Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic stock markets witnessed a pull-back on Tuesday as Dalal Street indices soared higher. S&P BSE Sensex added 497 points or 0.89% to close at 56,319 while NSE Nifty 50 index jumped 156 points or 0.94% to end at 16,770. Bank Nifty was up 0.49% on the closing bell, broader markets mirrored the up-move. India VIX closed 7.54% lower. HCL Tech was the top gainer on Sensex, jumping 3.9%, followed by Tech Mahindra, and Tata Steel. Power Grid closed 1.5% in red as the worst Sensex performer, followed by Axis Bank, and Bajaj Finance.
Sensex and Nifty ended with gains on Tuesday, recouping some losses suffered yesterday. Bank Nifty closed 0.49% higher while India VIX was down 7.5%.
The fear gauge of domestic markets was down 8% on Tuesday. India VIX hovered around 17.49 levels as headline indices soared higher.
Zee Entertainment Enterprises share price shot up 6% on Tuesday afternoon just ahead of the closing bell. Reports suggested the Zee's planned merger with Sony has been given a green light.
Nifty 50 index regained 16800 levels on Tuesday with half an hour left before the closing bell. Sensex was up more than 600 points.
Reliance Industries Ltd’s (RIL) weightage in the benchmark S&P BSE Sensex could be increased by 0.68% by the end of this month, said Abhilash Pagaria of Edelweiss Alternative Research. The Mukesh Ambani’s led oil-to-telecom conglomerate may see as much as $75 million in inflows helped by such a change in its index weightage, Edelweiss added. While RIL’s weightage may be increased, the brokerage firm said that index heavyweights such as Infosys, HDFC Bank, ICICI Bank, Housing Development Finance Corporation (HDFC), and TCS could see their respective positions be trimmed.
Bank Nifty was up 0.5% with little over an hour left before the closing bell on Dalal Street. The banking index was sitting above 34,600.
Sensex and Nifty were down from the initial highs as we inch closer to the closing bell. Sensex was still up 500 points while Nifty 50 was just above 17700.
Allied Blenders & Distillers Pvt., an Indian spirits manufacturer, is considering an initial public offering that could raise as much as $300 million next year, according to people familiar with the situation. The maker of “Officer’s Choice” whiskey has initiated talks with advisers and is seeking a valuation of at least $2.5 billion, the people said, asking not to be identified as the information is private. The company is planning to file preliminary documents as soon as the first quarter of 2022, the people said.
India VIX, the volatility gauge, was down 7.4% on Tuesday afternoon. The index was hovering around 17.5 levels.
The breach of key support of 16800 along with lower high-low formation signifies extended correction. We believe, for a meaningful pullback to materialise index need to form a higher high-low on the closing basis. Key point to highlight is that, over past six sessions index has declined 1230 points that hauled daily and weekly stochastic oscillator in oversold territory (placed at 13). We expect volatility to gradually subside near oversold territory which would help Nifty to find supportive efforts in the range of 16300-16200
~ ICICI Direct
CMS Info Systems’ Rs 1,100 crore IPO (Initial Public Offering) opened for subscription today. The cash management company’s IPO is entirely an offer for sale (OFS) by existing shareholders of the company, who are looking to sell a total of 5.3 crore equity shares. Ahead of the IPO the company has managed to raise Rs 330 crore by allotting 1.52 crore equity shares at Rs 216 per equity share to 12 anchor investors. CMS Info Systems IPO among the long list of companies that have tapped primary markets to raise funds this month. The IPO will close for subscription on Thursday.
Softbank-backed e-commerce platform Snapdeal filed for an IPO (Initial Public Offering) today. The company is looking to raise Rs 1,250 crore through a fresh issue of equity shares and an offer for sale (OFS) of 3.8 crore equity shares by existing shareholders of the company. Selling shareholders include Sequoia Capital, Kenneth Stuart Glass, Starfish I, Myriad Opportunities Master Fund, among others. According to the DRHP, Softbank will not be selling its stake through the planned IPO. The company said it may raise Rs 250 crore through a pre-IPO placement.
E-Commerce platform, Snapdeal, has filed for an IPO today. The company is backed by Softbank.
While the markets have opened with a gap up, traders should be cautious and not take hasty buy decisions. The trend continues to remain down and strategic methods can be adopted to find short-selling opportunities. The resistance level for the Nifty is 17150-17200 and until that is not conquered, we are in an established downtrend.
~ Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
It was only after fully achieving our target of 16500 did the oversold conditions come into play, yesterday. We have until 17220 before such oversold indicators straighten out, but 16840 would be a significant challenge that Nifty needs to close above, before we may be convinced of momentum siding with bulls for the next few days.
~ Geojit Financial Services
Bank Nifty index was nearing 35000 mark during the early hours of trade on Tuesday. The banking index was up nearly 1.5%.
Nifty reaches 16800 on Tuesday morning, a crucial zone for the index. According to chartists, Nifty resistance is placed between 16800-16850 zone.
Domestic markets opened in the green on Tuesday morning as benchmark indices looked to recoup losses suffered yesterday. Bank Nifty was up almost 1% while India VIX was down 4%.
“On technical front, the key support and resistance levels for Nifty50 are 16,350 and 16,900 respectively. For Bank Nifty 33,800 and 35,000 may act as nearest support and resistance,” said Mohit Nigam, Head – PMS, Hem Securities.
Sensex rises 400 points in pre-open session on Tuesday while Nifty 50 was nearing 16650 mark.
Technically, a reiteration of negative bias below 17400 has benefited as Nifty intraday low was 16410 on Monday. The underlying trend remains down as the index formed lower lows along with fall in index PCR OI, indicating trader sentiment is bearish and fresh call writing was seen at strike price 17000 with 9 lakh shares (total 19 lakh shares in last two trading days), Combined with a fall in the option price and IV, it indicates that call writing has happened at these strikes implying immediate resistance at these levels for the near term. Further downsides are likely once the immediate support of 16500 is taken out. only formation of higher high-low would be required to conclude corrective bias.
~ Raushan Kumar, Derivative Analyst, IIFL Securities
“16800-16850 should now act as a strong resistance for Nifty and any rise can be a good shorting opportunity 16950 as stop-loss. Nifty 200 EMA is placed at 16290 which should act as decent support,” said Rahul Sharma, Director & Head – Research, JM Financial.
Bears remain in control on Dalal Street and analysts believe any pullback will be used to short the market. Broader markets have tanked strongly in the last few trading sessions while large-caps have offered no respite. “Markets have corrected by ~10% from their peak driven by consistent FIIs selling, tightening monetary policy by central banks globally and concern over economic recovery due to rising omicron cases. The overall market breadth remains negative and would require strong positive triggers for changing the current negative trend,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal. He added that it is time to maintain a cautious view over the next few days.
We almost hit the target of 16400 (yesterday) and the Nifty witnessed a bounce. The trend however continues to remain bearish and we could use higher levels to go short for the next target of 16150-16200. The upside for the index is currently capped and the trend is clearly down!
~ Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
Foreign Institutional Investors (FII) were net sellers of domestic stock once again on Monday. FIIs sold Rs 3,565 crore worth stocks. Domestic Institutional Investors (DII), on the other hand were net buyers, pumping in Rs 2,764 crore.
“The market has been in a violent decline for short term and the overall chart pattern indicate more weakness ahead for the near term. Having moved down swiftly in the last few sessions, there is a possibility of a pullback rally from the lower levels and that could be a sell on rise opportunity. The next downside levels to be watched around 16200 (10 month EMA), which could be achieved in the next 1-2 weeks,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Markets have corrected by ~10% from their peak driven by consistent FIIs selling, tightening monetary policy by central banks globally and concern over economic recovery due to rising omicron cases. The overall market breadth remains negative and would require strong positive triggers for changing the current negative trend. Selling pressure is intact at higher levels and any recovery or bounce is being used by traders to go short on the market. Thus, we maintain our cautious view in the market for next couple of days.
~ Siddhartha Khemka, Head – Retail Research, Motilal Oswal
Banks have recovered as much as Rs 13,109 crore from the sale of assets belonging to fugitive economic offenders Vijay Mallya, Nirav Modi and Mehul Choksi, finance minister Nirmala Sitharaman told Parliament on Monday. Replying to a discussion on the second batch of supplementary demands for grants, which was approved by the Lok Sabha amid protests by the Opposition, Sitharaman said the latest recovery from such sales was to the tune of Rs 792 crore on July 16, 2021, as she highlighted the government’s resolve to ensure the fugitives were made to pay for their illegal activities.
SGX Nifty was up in the green on Tuesday morning. Nifty futures were trading 158 points higher during the early hours of Tuesday, hinting at positive start to the day's trade.