Zubu Client Sentiment Nifty50 Report:
It is a Post Market Analysis, by which one can understand Retail trader’s sentiment and discover who was going long and short, the percentage change over time, and whether market signals are bullish or bearish.
Nifty50 Retail trader data shows 50.45% of traders are net-long ,while the number of retail traders net-short was 49.55%. FII’s unwind-ed huge longs -5268 & created decent shorts 2891, while retailers created decent longs 4603 & unwind-ed marginal shorts -904.
- September expiry range is 11100 -11300
- Medium term trend – Till Nifty is holding above 11086 on weekly basis we can stay long on Nifty
Although the Nifty50 ended the day in the negative, the last-hour buying in banking stocks helped the overall markets recover from the day’s lows. Bank stocks, which were under pressure over the last two days, saw buying interest at lower levels. Axis Bank (+2.4%), HDFC Bank (+1.3%) and Kotak Bank (+0.6%) were among the top gainers, while Bharti Airtel and Bharti Infratel lost over 8% each.
• European stocks bounded higher with U.S. futures as equity markets built upward momentum after the September selloff cut valuations. The Stoxx Europe 600 rose the most in two weeks on gains in airline, media and auto shares. FTSE, CAC and DAX Index gained 2% each
• Asian markets were mostly lower on Wednesday as investors kept a wary eye on how the coronavirus pandemic will affect the economic outlook. Stocks slipped Wednesday in Japan, Hong Kong and Seoul but rose in Sydney after the Australian government reported retail sales fared better than expected.
• US Future gained 240 points or 0.8%
• Oil edged higher as positive European manufacturing data and rising equity markets gave some respite to recent demand worries. Brent Crude gained 1% to $42/bbl
IPOs in demand despite shaky market
Profit booking seems to be the flavour of the week in the Nifty50. The benchmark index is down 3% since Monday. However, this has not dampened the demand for IPOs. On the contrary, IPOs closing today have received huge over-subscriptions—Chemcon (148 times) and CAMS (47 times)—as of 5 pm today. The Angel Broking IPO, which closes tomorrow, is already fully subscribed. The high subscription numbers could be due to the stellar listing gains of the recent IPOs of Happiest Minds and Route Mobile. Further, investors are seeking better opportunities in an otherwise shaky market.
Voda-Idea, Airtel face heat from Jio’s aggressive pricing
The action in the telecom sector continues after Reliance Jio announced aggressive postpaid plans. Shares of Airtel (-8.1%) and Vodafone Idea (-10.7%) dropped sharply today. Postpaid customers are known to be sticky and deliver better average revenue per user (ARPU) as compared to prepaid customers. Jio’s new offering could trigger a churn from incumbents unless they match the offerings, which in turn could result in lower revenue and/or higher costs. Further, the burden of AGR dues (10% of AGR dues to be paid by 31 March 2021) weighs over Airtel and Vodafone Idea. Meanwhile, Reliance Industries (RIL) shares were up 0.7% today. RIL also saw investor interest as it announced that it has sold 1.28% in its retail arm to private equity firm KKR for ₹5,550 crore.
SP Group companies gain on plans to exit Tata Sons
Shapoorji Pallonji (SP) Group, which holds 18.4% in Tata Sons, has offered to sell its entire stake for a massive sum—estimated to be as high as ₹1.75 lakh crore. The windfall could help the cash-strapped SP Group solve its financial problems by not only becoming debt-free but also provide surplus capital for its businesses. The shares of SP Group’s listed companies—Sterling & Wilson Solar (+19.9%) and Forbes & Co (+5.0%)—surged on this development. Meanwhile, shares of TCS were down 2.4% on the expectation that Tata Sons may reduce its stake in TCS to raise funds to buy back the stake from SP Group.
As per a UN report, the global economy is expected to contract 4.3% in 2020. Equity markets are likely to reflect this reality as the positive effects of the stimulus-fueled growth start fading, and possibilities of additional stimulus become uncertain. Looking at the recent trend, it seems like investors are starting to turn risk-averse, be it equities or bullion.