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Trade Ahead with EZ Wealth – 1st Oct 2021
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Benchmark Index Nifty-50 settled lower amidst range-bound expiry trade as bulls failed to push the Index beyond 17,700 levels. Further, the Nifty Index piled on a massive 5.90 per cent in the September series. Heading into the October series, bears seem to have an upper hand as Index is losing momentum on the upside following multiple failed attempts to break out of the immediate hurdle between 17,950-18,000 levels.
Almost all sectoral indices closed in the red except for consumer durables, pharmaceutical, realty and PSU Banks.
The monthly F&O expiry went off quietly. The technical setup showed Nifty may continue to stay in a defined and broad consolidation range, even as the sectoral outperformance continues. Volatility eased a bit as India VIX declined 2.31 per cent to 18.4025.
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In the US, a selloff in shares of cyclical companies drove major US indexes lower Thursday, capping a tumultuous September that marked the S&P 500’s worst month since March 2020. The Dow Jones Industrial Average fell 546.80 points, or 1.6%, Despite the slump, the S&P 500 managed to eke out a 0.2% gain for the quarter to notch its sixth consecutive quarter of gains. The Nasdaq and Dow, meanwhile, ended the period lower, marking their first quarterly losses since the first three months of 2020.
European stocks ended flat on Thursday as declines in travel and leisure limited gains in miners, while ending the month with falls of over 3 per cent on worries about a slowing global economy and higher inflation. The pan-regional STOXX 600 index was 0.05 per cent lower, with miners rising 2.0 per cent and travel stocks falling 2.2 per cent.
The October derivative series began on an indecisive note for traders as positioning in the options of the Nifty50 index were scattered. Maximum open interest in call options stood at 18,000 strike price while the same in put options was at 17,000 strike price. Analysts said that the immediate trading range stood between 17,350 and 17,850 levels.
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_single_image image=”67817″ img_size=”large” alignment=”center”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Tata Power (Rs 1743 crore), RIL (Rs 1579 crore), ICICI Bank (Rs 1301 crore), HDFC Bank (Rs 1274 crore), IEX (Rs 1245 crore), SBI (Rs 1212 crore), Vodafone Idea (Rs 1184 crore), Infosys (Rs 1163 crore), HDFC (Rs 1155 crore) and Bajaj Finance (Rs 1136 crore) were among the most active stocks on Dalal Street in value terms.
Vodafone Idea (Shares traded: 100 crore), Tata Power (Shares traded: 11.1 crore), BHEL (Shares traded: 8.5 crore), PNB (Shares traded: 8.4 crore), IOB (Shares traded: 7.9 crore), YES Bank (Shares traded: 6.8 crore), IDBI Bank (Shares traded: 6.2 crore), Trident (Shares traded: 6.2 crore), SAIL (Shares traded: 5.9 crore) and Central Bank (Shares traded: 5.3 crore) were among the most traded stocks in the session.
PNC Infratech, IRB Infra Developers, Tata Investment, Aditya Birla Retail and Can Fin Homes witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signaling bullish sentiment.
Shrenik, Inventure Growth, BKM Industries and Suvidha Infoserve witnessed strong selling pressure and hit their 52-week lows, signaling bearish sentiment on these counter.
China’s Energy crises keeps getting bigger. China’s central government officials ordered the country’s top state-owned energy companies – from coal to electricity and oil – to secure supplies for this winter at all costs, according to people familiar with the matter. A severe energy crisis has gripped the country, and several regions have had to curtail power to the industrial sector, while some residential areas have even faced sudden blackouts. China’s power crunch is unleashing turmoil in the global commodities markets, fuelling rallies in everything from fertilizer to silicon. Volatility in the energy markets is poised to intensify on the order from the central government
North Korea said it had successfully tested a new antiaircraft missile, state media reported, as Pyongyang embarks on a long-term weapons strategy aimed at countering military threats from Washington and Seoul. Kim Jong Un wasn’t reported to have attended the Thursday launch, North Korea’s fourth weapons test in recent weeks. But a day earlier, Mr. Kim, in a policy speech to his rubber-stamp legislature, had praised the country’s weapons scientists for developing “ultramodern weapons” at “an extremely fast speed.” The test was of “very practical significance” to North Korea’s antiaircraft missile systems, Pyongyang’s state media said, demonstrating guidance accuracy and showing an ability to down air targets from a farther distance.
The output of India’s eight core industries grew 11.6% in August compared with 9.9% in the previous month even as the base effect was less beneficial. The core sector also recorded a 3.9% rise from the pre-covid level of August 2019. Only the production of refinery products and crude oil was lower over this period
The Centre’s fiscal deficit as a proportion of the Budget Estimates fell to an 18-year low of 31.1 per cent in the first five months of the current financial year. This was despite a year-on-year spike in expenditure in August, after falling in the previous month. In absolute terms as well, the gap between the Centre’s expenditure and receipts narrowed to Rs 4.7 trillion during April-August, 2021 from Rs 8.7 trillion in the corresponding period of the previous year. It was, in fact, lower than Rs 5.5 trillion in the corresponding pre-Covid period of 2019-20. The decline in the deficit could be attributed to a 114 per cent rise in revenue receipts amid a cautious two per cent increase in total expenditure till August of the current financial year.
Trade recommendations:
Shipping Corporation of India (SCI) | Buy at CMP of Rs 121
Target: Rs 130
Stop Loss: Rs 116
The stock has broken out of a consolidation pattern on good volumes triggering a resumption of the uptrend. Technical indicator RSI has turned upwards after taking support at the 40 level suggesting strength in the stock.
Stocks in the news:
The Mumbai bench of the National Company Law Tribunal (NCLT) on Thursday directed the board of Zee Entertainment Enterprises (ZEE) to consider requisition made by the company’s largest investor to hold an extraordinary general meeting (EGM) before October 3.
Emami is on the lookout for acquisitions opportunities that may even pave an entry into new categories; acquisition could be in the area of healthcare and personal care where the company already has a presence
ONGC Videsh, the overseas arm of Oil and Natural Gas Corporation, has drilled its first well in Bangladesh
Adani Renewable Energy has inked pact with Essel Green Energy to acquire a 40Mw operating solar project in Odisha
TS Global Holdings, a 100% direct subsidiary of Tata Steel, executed definitive agreements with TipTip Holdings to divest its entire equity stake in NatSteel Holdings for an equity value of $172 million
Paras Defence and Space Technologies: The manufacturer of defence and space engineering products will be listed today. The company is expected to make a super solid Dalal street debut. The company is commanding a grey market premium of Rs 220-230 over its issue price of Rs 175.
Maruti Suzuki India: The largest domestic carmkaer said it expects an adverse impact on production at its two plants in Haryana and parent Suzuki’s Gujarat plant in October on account of supply constraint of electronic components due to semiconductor shortage.
UPL: The agrochemical major launched a smart technology-driven seed treatment solution Electron 3-Way Mix in the seed and plant health segment. The company said the new product acts as a powerful tool in protecting the seed and seedling from pests and diseases in the early stages and helps in robust crop establishment.
NMDC: The state owned miner is aiming to achieve 47 million tonnes of iron ore production during the current financial year and plans to spend Rs 3,720 crore on capital expenditure.
Sterling and Wilson Solar: The Shapoorji Pallonji Group company said it has bagged its first waste-to-energy project worth Rs 1,500 crore from a leading developer of energy assets in the UK and Europe.
Vi, Airtel asked to pay Rs 3,000 cr fines in 3 weeks in Jio connectivity issue; The cumulative fines are for not granting adequate points of interconnection to Reliance Jio Infocomm in 21 circles.The move is unexpected as the government has unveiled a set of booster measures to help the debt-laden sector a few days back. The penalities for Airtel is Rs 1,050 crore and that for Vi is Rs 2,000 crore.[/vc_column_text][vc_column_text]
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