Crude Oil Drops and Sgx Nifty Rallies - Share Market Today

News Shots

Tata Steel transferred its entire stake in Tata Steel Special Economic Zone Limited to Tata Steel Utilities and Infrastructure Services for consideration other than cash.

Nazara Technologies subsidiary Nazara Pte Ltd (Nazara Singapore) will invest $2.5 million in BITKRAFT Funds. Out of which $0.875 million will invest upfront while the balance investment amount of $1.625 million will be deployed over a period of three years.

ONGC’s two-day offer for sale issue will close on March 31.

Axis Bank has acquired Citibank’s India consumer business from Citibank N.A. and the NBFC consumer business from Citicorp Finance (India), as going concerns, without values being assigned to individual assets and liabilities to either business. The bank has executed business transfer agreements with Citibank N.A. and Citicorp Finance (India) on March 30. The cost of acquisition is Rs 12,325 crore.

Quess Corp board has approved the transfer of digital business undertaking of the company comprising Qjobs, Worq, and Dash as a going concern on a slump sale basis to the company’s subsidiary Billion Careers Private Limited (BCPL), for Rs 5.04 crore.

Godrej Properties has acquired a nine-acre land parcel in the residential micro-market of Pimpri-Chinchwad in Pune. The development will primarily be for a group housing project.

What to expect?

NIFTY opened with a gap-up at 17,450. There was profit booking as it was a huge gap-up but an immediate up-move followed. Resistance at 17,500 pushed the index lower to even 17,420 but the index finally managed to close at 17,498, up by 173 points or 1%.

BANK NIFTY opened with a gap-up at 36,205 and followed the trend of the general market. But there was a sideways market in the second half and BANK NIFTY closed at 36,334, up by 486 points or 1.36%.

Metals fell.

The US markets closed in the red. The European markets were mixed with FTSE moving up and DAX closing 1.4% in the red.

The Asian markets are down. Nikkei is flat. The U.S. Futures and the European futures are trading higher.

SGX NIFTY is trading at 17,588 indicating a gap-up opening.

NIFTY has supports at 17,450, 17,390, 17,350 and 17,250. We can expect resistances at 17,620, 17,700 and 17,800.

BANK NIFTY has supports at 36,250, 36,000, 35,900 and 35,700. Resistances are at 36,450, 36,600, 36,900 and 37,000.

NIFTY has the highest call OI build-up at 18,000 followed by 17,500 and 17,800. The highest put OI build-up is at 17,200 followed by 17,500.

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

INDIA VIX dropped to 20.6.

Foreign Institutional Investors net bought shares worth Rs 1,400 crores. Domestic Institutional Investors net bought shares worth Rs 1,200 crores.

Apollo Hospitals will replace Indian Oil Corporation in NIFTY50 from today. Bank of Baroda will replace RBL in Bank Nifty. This is done as a part of the semi-annual index review.

The Cabinet has approved amendment in mega power policy 2009 for Provisional Mega Power Projects. Watch Tata Power.

RBI has released the schedule of Monetary Policy Committee meetings with next meeting on 6th April. We will have to see whether the repo rate will be hiked or not.

TRAI data indicated that Jio lost 9 Million users in January whereas Airtel gained 7 lac users.

US released the GDP data for the quarter and the growth is 6.9% which is around the expected 7%. The US markets reacted negatively to the news as it is lower.

Biden said that the US will be releasing crude oil from the strategic reserves soon and this led to the drop in the crude oil prices. The prices have fallen by 4%. This will be good for our market.

Thought the US futures are in the green, we do not have enough support from Asian markets which are down due to the unsatisfactory PMI data from China as a result of the lockdown related restrictions. At the same time, Nikkei recovering well from gap-down opening is a good sign.

Ukraine President Zelensky said that the Russia has not yet withdrawn forces and is adding forces in Kyiv. Russia gave an explanation for the same saying that it is a measure to prevent Ukrainian forces from moving to the east. There were contradictory updates from the zone. The latest update is that the Russian representative said there has been no progress in the talks.

With VIX dropping, the premium has melted in deeper strikes and this will make it difficult for the conservative option sellers on the expiry day. There is a good straddle built at 17,500 with a sum of around 120 points. This coincides with the upper resistance of 17,620. I will be closely watching for rejection at this level if there is an up-move.

Remember that we had a premium sum of 180 last week. This means that there is a drop by 33% indicating drop in volatility. Let us watch 17,390 on the downside.