Category: Daily Market Feed

News Shots

A Singapore-based subsidiary of Bharti Airtel acquired an additional 6 per cent stake in Bangladesh-based Robi Axiata from NTT Docomo, raising its total holding to 31.3 per cent in the company.

UBS Principal Capital Asia bought 2.2 crore shares of REC at Rs 102.25 per share.

Adani Green Energy has received investment offers from forieng funds. Gautam Adani said the company has scope to dilute 10-15% of the company.

Equitas Holdings – Equitas Small Finance Bank is offering interest rate of 7% per annum on savings account having deposits between Rs 1 lakh to Rs 5 crores.

JM Financial launches QIP issue to raise funds. Issue price of Rs 66.72 is a 6% discount to the closing price on June 9.

Hero Motocorp announced 21% fall in revenue and 15% fall in profits, all within the street estimates.

KRBL has reported an increase in profits to Rs 149 crore versus Rs 138 crore despite a fall in revenue.

PNB buys 3 Audi Cars for its top management amid COVID induced bad times. Meanwhile, the Chairman of India’s largest lender SBI, still uses a Toyota Corolla.

What to expect today?

What we saw yesterday was mostly profit booking and natural. It is important to see if the markets can continue to sustain strongly and move forward. Yesterday NIFTY fell in the second half after the European markets opened and fell because of profit booking.

Despite all this, NASDAQ did exceptionally well yesterday, hitting fresh highs!!The European markets are in red and the Asian markets are mixed. SGX NIFTY is trading higher, currently at around 10085, indicating a small gap up opening in the Indian market.

We saw huge falls especially in the banking sector and in NIFTY heavy weights yesterday as most of the retail investors were caught in panic and started profit booking. This is very natural and logical when such quick moves happen in the market. We saw NIFTY going up from 9000 level to 10,300 within a short span of time thereby giving good profits to many investors. Hence, there will be a tendency among them to book and cash the profits. The coming few days are very crucial to understand where the market is heading.

FIIs were net buyers in the market again indicating optimism in the market. DII’s mostly sold yesterday. 

NIFTY is likely to trade between 10,000 and 10,200 today. There is an obvious support at 10,000. Further support is at 9950 and 9850. 

Highest Call Open Interest at 10,500, followed by 10,000. Highest Put Open Interest at 9,500, followed by 9,900.

News Shots

• Airtel rallied towards yesterday’s closing based on the rumors that Amazon is investing 2 Billion USD in the company. Later, Airtel had officially stated that it continuously looks for opportunities to engage with all OTT and digital players as partners, but has “no other activity to report”.

• The Supreme Court had proposed the banks to waiver interest for business loans, following which banks fell yesterday. RBI has asked the Supreme Court to reject the plea.

• Abu Dhabi sovereign fund Mubadala Investment Company will inject Rs 9,093.6 crore in Jio Platforms in exchange for 1.85 percent, the sixth investment in the RIL digital unit

• DLF has reported a huge loss to the tunes of Rs 1857 crores. NIIT reported a 97% fall in profits.

• SRF has reported an 8% decrease in revenue but a 4% increase in profits.

• HCL Technologies has announced the expansion of their strategic partnership with Google to bring HCL’s software offerings, starting with HCL Commerce, to the Google Cloud.

• Tata Power prepares to launch rights issue. SBI is planning to raise 1.5 Billion USD

• RITES’s subsidiary Railway Energy Management Company has secured its largest mandate from Indian Railways. BPCL cutting CAPEX by 36% for FY 2020-21

• The Government has issued guidelines for how to open offices, malls, restaurants and religious places, as a part of easing lockdown.

What to expect today?

• US and European markets were mixed yesterday. Asian markets have performed mostly positive. SGX NIFTY is trading slightly higher, indicating a nearly flat to a slightly positive opening in NIFTY.

• Yesterday, banks stocks and BANK NIFTY fell heavily and this affected the whole market’s momentum

• In a broader view, we can expect NIFTY to consolidate between 9,800 and 10,200, before giving another huge movement, either up or down.

• NIFTY likely to trade between 9,940 and 10,150 today. There is a support at 9940 and a resistance at 10,120.

• Maximum Call Open Interest at 10,000 and maximum Put Open Interest at 9,500. Significant call writing is seen at 10,500 and put writing at 9,600.

News Shots

• Promoter HDFC sold 2.6 crore shares in HDFC Life at Rs 490.22 per share, totalling to Rs 1274 crores

• India’s drug pricing regulator on Tuesday has reduced the MRP and capped the prices of 40 formulations, including statins and some other popular cardiovascular and diabetes drugs. Sunpharma, Cadila and Zydus are the major manufacturers of these.

• Haridas Thakarshi Kanani, Chairman & MD of Neogen Chemicals, and his wife Beena Kanani sold a 4.82 percent stake in the company.

• Adani Power moving forward with delisting process, has appointed merchant banker for evaluation

• BPCL has reported loss at Rs 1847.37 cr versus profit at Rs 2,912 cr, revenue at Rs 81,829.6 cr versus Rs 84,791.88 cr YoY

• Aurobindo Pharma has come out with good results with increased profit at Rs 849.83 cr versus Rs 585.38 cr, revenue at Rs 6,158.43 cr versus Rs 5,292.20 cr YoY

• Jindal Steel & Power records a 28% YoY rise in monthly steel sales volumes with the revival of domestic demand

• Punjab National Bank has announced to lower interest rate on savings account deposits by 0.50 percentage point, effective July 1

• Tata Steel is also planning to raise funds amounting to Rs 400 crores via the debt route

What to expect today?

• The rally for the past 6 days has brought back smiles to the face of plenty of retail investors. Large numbers of portfolios have changed to green again after a long, long time.

• US and European markets rallied yesterday thanks to the world economy opening up after lockdown. Asian markets have performed in a mixed way, mostly positive though. SGX NIFTY was trading higher but is below 10,100 now, indicating a neutral to a slightly positive opening in NIFTY.

• Yesterday, NIFTY had clearly established 10,100 as a support/resistance. Clearly, 10,200 is also an important price level. We can expect NIFTY to consolidate between 10,000 and 10,200 for a day or two, before giving another huge movement, either up or down.

• NIFTY likely to trade between 10,000 and 10,200 today. There is a support at 10,000 and a resistance at 10,150 and 10,200.

• Maximum Call Open Interest at 10,000 and maximum Put Open Interest at 9,500. Significant call writing is seen at 10,500 and put writing at 9,900 adding to the optimism in the market

• Reality Check – India’s COVID-19 tally doubled from 1 lakh to 2 lakh in 15 days

News Shots

• Britannia has come out with a good result with 24% increase in net profits
• InterGlobe Aviation (Indigo Airlines) reported loss of 870 crores, irrespective of an  increase in revenue
• Lupin has received approval for Meloxicam capsules, which are used to reduce osteoarthritis
• Three of the largest Middle Eastern sovereign wealth funds are in advanced talks to invest in RIL’s digital arm – Jio Platforms
• Temenos, a banking software company, and HCL Technologies announced the signing of an exclusive strategic agreement for non-financial services enterprises.
• Moody’s has downgraded ratings of major companies in India
• Adani Group decides to hold acquisition plans as they consider re-negotiations

What to expect today? – NIFTY Crossing 10,000!

• US, Europe and Asian markets – all closed very positively yesterday. SGX NIFTY is trading higher, indicating a positive gap up opening for the Indian markets. NIFTY can open above 10,000!

• There is a learning opportunity here. 10,000 is a significant whole number. The number itself has a weight and story to it. Objectively speaking, it is just another number like 9350. But ‘10,000’ has a much higher emotional impact in the minds of retail investors and so, we can see more action around such prices. A simple analogy can be, crossing 350k subscribers on YouTube is objectively the same as crossing 340k subscribers. But 350k is often noticed and celebrated, just because it is a whole, round number. 

• The market was expected to consolidate in 9500 – 10,000 levels for some time before decisively moving ahead to higher ranges. But the bull run is so strong that the 10,000 barrier is being broken

• NIFTY likely to trade between 9900 and 10,100 today. There is a support at 9870 and a resistance at 10,100 and 10,200 

• Maximum Call Open Interest at 10,000 and maximum Put Open Interest at 9,500. Significant call writing is seen at 10,500 and put writing at 9,900 adding to the optimism in the market

• Profit booking and a retracement can be seen anytime soon. So brace yourselves!

News Shots

• Uday Kotak set to sell stake in Kotak Mahindra Bank worth almost Rs.6000 crores

• The banking sector will be in focus after Moody’s Investors Service’s sudden downgrade of India’s ratings to Baa3 from Baa2, while maintaining a negative outlook

• NTPC said it has incorporated a joint venture firm NTPC EDMC Waste Solutions for developing and operating waste to energy 

• Adani Power and Adani Green Energy planning to raise Rs 2500 crores

• BSE Launches options on goods contracts like Gold Mini and Silver Kg (Note that BSE is listed on NSE and available for trading)

• Tata Power has completed the acquisition of 51 per cent stake in TP Central Odisha Distribution Ltd (TPCODL) for Rs 178.5 crore.

• Welspun Enterprises has announced a good result with highly increased profits

• Almost all automakers have announced May month’s sales reports and show a huge decline in numbers compared to last year. This need not be considered highly negative as  the lockdown is easing and the sales are picking up with time.

• One interesting observation is – Both V-Guard and Orient Electric have announced their results. Orient’s profit has fallen by only 8% while V-Guard’s profit has fallen by nearly 50%, even though both of them are in the same industry

What to expect today?

• We saw an unprecedented bull run in the market yesterday, taking NIFTY to 9900 levels, despite many negative global and local cues. This, adding to the continuous rally that we have been seeing since the last week has made the Indian market outperform the global market. BANK NIFTY which was hugely oversold has regained efficiently.

• US and Asian markets mostly closed positively yesterday. SGX NIFTY is trading flat, indicating an uneventful opening for the Indian markets.

• 10,000 is a strong resistance and breaking that will be a huge event in the market and that can give a quick upside movement. But, after the movement, a retracement can be expected back to the current levels. The market is expected to consolidate in 9500 – 10,000 levels for some time before decisively moving ahead to higher ranges.

• NIFTY likely to trade between 9700 and 10,000 today. There is a support at 9710 and a resistance at 9930. 

• Maximum Call Open Interest at 10,000 and maximum Put Open Interest at 9,500. Significant call writing is seen at 10,300 adding to the optimism in the market

News Shots

• IDBI Bank has announced good profits after losses for 13 quarters

• Major restructuring in Yes Bank. Also, Yes Bank acquired 24% stake in Dish TV through pledged shares

• Kotak Bank raises Rs 7,442.5 crore via QIP

• Andhra Paper has reported higher profits in the latest quarter

• There has been a bulk buying in Newgen Software 

• Jubilant Life Sciences has reported revenues at similar levels as before but profis have shot up highly. The Board has also approved issuing NCD (Non Convertible Debentures) worth 100 cr

• ITC has launched new range of Vegetable and Fruit Wash – Nimwash

• Blackrock Advisors LLC has offloaded its stake in several companies through bulk deals. They have done huge selling in Equitas Holdings, GNFC, NCC, PTC India, Karnataka Bank

• HCL Technologies in talks to acquire CISCO’s Self Optimizing Network Technology

• Infosys has made an official announcement that there numbers in this quarter will be bad as many of their clients have been hit badly by COVID-19

What to expect today?

• US and Asian markets have closed considerably higher. SGX NIFTY is also trading higher, indicating a positive opening for the Indian markets.

• Lockdown has been relaxed, the economy is opening and thus, there is positivity in the air. At the same time, we saw the maximum number of COVID 19 cases being reported in a day in India yesterday. Today is a very decisive day which will give an understanding as to how the market will perform in the beginning days of June.

• Still, looking into various domestic and international factors, the market seems to be bullish as of now. But the volatility is still frightening. We are just one news of a vaccine away from flying high.

• After NIFTY crossing 9500 strongly, NIFTY is likely to trade between 9500 and 9700. There is a support at 9440 and a resistance at 9660

• Relaxation in lockdown can lead to positive effects on retail companies like Jubilant Foodworks, DMart, Aditya Birla Fashion etc