CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

India’s stocks close higher for second day on value buying

By Anoop Agrawal

10:51, 22 December 2021

A signboard displaying ‘BSE Sensex’
Indian stocks have risen for a second day – Photo: Shutterstock

Indian stocks ended higher for a second day, the longest winning streak in two weeks, as investors increased positions on the view that the fall to a four-month lower earlier this week was overdone.

The bellwether Bombay Stock Exchange’s 30-share Sensitive index ended at 56,930.5 points, 1.09% higher from its previous close. The most-traded National Stock Exchange’s (NSE) Nifty50 index finished 1.1% higher at 16,955.4 points.

“The domestic market is gaining ground amid a positive rebound in the global market. The rebound was broad-based while mid and small caps indices outperformed as the bargain opportunity led investors to accumulate the beaten-down stocks,” said Vinod Nair, head of research at Geojit Financial Services.

“The Omicron concerns and foreign investors’ selling may keep investors in a cautious mode. It is time for selective stock picking with a focus on defensive and growth-oriented sectors rather than rushing to the market.”

All 11 sectoral indices ended in positive territory for a second successive day, with the Nifty Realty companies index gaining as much as 2.95% and the Nifty Pharma companies index gaining 1.99%.

The advance-decline share ratio – the number of advancing shares divided by the number of declining shares – on the NSE was 1,545-487 today. India VIX, the index that measures volatility in the market, today fell 5.4% to 16.5.

Above strong hurdle

“The indices opened higher and managed to hold a bullish stream throughout the day and the Nifty50 index managed to close a day above the strong hurdle zone of 16,900,” said Rohit Singre, a senior analyst at LKP Securities.

“Now it will act as strong support zone followed by the 16,800 zone, and trading above said levels one can expect a positive incoming session, so one can use a ‘buy on dip’ strategy near the supports. The immediate hurdle is coming near the 17,000-17,100 zone.”

Buying in some stocks that constitute the indices, from banking and energy sectors, also helped the benchmarks to close around the day’s high, according to Ajit Mishra, vice-president for research at Religare Broking.

One 97 Communication coverage

Stock in One 97 Communication, owner of India’s largest digital payments platform Paytm, rose after global fund manager Morgan Stanley announced a bullish rating despite a dismal listing on the bourses.

Morgan Stanley said it had initiated coverage on the digital-payment platform with an ‘overweight’ rating and a price target of 1,875 rupees, which implies 43% upside from the close on 21 December. It said it sees attractive risk to reward after the stock dropped to a record low earlier this week, and values One 97 at $17bn.

In November, One 97 raised $ through a share sale and is now trading more than 25% below its 18 November debut price of 2,150 rupees. The stock closed at INR1,342.2, 2.34% higher, on the National Stock Exchange.


142.37 Price
-0.060% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 22:00 (UTC)
Spread 0.77


466.34 Price
+2.750% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 22:00 (UTC)
Spread 0.17


239.29 Price
+1.760% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 22:00 (UTC)
Spread 0.11


7.04 Price
-6.150% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 22:00 (UTC)
Spread 0.03

Zee-Sony merger

Stock in India’s Zee Entertainment Enterprises (Zee) ended higher after the company said that it had inked definitive agreements to merge with rival Sony Pictures Networks India.

The deal will spawn India’s second-largest entertainment network, and shares in Zee ended 0.46% higher at INR349.40 on the news.

Zee CEO Punit Goenka said the company would discuss the move with shareholders and investors on a conference call later today, scheduled for 17:00 hours local time (UTC+5:30).

“Zee had a healthy balance sheet and market position, but strategically the merged entity’s scale will drive better market standing [in terms of cost synergies and revenue],” fund manager Motilal Oswal Securities said on the deal.

“The merged entity’s higher competitive position in the market and synergy gains will give companies significant potential to improve profitability. Improving corporate governance and operational performance could aid in the long run significantly.”

Positive outlook

Sahaj Agrawal, head of research at Kotak Securities, expects the Nifty to trade with a positive bias in the near term but will face resistance at 17,400–17,500 levels.

“Overall consolidation is expected to continue for some weeks before markets witness a directional move,” he said.

“We remain selectively positive, with a preference for front-line stocks over the midcap space. Software and banking are expected to participate while the consumer sector is expected to underperform in the near term.”

Markets advanced as global investors’ risk appetite increased heading into the year end, despite the surging number of Omicron Covid-19 cases around the world, said Deepak Jasani, head of equity research at HDFC Securities.

“The Nifty rose but has halted near the resistance of 16,966. In case this resistance is not crossed on 23 December, then we could see Nifty correcting the latest rise before rising higher. Once this resistance is crossed, 17,192 could be the next resistance, while 16,771–16,840 could be the support band in the near term,” Jasani added.

Read more: Zee Entertainment (ZEEL) stock seesaws amid Sony merger


Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading