Muhurat trading & Diwali week to begin on an auspicious note

New Delhi: Markets began with a very strong showing on Monday and that about summed up the week. They were flat for the next two days, gaining on one and losing on the other. The remaining two days saw markets lose and then gain. At the end of the week, while sentiment remained positive, markets were a little confused which way they wanted to go.

At the end of the week, BSESENSEX gained 540.90 points or 0.84 per cent to close at 64,904.68 points while NIFTY gained 194.75 points or 1.01 per cent to close at 19,425.35 points. The broader markets saw BSE100, BSE200 and BSE500 gain 1.11 per cent, 1.36 per cent and 1.45 per cent respectively.

BSEMIDCAP gained 2.62 per cent while BSESMALLCAP was up 2.10 per cent. Suffice to say that all the gains in BSESENSEX were made on Monday while NIFTY gained a tad more on Friday.

The Indian Rupee lost 6 paisa or 0.07 per cent to close at Rs 83.34 to the US Dollar. Dow Jones gained on three of the five sessions and lost on two. It was up 221.78 points or 0.65 per cent to close at 34,283.10 points.

It was an action-packed week in the primary markets where we saw three listings and two issues open and close for subscription. The first share to list was Cello World Limited on Monday the 6th of November. Cello had issued shares at Rs 648. Shares had a strong debut at Rs 831, but profit booking saw the share close at Rs 791.90 on listing day.

Shares gained Rs 143.90 or 22.20 per cent. They traded sideways for the remaining part of the week and closed at Rs 788.40, a gain of Rs 140.40 or 21.67 per cent.

The second share to list was Honasa Consumer Limited which had issued shares at Rs 324. Shares listed at Rs 324 on Tuesday (November 7) and closed day one at Rs 337.15, a gain of Rs 13.15 or 4.05 per cent. By the end of the week, the share lost ground and closed at Rs 319.50, a loss of Rs 4.50 or 1.39 per cent.

The third share to list was ESAF Small Finance Bank Limited which had issued shares at Rs 60. The share listed on the bourses on Friday (November 10) at Rs 71.90, a gain of Rs 11.90 or 19.83 per cent. Profit taking saw the share close day one at Rs 69.05, a gain of Rs 9.05 or 15.08 per cent.

The first issue to open and close for subscription was Protean E-gov Technologies Limited. The issue had a price band of Rs 752-792 and was overall subscribed 15.96 times. The QIB portion was subscribed 33.81 times, HNI portion was subscribed 18.56 times and the Retail portion was subscribed 5.78 times. There were 5.67 lakh applications in all.

The second issue to open and close for subscription during the week was ASK Automotive Limited which had tapped the markets with its offer for sale in a price band of Rs 268-282. The issue was overall subscribed 51.14 times overall with QIB portion subscribed 142.41 times, HNI portion subscribed 35.47 times and Retail portion subscribed 5.70 times. There were 11.52 lakh applications in all.

With listings now happening in three days’ time, the entire cycle has reduced significantly. The above two issues would be listed on Monday and Wednesday respectively.

Samvat 2080 would begin with ‘Muhurat’ trading being held on Sunday (November 12) between 6 p.m. and 7.15 p.m. Let us look at the broad performance of key indices during Samvat 2079 which began on (October 26) and ended on (November 10).

BSESENSEX gained 5,360.72 points or 9.00 per cent to close at 64,904.68 points. NIFTY gained 1,769 points or 10.01 per cent to close at 19,425.35 points. BANK NIFTY gained 2,697.35 points or 6.56 per cent to close at 43,820.10 points.

BSEMIDCAP gained a massive 7,525.27 points or 30.05 per cent to close at 32,566.13 points while BSESMALLCAP was the leader. It gained 9,630.82 points or 33.50 per cent to close at 38,378.76 points. This outperformance by Midcap and Smallcap stocks has added to the glamour and buoyancy on Dalal Street as small investors who typically invest in these stocks have made big money.

The week ahead has a trading holiday on Tuesday which would cause some sort of break of momentum in the markets at least temporarily. The fact that we have seen the level of 19,330-19,360 on NIFTY comfortably through last week’s trading adds a lot of comfort to the upward movement and momentum. The targets or resistance would now shift upwards to levels of around 19,650 on NIFTY and 65,600 on BSESENSEX. On the support side, levels of 19,200 on NIFTY and 64,225 on BSESENSEX would act as strong support.

In terms of events, the results of five states elections to be declared on December 3 would have at best a knee jerk action or reaction on the markets. Not much should be read into these elections results. The mood is optimistic currently and the street believes that post Diwali, markets will continue their upward trajectory.

Let us welcome Samvat 2080 with great fanfare.

Trade cautiously

(Arun Kejriwal is the founder of Kejriwal Research and Investment Services. The views expressed are personal)