Trade Setup: Top 15 things to know before market opens on December 10, 2021

On Thursday, Indian stock benchmarks closed higher for the third straight day, powered by advances in index heavyweights such as ITC, Larsen & Toubro, and Asian Paints. Due to volatility as weekly index futures and options expired, the benchmarks bounced between gains and losses for most of the day.

The 50-scrip index has formed a small negative candle on the daily chart with a long lower shadow, hinting at the formation of a long-legged Doji type pattern, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities. 

Normally, such a formation following a reasonable upmove calls for correction from the highs, Shetti said. “Having displayed strength in the current bounce, there is a chance of minor downward correction or consolidation in the coming session,” he said.

The broader indices finished in the green; the BSE Mid size index gained 0.38%, while the Small-cap index gained 0.80%.

Capital Goods increased by 1.98%, FMCG increased by 1.46%, Energy increased by 1.38%, Telecom increased by 1.14%, and Industrials increased by 1.08%, while Bankex decreased by 0.53%, Finance decreased by 0.39%, Consumer Durables decreased by 0.27%, and Realty decreased by 0.15%.

According to pivot charts, the key support levels for the Nifty are placed at 17,416.53, followed by 17,316.27. If the index moves up, the key resistance levels to watch out for are 17,580.13 and 17,643.46.

Indian Indices

Sensex rose 157.45 points or 0.27% to 58,807.13 and the Nifty was up by 47.10 points or 0.27% to 17,516.85 in the previous session. The BSE Sensex touched high and low of 58,889.96 and 58,340.85, respectively and there were 15 stocks advancing against 15 stocks declining on the index while The Nifty traded in a range of 17,543.25 and 17,379.60 and there were 26 stocks advancing against 24 stocks declining on the index.

SGX Nifty

The trends on SGX Nifty indicate a negative opening for the index in India with a 29-points loss. The Nifty futures were trading at 17,503.50  on the Singaporean Exchange around 06:30 hours IST.

Asian Markets

Asian markets finished mixed as of the most recent closing prices. The Hang Seng gained 1.08% and the Shanghai Composite rose 0.98%. The Nikkei 225 lost 0.47%.

US Markets

The Dow Jones Industrial Average ended the previous trading session at 35,754.69, losing less than a point. The S&P 500 fell 0.72% to 4,667.45 and the Nasdaq Composite slid 1.7% to 15,517.37. All the major averages are still on track for a winning week.

European Markets

European markets finished lower today with shares in Germany leading the region. The DAX was down 0.30% while London’s FTSE 100 was off 0.22% and France’s CAC 40 was lower by 0.09%.

SEBI explores a regulatory framework for retail algo trading

Capital markets regulator SEBI on Thursday proposed a regulatory framework for algorithmic trading (algo trading) by retail investors to make such trading safe and prevent market manipulations. In market parlance, algo trading refers to any order that is generated using automated execution logic. The algo trading system automatically monitors the live stock prices and initiates an order when the given criteria are met. This frees the trader from having to monitor live stock prices and initiate manual order placement. In its consultation paper, the regulator has proposed a framework for algo trading done by retail investors including the use of Application Programming Interface (API) access and automation of trades.

Credit Suisse predicts that the Indian economy would rise by 9% in the next fiscal year

Swiss brokerage Credit Suisse expects the economy to continue to show positive surprises and record up to 9 percent growth in the next fiscal. For the current financial year too, the brokerage anticipates growth to be higher than the consensus forecast of 8.4-9.5 percent and printing in at around 10.5 percent. As a policy, Credit Suisse does not provide absolute growth numbers in its forecast. However, an extrapolation of data available and projections indicate that economic growth could clip 9 percent in the 2022-23 period, which according to the brokerage is up to 400 basis points (bps) over the consensus numbers.

Reliance Industries is ranked first among the 500 most valuable firms in India in the ‘2021 Burgundy Private Hurun India’ list

Reliance Industries Ltd (RIL) topped the list of the 500 most valuable firms in the country, which was published on December 9 by research firm Hurun India in collaboration with Axis Bank’s private banking unit Burgundy Private. While RIL was rated top in the ‘Burgundy Private Hurun India 500’ list with a value of Rs 16.65 lakh crore, Tata Consultancy Services (TCS) and HDFC Bank were ranked second and third with values of 13.09 lakh crore and 9.05 lakh crore, respectively. Infosys is ranked fourth, ICICI Bank is ranked fifth, Housing Development Finance Corporation is ranked sixth, and Bajaj Finance is ranked seventh. Kotak Mahindra Bank came in eighth, Bharti Airtel ninth, and Wipro tenth.

ALTBalaji collaborates with Telenet to expand into Nepal

ALTBalaji, the digital branch of Balaji Telefilms, has entered Nepal in collaboration with the IT firm Telenet. Telenet will concentrate on integrating local billing channels such as digital wallets, telecom carriers, and payment gateways. “The partnership with Telenet is a major step for ALTBalaji to go global. The tie-up with the payment gateways will further widen the reach of the platform due to the convenience of one-click transactions that were earlier not possible,” said Divya Dixit, SVP – Marketing & Revenue, ALTBalaji. The platform has over 89 Indian originals to offer to viewers.

Ola is in discussions to raise more than $1 billion in equity and debt, according to a report

Ola is in talks to raise over $1 billion in funding through a mix of equity and debt over the next few months as the ride-hailing platform prepares for hitting the IPO route next year, according to sources of PTI. The company has recently raised over Rs 1,049 crore (about $139 million) from Edelweiss and others at a valuation of over $7 billion. According to sources, Ola is in discussions to raise a pre-IPO round of over $1 billion at a valuation of $7.5 billion. The fundraise, which is expected to be done in multiple tranches, would be a combination of equity and debt, they added.

Bank of Maharashtra and NPCI collaborate to offer a contactless credit card on the RuPay platform

On December 9, the Bank of Maharashtra (BoM) announced a partnership with the National Payments Corporation of India (NPCI) to introduce its first credit card on the domestic card payment network, RuPay. The BoM Platinum RuPay Contactless Credit Card has been particularly curated with a range of features to meet the needs of clients, according to the bank’s press release. The credit card provides its members 100 reward points on their initial retail purchases of Rs 1000 or more as part of the welcome perk. The contactless credit card also has card liability coverage, which means that customers will have no obligation after reporting fraud.

Paytm Payments Bank secured Scheduled Bank status from the RBI

On December 9, Paytm Payments Bank Limited announced that it had been placed under the Second Schedule to the Reserve Bank of India Act, 1934. Paytm Payments Bank, as a Scheduled Payments Bank, may now explore new business prospects, according to a press release. “The Bank can participate in government and other big enterprises’ issued Request for Proposals (RFP), main auctions, fixed-rate and variable-rate repos, and reverse repos, as well as participation in the Marginal Standing Facility,” it stated. The Bank would also be qualified to participate in government-run financial inclusion programmes, according to the statement. Banks that satisfy the RBI that their affairs are not being managed in a way harmful to the interests of their depositors are listed in the second schedule under the RBI Act 1934.

Bulk Deal data

SBI Mutual Fund acquired 15 lakh equity shares in Go Fashion India at Rs 1,172 per share. However, India Advantage Fund S4 I sold 15 lakh shares at the same price on the NSE, the bulk deals data showed.

Smallcap World Fund Inc acquired 35,61,730 equity shares in IIFL Finance at Rs 300 per share. However, Hamblin Watsa Investment Counsel Limited A/C – HWIC Asia Fund Class A Shares offloaded 1,04,20,631 equity shares in the company at Rs 300.17 per share on the NSE, the bulk deals data showed.

Algoquant Financials LLP sold 3 lakh equity shares in Lyka Labs at Rs 173.24 per share on the NSE, the bulk deals data showed.

ICICI Prudential Mutual Fund bought 44.5 lakh equity shares in Kalpataru Power Transmission at Rs 378 per share. However, Kalpataru Properties sold 44.5 lakh shares in the company at Rs 378 per share on the BSE, the bulk deals data showed.

Infinity Holdings sold 1,46,85,986 equity shares in Sequent Scientific at Rs 157.02 per share on the BSE, the bulk deals data showed.

DII and FII data

Foreign institutional investors (FIIs) sold shares worth net Rs 1,585.55 crore, while domestic institutional investors (DIIs) bought shares worth net Rs 782.84 crore in the Indian equity market on December 9, as per provisional data available on the NSE.

NSE F&O Ban

Escorts and Indiabulls Housing Finance are under the F&O ban for December 10. 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.