News Shots
Aptus Value Housing and Chemplast will list on Indian stock markets today but might be at gap-downs like Nuvoco Vistas yesterday.
Maruti has been fined Rs 200 crore by the Competition Commission of India (CCI) for restricting discounts offered by its dealers.
Vedanta said it has made a natural gas discovery in a block in Gujarat.
NMDC is looking to commission its steel plant in Chhattisgarh by early 2022, and also has started required processes for its demerger, according to an official.
Rattanindia Enterprises said it will set up a wholly-owned subsidiary to enter the drone business in the country.
Tata’s Indian Hotels said its board has approved raising funds of Rs 3,000 crore through a rights issue.
State-owned Canara Bank has closed its Qualified Institutional Placement(QIP) of Rs 2,500 crore for raising funds. The QIP was opened last week at Rs 155.58 per equity share.
Eicher Motors’ board has re-appointed Siddhartha Lal as Managing Director for five more years with a revised remuneration structure.
What to expect today?
Yesterday, we saw NIFTY opening with a huge gap-up, falling over 200 points and then recovering a bit. The index closed in the green, near 16,500. You can read all about yesterday’s market movements here.
BANK NIFTY was a bit weak, and even tested a key support at 34,800 but recovered near the end to close at 35,124.
NIFTY IT showed strength, closing up by more than 1.7%. The sector along with FMCG has been showing strength in the past many trading sessions.
The recovery in global markets continued yesterday. The NASDAQ and S&P 500 are back to record highs even after the Federal Reserve comment last week.
With this confidence, all the Asian markets are trading well in the green. The European and US futures are also trading in the green.
SGX NIFTY is trading higher at 16,588 indicating a gap up opening in the Indian market.
The immediate supports for NIFTY are at 16,500 and 16,380. There are strong resistances at 16,590, 16,630 and near the all-time high at 16,700.
Bank Nifty continues to underperform and a breakout is soon expected in the index. The 35,000 and 34,800 supports exist for BANK NIFTY. 35,630, 35,800 and 36,000 will act as immediate resistance for the index.
Foreign institutional investors (FIIs) net sold worth Rs 1,363 crores, and domestic institutional investors (DIIs) net bought shares worth Rs 1452 crores in the Indian equity market.
In NIFTY, the largest put OI buildup is at 16,500 and 16,000. The largest call OI buildup is also at 16,500 followed by 16,600. Option sellers expect the market to consolidate in a tight range for this monthly expiry.
In BANK NIFTY, the largest call OI buildup is at 36,000 and the largest put OI buildup is at 35,000. Market participants expect the index to move up, but it is not able to find strength.
Many stocks in the Nifty 500 index are now down between 20-75% from their 52-week highs. It might be a good time to stay away from mid-caps and small-caps just because you are getting them at a discount. Invest only in companies where you see buyers have returned, with good fundamentals.
Let’s see how the market moves after the gap up opening. Yesterday, the market moved down as we expected, but looking forward to some strength today.
The upper level I will be watching in NIFTY is 16,630 and the lower level is 16,500.
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