The week gone by had plenty of action and drama and also a Wednesday. Markets went berserk with BSESENSEX gaining 1,022 points and NIFTY gaining 320 points. This mind you was the beginning of December futures as well. The driver for the rally was the ceasefire between Ukraine and Russia which was expected but as usual turned out to be another damp squib. Markets gained on two of the five trading sessions and lost on three. At the end of it all, BSESENSEX gained 474.75 points or 0.56% to close at 85,706.67 points while NIFTY gained 134.80 points or 0.52% to close at 26,202.95 points. BANKNIFTY gained 885 points or 1.50% to close at 59,752.70 points. The broader markets saw BSE100, BSE200 and BSE500 gain 0.63%, 0.64% and 0.60% respectively. BSEMIDCAP was up 1.19% while BSESMALLCAP gained 0.08%.

The Indian Rupee gained 15 paisa or 0.17% to close at Rs 89.49 to the US Dollar. Dow Jones gained on all four trading sessions and was up 1,470.86 points or 3.18% to close at 47,716.42 points.

November futures expired with minor losses and the series has recovered ground in the last couple of weeks. NIFTY ended with losses of 51.40 points or 0.20% to close the series at 25,884.80 points.

Monsoons are behind us but as far as primary markets are concerned, it appears as if the rains or the deluge has just begun. A couple of roadshows on the main board in a single day and about four five issues during the week is par for the course. We have as many as three issues which would be opening and closing during the week ahead, with many roadshows lined up as well. The first is from Meesho Limited which would open on Wednesday the 3rd of December and close on Friday the 5th of December. The issue consists of a fresh component of Rs 4,250 crores and an offer for sale of 10.55 crore shares in a price band of Rs 105-111. The company is an online market place for sellers and customers and does not charge commission to its sellers.

The second issue is from Aequs Limited which is into aerospace, consumer goods and toys. The issue would open on Wednesday the 3rd of December and close on Friday the 5th of December. The issue consists of a fresh issue of Rs 670 crores and an offer for sale of 2.03 crore shares in a price band of Rs 118-124 per share.

The third issue is from Vidya Wires Limited which would also open on Wednesday the 3rd of December and close on Friday the 5th of December. The issue consists of a fresh issue of Rs 274 crores and an offer for sale of 50 lakh shares in a price band of Rs 48-52.

Coming to the markets in the week ahead, it will be driven by news and news alone. GDP numbers declared over the weekend showed growth. The possibility of Ukraine-Russia war ending could be a trigger once again. Incidentally Wednesday mania was on that account. The India-USA trade deal seems round the corner, but the corner doesn’t seem to get any closer. All of these have the potential to drive the markets, but the question today, is when it will happen. Till then markets will remain in an extended trading zone.

While on the support side, NIFTY has good support at around 26,000 points and lower down at 25,700 points, on the upper side there is an open pathway currently. The only catch is news flow. Play the markets by the ear. Have the other ear firmly on the ground to catch the distant roar as it comes.

The strategy would be to buy on dips. Make small churns and await the major wave to ride it.

Apologies to my readers for missing the last two newsletters.

Trade cautiously.

Arun Kejriwal (Market Veteran Investor & Opinion Maker)