Author: Amal M Prashanth

Here are some of the major updates that could move the markets today:

Stocks

Teclos issued a notice for holding the 5G spectrum auction-related pre-bid conference on June 20. The pre-bid conference is the first major event in the detailed auction timetable that is mentioned in the bid document.

Wipro signed an alliance agreement with Eros Investments. Eros Investments has signed an alliance agreement with Wipro, to evolve and scale the artificial intelligence (AI) and machine learning (ML).

LIC has raised its stake in pharma major Dr Reddy’s Laboratories to over 5 per cent by way of open market stock purchases during September 2021 to June this year, at an estimated cost of Rs 1,556 crore.

Grasim Industries  announced the appointment of Pavan Jain as its next Chief Financial Officer with effect from August 15, 2022. His appointment comes in the wake of incumbent Ashish Adukia’s plan to pursue career opportunities outside the Aditya Birla Group.

Mirae Asset Mutual Fund bought additional 6.5 lakh shares in Nuvoco Vistas Corporation. 

What to Expect? 

NIFTY opened with a gap-up at 15,843 and started falling heavily. There was no stop to the fall. All the major levels were broken. NIFTY closed the day at 15,360, down by 332 points or 2.11%.

BANK NIFTY opened with a gap-up at 33,677 and fell heavily. There was support at 33,120 for a while but the index continued to fall. BNF closed at 32,617, down by 722 points or 2.17%.

IT moved down by 2.4%.

The US markets fell heavily reacting to recession fears. The European markets also fell.

The Asian markets are trading much lower. The U.S. Futures and the European futures are trading higher.

SGX NIFTY is trading at 15,330 indicating a flat to gap-down opening.

NIFTY has supports at 15,315, 15,250 and 15,175. We can expect resistances at 15,460, 15,580 and 15,630.

BANK NIFTY has supports at 32,500, 32,170 and 32,000. Resistances are at 32,870, 33,000 and 33,120.

OI Build-up is not relevant.

INDIA VIX spiked to 22.9.

Foreign Institutional Investors net sold shares worth Rs 3,300 crores. Domestic Institutional Investors net bought shares worth Rs 1,900 crores. 

We had discussed yesterday that the reaction to the Fed event happens only the day after the event. See what happened to the US markets yesterday. Our markets foresaw the fall and fell heavily! The rate hike and fear of inflation has brought our markets to the low.

NIFTY is at 52-week low and has broken the consolidation zone of 2021. Let us see if there will be a further fall. It is better that aspiring investors wait for a while before they jump into buying as there is a chance for further fall.

VIX did not rise as it usually spikes when the market falls this heavily. 

Volatility is at its peak despite lower VIX with a single five minutes candle in the noon turning from red to green with a wide range of nearly 100 points. 

The only positive news is that the crude oil prices have dropped below 120. But this will not be as significant since there are bigger worries for the markets right now.

I will be closely watching 15,250 on the downside.

Follow us on the marketfeed app’s Live Feed section to get real-time updates from the market. All the best for the day!

Here are some of the major updates that could move the markets today:

Stocks

Promoter entities Peterhouse Investments Ltd and PACs have sold 63,000 equity shares in Usha Martin via open market transactions on June 14 and June 16. With this, their shareholding in the company stands reduced to 1.91 percent, down from 1.94 percent earlier.

Nalanda India Equity Fund bought 6.55 lakh equity shares in Jyothy Labs via open market transactions on June 14. With this, its shareholding in the company stands increased to 5.06 percent, up from 4.88 percent earlier.

Indian Overseas Bank said the board has approved the capital plan for FY23. The bank will raise up to Rs 1,000 crore by issuing equity shares and another Rs 1,000 crore by issuing bonds, in FY23.

HDFC Mutual Fund through its several funds acquired 50,000 equity shares in Voltamp Transformers via open market transactions on June 14. With this, its shareholding in the company increased to 5.25 percent, up from 4.91 percent earlier.

UPL through its subsidiary USCL has acquired Kudos Chemie for Rs 40 crore, and is required to invest Rs 237 crore in Kudos over a period of 2 years as per the resolution plan approved by NCLT. Kudos manufactures speciality chemicals used as beverage and pharmaceutical ingredients and has a manufacturing facility near Chandigarh.

What to Expect? 

NIFTY opened flat at 15,749 and was in a downtrend for a while before a ‘W’ breakout helped NIFTY reach 15,780. Selling pressure took NIFTY to the day-low and NIFTY closed at 15,692, down by 40 points or 0.25%.

BANK NIFTY opened flat at 33,359 and continued the trend of yesterday’s second half. There was a sell-off from 33,550 BNF closed at 33,339, up by 27 points or 0.08%.

IT moved down by 0.5%.

The US markets closed 1% in the green. The European markets also moved up yesterday.

The Asian markets are trading higher with NIKKEI 1.4% in the green. The U.S. Futures and the European futures are trading higher.

SGX NIFTY is trading at 15,792 indicating a gap-up opening.

NIFTY has supports at 15,670, 15,630 and 15,570. We can expect resistances at 15,730, 15,780 and 15,850.

BANK NIFTY has supports at 33,230, 33,120 and 33,000. Resistances are at 33,450, 33,510 and 33,600.

NIFTY has the highest call OI build-up at 16,000 followed by 16,200. The highest put OI build-up is at 15,500 followed by 15,600.

BANK NIFTY has the highest call OI build-up at 35,000 and the largest put OI build-up is at 33,000. This is just next to ATM.

INDIA VIX is at 21.9.

Foreign Institutional Investors net sold shares worth Rs 3,500 crores. Domestic Institutional Investors net bought shares worth Rs 2,600 crores. 

Fed has announced a 75 basis points hike. This was expected but was considered to be negative for the markets with the hope that a 50 basis points hike would move the markets higher. However, the markets moved higher though there was an initial down-move just after the hike was announced. Remember that this need not be the real reaction to the Fed. The actual reaction always comes the following day. Let us watch how the US markets move tonight.

Along with the 75 basis points hike, Fed also increased the inflation projection to 5.2% from 3.7% for 2022. Also, it will take much longer for the inflation rate to be within the normal range. Fed projected slower economic growth contradicting their own justification for the rate hike; which is higher GDP growth in the last quarter. The retail sales in May dropped for the first time this year and all the ingredients are perfect for recession. So, what we can understand from the Fed event yesterday is that the Fed is willing to risk recession for bringing inflation down. We can expect a 50 bps or 75 bps hike in the next meeting as well.

Though we may see an up-move in the morning, beware of FII selling! FIIs have been selling consistently and there has been a large candle towards the end on previous days due to heavy institutional activity.

I was surprised to see the huge put OI build-up at 33,000 which is just near the spot. There could also have been put long there, expecting a fall. 

I hope you remember the ATM straddle premium last week. It was 130. It has been between 120 and 150 for some weeks. Guess the sum this week? It is 250! That was the magnitude of uncertainty ahead of the Fed event. We will see an IV crush today.

I will be closely watching 15,690 on the downside and 15,800 on the upside.

Follow us on the marketfeed app’s Live Feed section to get real-time updates from the market. All the best for the day!

Here are some of the major updates that could move the markets today:

Stocks

Nayveli Lignite Corporation has appointed Engineers India as a project management consultant for its 1,200 TPD lignite to methanol project. This landmark project is expected to be commissioned in 2027.

GR Infraprojects subsidiary GR Bandikui Jaipur Expressway Private Limited has executed the concession agreement with the National Highways Authority of India. 

Cipla, and not-for-profit research and development organisation DNDi launched child-friendly 4-in-1 anti-retroviral treatment for young children living with HIV in South Africa. This combination treatment has been developed by Cipla and the Drugs for Neglected Diseases initiative (DNDi).

Dev Information Technology has bagged orders worth Rs 2.52 crore for an online integrated portal for farmers (RajKisan Saathi) comprising services related to agriculture, horticulture, seed certification, seed corporation, and agriculture marketing.

Asian Paints acquired a 51 percent stake in Weatherseal Fenestration for Rs 18.84 crore. Weatherseal Fenestration is now a subsidiary of the company.

What to Expect? 

NIFTY opened with a gap-down at 15,694 and moved higher after a small initial down-move. 15,850 offered resistance and NIFTY had a heavy fall. However, the index managed to close at 15,732, down by 42 points or 0.27%.

BANK NIFTY opened with a gap-down at 33,188 and moved higher. 33,600 acted as a resistance level and the index fell to 33,200.  The last hour buying helped BNF close at 33,311, down by 95 points or 0.28%.

IT consolidated.

The US markets moved down yesterday but the move was not fierce. The European markets closed near 1% down.

The Asian markets are mixed with NIKKEI trading lower and the Chinese markets in the green. The U.S. Futures and the European futures are trading higher.

SGX NIFTY is trading at 15,732 indicating a flat opening. 

NIFTY has supports at 15,690, 15,630 and 15,570. We can expect resistances at 15,800, 15,850 and 15,880.

BANK NIFTY has supports at 33,230 and 33,120 and 33,000. Resistances are at 33,600, 33,700 and 34,000.

NIFTY has the highest call OI build-up at 16,500 followed by 16,300. The highest put OI build-up is at 15,000 followed by 15,500.

BANK NIFTY has the highest call OI build-up at 35,000 and the largest put OI build-up is at 33,000. This is almost ATM.

INDIA VIX is at 21.9.

Foreign Institutional Investors net sold shares worth Rs 4,500 crores. Domestic Institutional Investors net bought shares worth Rs 3,800 crores. 

This is going to be a cautious week as the Fed will come up with the interest rate decision tomorrow. The reaction will always be on the following day making it hard for the positional players to hold overnight positions even on Thursday. A 75 basis points hike is on the table and this is what worries the investors!

Dow Jones has fallen by 18% from the high. NASDAQ is 35% down and we are 16% down. Investors can wait to see the impact of inflation or at least the interest rate decision. A 50 basis points hike and a positive commentary will help boost the market sentiments.

Though we had good buying in the beginning, there was huge selling by FIIs from the top. FIIs have become more aggressive and if we get bad news from Fed, we will see fierce selling and a breakdown from this major support zone.  However, looking at the pattern, we have an inverted hammer which can be a reversal signal as there is a 20 points long wick. But we need a confirmation which will be given by today’s price movement.

Though CPI was a relief this time for India, WPI has come out at 15.88%, higher than April and according to experts, the data, though not comparable as the series started in 2013, is the worst in at least 30 years.

I will be closely watching 15,690 on the downside and 15,800 on the upside.

Follow us on the marketfeed app’s Live Feed section to get real-time updates from the market. All the best for the day!

Here are some of the major updates that could move the markets today:

Stocks

Torrent Power  has completed the acquisition of a 50 MW solar power plant from SkyPower Group in Telangana. The enterprise value for this acquisition is Rs 416 crore. The long-term power purchase agreement (PPA) for the project is with Northern Power Distribution Company of Telangana (NPDCTL) for a period of 25 years at a fixed tariff of approximately Rs 5.35 per kWh, with remaining useful life of approximately 20 years.

Life Insurance Corporation of India bought additional 35.41 lakh equity shares in Capri Global Capital via open market transactions. With this, LIC’s shareholding in the company stands increased to 7.059 percent, up from 5.043 percent earlier.

Dynamatic Technologies has won the contract to manufacture the escape hatch door for Airbus A220 aircraft. The contract was placed by Stelia Aeronautique Canada Inc., a subsidiary of Airbus Atlantic SAS.

WPIL has received an order from the Government of West Bengal for the execution of a turnkey project comprising commissioning of a clear water reservoir and a ground-level reservoir. The contract is valued at Rs 430.87 crore and the same will be completed over a period of 24 months.

SBI Mutual Fund acquired additional 3.23 lakh equity shares in Aether Industries via open market transactions. With this, its shareholding in the company stands increased to 5.1775 percent, up from 4.9180 percent earlier.

What to Expect? 

NIFTY opened with a huge gap-down at 15,780 and fell further. 15,750 offered support but NIFTY fell to 15,690 and finally closed at 15,774, down by 427 points or 2.64%.

BANK NIFTY opened with a gap-down at 33,720 and moved down. There was buying towards the end and BNF bounced from 33,230 to close at 33,406, down  by 1078 points or 3.13%.

IT moved down by more than 4%.

The US markets and the European markets fell heavily for another day.

The Asian markets are trading deep in the red. The U.S. Futures are trading higher and the European futures are trading flat.

SGX NIFTY is trading at 15,695 indicating a gap-down opening.

NIFTY has supports at 15,740, 15,690 and 15,630. We can expect resistances at 15,815, 15,880 and 15,930.

BANK NIFTY has supports at 33,300, 33,230 and 33,120. Resistances are at 33,500, 33,700 and 34,000.

NIFTY has the highest call OI build-up at 16,500. 16,000 also has a good build-up. The highest put OI build-up is at 15,000 followed by 15,500.

BANK NIFTY has the highest call OI build-up at 35,000 and the largest put OI build-up is at 34,500.

INDIA VIX is at 19.6.

Foreign Institutional Investors net sold shares worth Rs 4,000 crores. Domestic Institutional Investors net bought shares worth Rs 2,800 crores. 

India CPI came out at 7.04% against an expected 7.1%. Let us hope the market does not react negatively as it is in line with the expectations. Though there was a surge in the food prices, the tax rate cut of essential commodities and fuel helped rein inflation to an extent. Keep in mind that the real effect will be seen only next month. Also, do not forget that there is a base effect as inflation was 1.6% higher in May 2021 compared to April 2021.

Looking at price action, 15,700 once broken will lead to a sharp downmove to 15,300 provided 15,630 does not offer support. That is something that the Indian market cannot afford as the index had traded in the consolidation zone for so many days last year.

WPI data will be out today but it will not be significant as CPI has come out in line with the estimates. How the European markets open will be crucial today. They fell heavily yesterday along with the US markets on fear that Fed may hike the rates aggressively. A 75 basis points hike is on the table now. The bond yields surged to a two decade- high yesterday.

I will be closely watching 15,630 on the downside and 15,815 on the upside.

Follow us on the marketfeed app’s Live Feed section to get real-time updates from the market. All the best for the day!

Here are some of the major updates that could move the markets today:

Stocks

Vedanta‘s iron & steel segment has ventured into iron ore mining operations in Liberia, West Africa through its subsidiary Western Cluster (WCL) with the ground-breaking ceremony that was held at the Bomi iron ore mine on June 8. WCL is a wholly-owned subsidiary of Bloom Fountain (BFL) which in turn is a wholly-owned subsidiary of Vedanta. 

IIFL Finance shares were offloaded by British International Investment Plc through open market transactions on June 10. With this, its shareholding in the company stands reduced to 3.557 percent from 7.772 percent.

Lemon Tree Hotels: The company has signed a licence agreement for a 44 -room hotel in Gajuwaka, Visakhapatnam, Andhra Pradesh under its brand “Keys Lite by Lemon Tree Hotels”. The hotel is expected to be operational by March 2023.

IndInfravit Trust proposes to acquire the entire equity share capital in five special purpose vehicles—three toll-road infrastructure assets (Simhapuri Expressway, Rayalseema Expressway, Mumbai Nasik Expressway) and two annuity infrastructure assets (Kosi Bridge Infrastructure Company, and Gorakhpur Infrastructure Company)—from BIF India Holdings Pte Ltd and Kinetic Holdings I Pte Ltd.

Astron Paper & Board Mill recorded a sharp fall in consolidated profit at Rs 0.32 crore for the quarter ended March 2022 against a profit of Rs 6.8 crore in same period last year, dented by muted revenue and lower other income. Revenue fell to Rs 143.2 crore from Rs 143.8 crore during the same period.

What to Expect? 

NIFTY opened with a huge gap-down at 16,306 and fell further. There was support near 16,240 for a while but the index fell an finally took support at 16,170. NIFTY closed at 16,201, down by 276 points or 1.68%.

BANK NIFTY opened with a gap-down at 34,752. BNF took some time to break 34,600. There was buying from 34,350 and the index closed at 34,484, down by 602 points or 1.71%.

IT closed deep in the red, moving down by more than 2%.

The US markets fell heavily along with the European markets and it a 5% downmove for Dow last week.

The Asian markets are trading lower. The U.S. Futures and the European futures are trading in the red.

SGX NIFTY is trading at 15,870 indicating a huge gap-down opening!

NIFTY has supports at 16,170, 16,080 and 16,000. We can expect resistances at 16,240, 16,310 and 16,360. Note that the support levels could be skipped at the opening.

BANK NIFTY has supports at 34,400, 34,250 and 34,000. Resistances are at 34,500, 34,650 and 34,800.

NIFTY has the highest call OI build-up at 17,000 followed by 16,500. The highest put OI build-up is at 15,400 followed by 16,000.

BANK NIFTY has the highest call OI build-up at 35,000 and the largest put OI build-up is at 34,500.

INDIA VIX is at 19.6.

Foreign Institutional Investors net sold shares worth Rs 4,000 crores. Domestic Institutional Investors net bought shares worth Rs 2,800 crores. 

Inflation is the highlight and the unexpected US CPI data which came out at another 40 year-high has toppled the markets. The figure stood 8.6% which was previously at 8.3% that gave an indication that inflation might have peaked in March. 

All eyes are on India CPI which will be released at 5 PM. It is expected around 7.1% against the previous figure of 7.9%. I will closely watch Asian markets movement this week as there is a difference of 10% movement compared to the US markets.

Look at Sgx Nifty! It is going to be a huge gap-down. It is terrifying for those who had overnight positions as well as the investors. Positional trading has become much harder post the Ukraine tensions.

As mentioned in yesterday’s Dalal street report, what we saw earlier was not a bullish rally but a short term advance in a bearish market. To break the mid-term trend, we need NIFTY to close above 16,900 at least. 

I will be closely watching 15,700 on the downside if the fall continues. 

Follow us on the marketfeed app’s Live Feed section to get real-time updates from the market. All the best for the day!

Here are some of the major updates that could move the markets today:

Stocks

Oriental Aromatics subsidiary Oriental Aromatics & Sons has received environmental clearance for its proposed greenfield project for manufacturing of speciality chemicals & chemical intermediates, at additional MIDC Mahad, Maharashtra.

Asian Granito India informed exchanges that the board has appointed Mehul Shah as new Chief Financial Officer of the company with effect from June 10, after Amarendra Kumar Gupta has tendered his resignation from the statutory position of Chief Financial Officer.

HFCL has received orders worth Rs 73.39 crore consisting of Rs 51.09 crore from one of the leading private telecom operators of the country for supply of UBRs (unlicensed band radio) along with accessories.

Bajaj Auto in its BSE filing said the Board of Directors on June 14 will consider a proposal for buyback of fully paid-up equity shares of the company. This seems to be the first buyback announcement, if any, by the company since 2000.

Crompton Greaves Consumer Electricals now holds 81 percent equity stake in Butterfly Gandhimathi Appliances after acquiring 26 percent stake through open offer on June 8, up from 55 percent earlier.

Sona BLW Precision Forgings informed exchanges that the Board has re-appointed Vivek Vikram Singh as the Managing Director and Group CEO of the company for a period of 5 year starting from July 5, 2022 to July 4, 2027. 

What to Expect? 

NIFTY opened with a gap-down at 16,279 and moved up. It was an up-trending day though there were big rejections. 1PM candle indicated bearishness but the index advanced with the help of Reliance. NIFTY closed at 16,478, up by 122 points or 0.74%.

BANK NIFTY opened with a gap-down at 34,809 and moved down. The index took support at 34,700 and moved higher. There was a huge breakout towards the end and BNF closed at 35,085, up by 139 points or 0.4%.

IT closed well in the green.

The US markets fell heavily along with the European markets.

The Asian markets are trading lower. The U.S. Futures are trading flat and the European futures are down.

SGX NIFTY is trading at 16,240 indicating a gap-down opening.

NIFTY has supports at 16,340, 16,280 and 16,240. We can expect resistances at 16,500, 16,560 and 16,600.

BANK NIFTY has supports at 35,000, 34,850 and 34,700. Resistances are at 35,250, 35,400 and 35,500.

INDIA VIX is at 19.14.

Foreign Institutional Investors net sold shares worth Rs 1,500 crores. Domestic Institutional Investors net bought shares worth Rs 1,600 crores. 

Yesterday’s price action is a lesson for any trader who does not wait for follow-up in shorter time frame. Look at the 1 PM candle. The candle-close was below the neckline but there was no follow-up. At the same time, 15 minutes candle did not close below the neckline! 

The global market sentiments looked negative in the morning yesterday as there were worries of US inflation data due tonight. It is expected to be above 8%. The big players may square their positions today.

The European Central Bank decided to hike the rate next month by 25 basis points. This added to the negativity in the global markets and all the major indices are down today.

Let us closely watch Reliance which moved up with momentum even in the last hour. The stock led the market from the front with a rally from the low.

I will be watching 16,240 on the downside if the fall continues after the gap-down opening.

Follow us on the marketfeed app’s Live Feed section to get real-time updates from the market. All the best for the day!

Here are some of the major updates that could move the markets today:

Stocks

Punjab National Bank increases repo linked lending rate. The state-run lender has revised its repo linked lending rate to 7.40 percent from June 9, from 6.90 percent earlier. The bank took this decision after the RBI hiked repo rate.

Wipro and and ServiceNow will help Petrobras, the largest publicly traded firm in Brazil, to advance its digital journey. The project aims to raise the level of service for internal users and reduce costs by modernising and aligning IT infrastructure processes with the business through a modern cloud solution focused on automation and integration.

Tata Power Subsidiary Tata Power Solar has commissioned an EPC (engineering, procurement and construction) project of 450 MWDC for Brookfield Renewable India in Rajasthan. The company has set up of over eight lakh modules within record seven months. The project will produce over 800 gigawatt hour of clean energy annually and will help avoid up to 600,000 tonnes of annual CO2 emissions.

 Rail Vikas Nigam has entered into an agreement with “Kyrgyzindustry” for execution of infrastructure projects in Kyrgyz Republic. Particularly the company is going to execute the railway line network on mutually agreed terms and conditions in the Kyrgyz Republic.

BLS International Services acquires ZMPL for Rs 120 crore. The company has acquired Mumbai headquartered largest business correspondent (BC) in the country, Zero Mass Private (ZMPL), for Rs 120 crore. 

What to Expect? 

NIFTY opened with a gap-up at 16,481 and fell sharply. There was fear of rate hike. As soon as the rate was announced, market shot up, crossed the day-high and fell again. 16,500 acted as a strong resistance and 16,300 was a good support. The index closed at 16,356, down by 60 points or 0.37%.

BANK NIFTY opened with a gap-up at 35,168 and broke out after an initial down-move. Resistance at 35,400 pushed the index lower and BNF closed at 34,946, down by 50 points or 0.14%.

FMCG moved down by 1% and IT moved higher.

The US markets shed all the gains of Tuesday by closing around 0.8% in the red. The  European markets also closed in the red with DAX moving down and FTSE nearly flat.

The Asian markets are trading lower except for NKKEI. The U.S. Futures and the European futures are trading slightly in the red.

SGX NIFTY is trading at 16,280 indicating a gap-down opening.

NIFTY has supports at 16,300, 16,240, 16,070 and 16,000. We can expect resistances at 16,380, 16,450, 16,500 and 16,560.

BANK NIFTY has supports at 34,850, 34,500 and 34,000. Resistances are at 35,000, 35,250 and 35,400.

NIFTY has the highest call OI build-up at 16,800 followed by 16,500. The highest put OI build-up is at 16,000 followed by 16,200.

BANK NIFTY has the highest call OI build-up at 36,000 and the largest put OI build-up is at 34,500.

INDIA VIX is below 20 now. But let us see if there is a consecutive close below 20.

Foreign Institutional Investors net sold shares worth Rs 2,500 crores. Domestic Institutional Investors net bought shares worth Rs 1,900 crores. 

That was a special day! The chart will certainly stand apart from other days due to the extreme volatility as it was an event day. There was a cup and handle formation and when NIFTY tried to break out, the resistance pushed the index down and led to M formation finally resulting in a huge sell-off. We know that rate hike is not good for the market.

RBI also increased the inflation forecast to 6.7% from 5.7%. Let us see if the repo rate which is at 4.9% now will reach 6% by March. The Governor said that he cannot speculate the future hikes but the committee will act as and when needed. The accommodative stance has been withdrawn but liquidity is still high and in that sense, there is accommodative aspect to the policy.

As mentioned yesterday, we have got a follow-up for the red candle below 16,500. We will have to see if support is taken at 16,300. Look at the pace at which market shot up and fell from the high. This is the speciality of bearish trend. There will be quick recoveries and quicker falls.

Premium was very high yesterday ahead of the event. IV crush led to huge decay in the premium and the ATM straddle sum is less than 140 now, which was more than 150 for the previous expiry.

Though you can see the global markets in red, there is no much negativity but just the worry before ECB decision on interest rate today and US CPI to be released tomorrow.

I will be watching 16,240 on the downside and 16,400 on the upside.

Follow us on the marketfeed app’s Live Feed section to get real-time updates from the market. All the best for the day!

Here are some of the major updates that could move the markets today:

Stocks

Hindustan Copper resumed mining operations at the Surda mine in Ghatshila, Jharkhand on June 7. The resumption of operations is after the renewal of the lease by the Government of Jharkhand and obtaining the required Environment Clearance from the Ministry of Environment.

Wockhardt has appointed Deepak Madnani as the Chief Financial Officer with immediate effect on June 7. The company has taken this decision after Pramod Gupta has conveyed that on account of his health reasons he will not be able to continue as the Chief Financial Officer.

Life Insurance Corporation of India bought additional two lakh equity shares in Zee Entertainment Enterprises via open market transactions on June 6. With this, LIC’s stake in the company stands increased to 5.008 percent, up from 4.988 percent earlier.

Sharika Enterprises has received a purchase order from Voith Hydro Private Limited. The company will supply 220KV XLPE cable package for Voith Hydro Naitwar Mori project for a total value of Rs 4.6 crore.

RITES, the transport infrastructure consultancy and engineering company signed a memorandum of understanding (MoU) with Grands Trains.

Cineline India informed exchanges that the board of directors approved the issuance of up to 27 lakh warrants for Rs 35.10 crore to promoters by way of a preferential issue. 

What to Expect? 

NIFTY opened with a gap-down at 16,487 and moved further down. Support was taken at 16,350 followed by an up-move and consolidation. NIFTY ended the day at 16,406, down by 153 points or 0.92%.

BANK NIFTY opened with a gap-down at 35,125. The index faced resistance at 35,150 and fell to 34,850. The index managed to close just at the psychological level of 35K, at 34,996, down by 314 points or 0.89%.

IT moved down by more than 1.5%.

The US markets moved up with momentum. The  European markets moved down.

The Asian markets are trading higher with NIKKEI trading almost 1% higher. The U.S. Futures are trading slightly in the red and the European futures are trading slightly higher.

SGX NIFTY is trading at 16,500 indicating a gap-up opening.

NIFTY has supports at 16,500, 16,450, 16,400 and 16,365. We can expect resistances at 16,560, 16,600, 16,700 and 16,800.

BANK NIFTY has supports at 34,850, 34,500 and 34,250.  Resistances are at 35,000, 35,250 and 35,500.

NIFTY has the highest call OI build-up at 17,000 followed by 16,800. The highest put OI build-up is at 16,000.

BANK NIFTY has the highest call OI build-up at 36,000 and the largest put OI build-up is at 35,000.

INDIA VIX is at 20.5.

Foreign Institutional Investors net sold shares worth Rs 2,300 crores. Domestic Institutional Investors net bought shares worth Rs 1,300 crores. 

16,500 has been finally broken today. What next? Rejection at 16,450 is an ideal case of a support level acting as resistance once broken. We will have to see if there is a follow-up on the downside as 16,500 is broken. But look at the global positivity now. 

All eyes are on RBI Monetary Policy Committee decision on interest rate hike, to be announced at 10 AM. It is expected that there will be a rate hike not exceeding 50 basis points. Anyway, the market will be extremely volatile as seen on the previous MPC days.

The commentary after the rate announcement is crucial. The current RBI inflation projection for FY23 is 5.7%. We have to see if RBI revises this. Also, the Governor’s view on future rate hikes also is important.

There are positive sentiments now with the US markets closing strong, NIKKEI moving higher as the GDP data came out better with 0.5% contraction against an expected 1% contraction and the Australian markets moving higher despite a higher hike than expected.

If you take a zoom out, you can notice that there is a mid term down-trend in the market and the rally we saw last week was just a short term advance. The index was unable to break the resistance around 16,800-17,000 zone. This keeps the bears alive to go for another round of selling. However, the interest rate decision will be crucial.

I will be watching 16,350 on the downside and 16,500 on the upside.

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News Shots

SBI Cards and Payment Services has received approval from the board of directors for its fund raising of Rs 2,500 crore. The company will raise funds by way of issuance of non-convertible debenturess (NCDs) in one or more tranches, on private placement basis.

HLE Glascoat nformed exchanges that the board has approved sub-division of existing one equity share of face value Rs 10 each, into fully paid up into five equity shares of Rs 2 each, and also fund raising up to Rs 350 crore.

NMDC has fixed a price of lump ore at Rs 4,400 per tonne, and Fines at Rs 3,310 per tonne. These prices are excluding royalty, DMF, NMET, cess, forest permit fee and other taxes.

Pharmaids Pharmaceuticals promoter Sadhanala Venkata Rao sold 6.98 percent stake in the company via open market transactions on June 6. With this, Rao’s shareholding in the company stands reduced to 15.41 percent, down from 22.39 percent earlier.

Promoter entity World Crest Advisors LLP offloaded 0.51 percent equity stake in Dish TV India via open market transactions. With this, its shareholding in the company stands reduced to 0.05 percent, down from 0.56 percent earlier. Another promoter Direct Media Distribution Ventures also sold 1.53 percent stake in the company and reduced shareholding to 0.56 percent from 2.09 percent earlier.

What to Expect? 

NIFTY opened with a gap-down at  and quickly moved down after filling the small gap. However, there was a slow up-move and NIFTY faced resistance at 16,600. The index closed at 16,570, down by 15 points or 0.09%.

BANK NIFTY opened with a gap-down at 35,179 and moved up after taking support at 35,100. It was a flat day and BNF faced resistance at 35,400 to close the day at 35,310, up by 35 points or 0.10%.

METALS moved higher.

The US markets were very volatile opening with a gap-up and then falling to finally close slightly in the green. The  European markets closed well in the green.

The Asian markets are mixed with Nikkei slightly higher. The U.S. Futures and the European futures are down by more than 0.5%.

SGX NIFTY is trading at 16,465 indicating a gap-down opening.

NIFTY has supports at 16,500, 16,450, 16,400 and 16,365. We can expect resistances at 16,560, 16,600, 16,700 and 16,800.

BANK NIFTY has supports at 35,200, 35,000 and 34,800. Resistances are at 35,550, 35,750 and 36,000.

NIFTY has the highest call OI build-up at 17,200 followed by 17,000. The highest put OI build-up is at 16,300 followed by 16,500.

BANK NIFTY has the highest call OI build-up at 36,000 and the largest put OI build-up is at 35,000.

INDIA VIX is at 20.2.

Foreign Institutional Investors net sold shares worth Rs 2,400 crores. Domestic Institutional Investors net bought shares worth Rs 1,900 crores. 

It is the sixth consecutive day NIFTY is closing within the range 16,500-16,700. We need a strong move or a trigger to break the region. Can the Monetary Policy Committee decision on interest rate hike act as a trigger tomorrow?

Economists are unanimously expecting another rate hike but disagree in the magnitude with some saying 50 basis points and some others saying the same 40 basis points hike followed by a 35 bps hike in the next meeting.

Reliance was slightly bearish even when NIFTY started bouncing back whereas Infosys moved higher. HDFC Bank closed flat. 

See how VIX managed to stay above 20. US VIX has come down from 30 now and that has led to minor gap openings in NIFTY. But the US markets are still volatile with multiple U-turns.

Look at the way NIFTY bounced back from 16,450 exactly as it did on the previous expiry day and Wednesday. 16,600, the swing point of Friday acted as resistance yesterday. These levels can be watched.

The Reserve Bank of Australia will come up with their interest rate decision at around 10 AM IST. A hike is expected and let us see if there is a jerk in the US futures. The gap-down may take NIFTY to near 16,450 and we have to see if the support is strong to give another bounce-back to NIFTY.

As mentioned earlier, let us wait for a close out of the range 16,500-16,700. 

Follow us on the marketfeed app’s Live Feed section to get real-time updates from the market. All the best for the day!

News Shots

Adani Transmission has signed Share Purchase agreement with Essar Power to acquire its 100 percent stake in Essar Power Transmission Company (EPTCL). The acquisition is in line with the company’s value added growth strategy through organic as well as inorganic growth opportunities. The acquisition cost is Rs 1,913 crore.

Savita Oil Technologies in its BSE filing said the board on June 21 will consider the sub-division of equity shares of the company.

Valiant Organics informed exchanges about an incident of blast in reactor in chlorination section of its plant at GIDC, Sarigam, Gujarat. The incident has taken place on June 3. There has been no loss to human life, however, minor injury reported to one person, who is under medical treatment.

Ujjivan Small Finance Bank said the board on June 8 will consider the proposal for raising of funds by way of issuance of debt securities on a private placement basis, in one or more tranches.

Vibhav Agarwal has resigned as Managing Director of Rattan India Power due to his personal reasons. Hence he also ceased to be Key Managerial Personnel of the company on June 3. Asim Kumar De, Whole Time Director of the company, has assigned additional responsibilities to discharge the functions which were earlier assigned to Managing Director, for interim period, till the time a new Managing Director is appointed by the company.

SBI Mutual Fund through its several schemes acquired 59,171 equity shares in V-Guard Industries via open market transactions on June 2. With this, its shareholding in the company stands increased to 9.04 percent, up from 9.027 percent earlier.

What to Expect? 

NIFTY opened with a gap-up at 16,763 and moved down in a bearish channel on Friday. There was a heavy sell-off towards the end and NIFTY closed at 16,584, down by 4 points or 0.26%.

BANK NIFTY opened with a gap-up at 35,933 and was rather bearish throughout the day. It was a bearish week for BNF after a good rally in the previous week. BNF closed at 35,275, down by 339 points or 0.95%.

IT moved higher.

The US markets closed lower on Friday. The  European markets also closed in the red.

The Asian markets are trading higher after opening with a bearish bias. The U.S. Futures and the European futures are in the green.

SGX NIFTY is trading at 16,535.  All the factors together indicate a flat opening.

NIFTY has supports at16,500, 16,450, 16,400 and 16,365. We can expect resistances at 16,700, 16,800 and 16,920.

BANK NIFTY has supports at 35,200, 35,000 and 34,800. Resistances are at 35,550, 35,750 and 36,000.

NIFTY has the highest call OI build-up at 17,000 followed by 16,800. The highest put OI build-up is at 16,000 followed by 16,300.

BANK NIFTY has the highest call OI build-up at 36,000 and the largest put OI build-up is at 34,000.

INDIA VIX is at 19.98.

Foreign Institutional Investors net sold shares worth Rs 3,800 crores. Domestic Institutional Investors net bought shares worth Rs 2,400 crores. 

That was a consolidating week for the global markets but a bearish close on Friday. We have the Asian markets now trading with positivity. This may add positive sentiments to our market despite Sgx Nifty trading lower.

You can observe that there has been significant volume in the markets in the last hour nowadays. Traders should be cautious of wild moves towards the end especially if the position is intraday.

VIX is just below 20 now. It never moved below 20 significantly since 28th April. Let us keep an eye on VIX to have an idea of volatility.

How Reliance performs today will be crucial. There has been a major up-move in the stock after taking a firm support at 2400 on 12th May. Though the IT giants are out of the bearish channel now, they are facing selling pressure, especially Infosys. Let us watch these stocks.

A day candle close above 16,700 or a close below 16,500 will be decisive for NIFTY. I will be closely watching these levels.

Follow us on the marketfeed app’s Live Feed section to get real-time updates from the market. All the best for the day!