News Shots
Bank of India invested Rs 108.81 crore in the National Asset Reconstruction Company for 9% of its stake.
Wipro considers declaration of interim dividend on March 25.
KM Sugar approved modernisation, including updating the double sulphitation refining process, at its Ayodhya plant.
Kohinoor Foods considers selling its factory unit in Haryana.
Manappuram Finance postponed fundraising meeting to March 26.
Gulshan Polyols plans to raise Rs 150 crore through a qualified institutional placement. The floor price is Rs 343.66/share, a 7.96% discount to Monday’s closing price.
What to expect?
NIFTY opened with a small gap-up at 17,330 and started falling. The gap-filling is in progress. NIFTY closed the day at 17,118, down 170 points or 0.98%.
BANK NIFTY also opened with a small gap-up at 36,570 and fell. The index was able to move above 36,000 towards the end. BANK NIFTY closed at 36,019, down 10 points or 1.13%.
Most of the sectors closed in the red whereas Metals moved up.
The US markets closed in the red. The European markets were mixed with DAC moving down and FTSE moving up.
The Asian markets are trading in the green. The U.S. Futures and the European futures are trading in the red.
SGX NIFTY is trading at 17,200. All the factors together indicate a flat to gap-up opening.
NIFTY has supports at 17,100, 17,000 and 16,880. We can expect resistances at 17,175, 17,260 and 17,350.
BANK NIFTY has supports at 36,000 and 35,700 and 35,300. Resistances are at 36,300, 36,450, 36,600 and 36,900.
NIFTY has the highest call OI build-up at 18,000. The highest put OI build-up is at 16,500.
BANK NIFTY has the highest call OI build-up at 37,000 and the largest put OI build-up is at 35,000.
INDIA VIX dropped to 22.9.
Foreign Institutional Investors net sold shares worth Rs 3,000 crores. Domestic Institutional Investors net bought shares worth Rs 250 crores.
Crude oil spiked again and this led to the negativity in our market. There is a huge gap in Nifty and Bank Nifty. This gap is being filled and we will have to see if this gets completed. Fuel prices have been hiked for bulk sales and this can be followed by a retail price rise as well.
Russia said that though there is progress in the talks, it is way below the expectation with respect to the time spent on it.
It has been a great up-move in the last few days for our market. The US markets also had performed well, moving up by more than 5% last week. So, the fall is not a surprise especially when crude oil prices have spiked.
Jerome Powell added on Monday that Fed may go aggressive to contain inflation and if the situation demands a 50 basis points hike, Fed will not be reluctant. This led to the negativity in the US markets yesterday.
Looking at the charts, you can notice that the day candle was a bearish engulfing one.
I will be closely watching 17,000 on the downside as it is a psychological level as well.
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