News Shots
The world market has been bleeding since the FinCEN file leaks. I’ll explain it in a simple way. FinCEN (Financial Crimes Enforcement Network) is the US Government’s financial watchdog. It keeps watching all the USD transactions happening globally to find suspicious activities. It keeps something called “Suspicious Activity Report” to record all these transactions where they think money was transferred illegitimately for purposes like money laundering, drug trafficking, terrorism funding etc. Last day, this “Suspicious Activity Report” got leaked and thus, a lot of sensitive information is out. Jindal Steel and Power has special mention about possible fraudulent activities, and thus, they fell more than 10% yesterday. Almost all of our banks are also on the list, along with many other Global Banks.
Jindal Steel and Power has clarified on the FinCEN leak allegations saying that all transactions entered into by the company were part of routine business activities and all the transactions had proper underlying assets. The Company had fully complied with all the extant regulatory guidelines at the time of these transactions.
State Bank of India’s board has approved allotment of debentures worth Rs 7,000 crore.
CEAT’s board will consider raising funds via NCDs on September 25.
HSIL has approved buyback of up to Rs 70 crore worth of shares at Rs 105 per share.
Aarti Drugs has set a record date for the bonus issue on October 1.
GMM Pfaudler will sell 25.71 lakh shares via offer for sale at a floor price set at Rs 3,500 per share (which is 33% discount). OFS for non-retail investors on Sept. 22, for retail investors on Sept.23.
Indian Oil Corporation is reviewing its refinery expansion plans because of a gradual rise in use of cleaner fuels and changing demand patterns in Asia’s third-largest economy
Anil Ambani-led Reliance Capital, which recently defaulted on repayments to its debenture holders and other creditors, has begun the process for monetisation of its assets
The Vanguard Group Inc bought 30,41,977 Tata Motors’ DVR at Rs 63.37 each. Separately, Tata Motors on Monday announced a new limited-period subscription offer for its electric SUV Nexon, under which a customer can lease the vehicle at an all-inclusive fixed rental of Rs 34,900 per month
What to expect today?
Yesterday was a horror show. My short term holdings have gone into deep red after a long, long time and that is mostly because of the swing picks taken last week. NIFTY fell 300 points and Bank Nifty fell 800 points within hours! Click here for a detailed analysis of yesterday’s market and stock movements.
The fall happened mostly because of the FinCEN files leaks, as explained above. Also, there is fear about a second full blown lockdown in England because of COVID fear.
Many major supports have been broken by both NIFTY and Bank Nifty as many major stocks fell 5-10% intraday. NIFTY still has 11,200 as a strong support. Bank Nifty looks helpless.
US Markets are down. Asian markets are also down. SGX NIFTY is currently trading at 11,265, which is 21 points higher, indicating a flat opening in the Indian Market.
NIFTY is likely to trade between 11,200 and 11,400 today. There is support at 11,250 and 11,220 and resistance at 11,300 and 11,360. 11,200 is a strong support for NIFTY.
Highest Call Open Interest at 11,500, followed by 11,600. Highest Put Open Interest at 10,500, followed by 11,000.
Foreign institutional investors (FIIs) net sold shares worth Rs 539.81 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 517.95 crore
The million dollar question is “Has the market turned bearish?”. The fall that happened yesterday and might continue to happen for some days is due to specific news and events. Once that is subdued, the market will eventually move up.
As I always say, the market offers opportunities for everyone. Short sellers and Derivatives traders could have made a jackpot yesterday. Long term investors need to practice patience. Anyways, all the best for today!