This week in a nutshell (November 8th to November 12th)

Technical talks

NIFTY opened the week on 8th November at 18,040 and closed on 12th November at 18,103. It made a weekly gain of 0.3%. The index is trading above its 20DMA of 18,080 which might act as a support. On the upside 50DMA of 18,211 might act as a resistance. The RSI (56), and MACD turning downward suggests a further possible decline. 

Among the sectoral indices, IT (+2.1%), REALTY (+1.7%), and ENERGY (+1.3%) led the gainers. MEDIA(-0.1%) and PSU BANK(-0.1%) were the only sectoral losers.

Weekly highlights

• Three public sector oil firms will install 22,000 electric vehicle (EV) charging stations over the next 3-5 years to support the nation’s target to reduce its carbon intensity and reach net zero emissions by 2070. Indian Oil Corporation (IOC) will set up EV charging facilities at 10,000 fuel outlets over the next three years, Bharat Petroleum Corporation Ltd (BPCL) will set up 7,000 stations over the next five years while Hindustan Petroleum Corporation Ltd (HPCL) plans to setup 5,000 stations.
• Zomato plans to invest $1 bn over the next two years, with a large portion of it to be invested in for quick-commerce. The company plans to invest $50 mn in CureFit, plans to acquire 8% stake in logistics tech firm Shiprocket for about $75 mn, and a 16% stake in Magicpin for $50 mn.
• The Reserve Bank of India (RBI) announced the launch of its first global hackathon ‘HARBINGER 2021 – Innovation for Transformation’ with the theme ‘Smarter Digital Payments’. The hackathon will invite participants to identify and develop solutions that have the potential to make digital payments accessible to the under-served, enhance the ease of payments and user experience, and strengthen the security of digital payments and promote customer protection, RBI said in a statement.
• Indian indices declined due to the risk of rising US inflation. The US inflation data showed that the Consumer Price Index (CPI) had risen to a 6.2%  annual rate in October, the highest since 1990. 
• Vodafone Idea (VI) is working on a restructuring plan under which Kumar Mangalam Birla will make an investment and the Indian Banks will restructure the company’s loans. With the freed-up capital for the next four years due to the moratorium, the company will participate in the auction of the 5G spectrum.
• FII (Foreign Institutional Investors) were net sellers and DII (Domestic Institutional Investors) were net buyers this week. There was a net outflow of Rs 49,024 mn from the FII while DII invested Rs 53,932 mn.

Things to watch out for next week

• As investors around the world seem to be cautious about the rising inflation and a possible earlier-than-estimated rise in interest rates by Fed, we may see a further sell-off in Indian stocks next week by the FIIs.

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