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NSE Intra-day chart (21 December 2020)
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Market Commentary 22 December 2020
Benchmarks to make slightly negative start on Tuesday


Indian equity benchmarks witnessed sharp selling towards the end of the trade and crashed like house of card on Monday with frontline gauges ending with a massive cut of 3 percentage points as fears of a new strain of coronavirus that has threatened the UK. Markets made a cautious start amid rising coronavirus cases and fresh lockdowns in some countries. Key gauges somehow managed to trade near neutral lines as traders took some respite came in with Union Minister Anurag Singh Thakur's statement that India has the potential to achieve double-digit growth through a healthy dose of digital services and manufacturing base expansion which will be driven by demand from the rural sector, youth and the aspirational middle class. Some support also came with Finance Minister Nirmala Sitharaman's statement that India would be the engine of global growth, along with a few other countries, contributing to the revival of the global economy in a significant way. However, markets witnessed sharp selloff in last leg of trade as traders booked their recent profits on reports that UK's Health Secretary Matt Hancock has warned that the new strain of the coronavirus is ‘out of control' and suggested parts of England will be stuck in the new, highest tier of restrictions until a vaccine is rolled out. Meanwhile, India has suspended all flights originating from the UK to India until December 31. This suspension to start with effect from 23.59 hours, 22nd December 2020. Consequently, flights from India to the UK shall stand temporarily suspended during above said period. Finally, the BSE Sensex tumbles 1406.73 points or 3.00% to 45,553.96, while the CNX Nifty was down by 432.15 points or 3.14% to 13,328.40.


The US markets ended mostly lower on Monday amid concerns about a new coronavirus strain in the UK, with the variant said to be 70 percent more infectious than the original strain. The news of the new strain led Canada as well as several European countries, including Germany, France, Italy and the Netherlands, to order a suspension of flights from Britain. More than 16 million Britons are now required to stay at home as a full lockdown came into force in London and the southeast of England. However, selling pressure waned over the course of the session as traders also reacted to news that Congressional leaders have reached an agreement on a new $900 billion relief package. The bill will purportedly provide more federal assistance to small businesses, healthcare providers, and the unemployed and includes direct payments worth up to $600 per adult and child. Senate Majority Leader Mitch McConnell, R-Ken., said as the American people continue battling the coronavirus this holiday season, they will not be on their own. He added congress has just reached an agreement. We will pass another rescue package ASAP. More help is on the way. House Speaker Nancy Pelosi, D-Calif., and Senate Minority Leader Chuck Schumer, D-N.Y., expressed support for the bill but said they plan to push for more relief once President-elect Joe Biden is sworn in.


Crude oil futures ended lower on Monday as reports saying a surge in a new strain of the coronavirus in the UK raised concerns about energy demand. A fast-spreading new coronavirus strain shut down much of the United Kingdom and disrupted international freight. According to reports, more than 16 million Britons are now required to stay at home as a full lockdown came into force in London and the southeast of England. The new variant of the virus is thought to be up to 70% more transmissible than the original strain of the disease. The World Health Organization said the same mutation of the Covid-19 virus has also been detected in the Netherlands, Denmark and Australia. Crude oil futures for February fell $1.27 or 2.6 percent to settle at $47.97 a barrel on the New York Mercantile Exchange. February Brent crude dropped $1.40 or 2.7 percent to settle at $50.86 a barrel on London's Intercontinental Exchange.


Indian rupee ended considerably lower against the US dollar on Monday, on increased demand for the greenback from importers and banks. Besides, losses in equity markets also put pressure on Indian rupee. Traders were seem to be in sideline despite report that foreign portfolio investors (FPI) pumped in Rs 54,980 crore in Indian markets in December so far amidst availability of excess liquidity in global markets and expectation of fresh stimulus package by various central banks, among others. As per the depositories' data, FPIs invested a net Rs 48,858 crore into equities and Rs 6,122 crore into debt segment between December 1 and 18. On the global front; pound and the euro fell on Monday as investors sought refuge in the dollar, after a fast-spreading new coronavirus strain shut down much of the United Kingdom and disrupted international freight amid Brexit talks uncertainties. Finally, the rupee ended at 73.79, 23 paise weaker from its previous close of 73.56 on Friday.


The FIIs as per Monday's data were net buyer in equity segment and net seller in debt segment. In equity segment, the gross buying was of Rs 14320.80 crore against gross selling of Rs 10480.16 crore, while in the debt segment, the gross purchase was of Rs 564.49 crore with gross sales of Rs 897.17 crore. Besides, in the hybrid segment, the gross buying was of Rs 190.75 crore against gross selling of Rs 187.64 crore.


The US markets ended mostly lower on Monday as investors grappled with the outbreak of an ominous new strain of COVID-19 along with the likely passage of a long-awaited stimulus package. Asian markets are trading mostly in red on Tuesday as new coronavirus strain in UK weighed on investor sentiment. Indian markets ended lower on Monday with cut of around 3% each as selloff intensified across the sectors. Today, the markets are likely to get slightly negative start amid weakness in global markets. Rising corona virus cases may dampen sentiments in markets. With 19,174 fresh Covid-19 cases, India's caseload now stands at 10,075,422. The country's death toll has mounted to 146,145. With 1,899,352 cases, Maharashtra has the highest number of coronavirus cases, followed by Karnataka 910,241, Andhra Pradesh 878,937, Tamil Nadu 807,962, and Kerala 709,000. Market participants will be cautious as Maharashtra government has imposed a curfew from 11 pm to 6 am in all municipal corporations from December 22 till January 5, 2021. The decision has been taken in view of the emergence of new strains of coronavirus in the UK. It has also been decided to put in institutional quarantine for 14 days those who arrive at the state's airports from European and West Asian countries. Passengers coming to Maharashtra from other countries will be home quarantined. However, some respite may come later in the day as rating agency Crisil's report that corporate profits rose 15 per cent to touch an all-time high in the September quarter as margins widened on softer input costs and better utilistaion levels. It said from an absolute perspective, the earnings before interest, tax, depreciation and amortisation (Ebitda) touched an all-time high Rs 1.60 lakh crore in the September quarter, as against Rs 1.02 lakh crore in the preceding June quarter. Some support may also come with economic think-tank NCAER's report that having witnessed a contraction in the first half of the current financial year, India's GDP growth is likely to turn positive at 0.1 per cent in the October-December quarter. Traders may take note of that Agriculture Minister Narendra Singh Tomar said the government is focusing on farm mechanisation and asked the industry to provide small machines and equipment to farmers with less landholding to boost their income. Meanwhile, Finance Minister Nirmala Sitharaman on Monday said the government is planning to extend the suspension of fresh insolvency proceedings for another three months, a move which will provide major relief to corporate borrowers hit by the coronavirus pandemic.


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  • ONGC has opened India's eighth hydrocarbon producing basin when it started oil flow from a well in the Bengal basin. 
  • Kotak Mahindra Bank has launched Khushi Ka Season 2.0 - a year-end celebration for Kotak's debit and credit cardholders. 
  • ICICI Bank and IIFL Finance's material wholly owned subsidiary company -- IIFL Home Finance -- have entered into a sourcing and servicing arrangement.   
  • L&T's defence arm -- L&T Defence has been awarded the coveted Green Channel Status for major Naval weapon delivery systems from the DGQA. 
News Analysis