Trade Setup: Top 15 things to know before market opens on December 14, 2021

On Monday, Indian market indices erased early gains to close substantially down, owing to fears over growing instances of the Omicron virus in Europe and global inflation.

The broader indices ended mixed; the BSE Midcap index fell 0.53%, while the Small cap index was up by 0.24%. The lone gaining sectoral indices on the BSE were Consumer Durables up by 0.01%, while Energy down by 1.75%, Realty down by 1.24%, Oil & Gas down by 1.23%, FMCG down by 0.86%, PSU down by 0.72% were the top losing indices on BSE.

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The 50-scrip index has formed a long bear candle on the daily chart, engulfing the rangebound movement of the past two sessions completely, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities. 

Technically, this pattern signals the formation of a bearish engulfing pattern, and there is a possibility of some more decline before a bounce from the lows, he said. 

According to pivot charts, the key support levels for the Nifty are placed at 17,269.57, followed by 17,170.93. If the index moves up, the key resistance levels to watch out for are 17,553.17 and 17,738.13.

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Indian Indices

Sensex fell 503.25 points or 0.86% to 58,283.42 and Nifty was down by 143.05 points or 0.82% to 17,368.25 in the previous session. The Sensex touched high and low of 59,203.37 and 58,242.80, respectively and there were 7 stocks advancing against 23 stocks declining on the index while Nifty traded in a range of 17,639.50 and 17,355.95 and there were 15 stocks advancing against 35 stocks declining on the index.

SGX Nifty

The trends on SGX Nifty indicate a negative opening for the index in India with a 180-points loss. The Nifty futures were trading at 17,364.00  on the Singaporean Exchange around 06:30 hours IST.

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Asian Markets

Asian markets finished mixed as of their recent closing prices. The Nikkei 225 gained 0.71% while the Shanghai Composite was higher by 0.40%. The Hang Seng was even.

US Markets

The S&P 500 fell 0.9%, giving back some of its gains after the benchmark index climbed to an all-time high Friday. The Dow Jones Industrial Average fell 0.9%, while the tech-heavy Nasdaq composite slid 1.4%.

European Markets

European markets finished lower with shares in London leading the region. The FTSE 100 was down 0.84% while France’s CAC 40 was off 0.73% and Germany’s DAX was lower by 0.05%.

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Gujarat govt reduces VAT on ATF by 5%

The Gujarat government on Monday decided to slash Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) used in aviation services by five percent in a bid to boost tourism, the Chief Minister’s Office (CMO) said. The reduction will come into effect from midnight today (Monday), it said. The VAT reduction on ATF is likely to translate into airlines slashing airfares, thereby encouraging tourists to visit Gujarat in more numbers.

The promoters of Apollo Hospitals will sell 7 lakh shares in a block deal on Tuesday

The promoters of Apollo Hospitals Enterprises Ltd would sell 7 lakh shares in a block deal on December 14, leaving them with 0.5% holding, according to CNBC TV 18. The floor price for the shares to be offered for sale has been set at Rs 5,050, a 3% decrease, according to the news channel. At the end of trading on December 13, the stock was worth Rs 5,206.70, a 0.74% decrease from the previous day. JP Morgan will arrange the transaction to sell 7 lakh shares or 0.5% of the promoter group. Once completed, the deal is projected to reduce promoters’ stake in Apollo Hospitals to 29.32%.

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PB Fintech acquires MyLoanCare and establishes Account Aggregator subsidiary

On December 13, PB Fintech, the owner of Policybazaar and Paisabazaar, announced the acquisition of Gurugram-based loan marketplace MyLoanCare for Rs 40.41 crore. The takeover will be completed in two parts over the course of six months, according to PB Fintech’s exchange filing. It will purchase 25% of MyLoanCare shares in the first tranche and will expand its stake to 70% through the main allotment. MyLoanCare, which was founded in 2013, offers clients to evaluate numerous loan packages and interest rates, much to PB Fintech’s Paisabazaar. The company’s revenue in FY21 was Rs 7 crore, down from Rs 11 crore the previous year. According to MyLoanCare, the platform is used by three million users each month, and loans worth Rs 5,000 crore have been given through it. There are 30 lending partners for the firm.

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Emcure Pharmaceuticals has received approval from the Sebi to proceed with its IPO plans

Bain Capital-backed Emcure Pharmaceuticals has received capital markets regulator Sebi’s go-ahead to raise funds through an initial share sale. The initial public offering (IPO) comprises fresh issuance of equity shares worth Rs 1,100 crore and an offer of sale (OFS) of 18,168,356 equity shares by promoters and existing shareholders, according to the draft red herring prospectus (DRHP). As part of the OFS, promoters — Satish Mehta will offload 20.30 lakh equity shares, Sunil Mehta will sell 2.5 lakh equity shares — and investor BC Investments IV Ltd will divest 99.5 lakh equity shares among others.

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Anand Rathi Wealth debuts on December 14

Shares of Anand Rathi Wealth, a non-bank wealth solutions firm, are expected to gain as much as 10 percent from their initial public offering price when they list on the exchanges on December 14, experts said. “Anand Rathi Wealth can list at flat to 10 percent listing gains,” said Divam Sharma, founder of Green Portfolio. The grey market premium on the company’s shares is at Rs 50 on the issue price of Rs 550 and the issue was subscribed 9.78 times, indicating 10 percent listing gains, according to Gaurav Garg, head of research at CapitalVia. Anand Rathi shares traded at Rs 600 in the grey market, a 9.1 percent premium over the issue price of Rs 550 per share, as per IPO Watch and IPO Central.

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Bulk Deal data

Anand Rathi Global Finance for the second straight session sold 4,95,000 equity shares in Premier Limited at Rs 10 per share on the NSE. 

Societe Generale, an equity fund firm, has appeared in the bulk deals for the second time in a week, as it sold 1,02,000 shares in Agro Phos India Limited at Rs 24.59 per share on the NSE. 

ASL Industries Limited shares have seen maximum traction as at least half dozens of investors bought and sold the stock. Sonam Goyal Sumedha Kataruka Sunayana Investment Company Limited and Zuber Trading LLP each sold 2,40,000, 4,60,000, 2,00,000, and 2,00,000 equity shares respectively at the same price of Rs 31.55 per share on the NSE, as per bulk deals data. 

While Parag Commosales and Tango Commosales LLP bought 7,00,000 and 3,52,000 shares in ASL Industries Limited at the same price of Rs 31.55 per share on the NSe, the bulk deals data showed. 

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While Choice Equity Broking Private Limited sold 27,000 equity shares to Sanjay Bansal HUF in AVSL Industries Limited at Rs 33.7 per share on the NSE, as per the bulk deals data. 

In Shree Tirupati Balajee, Rikhav Securities Limited sold 72,000 equity shares and Sunita Agrawal bought 69,000 equity shares at the same price Rs 42.2 per share on the NSE, as per bulk deals data. 

Individually, Anumolu Bharat sold 2,51,760 equity shares in Beardsell Limited at Rs 13.87 per share; Piyushkumar Thumar sold 1,98,000 equity shares in Bright Solar Limited at Rs 5.01 per share; Satish Ramsevak Pandey sold 42,000 equity shares in Debock Sale Marketing at Rs 102.9 per share on the NSE, the bulk deals data pointed out. 

On the other hand, Maheshchandra Rangildas Lakhwala bought 63,000 shares in Brand Concepts Limited at Rs 45.45 per share; Shakuntala Ashok Shah bought 10,800 shares in Bombay Metrics S C Ltd at Rs 138.91 per share on the NSE, the bulk deals data mentioned. 

DII and FII data

Foreign institutional investors (FIIs) sold shares worth net Rs 2,743.44 crore, while domestic institutional investors (DIIs) bought shares worth net  Rs 1,351.03 crore in the Indian equity market on December 13, as per provisional data available on the NSE.

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NSE F&O Ban

Escorts, Indiabulls Housing Finance, and Vodafone Idea – are under the F&O ban for December 14. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.