Expiry Day Special: US Rebound - Share Market Today

News Shots

Vedanta board has approved a third interim dividend of Rs 13 per equity share for the financial year 2021-22.

Swan Energy said the board on March 5 will consider fundraising of up to Rs 2,000 crore.

Hind Rectifiers received orders worth Rs 57.32 crore in February 2022.

Mukand sold its land in Thane for Rs 806.14 crore. It has executed an agreement for the sale of said land of 47 acres.

Tantia Constructions bagged a Rs 42.2 crore contract from South Eastern Railway for the construction of a major bridge between Basta and Rupsa.

ABB India completed the sale of its turbocharger business to Turbocharging Industries and Services India.

What to expect?

NIFTY opened with a gap-down at 16,614 and after a small up-move, fell step by step making lower highs and lower lows. But there was a quick buying in the second half which was sold into. There was a last-minute blast and NIFTY closed the day 16,606, down 188 points or 1.12%.

BANK NIFTY opened with a huge gap-down at 35,553. There was a heavy fall but 34,900 could provide a good support from where the index bounced and closed at 35,372, n 833 points or 2.3%.

Metals rallied for another day.

The US markets moved up significantly yesterday, closing around 1.8% in the green. The European markets also closed in the green.

The Asian markets are trading higher now. The U.S. Futures are flat and the European futures are trading slightly in the green.

SGX NIFTY is trading at 16,675. All the factors combined are indicating a gap-up opening.

NIFTY has supports at 16,600, 16,555, 16,500 and 16,370. We can expect resistances at 16,700, 16,840, 16,900 and 17,000.

BANK NIFTY has supports at 35,230, 35,000, 34,900 and 34,500. Resistances are at 35,650, 35,900, 36,000 and 36,300.

NIFTY has the highest call OI build-up at 17,500 followed by 17,000 and the highest put OI build-up at 16,000.

BANK NIFTY has the highest call OI build-up at 37,000 and the highest put OI build-up at 35,000.

INDIA VIX is just below 30, at 29.2.

Foreign Institutional Investors net sold shares worth Rs 4,300 crores. Domestic Institutional Investors net bought shares worth Rs 3,100 crores.

Jerome Powell testified to Congress yesterday and he said that the Fed will go for a rate hike this month which was expected. The question was whether it would be a 25 basis point hike or a 50 point hike. The Fed Chairman said that he is inclined to a 25 basis points hike. This was good news for the markets to recover.

The UN General Assembly slammed the Russian invasion and asked Russia to withdraw the troops. Two of the Russian oligarchs have called on Russia to end the war immediately. These news will not be influential in stock markets worldwide as it is uncertainty fundamentally that the markets are afraid of.

Crude Oil price was the highlight yesterday as it touched $114 since the US sanctions have become a hurdle for commodity movement from and to Russia. Nirmala Sitharaman said that we will face supply issues in edible oil and other items. OPEC+ said that they will stick to April input increase as expected but did not discuss the war impact. The rise in prices will lead to inflation and a difficult environment for businesses.

It was the financial stocks that weighed the index down but there was a good up-move in the last minute. We had got a clue about the institutional move at around 1 pm with that impulsive reversal. However, BANK NIFTY will be in a vulnerable zone if it is around the 34,900 level breaking which the sector may touch 34,500. There will be fear in the sector as long as FIIs sell aggressively. A close above 36,200 can give confidence to the bulls.

I expect NIFTY to stay below 16,900 for this expiry unless there is a major breakout. 16,400 can be watched on the downside if there is a major negative news. I know that I am talking about a wide range. But this is a news-driven market and you should be prepared for wild moves. The premium is high everywhere and if you trade wisely, you will be able to gain from the decay. If you are an option buyer, make sure that you go behind larger moves only or you will fall prey to theta.