Over the weekend, the frenzy of Donald Trump's victory in America died down. With Trump coming to power, there is a possibility that Ankara will start a tariff war on China, including India, and on the other hand, China is preparing to take mega stimulus measures, foreign funds from the Indian stock market hammered more today and recorded a decrease from major offloading. On the other hand, the purchase of local funds, mutual funds was seen slowing down today. In metal-mining stocks, funds sold heavily behind Tata Steel and on the other hand, realty companies were expected to have a tough day ahead. Along with this, profit booking was also done in oil and gas and energy stocks.
At the global level, China's economic condition is becoming dire, with the demand for more stimulus measures against the expectation of a mega stimulus soon, global uncertainty on the report of possible imposition of heavy tariffs by the Trump administration in the US saw funds sell off in the Indian stock market today.
On BSE, the midcap index closed down 1.18% and the smallcap index closed down 1.52%. As for various sectoral indices, only consumer durables, IT, tech, auto and FMCG stocks were seen on BSE, while all other sectoral indices closed lower. Out of total 4064 scrips traded on BSE, decliners were 2575 and advancers 1396, 93 scrips were unchanged. While in 4 stocks there was a bearish lower circuit of only sellers while in 6 stocks there was an upper circuit of bullish only buyers.
Mahindra & Mahindra 3.09% in S&P BSE Sensex, Titan Company Ltd. 2.13%, Tech Mahindra 1.90%, Nestle India 1.44%, Infosys Ltd. 1.31%, Hindustan Unilever 1.29%, Power Grid Corporation 1.12%, Adani Port 0.78%, JSW Steel 0.69%, Sun Pharmaceutical 0.64%, HDFC Bank 0.48% and Larsen Lee. rose 0.33%, while Asian Paints 2.61%, Tata Steel 2.22%, State Bank of India 1.86%, Tata Motors 1.72%, Reliance Industries 1.66%, NTPC Ltd. 1.56%, ICICI Bank 1.53%, Bharti Airtel 0.47%, Ultratech Cement 0.29%, Maruti Suzuki 0.28%, IndusInd Bank 0.26% and Bajaj Finance were down 0.11%.
Nifty Future Technical Levels NIFTY FUTURE CLOSE :- ( 24196 ) :- Next fluctuation is likely to see Nifty Future touch 24008 points to 23979 points, 23808 points with respect to first of 24404 points and all important strong stoploss of 24474 points. Cautious positioning around 24008 points.
Bank Nifty Future Technical Levels Bank Nifty Future Close :- ( 51759 ) :- Next fluctuation is possible Bank Nifty Future may touch the first important level of 51303 points and 51108 points from 51979 points to 52008 points, very important level of 51108 points. Cautious positioning around the 52303 point.
Specific technical level regarding future stock Bajaj Finance (1741) :- The share price of this company, the leader of Bajaj Group, is currently trading around Rs.1707. Buyable with a stoploss of Rs.1686, this stock is likely to register a price of Rs.1757 to Rs.1763 in a short period of time…!! Bullish focus above Rs.1770.
Tech Mahindra ( 1678 ) :- Positive breakout around Rs.1644 as per technical chart…!! Buyable with support of Rs.1626, this stock is likely to touch Rs.1693 to Rs.1707…!!
Grasim Industries ( 2555 ) :- According to the technical chart, this stock from the Cement & Cement Products sector is likely to trade profitably around Rs.2588 with a target price of Rs.2508 to Rs.2490. Consider a trading stoploss of Rs.2606..!!
HCL Technology ( 1838 ) :- Registering overbought position around Rs.1858, this stock is sellable with stoploss of Rs.1864..!! It is likely to show the price of Rs.1808 to Rs.1787 in phases…!! Consider bullish above Rs.1870…!!
Future direction of the market…
Friends, the gap between DII and FPI investment in Indian equities fell to an all-time low in the September quarter following aggressive buying by DIIs. However, if we consider the net outflow of FPI of Rs.94017 crore and the net inflow of DII of Rs.1,07,255 crore in the month of October, it can be said that the gap between the investment share of NSE stocks has reduced further. A similar situation is being seen in the month of November. Thus, DIIs are poised to overtake FPIs in investing in Indian equities. There has been an increase in overall investment by domestic institutional investors following the investment by fund houses. The investment share of domestic mutual funds in stocks listed on the National Stock Exchange rose modestly to 9.45% in the September quarter from 9.18% in the June quarter.
Mutual funds saw a huge net inflow of Rs 89,038 crore in the September quarter, which has seen an increase in their equity investments. Overall inflows into DIIs stood at Rs 1,03,625 crore in the September quarter, resulting in an all-time high of 16.46% in their investment stake in NSE stocks. On the other hand, the share of foreign institutional investors has also increased moderately from 17.39% to 17.55%. In the September quarter, the inflow of FIIs in the primary market was Rs.30349 crore and in the secondary market it was also noted in the report that it was Rs.97408 crore. The gap between FIIs' and DIIs' investment share in Indian equities narrowed to an all-time low of 1.09% as domestic institutional investors increased their holdings as a result of aggressive buying in equities.
The author is a SEBI registered research analyst and proprietor of Investment Point.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
