Market News and Updates, New IPO, FII DII data analysis and NIfty view

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Good GDP numbers, massive foreign flows and festive updates regarding the corona vaccine helped the Indian markets rise.

The market today saw the Nifty Realty index rose 3.3%. Key real estate stocks such as DLF (+4.2%), Prestige (+8.2%) and Oberoi Realty (+3.6%) gave an unusual move.

PMI(Purchasing managers’ index) saw the lowest expansion in 3 months

Although manufacturing activity continues to expand, the expansion rate fell to its lowest in the last three months. For November, the manufacturing Purchasing Manager’s Index was 56.3% vs 58.9% in October. Nifty commodities grew 11.5% and Nifty Auto Index grew 14.6% in Nov,2020.

Burger King IPO opens on 2 December

Issue dates: 2-4 December
Price band: ₹59-60 per share
Lot size: 250 shares

Most of the analysts are in favour of the valuation it offers at this price range.

As per our view, one can apply for a small quantity of this IPO.

FII and DII data of the day and our analysis

Fii aggressively again buys Rs 3242 cr today, whereas DII also sold Rs 1043.21 cr as per data from the NSE website.

As we said, the pace of DII selling seems fully absorbed by FII.

So in the future, DII will feel the pressure now and have to force back and buy in high market.

Vodafone-Idea follows peer and hiked tariffs

The market saw the tariff hike by telecom companies was in the offing. The management of Bharti Airtel has been quite vocal about it, citing that present tariffs are non-sustainable. Vodafone-Idea has increased two of its postpaid plans by ₹50. As per reports, the company lost nearly 15 crore users in the past nine quarters and runs the risk of losing another 5-7 crore subscribers in the next year. Hence, a tariff hike seemed quite natural to arrest the decline in revenue. However, in case the competition delays tariff hikes, Vodafone-Idea could lose more subscribers. Meanwhile, Vodafone Idea shares (+2.5%) and Bharti Airtel (+3.5%) for the day. 

November journey of Auto Stocks:-

In the commercial vehicles (CV) segments, the medium and heavy trucks see a turnaround in demand as the economy shows signs of recovery. Domestic CV sales of Ashok Leyland grew by 4% over last November.

Bajaj Auto reported a 7% growth in sales over last November. Its shares picked up by 2.1% today. 

For M&M, domestic passenger vehicles sales (mainly utility vehicles) growth was robust at 24% compared to November 2019. Similarly, its domestic tractor sales multiplied by 55%. The festive season, coupled with strong rural demand, augured well for M&M products. 

Market leader Maruti reported a 2% year-on-year decline in its November domestic passenger vehicles sales. The fall mainly resulted from a 5% drop in the compact car segments (which include cars such as Alto, WagonR, and Swift).

Despite the recession, the markets have shown an excellent up move today. Among others, traders love to see two things

a) the direction of the current trend and

b) what lies ahead in this current expiry.

Although Q2 GDP numbers were negative, the growth trend points upward, i.e. -7.5% compared to -23.9% in Q1. A trader must make a sound analysis based on the news flow and management commentaries about various companies and sectors. Due to the high liquidity because of FIIs, the up move’s entire process just got faster.

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Our analysis of the market

We still hopeful nifty can go more up from these levels also.

Any dips should be added more in the basket.

For levels in Nifty, read this post carefully.

Read our Previous Post Here.

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