Markets last week ended with losses of around 1.5% but violated key support of 59754 in Sensex which turned out to be the lower shadow of the ‘Bearish Engulfing Line’ on a monthly basis. Such price action along with a sharp drop in retail volume towards Rs 25000 cr and sustained closing below 50 DMA are indications of an upcoming severe downtrend in the Indian markets.
The FII selling figures have suddenly shot up in the past few days after MSCI India Net USD confirms the major breakdown with a downside implication of 24%. As declines in Indian markets are taking place on lower volumes, this implies that retail money which was holding up markets at higher levels is facing a liquidity crunch and hence is unable to initiate follow-up buying at lower levels.
The immediate target of Nifty in the next few days is seen at 17500 despite any higher opening. Lower move in USDJPY is a signal of a major upcoming crash in the Dollar Index.
Sensex and MSCI India Net USD
Stocks to watch
Positive Read through
- Tata Steel- India business deliveries are up 7 pct, Europe is weak but it is up 5 pct QoQ.
- HCL Tech bags end-to-end IT ops and enterprise-wise digital deals from ODP Corp.
- Titan Jeweler business is up 11 pct YoY based on 37 pct growth last year, and overall sales are up 12 pct.
- Asian Paints to invest Rs 2000 cr for setting up a water-based paint manufacturing facility.
- ICICI Lombard Dec premium up 9 pct, market share up 31 bps YoY.
- Lupin – USFDA approval for Toviaz Generic to be manufactured at Goa Unit.
- Phoenix Mills- consumption uptrend continues, Q3at 130 pct of 2019 levels.
- Paytm- Paytm payments bank gets RBI nod for Surinder Chawla as MD and CEO.
- Star Health- Dec premium up 16 pct, market share down 16 bps YoY.
- Kalyan Jewellers- Cons revenue up 13 pct, India business revenue up 12 pct YoY.
- Ashoka Buildcon- lowest bidder for NHAI project worth Rs 2161 cr.
Negative Read through
- Voda-Idea- Reports say SBI-led lenders are not in favor of granting additional loans.
- Biocon- completes response letter from USFDA for insulin-R product BLA.
- Bandhan Bank- CASA falls over 8 pct QoQ, Gross loans up 14 pct YoY.
- New India Assurance- Dec premium down 2 pct, market share down 188 bps YoY.
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