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 44.16% of traders are net-long ,while the number of retail traders net-short was 55.84%. FII’s unwinded marginal longs -1250 & created decent shorts 1883, while retailers unwinded huge longs -20760 & shorts -5621, huge longs are created only by pro 15062.
Today, the markets witnessed the biggest single-day fall since May 2020. All of the Nifty50 stocks ended the day in the red. All sectoral indices closed in the negative with the worst fall seen in Nifty PSU Bank (-6.9%) and Nifty Media (-6.2%).
New coronavirus strain shocks the markets
The new strain of coronavirus found in the UK has shaken equity markets across the world. At the time of writing this edition of the market recap, major European markets were down 3% and Dow futures were down 1.6%.
Volatility was also seen in gold prices which, after gaining 1.4% in the morning, dropped by 1.2%. Meanwhile, the safe-haven US dollar saw a sharp jump of nearly 0.7%.
Travel stocks hit badly
For weeks, it seemed like travel stocks were seeing light at the end of the tunnel. But, today, investors turned sellers after certain countries including India suspended flights from the UK till 31 December. In general, people could again turn cautious before travelling, whether globally or locally.
Airlines and hotel stocks were badly hit today as Indigo (-9.3%), Spicejet (-9.9%), Indian Hotels (-7.7%), EIH (-6.8%) and Chalet Hotels (-9.2%) saw heavy selling.
CAMS gains on business opportunity
Amid the market chaos, India’s largest mutual fund registrar and transfer agent CAMS gained 4.3% coupled with above-average volumes.
Today’s rise continues the upward trend in the stock from last week during which it rose 6.8%. High investor interest was seen after the company announced last week that it could soon become a Central Record Keeping Agency under the National Pension Scheme (NPS).
Markets hate uncertainty and the new virus strain has created just that. To return to normalcy, the markets would immediately need answers to these two questions: is this virus variant more damaging than its predecessor? Will the current vaccines work against it? Till the answers are known, there could be heightened levels of volatility, as indicated by the ~25% surge in the India VIX today.
The Antony Waste Handling Cell IPO opens for applications today.