Fall to Continue? Crucial Day for NIFTY- Share Market Today

News Shots

Adani Wilmar will make its debut on bourses today.

Emami approved buyback of fully paid equity shares of face value Re 1 each for an aggregate amount of Rs 162 crore.

Nestle will consider the deceleration of the final dividend on Feb. 17.

Biocon received approval of its ANDA for Posaconazole Delayed-Release tablets from the US FDA.

Hindustan Construction defaulted on loans of Rs 2,282.25 crore as of Jan. 31.

KPR Mill will buy back 22,36,000 fully paid equity shares at Rs 805 per share.

Automotive Axles will acquire a 26% stake in Parola Renewables for Rs 2.4 crore.

What to expect?

NIFTY opened the day with a small gap-down at 17,482. There was a huge sell-off, wiping out investors’ wealth from the market. There were halts at 17,400 and 17,330 but the index continued to fall. NIFTY closed the day at 17,214, down 303 points or 1.73%.

BANK NIFTY also opened with a gap-down at 38,684 but stayed around the opening price for a while. SBI held BANK NIFTY strong whereas other banks were falling. When SBI also started moving down, there was a huge momentum towards the downside. All the major supports were broken and BANK NIFTY closed the day at 37,995, down 794 points or 2.05%.

All the sectors closed in the red. NIFTY METAL closed flat.

The US markets moved down towards the end to close flat to red. The European markets moved higher.

The Asian markets are mixed with a positive bias. The U.S. Futures and the European futures are trading in the green.

SGX NIFTY is trading at 17,240 indicating a flat opening.

NIFTY has supports at 17,210, 17,150, 17,125, 17,080, 17,000, 16,940 and 16,900. We can expect resistances at 17,270, 17,330, 17,380, 17,435, 17,500, 17,570 and 17,610.

BANK NIFTY has supports at 37,750, 37,500, 37,350 and 37,000. Resistances are at 38,200, 38,400, 38,500, 38,800 and 39,000.

NIFTY has the highest call OI build-up at 17,500. There is heavy addition in strikes above 17,500. The highest put OI build-up is at 17,000 followed by 17,200.

BANK NIFTY has the highest call OI build-up at 39,000 and the highest put OI build-up at 38,000 which is ITM, followed by 37,000.

INDIA VIX spiked by 8% to 20.4.

Foreign Institutional Investors net sold shares worth Rs 1157 crores. Domestic Institutional Investors net sold shares worth Rs 1376 crores.

The markets saw a huge sell-off on Thursday followed by bearish consolidation on Friday. What we saw yesterday can be seen as an extension of the sell-off. And thus, the entire budget gain was wiped out. Crude oil rally also added to the concerns.

Crude oil prices are on a rally and this has become a major concern for the markets. There is a growing worry that crude oil prices may hit $100. We should not forget that India imports 85% of the crude oil that is consumed.

FII DII data was interesting yesterday. DIIs sold more than FIIs and this is happening after a very long time. Let us see what happens today.

Financial stocks led the fall with HDFC twins falling by more than 3%. It was SBI alone providing support to the Banking sector. The index fell heavily as soon as SBI started falling.

I will be closely watching 37,800 in BANK NIFTY and 17,125 in NIFTY.