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 56.6% of traders are net-long ,while the number of retail traders net-short was 43.4%.
FII’s created very low longs 714 & unwind-ed very low shorts -768, while retailers created decent longs -1820 & unwind-ed huge shorts -9118.
- September expiry range is 11250 -12050
- Medium term trend – Till Nifty is holding above 11086 on weekly basis we can stay long on Nifty
After the strong rally in the mid-caps and small-caps yesterday, large-caps were back in focus today. The rise in the Nifty50 index was mainly supported by banks. Among the sector indices, the Nifty Bank index was up 1.6% and Nifty Pharma index rose 1.9%. Meanwhile, the consumer price inflation for August stood at 6.69% (above RBI’s target of 6%). This dampens the hopes of a rate cut in the near term and is thus unlikely to provide any support to the market.
Ashok Leyland shares see big gains after ‘Bada Dost’ LCV launch
Yesterday, Ashok Leyland launched the ‘Bada Dost’ light commercial vehicle (LCV). This new vehicle is expected to help the company increase its addressable market in the LCV segment. While the heavy and medium commercial vehicle sales are in distress due to the pandemic, the LCV segment is a bright spot. Demand from the e-commerce sector and rural areas is helping the segment. Ashok Leyland’s share price was up 3.8% and has gained nearly 15% in September. M&M, which dominates the LCV segment, registered 9% YoY volume growth in August 2020 (in LCVs below 3.5 tonnes).
JB Chemicals surges after 92% jump in Q1 profit
The consolidated Q1 net profit of JB Chemicals and Pharmaceuticals grew 92% on a year-on-year basis to ₹119.4 crore. Revenue from operations grew 17% YoY to ₹522.2 crore, supported by a better product mix. The strong results catapulted the company’s shares as high as 16.5% in intraday trade, before ending 7.5% higher than the previous close. The stock has risen nearly 115% since the March lows. Meanwhile, other pharma stocks were also upbeat today and saw investor interest as defensive picks in an indecisive market. Cipla (2.8%), Dr. Reddy’s (1.7%) and Sun Pharma (2.1%) were among the top gainers in the Nifty50 pack.
Markets abuzz as CAMS & Chemcon IPOs likely to open next week
We’re headed for another IPO week, with Computer Age Management Services (CAMS) and Chemcon Speciality Chemicals expected to launch their initial public offers next week. CAMS is a leading registrar and transfer agent with a market share of over 69%, based on mutual fund average assets under management (AAUM), as of November 2019. The company is estimated to raise ₹1,500–1,600 crore via its IPO. Chemcon is a manufacturer of specialised pharmaceutical chemicals and is expected to raise around ₹350 crore through the IPO. Going by the response to the recent IPOs, the Indian investors’ appetite for IPOs is clearly at a high. The Happiest Minds IPO was subscribed by over 150 times, while the Route Mobile IPO was oversubscribed 73 times.
While we are seeing stock and sector-specific movements, the Nifty50 index has broadly been in consolidation mode over the past three weeks. Volatility could rise as the week progresses, since major central banks are expected to announce policy decisions—the U.S. Federal Reserve on Wednesday, and Bank of Japan and Bank of England on Thursday.