News Shots
HFCL approved the allocation of 8.72 crore shares at a price of Rs 68.75 each via qualified institutional placement.
Bajaj Electricals is reviewing its corporate structure to unlock growth and consider demergers, subsidiarization and strategic partnerships. Board has authorised management to consider housing power transmission and power distribution business verticals as a standalone legal entity.
Raymond’s wholly-owned subsidiary JK Files and Engineering files for Rs 800-crore IPO.
Dr. Reddy’s Labs launched Venlafaxine ER Tablets in the U.S.
Smartchem Technologies Ltd., a subsidiary of Deepak Fertilisers and Chemicals will invest Rs 2,200 crore in its global scale technical ammonium Nitrate Plant in Gopalpur, Odisha.
One97 Communications, the parent company of Paytm said it has been given the scheduled bank status by the Reserve Bank of India. The bank has been included in the Second Schedule to the Reserve Bank of India Act, 1934 and the approval will help it to bring more financial services and products.
What to expect?
Yesterday, NIFTY opened with a gap-up at 17,535 and started falling. The index tried to retrace but failed at the major level of 17,490 and fell till 17,380. NIFTY bounced back and gave a 150 points move to face resistance at the day-high. After more volatile moves, NIFTY closed at 17,517, up 47 points or 0.27%.
BANK NIFTY opened with a gap-up at 37,366 and fell by nearly 500 points. The index could not keep up with the strength of the market and thus, failed to break the level of 37,250. The index took support just below 37,000 and finally closed at 37,082, down 202 points or 0.54%.
NIFTY MEDIA(+3.6%) gave a very good up-move whereas NIFTY IT(-0.04%) and NIFTY PHARMA(+0.12%) consolidated despite intraday volatility.
The US markets fell yesterday except Dow Jones that closed flat. The European markets closed in the red.
The Asian markets are trading in the red following the west. The U.S. Futures are slightly in the green and the European Futures are slightly in the red.
SGX NIFTY is trading at 17,517 indicating a gap-down opening in NIFTY.
Major supports for NIFTY are at 17,500, 17,450, 17,400, 17,325 and 17,250. We can expect resistances at 17,550, 17,600, 17,690, 17,750 and 17,800.
BANK NIFTY has supports at 37,000, 36,850, 36,500 and 36,350. Resistances are at 37,250, 37,500, 37,750, 38,000 and 38,100.
The highest call OI build-up in NIFTY is at 18,500 and the highest put OI build-up is at 17,300 ignoring the huge straddle build-up at 17,500. There is significant call build-up at 18,000 as well.
BANK NIFTY has the highest call OI build-up at 38,000 and the highest put OI build-up is at 36,000.
INDIA VIX is at 16.6 now.
Foreign Institutional Investors net sold shares worth Rs 1,586 crores. Domestic Institutional Investors net bought shares worth Rs 783 crores.
The expiry day was rather volatile with candles much larger in size than the previous day’s. Profit booking kicked in after the gap-up as we expected. There was even a last hour break out in NIFTY taking the index above 17,500.
The Chinese inflation data was better than the expectation, with inflation slowing down. The US inflation data will be released tonight and it will be a decisive factor for the coming week.
Evergrande Group and Kaisa Holdings have been officially reported to default. Let us see how far the impact travels.
I will be watching 17,600 on the upside and 17,400 on the downside for the coming days.
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