After the election of Donald Trump as the President of the United States, the Indian stock market along with other markets of the world were eroded after the speculation about the important posts of the government and the indications of trade-war with China. On the other hand, adverse US reports saw a sell-off in the Indian stock market today as foreign investors sold off on the back of reports of geo-political tension, among other factors.
The bullish market saw caution as the Indian rupee fell to new lows against the US dollar along with global currencies as FPIs continued to sell stocks from India and the inflation-inflation index rose to a 14-month high. The Sensex closed down 984 points at 77690 points, while the Nifty futures index closed down 263 points at 23696 points. While the Bank Nifty Future Index closed at the level of 50492 points with a decrease of 881 points.
The fear of over valuation has become a reality and large gaps are being seen in the prices of many stocks. As if retail investors were stuck, stock prices were seen falling on low volume. Although the flow of investment through SPI increased in the month of October, the flow has started to slow down among the informants and the situation in the market is starting to get out of control due to possible redemption rush in mutual funds by retail investors. Top gainers in today's trade include Adani Enterprises, Kotak Mahindra Bank, Reliance, Oberoi Realty, Voltas, Bata India, Tata Chemicals, Ramco Cement, Jindal Steel, Sun TV Life. In today's top losers list, stocks like TCS, Larsen, Mahindra & Mahindra, Torrent Pharma, Lupine, Aurobindo Pharma, Axis Bank, Sun Pharma, Infosys, HCL Technology, Adani Ports, Wipro, State Bank of India have declined.
Out of total 4050 scrips traded on BSE, decliners were 1813 and advancers 2145, 92 scrips were unchanged. While in 02 stocks there was a bullish upper circuit of only buyers against the bearish lower circuit of only sellers in 15 stocks.
Nifty Future Technical Levels NIFTY FUTURE CLOSED :- ( 23621 ) :- Next swing is likely to see Nifty future touch the crucial level of 23373 points first and 23303 points from 23676 points to 23707 points, 23770 points very important level around 23303 points. .
Bank Nifty Future Technical Levels Bank Nifty Future Close :- ( 50333 ) :- The next move is likely to see the Bank Nifty Future touch the crucial level of 50088 points first and 49808 points from 50404 points to 50530 points, 50606 points very important levels around 50088 points cautiously. Create a position.
Specific technical level regarding future stock Grasim Industries ( 2541 ) :- The share price of this company, a leader of Aditya Birla Group, is currently trading around Rs.2508. Buyable with a stoploss of Rs.2488, this stock is likely to register a price of Rs.2574 to Rs.2580 in a short period of time…!! Bullish focus above Rs.2600.
Infosys Limited ( 1865 ):- Positive breakout around Rs.1848 as per technical chart…!! This buyable stock is likely to touch Rs.1880 to Rs.1900 with the support of Rs.1833.
Hindustan Unilever ( 2396 ) :- As per the technical chart, this diversified FMCG sector stock is likely to have a target price of Rs.2360 to Rs.2323 after profitable selling around Rs.2464. Consider a trading stoploss of Rs.2500.
Muthoot Finance ( 1780 ):- This stock is sellable with a stoploss of Rs.1818 registering an overbought position around Rs.1808..!! It is likely to show the price of Rs.1757 to Rs.1744 in phases…!! Consider bullish above Rs.1830.
Future direction of the market… Friends, the December meeting of the Goods and Services Tax (GST) Council is likely to give relief to GST on health and life insurance premiums. The council meeting was earlier scheduled to be held in the current month but now it will be held on December 23 and 24. As Finance Minister Nirmala Sitharaman is currently meeting the finance ministers of various states in preparation for the upcoming budget, the meeting of the council has been held in December, the finance ministry said. Group of Ministers on GST has recommended relaxation of GST on health and life insurance premiums. The proposed relaxation in GST rate on life insurance premiums is estimated to reduce the government's revenue by Rs 200 crore, which is proposed to be compensated by raising rates on other items.
Donald Trump's victory as president in America has indicated the possibility of affecting foreign direct investment in India. However, new areas for FDI are emerging in India which are expected to sustain FDI inflows in case of US withdrawal. In its previous term, the Trump administration made several regulatory changes to attract investments in the US, which resulted in an impact on FDI inflows in many countries around the world, including India.
The author is a SEBI registered research analyst and proprietor of Investment Point.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
