Markets extended gains on Tuesday on the back of a surge in metal counters with the Nifty Metal Index rallying by more than 4% to help the Nifty 50 close above 18130. The level of 18130 is seen as an essential trigger on a monthly basis as a monthly close below the same should confirm the ‘Bearish Engulfing pattern’.
Meanwhile, volume remains on the lower side, which means this current upmove is more of a counter-trend rally than a reversal. The widely tracked Index by FII namely MSCI India Index Net USD has seen a breakdown from the ‘Running Triangle’ thus opening gates for a 20% downside in the near term.
This data is significant from an angle that USDINR may be positioned for a major spike in the coming days towards 85 levels and FIIs are likely to activate aggressive selling. The trigger which can negate a bearish move in the market is when India’s VIX declines towards 9%, till the risk of a major meltdown in Indian markets still remains on the cards.
MSCI India Net USD Index
Stocks to watch
Positive Read Through
- Welspun board to consider share buyback on Dec 30 board meeting.
- City gas cos- as per rules only City gas licensees can supply permitted volumes.
- IOC- PNGRB barred Co to supply LNG in an area licensed to another City gas Co.
- RNNL- appointed Project implementation agency for a project of Rs 1545 cr
- Suryoday SFB- RBI approves the reappointment of BB Ramachandran as MD and CEO for 3 yrs
- Hariom Pipes to acquire some assets of RP Metal for Rs 55 cr
- Punjab & Sind Bank- to consider fundraising of Rs 250 cr on Dec 30
Negative Read Through
- IOC- PNGRB barred Co to supply LNG in are licensed to another city
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