades. We are at a precarious juncture and the markets would take a few sessions to stabilise before a direction emerges: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

Sensex and Nifty seem to be in a freefall, erasing all opening gains and more. Sensex and Nifty were down nearly 1% each.

Benchmark indices were moving between gains and losses on Tuesday morning, after having slipped from their highs. 

Only 5 stocks were trading in red among the 30 Sensex participants on Tuesday morning. These included, Mahindra & Mahindra, HDFC, HDFC Bank, Asian Paints, and Titan.

Among top Sensex cpnsituents on Tuesday mornign were, HCL Technologies, Tech Mahindra, Power Grid, and NTPC.

After having plummeted on Monday, benchmark indices attempted to make a comeback on Tuesday morning as Sensex zoomed over 200 points on opening while Nifty recliamed 13,400.

Sensex and Nifty were dancing between gains and losses during the pre-open session. Sensex was down 26 points at the end of the session while Nifty was up 45 points. 

The 50-stock NSE Nifty was trading with marginal gains on Tuesday morning's pre-open session as it recouped from deep in red. Sensex too was flat with a positive bias.

After begining the pre-open session deep in red, Sensex and Nifty seem to be mounting a comeback as they trim their losses and trade flat in the pre-open session on Tuesday morning.

S&P BSE Sensex fell further during Tuesday's pre-open session as it gave up 45,000. Nifty 50 was also seen falling as it slipped below 13,300.

Nifty futures were trading 168 points higher at 13,431 on Singaporean Exchange, indicating a gap-up start for BSE Sensex and Nifty 50 on Tuesday. In the previous session, headline indices tumbled 3 per cent, breaking the six-day gaining streak, after the UK reported a new strain of the COVID-19 virus. Investors will keep tabs on newsflow related to new COVID strain, and the government’s response to it. Also, development around the coronavirus vaccine will be watched by market participants.

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In a ruling where both the parties can claim some relief as well as disappointment, the Delhi High Court on Monday rejected Future Group’s plea that Amazon be restrained from writing to regulatory authorities not to accord approval to the former’s deal with Reliance Retail. However, the court’s order also said that the Future-Reliance Retail deal was in accordance with Indian laws, thus dealing a blow to Amazon’s claim. What can be more damaging to Amazon is that the court also said that its deal with Future Coupons – prior to Future-Reliance deal – is in the nature of control and therefore required prior government approval in the absence of which it is in violation of FEMA/FDI rules. The basis of Amazon’s complaint regarding the deal with Reliance Retail was its prior deal with Future Coupons where it had veto powers and if that is seen as illegal then it surely is a setback for the e-commerce firm, legal observers maintain.

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Put OI is the most at 13,000 strike with 39.75 lakh contracts, followed by 26.63 lakh contracts at 13,500 strike.

For the December series, maximum Call Openin Interest is still placed at 13,000 strike with 21.42 lakh contracts but Call unwinding was seen at the said levels. This is followed by 13,500 strike with 20.65 lakh contracts. 

In the previous week Nasdaq index gained 2.34%, outperforming the Dow Jones and the S&P 500. The big tech names were again aiding this up move as investors flocked on the FAANG stocks, most of which ended in the green. So far this year, shares of companies such as Facebook, Apple, Amazon, Netflix, and Google -- collectively known as FAANG -- have gained on an average 50% while the NASDAQ index is up 40% since January. 

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