Elections Results: Get Ready For A Volatile Expiry! Share Market Today

News Shots

Jindal Stainless (Hisar) became the first company producing coils, sheets and plates in the country to be certified with AS 9100D Certification—a quality management system for aviation, space and defence organisations.

Bharti Airtel agreed to aquire a little over 9% equity stake in Avaada CleanTN Project, a special purpose vehicle for owning and operating the captive power plant. The deal value is pegged at Rs 7.88 crore.

Future Lifestyle received termination notices on sub-leased properties from Reliance entities. Notices pertain to 34 Central stores and 78 Brand Factory stores that contribute 55-65% of retail revenue operations.

PNB Housing Finance approved proposal to raise Rs 2,500 crore by way of issue of equity shares on rights issue basis to eligible shareholders.

Uttam Sugar has redeemed 1,00,000, 6.50% non-cumulative redeemable preference shares of Rs 100 each.

Restaurant Brands Asia has completed acquisition of 87.75% stake in Burger King Indonesia (PT Sari Burger Indonesia).

What to expect?

NIFTY opened with a gap-up at 16,082 and moved up. It spent time at 16,150 before a fantastic breakout. There was resistance at 16,320 in the noon but NIFTY managed to break the level and close at 16,345, up 332 points or 2.07%.

BANK NIFTY opened flat at 33,159 and showed weakness. The index consolidated till noon before it gave a breakout that has begun the gap-filling. BANK NIFTY closed the day at ,815, up 657 points or 1.98%.

All sectors except for Metals moved higher.

The US markets closed more than 2% in the green. The European markets gave a fantastic rally with DAX moving up by nearly 8%.

The Asian markets are trading well in the green now. The U.S. Futures and the European futures are trading slightly in the red.

SGX NIFTY is trading at 16,630 indicating a huge gap-up opening.

NIFTY has supports at 16,320, 16,240 and 16,170. We can expect resistances at 16,410, 16,500 and 16,610.

BANK NIFTY has supports at 33,600, 33,200 and 32,900. Resistances are at 34,150, 34,400 and 34,800

NIFTY has the highest call OI build-up at 17,000 followed by 16,800 and the highest put OI build-up is at 16,000 followed by 16,200.

BANK NIFTY has the highest call OI build-up at 35,000 and the highest put OI build-up at 33,000 ignoring the deeper strikes.

INDIA VIX dropped to 27.5.

Foreign Institutional Investors net sold shares worth Rs 4,800 crores. Domestic Institutional Investors net bought shares worth Rs 3,300 crores.

With Zelensy saying Ukraine no longer has expectation of joining NATO as he believes NATO is not prepared to confront Russia, the markets moved higher. This is because it was the demand for NATO membership that sparked the invasion. The world expects a shift to diplomatic dialogues from this aggressive war. Also, Putin said that they have no intention to overthrow the government in Ukraine. All these point out a possibility of an end to the war.

However, we must not forget the sanctions that have been imposed on Russia. These will continue to have an impact on the global economy. Also, the war would end only if all the demands of Russia are met as we discussed yesterday. As you know, any war has much longer repercussions in every aspect.

The European markets had a phenomenal rally yesterday. DAX moved up by nearly 8% in a single day! Crude oil prices have fallen though still at a higher price compared to the pre-war period.

IT was firing in the morning and BANK NIFTY was struggling. But the Banking sector broke out of the consolidation zone in the noon and contributed heavily to NIFTY. Looking at the charts, IT is just at the swing point and Bank Nifty is on the way to fill the gap. Be it Nifty or Bank Nifty, both the indices spent enough time consolidating before giving a fine breakout and sustained the move in the second half adding confidence to the bulls.

SEBI has approved LIC IPO. This would mean that there will be pressure on the big players to keep the market strong enough to be prepared for the IPO. It would also mean that liquidity will get sucked out of the secondary market.

The highlight of the day is the election results. The outcome of five states will be out today including Uttar Pradesh. If the ruling party BJP suffers a setback in UP, it can lead to a fall in the markets. So the conservative traders can wait for the counting to settle a bit to get an overall picture and then only enter as there can be huge volatility.

Where the Pre-Market settles will be significant today as Sgx Nifty shows quite a big gap. 16,700 should be the upper limit for the expiry day unless news drives the market.