Author: marketfeed Team

News Shots

• Dabur has announced a weak Q4 result with a 14% declined profit, which is lower than estimated

• India Ratings downgraded the rating of Vedanta Ltd to AA- with a negative outlook

• Ujjivan Financial Services has reported a nearly 80 percent jump in its consolidated net profit in the March 2020 quarter.

• Rumours of Microsoft investing Rs 15,000 crores in Reliance Jio #crazy

• Aditya Birla Fashion & Retail has reported huge losses! Also, they plan a Rs 1,000 crore rights issue, which will be fully subscribed to by the promoters/promoter group, in order to reduce debt and fuel growth

• NTPC Limited to foray into power distribution by buying 51% stake in BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power Ltd (BYPL), the Delhi Distribution Business of Reliance Infrastructure Ltd

• Biocon subsidiary Biocon Biologics has received approval from the Drugs Controller General of India (DCGI) for the use of extracorporeal blood purification (EBP) device CytoSorb in the treatment of COVID-19 patients.

What to expect today?

• Great day in the global market yesterday. US, Europe and Asian markets have closed marginally higher. SGX NIFTY is also trading higher, indicating a positive opening for the Indian markets.

• Yesterday, NIFTY tested 9000 again and then went on a rally, crossed 9200 and closed above 9300. I’d like to recollect that we had discussed the possibilities of this in yesterday’s feed. Hope you have traded accordingly to your advantage.

• Similarly we had been expecting short covering in Bank Stocks for a few days. It finally happened yesterday. BANK NIFTY outperformed NIFTY again.

• NIFTY likely to trade between 9200 and 9450 today. There is a support at 9100 and a resistance at 9430

• It’ll be a good sign for the market if NIFTY could maintain the current levels and close above 9300

• Maximum Call Open Interest at 9500 and maximum Put Open Interest at 9000

News Shots

• Kotak Mahindra Bank launches Rs 7100 Crores QIP, considering 5% discount to market price. (Qualified institutional placement (QIP) is a capital-raising tool, whereby a listed company can issue equity shares, fully and partly convertible debentures, or any securities other than warrants which are convertible to equity shares to a qualified institutional buyer (QIB).)
• Mukesh Ambani is planning an overseas IPO for Jio Platforms Ltd
• Torrent Pharmaceuticals has reported a good Q4 result with a consolidated net profit of Rs 314 crore.
• Vedanta seeks shareholders’ approval for delisting. E-Voting until June 24
• Infosys has made a strategic partnership with Swiss-based Avaloq, a Wealth Management Software Provider
• Tata Motors to raise Rs 1000 crores through Non-Convertible Debentures (NCB) (Non–convertible debentures(NCDs) are a financial instrument that is used by companies to raise long-term capital. NCDs are a debt instrument with a fixed tenure and people who invest in these receive regular interest at a certain rate)
• India staring at worst recession since Independence: Crisil

What to expect today?

• Global cues are positive. SGX NIFTY is also trading higher, all indicating a positive opening for NIFTY today
• NIFTY likely to trade within 9000 and 9200. Crossing 9200 can give a good breakout. Expecting to see that some time this week.
• BANK NIFTY and Bank Stocks in particular are hugely over-sold. The RBI announcement on Friday worsened the situation. Still, a short covering is expected very soon

News Shots

• The automobile sector has witnessed increased demand since the relaxation of lockdown. All major companies have reported a surge in sales, as people prefer to stay away from public transport

• RITES to acquire 24 percent stake in Indian Railway Stations Development Corporation (IRSDC) for Rs 48 crore

• Birla Corporation and Honeywell Automation have reported increased profits in Q4

• HDFC reported a 22% drop in net profit to Rs 2,233 crore in its Q4 result, attributed to absence of any dividend from HDFC Bank. RBI had advised banks to conserve capital and avoid dividend

• Reliance has launched JioMart Online Grocery service in more than 200 cities

• Bharti Airtel promoters to sell $1 billion worth of shares, in order to reduce debts

• ITC to acquire packaged spice maker, Sunrise Foods Private Limited, to strengthen its FMCG business

What to expect today?

• Global cues are positive. SGX NIFTY is also trading higher, all indicating a positive opening for NIFTY today

• NIFTY likely to trade within 9000 and 9200. Crossing 9200 can give a good breakout. Expecting to see that some time this week.

• BANK NIFTY and Bank Stocks in particular are hugely over-sold. The RBI announcement on Friday worsened the situation. Still, a short covering is expected very soon

• KKR, a VC fund to invest Rs 11,367 crore in Reliance Jio for 2.32% stake
• RBI Governor Shaktikanta Das to hold a press conference at 10 AM today. Expected to announce extension for loan moratoriums.
• LIC has hiked their stake in Hero MotoCorp by 2 percentage
• Bajaj Holdings Q4 results: Net profit declines 54% to Rs 361 crore
• ITC surged 7.5% yesterday, based on restart of cigarette factories
• Amazon Launches Food Delivery Service In India. Info Edge (India) Limited, with 22% ownership in Zomato may take a hit
• Global cues are negative. American markets closed in red, so did the Asian markets. SGX NIFTY is slightly down. Indian market is likely to open lower
• NIFTY expected to trade between 9000 and 9200 today. Interesting to see if any of these are broken. Monday is a trading holiday, on account of Eid-ul-Fitr
• Public sector banks outperformed private banks yesterday. Auto and FMCG secotrs continue to do well

• UltraTech Cement and Bajaj Auto have announced better results than expected, with increased profits. Auto sector is attracting retail investor attention. Jubilant Foodworks announced very bad results, but it was expected
• Rating agency ICRA warns of a deep recession in India
• Finance Minister announced that there will be no cut in income tax rates and no more packages for supporting the economy.
• Airline stocks will be in focus after news that flight operations will resume in a calibrated manner from 25 May.
• News of Reliance raising another round of funds. Strengthening its digital arm with telemedicine services.
• Global cues are positive. American markets closed in green, hitting multi month highs. SGX NIFTY is slightly down, mostly attributed to our Finance Minister announcing there are no more economic packages from the Govt.
• NIFTY found support at 8900 range yesterday. Expected to trade between 8900 and 9100 today. Interesting to see of 9100 would be crossed and sustained. Volatility is expected like the previous days.
• Private banks witnessed short coverings and finally moved up. Public sector banks are still suffering. Auto and pharma continue to do well.

• Reliance rights issue to start today. It has announced to use 3/4th of the rights issue to repay debt and be debt free by March 31,2021
• Bajaj Finance announced their results yesterday. Profits are down 20% but the result is better an expected. Stock is near 52 wks low
• Railways to run 200 Non AC trains from June 1
• Maruti Suzuki sells 5000 cars just after relaxation in the lockdown. Has said there is an increase in bookings and deliveries
• Ujjivan Small Finance Bank and Tata Power has announced good results.
• Healthcare Global Enterprises and Equitas Holding have raised further foreign funds.
• Global cues are neutral. American markets closed in red. SGX NIFTY closed in green, indicating a positive opening for NIFTY. But the selling pressure seems to be so high in our market that NIFTY keeps falling inspite of anything.
• NIFTY seems to have a support at 8800 range. Expected to trade between 8800 and 9100 today, just like yesterday. Breaking the support of 8800 might cause further break down. Volatility is expected like the previous days.
• Banks are falling heavily, majorly PSU banks. FMCG and Auto Sectors helped the market