Nifty futures had been trading 56.50 points down at 13,508.5 in early trade on Singaporean Exchange, indicating a gap-down commence for BSE Sensex and Nifty 50 on Thursday. In the preceding session, Sensex ended at 46,103.50, up 495 points and the Nifty settled 136 points up at 13,529.10. The weekly expiry of F&O contracts is likley to retain the markets volatile now. Newsflow associated to COVID-19 vaccine, oil rates, rupee trajectory and other international cues will sway market place sentiment. “Small and Microcaps are hugely outperforming the market, and the euphoria is expected to stay in the short to medium-term. Hopes of vaccine and stimulus packages in India and developed nations are raising the spirit of equity market,” mentioned Vinod Nair, Head of Research at Geojit Financial services.
FII and DII information: On Wednesday, foreign institutional investors (FIIs) lapped up shares worth Rs 3,564.23 crore, when domestic institutional investors (DIIs) offloaded shares worth Rs 2,493.1 crore on a net basis in the Indian equity, according to provisional information readily available on the NSE.
Call Option information: For the December series, maximum Call Open Interest (OI) is placed at 13,000 strike with 25.15 lakh contracts, followed by 18.76 lakh contracts at 13,500 strike. For the weekly expiry now, maximum Call OI is at 13,600 strike with 35.83 lakh contracts.
Technical take: “Technically, the Nifty has held a level of 13450 which is grossly positive – if the index trades above the same we can expect uptrend continuation wave up to 13600. Further uptrend may continue which could lift the index to 13665. However, on intraday time frame, the index is in an overbought zone and high chances of an immediate correction is not ruled out if index trades below 13450. Hence, dismissal of 13450 could possibly open correction wave up to 13400-13350,” mentioned Shrikant Chouhan, Executive Vice President (Equity Technical Research), Kotak Securities.
Global watch: Asian stock markets had been trading reduced in early trade on Thursday as investors had been eyeing Brexit talks and negotiations on US stimulus package. Japan’s Nikkei fell .39 per cent when the Topix index dropped .18 per cent. In overnight trade on Wall STreet, US stocks ended reduced. The Dow Jones Industrial Average fell .35 per cent, the S&P 500 lost .79 per cent, and the Nasdaq Composite dropped 1.94 per cent.
24 firms contribute more than 75% to BSE100 gains: Benchmark indices in current years have been driven largely by a handful of stocks. More than 75% of the BSE100 efficiency in FY21 so far has come from 24 stocks. In contrast, the identical magnitude of returns had been contributed by just 5 stocks in FY19 and six in FY18.