News Shots
HDFC acquired 50 lakh shares or 8.42% in Ansal Housing Ltd. through the invocation of pledged shares to recover part outstanding dues against loans.
Dr Reddy’s entered an agreement with Prestige BioPharma for supply and commercialisation of trastuzumab biosimilar in Latin America and Southeast Asia.
Burger King India is considering the proposal for raising funds.
Power Grid may consider a mid-year dividend.
ITC after the analyst meet said capex would be around Rs 3,000 crore per annum for the next three years, to develop new high margin opportunities in the personal care portfolio and no demerger plan was announced.
Natco Pharma said its board has approved a proposal to acquire US-based Dash Pharmaceuticals LLC for a cash consideration of $18 million.
Axis Bank will not join peers seeking an extension of timelines for meeting financial parameters on loans recast under the Kamath committee framework because of the pandemic-related stress.
What to expect?
Yesterday, NIFTY opened with a gap-down at 17,300 and exhibited extreme volatility throughout the day. The intraday range was 150 points with strong rejection from the previous day’s close. NIFTY finally ended the day at the major level of 17,325, down 43 points or 0.25%.
BANK NIFTY opened the day with a gap-down at 36,798. The index took support at 37,550 and bounced back, giving a good breakout that almost took BANK NIFTY to 37,000. Facing resistance from the upside, BANK NIFTY closed the day flat at 36,894, down 31 points or 0.08%.
NIFTY MEDIA (+1.56%) and NIFTY PHARMA (+1.06%) performed well.
The US markets closed in the red with tech stocks leading the drop. The European markets opened with a gap-up but fell due to Omicron and tapering worries.
The Asian markets are mixed as the world is awaiting Fed decisioin. The U.S. Futures and the European Futures are trading flat.
SGX NIFTY is trading at 17,319 indicating a flat opening in NIFTY.
Major supports for NIFTY are at 17,250, 17,225, 17,200, 17,100 and 17,000. We can expect resistances at 17,375, 17,400, 17,500, 17,550 and 17,600.
BANK NIFTY has supports at 36,800, 36,500, 36,300, 36,200 and 36,000. Resistances are at 37,000, 37,200, 37,500, 37,800 and 38,000.
The highest call OI build-up in NIFTY is at 17,600, followed by 17,500 and the highest put OI build-up is at 17,000, followed by 17,300.
BANK NIFTY has the highest call OI build-up at 37,500 and the highest put OI build-up is at 36,500.
INDIA VIX is at 16.95. The intraday volatility is too high nowadays.
Foreign Institutional Investors net sold shares worth Rs 763 crores. Domestic Institutional Investors net bought shares worth Rs 425 crores.
The concerns for investors worldwide are the Fed decision on tapering, the US economic sanctions on China and the spread of Omicron.
The Fed will announce its decision on tapering tonight. There is the expectation of accelerated tapering and as a result, the global markets are rather volatile. It is better not to carry an overnight position if you are a seller as there is a chance for wild early moves tomorrow as the market reacts to the Fed decision.
WPI inflation data was higher than expected, at 14.2%. I think the real consequence of inflation on the markets will be evident in the Fed decision today and thus, the market may not give much importance to inflation data.
NIFTY has formed a small green day candle after that bearish engulfing candle. You can expect volatility as usual. I will be closely watching 17,200 on the downside and 17,400 on the upside for direction.
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