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 55.40% of traders are net-long, while the number of traders net-short was 44.60%. FII’s unwinded massive longs -16547 & created massive shorts 11843, while retailers unwinded few longs -1394 & high shorts -6886.
Nifty50: 17,396 ▼-188 (-1.0%) | Sensex: 58,490 ▼-524 (-0.8%)
After a gap down opening, markets managed to turn positive on an intraday basis. However, selling pressure resumed and indices closed negative. 43 of the Nifty50 stocks closed in the red, indicating broad-based selling. Among the Nifty sectoral indices, Metal (-6.6%) and PSU Bank (-4.1%) were the top losers. While, Nifty FMCG was the only index which closed in green (+0.9%).
Top gainers Today’s change
HUL ▲ 2.8%
Bajaj Finserv ▲ 1.0%
ITC ▲ 0.7%
Top losers Today’s change
Tata Steel ▼ 10.0%
JSW Steel ▼ 7.6%
Hindalco ▼ 6.1%
Hotel stocks see strong investor interest
Shares of Indian Hotels (+7.8%), EIH (+3.0%), Taj GVK (+5.5%) jumped sharply in an otherwise weak market. The rise in the stock price was coupled with high volumes, indicating strong buying interest. Experts believe that the hospitality business could be back to pre-Covid level toward the end of this fiscal, provided there is no third wave. Further, easing restrictions and pick-up in travel could aid recovery in the sector.
RVNL rises on merger reports
According to reports, a proposal has been mooted to merge the state-owned Rail Vikas Nigam (RVNL) with IRCON. This proposal of merger is a part of a report relating to rationalisation of government bodies. Besides this, RVNL bagged a contract worth ₹1,034 crore for design and construction of elevated viaducts of metro stations project in Indore. In the wake of these developments, shares of the company rose 1.3% today.
Kotak Bank buys stake in KFin
The private lender has acquired around 10% stake in KFin Technologies for ₹310 crore. Kotak Bank’s management reportedly said that the KFin is well-positioned to continue growing its market as it is a platform of choice for asset managers, investors and corporates. KFin, mainly provides registrar and transfer agency services, had a turnover of ₹481 crore in FY21. Meanwhile, shares of Kotak Bank were down 0.5% today, but have gained nearly 14% so far this month.
The fear that Chinese real estate major Evergrande could default on its interest payments raised concerns of slowdown in the Chinese housing market and consequent impact on the demand for commodities. The rub-off effect was seen in Indian metal stocks. Further, shares of banks were also under pressure as they could be vulnerable to any global financial shocks. Meanwhile, traders must brace for higher volatility in the coming weeks as indicated by the India VIX, which rose 15% today.