Between 14,500 and 14,750! Turning Point - Share Market Today

News Shots

Auto components major Motherson Sumi Systems has completed the acquisition of Bombardier’s electrical wiring interconnection systems (EWIS) business in Huehuetoca, Mexico.

The RBI has imposed a monetary penalty of Rs 3 crore on ICICI Bank for “contravention of certain directions issued by the RBI contained in Master Circular on ‘Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by Banks’ dated July 1, 2015”

Uday Kotak says Kotak Bank is prepared for a succession plan after his term ends in December, 2023.

Mahindra & Mahindra has advanced the annual maintenance plant shutdown of its automotive division to this month in the wake of the second wave of the coronavirus pandemic across the country. The maintenance of four working days was originally scheduled for June 2021.

Tata Chemicals reported an 85 per cent decline in consolidated profit after tax (PAT) at Rs 29 crore for the quarter ended March 2021, mostly because of reduced margins.

IDBI Bank reported a nearly four-fold jump in its standalone profit after tax to Rs 512 crore in the March quarter compared to Rs 135 crore in the year-ago period on the back of an impressive 38 per cent growth in its net interest income (NII).

JSW Energy has inked a power purchase agreement for supply of 540 MW from a total blended wind capacity of 810 MW, which was bagged through a competitive bidding. process.

Major Q4 Result Announcements Today:

Adani Ports
Adani Total Gas
L&T Infotech
RBL Bank
IIFL Securities

What to expect today?

Yesterday, NIFTY opened with a gap down below 14,500, and then had a stellar recovery to test 14,680 before closing at 14,634. You can read all about yesterday’s movements here.

Bank Nifty, also opened with a gap down but couldn’t move up like NIFTY did. Kotak Bank announced its result during market hours and that dragged Bank NIFTY down. Bank NIFTY even tested the support of 32,000 at one point of time, then moved up towards the end to close at 32,465.

It was Banks and Financial Services that dragged NIFTY down. NIFTY PHARMA continued to rally and closed more than 2% up.

The European markets closed flat, slightly in the green. The US markets also mostly traded flat. DOW JONES closed 0.7% up while NASDAQ closed 0.48% down.

Asian markets are mostly down again. China and Japan markets are still closed. European and US Futures are mixed. SGX Nifty is currently trading slightly higher at 14,671 indicating a muted opening in the Indian market.

NIFTY’s recovery from below 14,500 to nearly 14,700, that too without the support of Bank NIFTY was really spectacular.

Without the help of Banks, it would be difficult for NIFTY to move up. Focus can be give on IT also today.

NIFTY has immediate resistance at 14,750, 14,800, 14870-14900 and the main resistance at 15,000.

33,000 and 33,500 are the immediate resistances to be watched out for in BANK NIFTY.

The immediate supports for NIFTY is at 14,550, 14,500, 14,450 and 14,350. Below that, we have support at previous low 14,150.

Bank Nifty has supports at 32,000 and 31,500. Slipping below 32,000 can cause weakness in Bank NIFTY.

The highest call OI buildup is at 15,500 followed by 15,000. The highest put OI buildup is at 14,000 followed by 14,500.

There was good put OI buildup yesterday increasing the PCR to 0.8 indicating less bearishness in the market. 15,000 has a massive call OI buildup indicating another expiry below 15,000.

There was massive call option buildup at 32,500 ITM strike in Bank NIFTY indicating it may go below 32,500 today. Let’s see.

Foreign institutional investors (FIIs) net sold shares worth Rs 2289 crores, and domestic institutional investors (DIIs) net bought shares worth Rs 552 crores in the Indian equity market.

Such huge volume selling by FIIs is not good for the market.

So, if Banks do not support, we might see NIFTY moving down. If that happens, let’s see if NIFTY can take support at 14,500. If NIFTY moves up, let’s see if it can breach 14,750.