Weekly wrap up 27-09-2021 - India Infoline

Weekly wrap up
   27-09-2021

What moved the market?

FOMC meeting

• Fed tapering- The Fed suggested that it may, in the coming months, start reducing the emergency
  $120 billion in monthly Treasury and mortgage-backed securities purchase program it launched in
  response to the Covid-19 pandemic.

• The Fed revised its expectation on the unemployment rate by the end of 2021 to 4.8% (compared to
  4.5% in June). Hopeful of Pre-pandemic low on headline unemployment of 3.5% only by end of 2023.

• Powell also highlighted that reducing bond buying would not start the clock for increasing the interest
  rates.

• The criteria for tapering has been met, but the bar is set higher for increasing rates and the Fed is
  focused on the roughly 5 million who remain unemployed.

Evergrande Crisis
• Evergrande, China’s 2nd largest property developer has more than $300
  billion in liabilities equivalent to 2% of China's gross domestic product
  (GDP) and also suffers from declining sales.

• Evergrande was caught by the Chinese government’s new regulations on
  real-estate related borrowing to reduce its reliance on debt.

• The metal sector will remain vulnerable to any negative development in
  China as China has become a net importer of steel.

• The concerns eased a bit by Wednesday, 22nd as the People’s Bank of
  China injected 90 billion yuan ($13.9 billion approx.) into the banking
  system through reverse repurchase agreements.

• It is believed that simply boosting liquidity won’t be enough to solve the
  Evergrande crisis by itself.

Reopen Boost to economy
• Mumbai allowing cinema to open boosted the price movement of companies like PVR, Inox leisure and UFO
  movies.

• Domestic Air passenger traffic in India increased by 31% in August as Covid-19 cases continued to decrease.
  This has increased the hope for faster than expected recovery in tourism sector and hence we saw a sharp
  movement in hotel stocks as well.

• Most states have reduced stamp duty to increase home buying, with Karnataka being the most recent to
  reduce by 2%. This is trend has remarkably increase home sales with Godrej properties registering ₹575 crore
  worth property in a single day. Expectation for other Real estate companies led to a sharp rally

Nifty 50

           The index has been
           moving in a range in an
           upward sloping channel.
           As of today, the index has
           found some resistance
           upon touching the upper
           trendline which has led to
           the formation of a
           shooting     star    candle
           pattern at the high. A
           negative      candle    on
           Monday might lead to
           swing move down to
           retest the lower trendline.
           This would also cool down
           the RSI which is trading in
           overbought levels.

Nifty Bank

             The index has given an
             ascending triangle patten
             on the daily chart but is not
             able to sustain higher
             levels. The index as of today
             has formed a double top
             with highs exactly at 38113
             levels. With the Moving
             average very close to the
             pattern trendlines, it is
             expected that the index
             might take support at
             higher levels.

Top Gainers and losers

                    Stock     Gain (%)                Stock         Loss (%)

    Godrej Properties       32%          Adani Transmission   16%

    Zeel                    25%          DalBharat            9%

    Oberoi Realty           24%          CESC                 9%

    DLF                     22%          Tata Steel           9%

    IndHotel                18.5%        PIIND                8%

Volume Surge and Bulk Deals
The following stocks saw the 5-day volume higher than
3 times of the average volume of last 100 days.         Bulk Deals

• Zeel
• Inox Leisure                                          Buying:
• Oberoi Realty                                         Welent        7,50,000 @ 103.36
• IndHotel                                              Kolte Patil   5,00,000 @ 314.36
• Godrej Properties
• DLF
                                                        Selling:
• GNFC
                                                        MCDHolding    85,000 @70.5
• Phoenix ltd
                                                        Homefirst     4,75,000@ 575.15

Nifty 200 Stocks at/near 52-Week high

 • IT: Infosys, Techm, HCL Tech, Wipro, Mindtree, LTI, LTTS.

 • Realty: DLF, Godrej Properties, Oberoi realty.

 • Banking and NBFC: Kotak Bank, Bajaj Finance, Bajaj finserv, Indusind, Axis Bank.

 • Chemicals: Tata Chem, Deepak Nitrite, Pidilite, Asian Paints

 • Others: Airtel, ITC, Pageind, Dmart.

Events for the coming week
• Oyo is said to file for a $1.2 billion IPO next week. It will consist of a fresh issue of shares and an offer for sale
  from existing shareholders.

• Outcome of the meeting between Prime Minister Modi and U.S President Joe Biden, along with the Quad.

• China’s Manufacturing PMI and industrial profit data.

• U.S Pending Home Sales.

• India’s Fiscal Deficit, Foreign debt, and infrastructure output Data to be released.

Thank You