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NIFTY finally took a halt and its three-day rising streak witnessed a decisive drop today. Similarly, Asian indices turned negative, giving away their morning gains, and European markets are already in the red. None of the Nifty50 stocks saw a major fall but what is noteworthy is that the decline was broad-based as 43 of the Nifty50 stocks ended in the red. The only stock that gained today was energy major ONGC, which rose 5.9%.
As many as Seven IPOs are ready to hit in Next month.
Companies like Kalyan Jewellers, Suryoday SFB, ESAF SFB, Nazara Technologies, RailTel, Burger King and Antony Waste Management are expected to go public and raise funds in the range ₹500 crores to ₹1,750 crores each. So far in 2020, 12 companies have hit the D-Street and delivered returns ranging from -1% (UTI AMC) to 175% (Route Mobile). Gland Pharma, which recently listed on the exchanges, has delivered close to 45% in less than a week. One could expect favourable investor interest in the upcoming IPOs, considering the rates of oversubscription seen in the recent IPOs. As NIFTY is hitting lifetime-highs and handsome returns delivered by most IPOs in 2020. This, in turn, could trigger some money to flow from the secondary market (stocks) to the primary markets (IPO).
Insurance players firm up on better outlook
In an otherwise weak NIFTY, shares of insurance players were able to stay in positive territory. Shares of HDFC Life hit a lifetime high today. In its recent investor interaction, the company management shared optimism about premium growth and margin sustenance near the previous year’s levels. High single-digit growth in FY21 and near 15% growth in FY22 could be on the cards. The insurance business is picking up because the pandemic has increased awareness about insurance. Investors showed interest seen in the shares of other players too, as SBI Life (+1.3%) and ICICI Lombard (+0.8%) were up today.
ONGC moved high due to crude oil rally
Crudeoil price have risen over 25% this month and are at a seven-month high on hopes of a smooth presidential transition in the US, the rapid progress on the vaccine front and the improving demand scenario. Further, exploration service providers also rose as industry dynamics are improving. Alphageo (+19.1%), Aban Offshore (+9.9%) and Jindal Drilling (+6.1%) saw stellar gains.
Fii Dii Data of the Day:
Fii almost remains flat today a day before Expiry Fii net Buy Rs 24.2 cr while Dii again sold Rs 1840.33 Cr as per data received from NSE website.
Nifty Technical View:
While all the sectoral indices closed positively yesterday, today nearly all of them have closed in negative. That is how NIFTY (NSE) can surprise traders sometimes, and require traders to adjust their strategies accordingly. The decline in the Nifty50 index today was around 1.5%, which is relatively lower than the overall rise of nearly 10% this month. The India volatility index (India VIX) jumped up nearly 10%. It gives an early indication of the volatility expected in the days ahead. Tomorrow, the November derivative expiry could be the first among such days.
As we previously aslo adviced all to keep reserve cash ready always those folllow are get heavy chance to add more on dips.
In spite of the 1.5% fall, we expect Nifty to rise further. This fall should be utilized as an opportunity to add more to gain windfall return in days to come.
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