Extreme Volatility! US Shoots Up After Fed Hike - Share Market Today

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Tata Consumer Products clocked 304 percent year-on-year growth in consolidated profit at Rs 217.54 crore in the quarter ended March 2022 driven by growth in underlying profitability and lower exceptional costs. Revenue grew by 4.5 percent YoY to Rs 3,175.4 crore during the quarter, with 4 percent growth in topline in constant currency, supported by India branded business.

SIS recorded consolidated profit at Rs 97.4 crore for the quarter ended March 2022, down 4.7 percent compared to year-ago period on moderate growth in EBITDA and sharp downtick in other income. Revenue during the quarter grew by 8.3 percent YoY to Rs 2,648 crore and EBITDA increased by 0.9 percent to Rs 124.4 crore in Q4FY22, while the company crossed Rs 10,000 crore on full year basis in FY22, for the first time in its history.

ABB India reported solid performance during the quarter ended March 2022, with profit growing 145 percent YoY to Rs 370 crore on strong topline and operating performance. Revenue during the first quarter of 2022 grew by 21 percent to Rs 1,968 crore compared to year-ago period. The company won orders worth Rs 2,291 crore in Q1CY22, up 25.5 percent YoY.

Havells India clocked 16 percent year-on-year growth in Q4FY22 profit at Rs 352.48 crore driven by lower tax cost and higher topline. Revenue increased by 33 percent to Rs 4,426.3 crore compared to corresponding period last fiscal.

Adani Total Gas reported a 44 percent year-on-year decline in consolidated profit at Rs 81 crore in quarter ended March 2022 impacted by higher cost of natural gas prices. However, revenue grew by 73 percent YoY to Rs 1,065.5 crore during the quarter on higher volume coupled with increase in sales price.

CarTrade Tech posted loss of Rs 21.39 crore for the quarter ended March 2022 against profit of Rs 15.95 crore in corresponding period last fiscal as there was a loss of Rs 25.94 crore at EBITDA level, against EBITDA profit of Rs 15.95 crore in same period last year. Revenue grew by 13.4 percent to Rs 93.1 crore during the same period.

What to expect?

NIFTY opened with a gap-up at 17,011 and started falling heavily. The bears clearly overthrew the bulls yesterday and NIFTY crossed all the major levels, finally closing the day at 16,668, down by 392 points or 2.29%.

BANK NIFTY opened flat at 35970 and fell in the morning. But BNF exhibited strength for a while by not falling at the pace of NIFTY. There was a heavy sell-off towards the end and BNF closed the day at 5,265, down by 899 points or 2.49%.

All the sectors closed in the red.

The US markets shot up with Fed hike. The European markets closed in the red.

The Asian markets are trading higher.The U.S. Futures are flat and the European futures are in the green.

SGX NIFTY is trading at 16,850 indicating a gap-up opening.

NIFTY has supports at 16,650, 16,600, 16,500 and 16,450. We can expect resistances at 16,780, 16,840, 16,910 and 17,000.

BANK NIFTY has supports at 35000, 34,900 and 34,400. Resistances are at 35,400, 35,620 and 35,800.

NIFTY has the highest call OI build-up at 17,000 followed by 17,100. The highest put OI build-up is at 16,000 followed by 16,500

BANK NIFTY has the highest call OI build-up at 36,000 and the largest put OI build-up is at 35,000.

INDIA VIX rose to 21.9.

Foreign Institutional Investors net sold shares worth Rs 3,300 crores. Domestic Institutional Investors net bought shares worth Rs 1,300 crores.

The market was unusually bearish as soon as it opened with a gap-up. Though BANK NIFTY tried holding the index, Reliance was falling heavily. The news that RBI Governor will hold a press conference added to the worries.

RBI Governor said that Repo rates have been hiked by 40 basis points. CRR also has been increased by 0.1%. The fact that the meeting was an unscheduled one indicates the seriousness of the situation. Inflation is beyond the tolerance zone of RBI and April CPI data is yet to be released. This led to the negativity and heavy fall yesterday.

FED hiked the interest rate by 50 basis points as expected and the markets shot up. When things go as expected in the market, there can be an up-move as short covering may happen. At the same time, our rate hike was rather unexpected.

Directional players would have been able to make good profits yesterday but VIX was spiking against the will of the option sellers. However, positional traders may find it hard to trade in this high-volatile environment.

Kotak Bank came up with good results during the market hours. Let us watch the stock along with Reliance which will declare results tomorrow. Where Pre market settles is crucial today. I will watch 16,900 on the upside.

Premium movement is too quick and if you are a conservative trader, you should focus on reducing the risk on expiry day. Sellers can go for safer strikes to get time to adjust and buyers can reduce their quantities to have larger Stop Losses. Trade Safe!