US Markets Give Hope; Nifty to Open With a Gap-up Amid Worries - Share Market Today

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Reliance Industries subsidiary Jio Platforms will invest $200 million in Glance to accelerate Glance’s launch in key international markets. In the last one month, the scrip was down 8 percent while so far this year it fell 3 percent.

Eicher Motors saw a decline in sales due to the semiconductor chips shortage and weak operating income dented profitability in Q3FY22 as profit declined 14.4 percent to Rs 456 crore, down compared to Rs 533 crore in Q3FY21. Revenue increased 1.9 percent to Rs 2,881 crore from Rs 2,828 crore YoY, but Royal Enfield sales volume dropped 15.6 percent YoY to 1.67 lakh units. The stock was already under pressure due to weaker sales and the semiconductor chip shortage. In the last one month, the scrip fell over 9 percent.

Godrej Consumer Products divested its entire stake in BBLUNT for Rs 84.5 crore. Honasa Consumer, which runs brands like Mamaearth, has acquired BBLUNT from the company. The stock fell for seventh consecutive sessions and declined nearly 14 percent in this period.

Coal India reported their profit during the quarter ended December 2021 grew significantly by 47.7 percent year-on-year to Rs 4,556.5 crore, up from Rs 3,084.1 crore in Q3FY21 as revenue and operating income remained strong. Revenue from operations increased by 20 percent to Rs 28,433.5 crore in Q3FY22, up from Rs 23,686 crore in Q3FY21. The stock fell for the third session and declined over 4 percent in this period.

One 97 Communications reported that merchant payments processed on Paytm platform in January jumped 105% from a year earlier to Rs 83,481 crore.

What to expect?

NIFTY opened the day with a huge gap-down at 17,100 and tried to move up after taking support near 16,900. After volatile moves, NIFTY fell heavily towards the end and closed near the recent low at 16,842, down 532 points or 3.06%.

BANK NIFTY also opened with a huge gap-down at 37,797. The sector tried to recover with support at 37,300 but fell heavily and closed the day at 36,909, down 1,609 points or 4.18%.

All the sectors closed in the red.

The US markets closed in the red but there was no major fall. The European markets closed nearly 2% in the red.

The Asian markets are mixed with NIKKEI trading slightly in the red. The U.S. Futures and the European futures are trading in the green except for CAC futures.

SGX NIFTY is trading at 16,958 indicating a gap-up opening.

NIFTY has supports at 16,840, 16,780, 16,700 and 16,610. We can expect resistances at 16,950, 17,000, 17,070, 17,125 and 17,200.

BANK NIFTY has supports at 36,850, 36,600 and 36,400. Resistances are at 37,000, 37,300 and 37,550.

NIFTY has the highest call OI build-up at 17,500. The highest put OI build-up is at 16,000.

BANK NIFTY has the highest call OI build-up at 39,000 and the highest put OI build-up at 37,000.

INDIA VIX spiked by 23% to 22.98.

Foreign Institutional Investors net sold shares worth Rs 4,300 crores. Domestic Institutional Investors net bought shares worth Rs 2,200 crores.

The global cues killed our market yesterday. There was bloodbath in our market with rising Ukraine tensions. Boris Johnson said that he will hold talks with Biden to resolve the issue by protecting the interests of Ukraine. The Ukraine government has requested Russia to have a discussion with them about the deployments and Russia has been ignoring the requests for long. The market movements will be decided by the events there.

Inflation data was out yesterday. CPI hit a seven month high largely due to base effect. The inflation is at 6.01% now at the upper border in line with the expectations. WPI came out at 12.9% against the estimate of 12.7%.

That was a huge fall but we cannot rule out the chances for a bounce from here even if it is a small one. Though the European markets had fallen heavily yesterday, the US markets did not fall much which is a good sign. Our market seems to have overreacted as even the Russian markets had fallen less than 2%. ABG scam also might have had an impact on the sentiments. Considering that the futures are steady now, we can expect a gap-up. The price action after the opening will be crucial.

I will be watching 16,600 on the downside if there is another fall.