Asian Markets down; US Futures Give Hope - Share Market Today

News Shots

Reliance Industries announced their quarterly results and the net profits saw a growth of 42%.

Reliance Jio saw a growth of 2.4%.

JSW Steel reported higher revenues but the net profits were down by 39%.

PTC India called for a third-party audit of allegations related to board appointments at subsidiary PTC India Financial.

Birla Corporation inaugurated the Mukutban integrated cement plant, the largest greenfield investment of Rs 2,744 crore by the company, taking its cement business to 2 crore tons annually.

ONGC Videsh has moved into the development stage of a major gas discovery in Brazil with the submission of the Declaration of Commerciality. The company holds 25% participating interest in the block.

Major results today: Axis Bank, SBI Cards and Payment Services, HDFC Asset Management, Shriram Transport Finance, Ramco Cements, Burger King, Deepak Nitrite, Indian Energy Exchange, IIFL Securities.

What to expect?

NIFTY opened the day at 17,637 and took support at 17,550 on Friday. After making a bounce back, NIFTY halted at 17,670, the previous day low where profit booking kicked in. The index made another high at 17,700 and fell heavily. Last-minute buying took the index from 17,490 to 17,617, where it closed, 140 points or 0.8% below the previous close.

BANK NIFTY opened the day with a gap-down at 37,576 and moved down. The sector moved up from 37,225 to 37,740 before profit booking took the index to day-low again. BANK NIFTY bounced back in the last hour and closed at 37,574, down 277 points or 0.73%.

All the major sectors moved down except for NIFTY FMCG (+0.36%).

The US markets fell heavily for another day. The European markets also fell on Friday.

The Asian markets are down. The U.S. Futures and the European futures are trading in the green now except for CAC.

SGX NIFTY is trading at 17,500 indicating a gap-down opening in NIFTY.

Major supports for NIFTY are at 17,550, 17,490, 17,400, 17,350, 17,290 and 17,250. There are resistances at 17,650, 17,700, 17,775, 17,820, 17,900 and 18,000.

BANK NIFTY has supports at 37,500, 37,350, 37,130 and 37,000. Resistances are at 37,570, 37,730, 38,000 and 38,100.

NIFTY has the largest call OI build-up at 18,000 followed by 17,900 and the largest put OI build-up at 17,000 followed by 17,500.

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

INDIA VIX spiked to 18.9.

Foreign Institutional Investors net sold shares worth Rs 3,150 crores. Domestic Institutional Investors net bought shares worth Rs 270 crores.

The global cues from the US are not at all supportive for the market. The European markets have not been bearish though they have closed in the red. The S&P VIX has almost touched 30 signalling extreme fear. However, the indices futures give hope for recovery.

NIFTY is below 50 ema. This has led to loss of confidence for the market participants. But looking at price action, support has been taken at a previous swing point in the weekly chart. Be it a bullish reversal or a bearish continuation, an up-move is what is expected according to charts. But we would be starting the day with a gap-down. Let us see if the positivity in the US futures help the markets rebound.

FIIs offloaded more than Rs 12,000 crores from our market last week. Their action will have a weightage this week. The Open Interest data is in favour of bears. But the data can change in a day if NIFTY is able to give a strong close.

Reliance has put good numbers on the results page. Let us see how the market reacts to the earnings today. I will be keeping an eye on US futures as the day progresses. It is important that NASDAQ recovers for our IT sector to be back on track.