Positivity Everywhere! Will BANK NIFTY Fill The Gap? Share Market Today

News Shots

Reliance Industries will set up a $2-billion joint venture for chemicals production with UAE’s Ta’ziz.

Hindustan Zinc approved an interim dividend of Rs 18 per share.

The Madras High Court has ordered the winding up of Spicejet Airlines on grounds that it failed to clear the debt owed to Credit Suisse AG. The order by the single-judge bench of Justice R Subramanian directed the official liquidator to take over the assets of the airline for liquidation but granted a three-week stay at the request of the company to appeal against the order.

NHPC approved the proposal for monetization by securitization through a bidding process of return on equity of Chamera-1 Power Station, Himachal Pradesh and to further monetize the return on equity of one or more power stations.

Jindal Steel and Power reported that the November steel production of 6.74 lakh tonnes was up 10% year-on-year. Steel sales stood at 5.39 lakh tonnes and exports contributed 15% to the total sales volumes.

Brightcom Group will buy Vuchi Media Pvt. Ltd. for Rs 566 crore.

What to expect?

Yesterday, NIFTY opened with a gap-up at 17,048. Though there was an initial down-move, the market shot up breaking all resistances and touched 17,250. Profit booking took NIFTY down and the index closed at 17,177, up 264 points or 1.56%.

BANK NIFTY led the rally today after opening with a gap-up at 36,088. The index broke the resistance at 36,500 and finally took rejection near the crucial level of 36,850. The index closed at 36,618, up 883 points or 2.47%.

All the sectoral indices closed in the green with NIFTY METAL(+3.13%) moving up significantly.

The US markets and the European markets closed well in the green. NASDAQ closed more than 3% up.

The Asian markets are following the west, trading in the green now. The U.S. Futures and the European Futures are up.

SGX NIFTY is trading at 17,334 indicating a huge gap-up opening in NIFTY.

Major supports for NIFTY are at 17,100, 17,000, 16,900, 16,850 and 16,780. We can expect resistances at 17,200, 17,250, 17,325, 17,375, 17,450 and 17,490.

BANK NIFTY has supports at 36,500, 36,350, 36,000, 35,700 and 35,500. Resistances are at 36,650, 36,850, 37,000, 37,250 and 37,500.

The highest call OI build-up in NIFTY is at 18,000, followed by 17,500. The highest put OI build-up is at 17,000 followed by 17,200.

BANK NIFTY has the highest call OI build-up at 38,000 followed by 37,000 and the highest put OI build-up is at 36,000.

INDIA VIX dropped by 8% to 18.46.

Foreign Institutional Investors net sold shares worth Rs 2,585 crores. Domestic Institutional Investors net bought shares worth Rs 2,606 crores.

BANK NIFTY rallied with strength yesterday and closed less than 250 points below the major level of 36,850. If the index follows global positivity and crosses the level, then BANK NIFTY will begin filling the gap of 400 points. We can expect resistance at the psychologically important level of 37,000.

FIIs have again sold in the cash market, strengthening the doubt of a conflict between the government and FPIs on taxation. If FIIs turn into net buyers, the market can touch the previous levels as there are supporting factors from the global markets now.

The Monetary Policy Committee will announce the decision on interest rates today at 10 am. But the rates are likely to remain unchanged and thus, it will be a non-event.

There is extreme volatility in the market. With global positivity and FII selling trying to take NIFTY in opposite directions, let us see how the market closes today. I will be watching 17,325 on the upside and 17,100 on the downside. Be in safe positions for tomorrow’s expiry.