Markets continued to face divergent trend on Thursday with Nifty 50 managing to post gains of around 0.5% while Bank Nifty ended in marginal negative terrain after failure to sustain above 50 DMA. As financial hold more than 35% weight in Nifty, a failure to sustain above 50 DMA in Bank Nifty poses major threat for broader market and this comes at a time when India VIX has also been rising above 11.5 mark. The larger setup in India VIX has been throwing warning signal in the past few days with major breakout expected on weekly closing above 11.9 mark , thus opening gates for an upside target of 16. Hence for markets to garner sustainable strength two additional criteria namely, Bank Nifty above 50 DMA & India VIX below 11.5 are utmost needed to come out of bearish groove.
Nifty Bank Chart
Stocks to watch
Positive Read through
- TVS Motor – Partners with Emil Frey for import & distribution in key European markets.
- JSW Steel – Withdraws application for final mine closure plan submitted on September 1.
- SJVN – Signs PPA for 200 MW wind project with SECI at a tariff of Rs. 3.24/unit.
- JSW Infra – Gets Loa to develop Keni Port in Karnataka for Rs. 41.19 bn.
- InterGlobe Aviation – Continued to dominate Indian skies with a 62.6 pct market share in October.
- Brigade – To develop 2 msf land with gross dvpt value of Rs. 21 bn in Bengaluru.
- DCS Systems – Board approves fund raise of up to Rs. 5 bn via rights issue, QIP.
- Aviation – Domestic air passenger traffic in records annual growth of 11 pct to 12.6 mn in October.
- Ramkrishna Forging – Company’s Rs 10 bn QIP will help company pare debt.
Negative Read through
- Financials – RBI increases risk weights for unsecured consumer credit.
- ONGC/OIL – Crude declines further, Brent down 5 pct at USD 77/bbl.
- Delhivery – Media reports say, SoftBank to sell USD 150 mn stake in Company via block.
- MCX – Traders find last night’s gold move on exchange as an aberration.
- Technocraft – Company will discontinue the production of Milange Yarn at its Milange Yarn unit located in Murbad.
A financial planning platform where you can plan all your goals, cash flows, expenses management, etc., which provides you advisory on the go. Unbiased and with uttermost data security, create your Financial Planning at Rs. 1499/-
Disclaimer: The views shared in blogs are based on personal opinions and do not endorse the company’s views. Investment is a subject matter of solicitation and one should consult a Financial Adviser before making any investment using the app. Making an investment using the app is the investor’s sole decision, and the company or its communication cannot be held responsible for it.
