News Shots
HCL Technologies signed a definitive agreement to acquire Starschema, a Hungarian data engineering services company, for $42.5 million. The acquisition is expected to be completed by March 2022.
Hero Motocorp will invest up to Rs 420 crore more in Ather Energy. Hero MotoCorp’s shareholding will increase from the current 34.8% in Ather after the investment.
Maruti Suzuki raised prices by an average of 1.7% from Saturday
PVR added new 4-screen property in Andhra Pradesh.
Apollo Tyre bought a 27.20% stake in CSE Deccan Solar for Rs 9.33 crore.
Oil India sold its stake in the Niobrara shale asset in the U.S. for $25 million.
What to expect?
On Friday, NIFTY opened with a gap-down at 18,198 and dropped. Prices were brought up with volatility and resistance was taken at 18,230. NIFTY tested the support at 18,160 multiple times and moved up with strength. But the index faced resistance at 18,290 and NIFTY closed the day flat at 18,256.
BANK NIFTY opened with a gap-down at 38,304. The index fell in the first half but support was taken at 38,000. BANK NIFTY made a strong come-back but closed the day in the red, at 38,370, down 100 points or 0.26%.
NIFTY IT (+0.57%) closed the day in the green. Other major sectoral indices closed the day in the red.
The US markets were mixed on Friday with Dow Jones closing in the red, NASDAQ moving up and S&P closing flat. The European markets closed deep in the red.
The Asian markets are mixed with Nikkei in the green and Hang Seng in the red. The U.S. Futures and the European futures are trading in the red with Dow futures 0.1% down.
SGX NIFTY is trading at 18,209 indicating a gap-down opening in NIFTY.
Major supports for NIFTY are at 18,210, 18,160, 18,110, 18,050 and 18,000. There are resistances at 18,270, 18,300, 18,340, 18,420 and 18,500.
BANK NIFTY has supports at 38,300, 38,100, 38,000, 37,700 and 37,500. Resistances are at 38,500, 38,800, 39,000, 39,115 and 39,200.
NIFTY has the largest call OI build-up at 19,000 followed by 18,200 and the largest put OI build-up at 18,200 followed by 18,000. There is a good straddle build-up at 18,200.
BANK NIFTY has the highest call OI build-up at 38,500 and the highest put OI build-up at 38,000.
INDIA VIX dropped to 16.56.
Foreign Institutional Investors net sold shares worth Rs 1,598 crores. Domestic Institutional Investors net bought shares worth Rs 371 crores.
China’s Central Bank has cut interest rates for the first time since April 2020 seeing slower economic growth. The US markets are in consolidation mood with negative bias. How the US indices close today will be crucial today for NIFTY as an up-move can fuel NIFTY to all-time high.
We had a week with FIIs selling. It will be interesting to see how the FII-DII action happens this week. Major results are coming out in the coming days starting with Ultratech Cements results today.
BANK NIFTY dropped for another day on Friday. But this is a much-needed consolidation for the sector to have a healthy up-move.
HDFC Bank announced the quarterly results on Saturday and it was in line with the expectations. We have to see how the stock moves today. HCL Tech had its consolidated profits going down in the last quarter but the results were in line with the street estimates.
I will be closely watching 18,270 on the upside and 18,160 on the downside in NIFTY. Do you think all-time high is possible this week? Comment below.
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