Sensex, Nifty open flat; Tech Mahindra in focus
Consumer prices in the United States are expected to post the largest annual gain in decades in November, keeping the pressure on the Fed to toughen policy more quickly. Fed Chairman Jerome Powell reported faster decline in asset purchases amid high inflation
Sensex opening offers
Nifty below 17,200 in pre-opening
Sensex in pre-opening
Clever Perspective: Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The Nifty failed to hold above the 17400-17500 area which is a bearish signal. We are resisting higher levels and therefore the rise is definitely capped in this region. Unless we break past the 17400-17500 patch on a close basis, we won’t really see a significant bullish rally. If the markets were to break 17100 next week that would be a matter of concern as there is every possibility that we will re-enter the current downtrend.
IPO LIC improves asset quality, lowers net NPA to 0.05%
Life Insurance Corporation (LIC) in anticipation of its proposed Initial Public Offering (IPO) has improved the quality of its assets for the fiscal year ended March 2021.
According to the last annual report of the Life Insurance Corporation of India (LIC) before its proposed IPO, non-performing assets (NPA) as of March 31, 2021 are ??35,129.89 crore on a total portfolio of ??4,51,303,30 crore.
While sub-standard assets are ??254.37 crore, doubtful assets are ??20,369.17 crore and loss of assets are ??14,506.35 crores.
The annual report indicated that an amount of ??34,934.97 crore is provided in accordance with the guidelines of the Insurance Regulatory and Development Authority of India (IRDAI) in the books of account relating to non-performing assets. (Read here)
Vendors threaten to disrupt supplies to protest RIL
Indian household goods sellers have threatened to disrupt supplies to family stores if consumer companies supply products at lower prices to Reliance Industries Ltd (RIL), according to a letter seen by Reuters.
Reuters reported last month that Indian sellers representing companies such as Reckitt Benckiser Group PLC, Unilever PLC and Colgate-Palmolive Co. said their sales fell 20-25% in the past year as stores mom-and-pop were increasingly associating with the Indian billionaire. RIL by Mukesh Ambani.
Ambani’s greatly reduced offerings prompted more stores to order digitally from its JioMart Partner app, posing an existential threat to more than 450,000 corporate sellers who, for decades, served every corner of the vast nation going from store to store to take orders.
Citing the Reuters article, the 400,000-member Federation of Indian Consumer Products Distributors wrote to consumer companies demanding a level playing field, saying they must get products at the same prices as everyone else. large distribution companies such as RIL.
Tata’s chip plan faces obstacles
The Tata Group’s announced plan to set up a $ 300 million wartime semiconductor manufacturing plant is expected to face headwinds given India’s lack of raw materials and its scarcity in India. outside due to the persistent shortage in the world since the pandemic, according to a report.
The pandemic and its after-effects on increased demand for data and consumer electronics have prevented semiconductor manufacturers from tracking supply.
In addition to suffering, extreme weather conditions and natural disasters in many producing countries, such as the drought in Taiwan; hurricanes, extreme cold and flooding in the United States; and a major fire at the Renesa plant in Japan, all of which put additional strain on supply chains, according to a memo from Fitch Solutions, a subsidiary of Fitch Ratings.
U.S. Expected to Announce Diplomatic Boycott of Beijing Winter Olympics
17500-17600 a solid wall for Nifty: Sameet Chavan, Chief Technical and Derivatives Analyst, Angel One
Overall, last week our market managed to close on positive ground, but it was certainly a tough week for both counterparties. The market was clearly uncertain of its direction for most of the week. If we look at it from a technical point of view, the market precisely respects the levels.
At first the Nifty started to rebound after hitting the Head and Shoulder model price target of 16,800 and on Friday it got nervous after approaching a stiff resistance zone of 17,500 at. 17,600. From a management perspective, we remain cautious and there is no doubt that we are still in a “sell up” market. This view will remain intact as long as Nifty does not cross 17,900, which is the confluence of two key trend lines.
Also, sooner or later we expect the recent low around 16800 to be broken soon, but this will happen immediately or after further consolidation in the 16800-17500 range; we have to assess the situation in the coming week.
Meanwhile, traders can continue with a specific approach to equities and we can see trades on both sides if Nifty remains in consolidation mode. But it would be a prudent strategy to continue to deliver timely profits and given the volatile nature of global markets, aggressive overnight bets should be strictly avoided. Regarding the levels, 17350 – 17500 – 17600 are to be considered as immediate obstacles; while on the other hand 17000 – 16800 should be treated as a support group.
RBI could keep rates amid virus risk
The Reserve Bank of India is expected to keep interest rates on hold and postpone policy normalization at a key meeting this week as the Omicron variant of the novel coronavirus poses risks to the country’s economic recovery. India.
The central bank’s Monetary Policy Committee (MPC) is expected to narrow the policy corridor between repo and reverse repo by increasing the latter at the end of its three-day meeting on Wednesday. However, 60% of those polled in a Mint poll of bankers and economists expect the RBI to maintain the repo rate (the rate at which banks lend to the RBI against government securities) at 3.35%. Only 40% expect a 15 to 20 basis point increase in the repo rate. (Read here)
Oil prices rise as Saudi Arabia raises crude prices
Oil prices rose by more than a dollar a barrel on Monday after the main exporter, Saudi Arabia, raised the prices of its crude sold to Asia and the United States, and the American side talks. Iranians on relaunching a nuclear deal seemed to be at an impasse.
Brent crude futures for February gained $ 1.69, or 2.4%, to $ 71.57 a barrel, while US West Texas Intermediate crude for January was at $ 67.92 a barrel, up $ 1.66, or 2.5%.
Saudi Arabia on Sunday raised official January selling prices for all grades of crude sold to Asia and the United States by up to 80 cents from the previous month.
SGX Nifty Commercial Apartment
Futures on SGX Nifty traded at 17,246 in first trades on Monday, up 11 points, indicating a flat start for Indian benchmarks.
Asian stocks retreat as tech stocks and Omicron weigh
Most Asian stocks fell on Monday, led by Chinese tech companies, as investors weighed in on uncertainties over the omicron variant and turned to U.S. inflation data and the Federal Reserve’s hawkish tilt. Treasuries reduced part of Friday’s rally.
Stock indices fell in Japan, while Hong Kong opened weaker, dragged down by a technology equity index. Losses in Asia were smaller than declines in the United States on Friday. Mainland Chinese stocks rose after a report that the amount of cash banks need to keep in reserve may be reduced this month.
Japan’s Topix index fell 0.6%, Australian S & P / ASX 200 index lost 0.3%, Kospi fell 0.2%, Hang Seng index fell 0.8% , while the Shanghai Composite Index rose 0.3%.
On Friday on Wall Street, the major indices closed lower with the Nasdaq leading the declines, with investors betting that a strong jobs report wouldn’t slow the withdrawal of Federal Reserve support while they were at the bottom. grappled with the uncertainty surrounding the Omicron coronavirus variant.
The Dow Jones Industrial Average lost 59.71 points, or 0.17%, to 34,580.08, the S&P 500 lost 38.67 points, or 0.84%, to 4,538.43 and the Nasdaq Composite lost lost 295.85 points, or 1.92%, to 15,085.47.
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- November 18, 2021
- June 12, 2021