Zubu Client Sentiment Nifty50 Report & Market Recap (Nov-11-2020)

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.

Zubu Client Sentiment Nifty50 Report (Nov-11-2020)

Nifty50 retail trader data shows 41.34% of traders are net-long ,while the number of retail traders net-short was 58.66%. FII’s created decent longs 6385 & shorts 3548 , while retailers are unwinding decent longs -4951 & creating decent shorts 5905. As from the above snapshot we can easily understand that, since the starting of November series FII’s are creating huge longs & retailers are doing exactly opposite and everyone knows where the market is right now….punching new ALL TIME HIGHS!!!. So don’t play against the BIG BOYS.

Market Recap:

What a yo-yo session it was in the markets today! At one point, it seemed that benchmark indices could crack under the pressure of index heavyweight Reliance Industries, which fell over 4%. However, support came from multiple fronts, including the metals, pharma and auto sectors. In general, the participation was broad-based as 43 of the Nifty50 stocks advanced today. Hindalco (+8.0%), Tata Steel (+7.6%) and Dr Reddys (+4.1%) were the top Nifty50 gainers, whereas IndusInd Bank (-5.2%), Reliance (-4.1%) and Titan (-2.0%) were the top losers in the flagship index.

NMDC sees profit-booking after results

State-run iron-ore miner NMDC reported Q2 consolidated revenues at ₹2,230 crore, down 0.5% as compared to the same period last year. Although the sales volume increased almost 13%, a 12% drop in iron ore prices pulled the overall sales down. However, lower expenses boosted net profit, which grew 10% over the last year to ₹773 crore. The company has announced a buyback at ₹105 per share, a nearly 16% premium over today’s closing price. The stock gained nearly 10% last week but witnessed profit-booking after its results. It was down nearly 6% intraday today but recovered along with other buoyant metal sector stocks and ended the day with a decline of 3.5%.

Suzlon net profit jumps after debt restructuring

Wind-turbine maker Suzlon reported consolidated net profit at ₹674 crore in Q2. This is in sharp contrast to the net loss of ₹398 crore in Q1 this year and ₹777 crore in Q2 last year. Notably, the company booked an exceptional gain of ₹821 crores in Q2FY21 after it restructured foreign debt, without which the company would have reported a loss. It also benefited from lower interest costs of ₹197 crore (versus ₹300 crore last year). Further, it is generally observed that rising crude oil prices increase investor interest in renewable energy companies. The stock was up 5% today.

Crude oil prices spike on lower inventories

While the concerns over lockdown in several European countries persist, crude oil prices have spiked nearly 15% so far this week. The increase in prices is fueled by a reduction in US crude oil inventories of over 5 million barrels versus an expected reduction of less than 1 million barrels. Further, the recent news of a viable Covid vaccine raises hopes of demand returning to normalcy soon. The extension of production cuts by OPEC also helped lift up the prices.

Closing bell

Trading sessions like today give jitters to traders as the markets give confusing signals about their direction. This generally happens when a major news breaks during the day and reverses the trend. For today, it could be the approval by the government of the large production-linked incentive scheme worth nearly ₹2 lakh crore across 10 sectors. Tomorrow, markets may take cues from the expected release of inflation and industrial production data. The Consumer Price Index reading for September was 7.34%. The expectation for October is 7.30%, which is still higher than the RBI’s medium target of 2–6%, leaving little room for any rate cut.