Trade Setup: Top 15 things to know before market opens on January 12, 2022
- Sensex rose 221.26 points or 0.37% to 60,616.89 and Nifty was up by 52.45 points or 0.29% to 18,055.75
- FIIs bought shares worth a net Rs 111.91 crore while DIIs purchased shares worth a net Rs 378.74 crore
- The trends on SGX Nifty indicate a flat opening for the index in India
In a bumpy session on Tuesday, Indian equity indexes ended higher for the third day in a row, powered by advances in Power, Utilities, and IT sectors. After opening on a slightly positive note, key gauges were volatile in early morning trade, as traders were concerned with a private report stating that sluggish growth momentum in the December quarter and emerging risk from the third Covid-19 wave may shave 80 basis points (bps) off India's real GDP growth to 9% for FY22.
The broader indices ended in green with the BSE Midcap index rising 0.01%, while the Small cap index was up by 0.15%. The top gaining sectoral indices on the BSE were Power up by 1.80%, Utilities up by 1.73%, IT up by 0.88%, Realty up by 0.70% and TECK up by 0.63%, while Metal down by 2.75%, Basic Materials down by 0.90%, Telecom down by 0.63%, FMCG down by 0.35% and PSU down by 0.28% were the top losing indices on BSE.
The Nifty50 has formed a reasonable long candle on the daily chart, suggesting rangebound action with a positive bias, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
"The index's near-term trend remains intact with the pattern of higher highs and higher lows being active on the daily chart," he said. Any decline can be a buying opportunity and a sharp downward move is unlikely in the short term, he added.
According to pivot charts, the key support levels for the Nifty are placed at 17,986.4, followed by 17,917. If the index moves up, the key resistance levels to watch out for are 18,103.2 and 18,150.6.
Sensex rose 221.26 points or 0.37% to 60,616.89 and Nifty was up by 52.45 points or 0.29% to 18,055.75 in the previous session. Sensex touched high and low of 60,689.25 and 60,281.52, respectively and there were 16 stocks advancing against 14 stocks declining on the index while Nifty traded in a range of 18,081.25 and 17,964.40 and there were 25 stocks advancing against 24 stocks declining, while 1 stock remained unchanged on the index.
The trends on SGX Nifty indicate a flat opening for the index in India with a 0.75-points gain. The Nifty futures were trading at 18,197.80 on the Singaporean Exchange around 07:00 hours IST.
Asian markets finished lower yesterday with shares in Japan leading the region. The Nikkei 225 was down 0.90% while China's Shanghai Composite was off 0.73% and Hong Kong's Hang Seng was lower by 0.18%.
The S&P 500 rose 42.78 points, or 0.9%, to 4,713.07.
The Dow Jones Industrial Average rose 183.15 points, or 0.5%, to 36,252.02.
The Nasdaq rose 210.62 points, or 1.4%, to 15,153.45.
The Russell 2000 index of smaller companies rose 22.85 points, or 1.1%, to 2,194.
European markets finished broadly higher yesterday with shares in Germany leading the region. The DAX was up 1.10% while France's CAC 40 was up 0.95% and London's FTSE 100 was up 0.61%.
Delta Corp reports a significant increase in third-quarter profit
Delta Corp has clocked significant growth in earnings for the quarter ended December 2021, with consolidated profit at Rs 70.38 crore, up multi-fold on a low base of last year. The company had recorded a profit of Rs 1.28 crore in the December 2020 quarter and posted a loss of Rs 22.57 crore in the September 2021 quarter. Consolidated revenue from operations jumped to Rs 247.22 crore in Q3FY22, doubled from Rs 120.82 crore in the year-ago period and jumped more than three-fold compared to Rs 74.72 crore revenue recorded in the September 2021 quarter.
Axis Bank executed a maiden trade transaction on GOI backed blockchain platform
Axis Bank has executed a maiden domestic trade transaction on the Government of India (GOI) backed blockchain platform, Secured Logistics Document Exchange (SLDE). The transaction, between Arcelor Mittal Nippon Steel India and Lalit Pipes & Pipes, involved the process of the letter of credit advising as well as digital presentation of underlying trade documents including invoice and transport documents. Axis Bank is the third-largest private sector bank in India. The bank offers the entire spectrum of services to customer segments covering Large and Mid-Corporates, SMEs, Agriculture and Retail Businesses.
Through social bonds, Shriram Transport Finance raises $475 million
Shriram Transport Finance Company (STFC) on Tuesday said it has raised USD 475 million (about Rs 3,500 crore) through Reg S Bond, having a tenor of 3.5 years and offering a coupon of 4.15%. The proceeds from the STFC social bond would be used for employment generation, including through micro, small, and medium-sized enterprise (MSME) financing, the lender said in a release. The transaction was launched with initial price guidance of around 4.45 per cent. Following a strong book building, supported by high-quality long-only investors, the company was able to tighten pricing by 30 basis points to 4.15 per cent, the release said. The bond received an overwhelming response from investors, with the final order book over-subscribed 2.5 times.
DB Realty seeks approval from shareholders to raise up to Rs 563 crore through warrants
DB Realty Ltd has sought shareholders' approval for its proposal to raise Rs 563 crore by issuing warrants to promoters and investors. In a regulatory filing, the company informed that an extraordinary general meeting (EGM) has been called on February 2 to consider this proposal. The Board of Directors, in its meeting held on January 4, approved the proposal for raising funds by way of issuance and allotment of warrants up to 13.05 crore. The warrants are convertible into an equal number of equity shares on a preferential basis to members of promoters/ promoter groups and non-promoter investors. As per the EGM notice to the shareholders, the price of each equity warrant is Rs 43.15, which will be converted into one equity share of Rs 10 each at a premium of Rs 33.15. The company proposes to raise up to Rs 563.10 crore through the issue of warrants. The amount will be used to reduce debt, fund its various projects, meet working capital requirements, strengthen the financial position and for general corporate purposes.
Fedbank Financial Services, a subsidiary of the Federal Bank, has received board clearance for an IPO
Federal Bank subsidiary Fedbank Financial Services Ltd (FedFina) has initiated the process of an initial public offering (IPO), the bank said on Tuesday. The board of directors of the bank FedFina in a meeting on January 11, 2022, has approved initiating the process of an initial public offering (IPO) by way of fresh issue and offer for sale, Federal Bank said in a regulatory filing. The board approval is subject to market conditions and receipt of applicable approvals, including that of Sebi and other considerations, it said. "The size of the IPO, portion of an offer for sale (if any), price and other details with respect to the proposed IPO by FedFina will be determined in due course. "Post the undertaking of the proposed IPO, FedFina would continue to be a subsidiary of our bank, '' the lender said.
Bulk Deal data
Abakkus Asset Manager LLP acquired 14.45 lakh equity shares in Rupa & Company at Rs 465.5 per share and Abakkus Growth Fund-2 bought 8.61 lakh equity shares at Rs 465.5 per share. However, Ziyan Developers LLP sold 23.06 lakh shares at Rs 465.5 per share on the NSE, the bulk deals data showed.
Societe Generale bought 5,00,000 equity shares in Steel Exchange India Ltd at Rs 226.02 per share.
Mark Corporate Advisors Pvt Ltd sold 24,600 shares in Foce India at Rs 227.61 per share on the NSE, the bulk deals data showed.
GKK Capital Markets Private Limited bought 8,50,000 equity shares in Titagarh Wagons Limited at Rs 118.02 per share.
Vora Financial Services Pvt Ltd sold 2,00,000 shares in Websol Energy System Ltd at Rs 150.27 per share on the NSE, as per the bulk deals data showed.
Chetan Rasiklal Shah sold 31,10,969 equity shares in Sintex Industries Ltd at Rs 17.1 per share on the NSE.
DII and FII data
Foreign institutional investors (FIIs) bought shares worth a net Rs 111.91 crore, while domestic institutional investors (DIIs) purchased shares worth a net Rs 378.74 crore in the Indian equity market on January 11, as per provisional data available on the NSE.
NSE F&O Ban
Delta Corp, Indiabulls Housing Finance, Vodafone Idea, and RBL Bank are under the F&O ban for January 12. 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.