Trade Setup: Top 15 things to know before market opens on January 10, 2022

Indian equity benchmarks managed to end higher in highly volatile trade on Friday led by gains in basic materials, oil and gas and energy stocks. The beginning was upbeat as traders took encouragement with reports which claimed that the Emergency Credit Line Guarantee Scheme (ECLGS) launched by the government in 2020 to provide relief to MSMEs impacted by the COVID-19 pandemic has saved 13.5 lakh firms from going bankrupt and consequently 1.5 crore jobs. 

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The broader indices ended in green with the BSE Midcap index rising 0.54%, while the Small cap index was up by 0.43%. The top gaining sectoral indices on the BSE were Basic Materials up by 1.33%, Oil & Gas up by 1.14%, Energy up by 0.97%, Bankex up by 0.65% and FMCG up by 0.59%, while Capital Goods down by 0.78%, Telecom down by 0.45%, Consumer Durables down by 0.32%, Healthcare down by 0.32% and Auto down by 0.13% were the top losing indices on BSE.

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The Nifty50 has formed a small body-positive candle on the daily chart with upper and lower shadows, suggesting a high wave type pattern that reflects volatility, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities. “On the weekly chart, the index has formed a long bull candle with the negation of a bearish weekly pattern of lower highs and lower lows. This is a positive sign,” he said.

According to pivot charts, the key support levels for the Nifty are placed at 17,709.87, followed by 17,607.03. If the index moves up, the key resistance levels to watch out for are 17,910.27 and 18,007.83.

Indian Indices

Sensex rose 142.81 points or 0.24% to 59,744.65 and the Nifty was up by 66.80 points or 0.38% to 17,812.70 in the previous session. Sensex touched high and low of 60,130.18 and 59,401.44, respectively and there were 15 stocks advancing against 15 stocks declining on the index while Nifty traded in a range of 17,905.00 and 17,704.55 and there were 32 stocks advancing against 17 stocks declining, while 1 stock remains unchanged on the index.

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SGX Nifty

The trends on SGX Nifty indicate a flat opening for the index in India with a 4-points loss. The Nifty futures were trading at 17,901.00 on the Singaporean Exchange around 06:45 hours IST.

Asian Markets

Asian markets finished mixed. The Hang Seng gained 1.82%, while the Shanghai Composite led the Nikkei 225 lower. They fell 0.18% and 0.03% respectively.

US Markets

The S&P 500 fell 19.02 points, or 0.4%, to 4,677.03. The Dow Jones Industrial Average fell 4.81 points, or less than 0.1%, to 36,231.66. The Nasdaq fell 144.96 points, or 1%, to 14,935.90. The Russell 2000 index of smaller companies fell 26.56 points, or 1.2%, to 2,179.81.

European Markets

European markets finished mixed. The FTSE 100 gained 0.47%, while the DAX led the CAC 40 lower. They fell 0.65% and 0.42% respectively.

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IndiGo is waiving the rescheduling charge for all bookings till January 31

IndiGo on January 9 said it is waiving off ticket rescheduling fee for bookings till the end of this month. The decision has been taken in view of the disruption caused by the highly contagious Omicron variant of COVID-19, the airlines said in a statement. “Owing to the increasing number of Omicron infections, large numbers of IndiGo customers are changing their travel plans. In response to customer needs, IndiGo is waiving change fees and is offering free changes for all new and existing bookings made up to 31st January, for flights up to 31st March 2022,” IndiGo said. Due to the reduced demand, the airline said it would also be selectively withdrawing some of its flights from service. “We anticipate that around 20% of our current scheduled operations will be withdrawn from service,” it said.

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RIL to acquire Mandarin Oriental Hotel

Mukesh Ambani-led Reliance Industries (RIL) late on January 8 said it had entered a pact to acquire New York-based premium luxury hotel the Mandarin Oriental. The move is a part of RIL’s strategy to expand its consumer and hospitality footprint. The group has investments in EIH (Oberoi Hotels) and has acquired the 300-acre Stoke Park country club in Buckinghamshire. RIL is also developing a convention centre, hotel and managed residences in the Bandra-Kurla Complex in Mumbai. “The closing of the transaction is anticipated to occur by the end of March 2022 and is subject to certain customary regulatory and other approvals and the satisfaction of certain other conditions. In the event that the other owners of the hotel elect to participate in the sale transaction, RIIHL (Reliance Industrial Investments and Holdings) would acquire the remaining 26.63%, based on the same valuation used for the acquisition of the indirect 73.37% stake,” RIL said.

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Tata Steel’s third-quarter output increased by 2% to 7.68 MT, but sales decreased by 3% to 6.88 MT

Tata Steel on Friday reported an over 2% rise in consolidated steel output to 7.68 million tonnes (MT) for the October-December 2021 period. The company’s consolidated steel production had stood at 7.51 MT in the corresponding period of the previous financial year 2020-21, the steel giant said in a statement. However, its consolidated sales during October-December 2021 fell by around 3% to 6.88 MT, against 7.09 MT in the year-ago period. In India, Tata Steel produced 4.80 MT of steel in the December 2021 quarter, compared to 4.60 MT a year ago. The sales in India stood at 4.41 MT, against 4.65 MT a year ago. Tata Steel Europe produced 2.56 MT of steel as against 2.59 MT a year ago, while sales in Europe rose to 2.15 MT from 2.11 MT earlier. Production of Tata Steel Southeast Asia during the said period remained flat at 0.32 MT, compared with 0.32 MT a year ago. Its sales stood at 0.32 MT compared with 0.33 MT in the year-ago period.

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KEC International receives fresh orders worth Rs 1,025 crore

KEC International on Friday said it has bagged new orders worth Rs 1,025 crore across its various businesses. The company’s transmission and distribution business has secured orders for projects in India and the Middle East, the RPG Group firm said in a filing to the BSE. Its civil business has also secured an order for infrastructure works in the metals and mining segment in India, it said. The other businesses from which the company has bagged orders include oil and gas pipelines and smart infrastructure. KEC International MD and CEO Vimal Kejriwal said, “Our order book continues to grow against the backdrop of orders secured across all our business verticals.”

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India’s foreign exchange reserves fell by $1.466 billion to $633.614 billion

The country’s foreign exchange reserves declined by $1.466 billion to $633.614 billion in the week ended December 31, RBI data showed. In the previous week ended December 24, the reserves dipped by $587 million to $635.08 billion. It touched a lifetime high of $642.453 billion in the week ended September 3, 2021. During the reporting week ended December 31, the decline in foreign exchange reserves was on account of a fall in foreign currency assets (FCA), a major component of the overall reserves, Reserve Bank of India’s (RBI) weekly data released on Friday showed. FCA declined by $1.48 billion to $569.889 billion in the reporting week, the RBI data showed. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Gold reserves rose by $14 million to $39.405 billion in the reporting week, the data showed.

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TCS will consider a share buyback proposal on January 12, 2021

Tata Consultancy Services (TCS), India’s largest IT services company, on January 7 announced that its board of directors will consider a share buyback proposal on January 12. The software services major is already slated to release its Q3FY21 (October-December period) results on that day. The last buyback of the company, worth Rs 16,000 crore, was opened on December 18, 2020, and closed on January 1, 2021. “Pursuant to Regulation 29(1 )(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the Board of Directors will consider a proposal for buyback of equity shares of the Company, at its meeting to be held on January 12, 2022,” TCS said in a stock exchange filing. That apart, TCS will also consider the declaration of a third interim dividend to the equity shareholders during the board meeting.

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Lodha Developers announces Rs 2,608 crore in sales bookings for the December quarter

Lodha Developers reported a 40 per cent increase in sales bookings to Rs 2,608 crore during the quarter ended December on higher housing demand, trimming net debt by 20 per cent to Rs 9,925 crore. Macrotech Developers that markets properties under the Lodha brand reported a quarterly performance with pre-sales of over Rs 4,500 crores (Rs. 2,608 crore in India and Rs 1900 crore in the UK), the addition of six new projects with GDV potential of around Rs. 10,000 crores, as well as a reduction in debt below Rs. 10,000 crores (Rs. 9,925 crores). “This was the best quarterly sales performance in last 12 quarters in India with 40% YoY growth in pre-sales and 44% YoY growth in collections,” the company said in a regulatory filing. In a regulatory filing, Macrotech said its sales bookings grew to Rs 2,608 crore during the third quarter of this fiscal from Rs 1,862 crore in the year-ago period. The collections from customers against sales rose 44 per cent to Rs 2,127 crore from Rs 1,472 crore during the period under review. The company’s net debt (India business) fell to Rs 9,925 crore as of December 31, 2021, from Rs 12,477 crore at the end of the September quarter.

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Bulk Deal data

Morgan Stanley Asia (Singapore) Pte – ODI sold 19,90,685 equity shares in Zee Learn at Rs 19.18 per share, however, Spring Ventures sold 40 lakh shares at Rs 18.59 per share on the NSE, the bulk deals data showed.

Alpha Leon Enterprises LLP bought 20,800 equity shares from Mansi Shares & Stock Advisors Pvt Ltd in Vivo Collab Solutions Ltd at Rs 289.3 per share on the NSE, as per the bulk deals data.  

American Funds Fundamental Investors acquired 1,76,30,108 equity shares in CG Power and Industrial Solutions at Rs 199 per share, however, Amansa Holding Private Ltd sold 1,76,32,000 equity shares at Rs 199 per share on the NSE, the bulk deals data showed.

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Anupam Narain Gupta sold 56,000 equity shares to Naval Kishore Loya in ASL Industries Limited at Rs 45.95 per share on the NSE, the bulk deals data showed. 

Hardik Mahendrabhai Shah (HUF) bought 1,26,000 equity shares in Nupur Recyclers Limited at Rs 145.45 per share.

Prasoon Harshad Bhatt bought 1,13,746 equity shares in Selan Exploration Technol at Rs 148.96 per share.

Penguin Trading & Agencies Ltd bought 25,85,700 shares in Filatex India Ltd at Rs 117 per share.

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DII and FII data

Foreign institutional investors (FIIs) bought shares worth a net Rs 496.27 crore, while domestic institutional investors (DIIs) sold shares worth a net Rs 115.66 crore in the Indian equity market on January 7, as per provisional data available on the NSE.

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NSE F&O Ban

Delta Corp and RBL Bank are under the F&O ban for January 10. Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.