Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The Nifty is currently trading around a resistance patch which is 14,700-14,800. We need to get past these levels on a closing basis so that we can summarize that the short-term downtrend is over for the time being. If we can keep above this level, we could be headed higher to 15,200-15,300. If we collapse from the current levels and break 14,500 on a closing basis, there is every possibility we go down to retest the recent lows.
New Listing | Nazara Technologies makes a strong debut; lists with 80.7% premium at Rs 1,990 per share on NSE
Nazara Technologies made a strong debut on the stock exchanges Tuesday as the shares got listed at Rs 1,990 apiece on the NSE, a premium of 80.74 percent to the issue price of Rs 1,101. On BSE, the shares were listed with 79.02 percent premium at Rs 1,971.
The initial public offering (IPO) of Nazara Technologies was subscribed 175.5 times during March 17-19. The offer has received bids for 51.25 crore shares against the IPO size of 29.20 lakh equity shares. Read more.
New SEBI rule on spoofing will disable errant traders for 15 minutes and more from Apr 5
To curb instances of ‘spoofing’ in the stock market, commodities and capital market regulator Securities & Exchange Board of India (Sebi) has announced a set of measures to be effective April 5. From that date, traders who repeatedly modify their orders without those trades getting executed will have their accounts disabled for a duration depending on the extent of violations. Spoofing is an algorithmic trading activity designed to influence prices by creating an illusion of demand or supply. Spoofers place a large number of buy or sell orders, with an intent to cancel before those orders can be executed. A large number of such orders creates an illusion of a sudden increase in demand or supply, which in turn prompts a reaction from other traders, and causes prices to swing sharply. More here
Morning market quote from Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
“Sharp decline in FII selling coupled with large buying by DIIs can support the market and even take it higher. But there are many concerns like surge in Covid cases, particularly in economically crucial Maharashtra, appreciation in US 10- year bond yield above 1.7% and the dollar index moving up to 92.8 levels. DIIs and retail investors are likely to be buyers in bankng, IT, cement and metal stocks which look attractive at present levels. Year-end considerations also are likely to lead to further DII buying.”.
Opening Bell: Sensex opens 400 points higher, Nifty above 14,600; financials, metals rise
Indian indices opened higher on Tuesday boosted by banking, financials and metal stocks, on the back of a rise in Asian peers. Asian peers were in the green as Wall Street pared earlier losses driven by the banking sector on fears that issues with a defaulting hedge fund could spread throughout the banking sector. At 9:18 am, the Sensex was up 434 points at 49,442 while the Nifty rose 139 points to 14,646. Broader markets were also higher with the midcap and smallcap indcies up around a percent each. On the Nifty50 index, Tata Steel, JSW Steel, Titan, GAIL and HUL were the top gainers while M&M and SBI Life were the only losers.
Petrol prices cut by 22 paise per litre, diesel by 23 paise
The oil marketing companies (OMCs) slashed fuel prices on Tuesday. Petrol and diesel prices were decreased by up to 23 paise per litre, according to a price notification from oil marketing companies. In Delhi, petrol now costs Rs 90.56 per litre and diesel is priced at Rs 80.87. In Mumbai, petrol comes for Rs 96.98 a litre and diesel for Rs 87.96 a litre. The prices of petrol and diesel are reviewed by oil marketing companies such as state-run Indian Oil on a daily basis and any revision is implemented from 6 am in the morning.
Seven of top 10 companies lose over Rs 1 lakh crore in m-cap
Seven of the 10 most valued domestic companies witnessed a combined erosion of Rs 1,07,566.64 crore from their market valuation last week, with Reliance Industries accounting for around half of the losses. Last week, the 30-share BSE benchmark Sensex declined 849.74 points or 1.70 percent. Only Tata Consultancy Services (TCS), Hindustan Unilever Ltd (HUL) and HDFC from the top-10 list saw a rise in their market capitalisation. The valuation of index major Reliance Industries Ltd (RIL) tumbled Rs 55,565.21 crore to reach Rs 12,64,243.20 crore. The market capitalisation of Bajaj Finance plunged Rs 16,197.55 crore to Rs 3,12,327.04 crore and that of State Bank of India (SBI) went lower by Rs 12,494.45 crore to Rs 3,18,697.88 crore. More here
Indian rupee logs over 4% gain this fiscal amid headwinds on economic front
The Indian rupee has logged over 4 percent gain so far this fiscal, as sustained foreign fund inflows and the RBI’s deft policy manoeuvring ensured a strong year for the Indian currency despite headwinds on the economic front, according to experts. The local unit is likely to average around 73.50-74 in the financial year 2021-22, as despite a vaccine, the coronavirus hysteria still persists and may continue to grapple the foreign exchange market, experts said. The financial year 2020-21 has been a roller-coaster ride for the rupee due to COVID-19. The pandemic-induced massive sell-off in the equity market led the rupee breach record low of 76.90. However, the optimism over vaccines, easing of lockdown restrictions, infusion of stimulus by governments and central banks all over the world enthused investors with a general sense of optimism, and the rupee vaulted back to the 72 zone. More here
Asia shares mixed as broader worries about U.S. hedge fund default ease
Asian shares were mixed early Tuesday as global investors shook off worries about a hedge fund default that roiled global banking stocks overnight, while rekindled concerns about inflation pushed bond yields higher. Wall Street pared earlier losses driven by the banking sector on fears that issues with a defaulting hedge fund could spread throughout the banking sector. In Asia, the MSCI’s broadest index of Asia-Pacific shares outside Japan was marginally higher by 0.08% in early in the session Tuesday. Hong Kong’s Hang Seng Index was up 0.36% to 28,440 but in Australia a weaker tone emerged when the S&P/ASX200 slid 0.4% to its lowest point for a week. Mainland China’s CSI300 index is 0.18% higher in early trade while Japan’s Nikkei is off 0.1%.
Traffic in Suez Canal resumes after stranded ship refloated
Shipping was on the move again late on Monday in Egypt’s Suez Canal after tugs refloated a giant container ship which had been blocking the channel for almost a week, causing a huge build-up of vessels around the waterway. With the 400-metre-long (430-yard) Ever Given dislodged, 113 ships were expected to transit the canal in both directions by early Tuesday morning, Suez Canal Authority (SCA) chairman Osama Rabie told reporters. He said a backlog of 422 ships could be cleared in 3 -1/2 days. The Ever Given had become jammed diagonally across a southern section of the canal, the shortest shipping route between Europe and Asia, in high winds early on March 23.
Nomura, Credit Suisse warn on losses after Archegos share sale
Nomura and Credit Suisse warned on Monday they were facing significant losses after a US hedge fund, named by sources as Archegos Capital, defaulted on margin calls. A fire sale of stocks on Friday caused big drops in the share prices of companies linked to Archegos, according to a source familiar with the matter, putting markets on edge about the scale of the possible fallout. Nomura said on Monday that it faced a possible $2 billion loss due to transactions with a US client while Credit Suisse said a default on margin calls by a US-based fund could be “highly significant and material” to its first-quarter results. Credit Suisse said that a fund had “defaulted on margin calls” to it and other banks, meaning they were now in the process of exiting these positions. More here
First up, here is quick catchup of what happened in the markets on Friday
Indian shares rebounded from near two-month lows to settle over 1 percent higher on Friday, driven by gains in beaten-down bank and metal stocks. Also boosting sentiment, Asian shares rebounded on optimism about a global economic recovery. The Sensex ended 568 points higher at 49,008 while the Nifty rose 182 points to settle at 14,507. Both the indices had fallen more than 3 percent in the last two sessions. Meanwhile, broader markets were also positive for the day with the midcap and smallcap indices up 1-1.5 percent. The stock market was closed on Monday on account of Holi.
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Good morning, readers! I am Pranati Deva from the market’s desk of CNBC-TV18. Welcome to our market blog, where we provide rolling live news coverage of the latest events in the stock market, business and economy. We will also get you instant reactions and guests from our stellar lineup of TV guests and in-house editors, researchers, and reporters. If you are an investor, here is wishing you a great trading day. Good luck!