Zubu Client Sentiment Nifty50 Report & Market Recap (Nov-27-2020)

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.

Nifty50retail trader data shows 40.77% of traders are net-long ,while the number of retail traders net-short was 59.23%. FII’s created huge longs 13652 & unwinded decent shorts -5947 , while retailers are unwinded decent longs -5307 & creating huge shorts 12792.

The index movement was largely range-bound today and it seemed as if traders preferred to ‘wait and watch’ ahead of the Q2 GDP announcement (the market expects an 8.2% contraction), and due to a long weekend coming up. While the broader markets looked subdued, sector-specific action was high. Nifty Realty (+2.6%) gained mainly supported by Godrej Properties (+4.8%) and Phoenix Ltd (+3.1%) whereas, the Nifty IT index (-0.4%) was dragged down by TCS (-1.5%) and HCL Tech (-2.2%)

Market Recap:

Gas distribution companies up on new tariff regulation

• The Petroleum and Natural Gas Regulatory Board (PNGRB) has announced regulations for a unified tariff structure for gas transmission. The tariffs will be applicable based on a two-zone structure related to the distance from the source of gas.
• This makes fuel more affordable for users located further away from the source of gas (i.e. coastal zones). Further, a unified structure is expected to encourage gas transmission companies to set up new pipelines, leading to an overall growth in volume.
• The news spiked investor interest in shares of gas distribution companies, which surged in the range of 3% to 13% today.
• Major gas distribution companies based on their market capitalisation: Adani Gas (+9.9%), Indraprastha Gas (+9.5%), Gujarat Gas (+1.1%), GSPL (+5.8%) and Mahanagar Gas (+13.7%).

Cadila Healthcare may launch Covid vaccine by March 2021

• As per media reports, Gujarat-based drug maker Cadila Healthcare may introduce Covid vaccine by March 2021.
• Results of the Phase-2 trials have been encouraging, and the Phase-3, trials are expected to be conducted in December over a larger participant base. Reports suggest that the company could be looking to manufacture 10 crore doses to begin with.
• Shares of Cadila Healthcare rose 6.1% coupled with a spike in volumes, today.

Burger King IPO opens next week

• Quick-service restaurant chain Burger King will open its ₹810 crore public issue on 2 December 2020. The price band for the issue is ₹59-60 per share.
• The company plans to use the funds to roll-out new company-owned Burger King restaurants and for general corporate purposes. As per its master franchise and development agreement, it is required to develop and open at least 700 restaurants by December 2026. That is over three times its current count of around 225 restaurants.
• The issue closes on 4 December 2020 and the shares are expected to get listed on 14 December.
• Major quick-service restaurant chains based on market capitalisation: Jubilant Foodworks (-1.4%) and Westlife Development (+2.1%).

Closing bell

As Indian markets open on Tuesday, they will start factoring in two things: (1) Q2 GDP numbers and (2) volume numbers that auto companies will start publishing next week. Auto volume numbers could give early indication of the general demand scenario not only for vehicles, but also for steel, auto finance and industrial production (indicated through CV demand). Besides this, market volatility could be high ahead of RBI’s interest rate decision, which will be announced next Friday.