News Shots
Bharti Airtel approved the issuance of debentures, bonds etc. up to Rs 7,500 crore in one or more tranches.
Vedanta concluded review of the current corporate structure and said that the current structure is optimal. The company won’t undertake any corporate restructure including spin-offs.
Thermax agreed to make an investment in Exactspace Technologies for Rs 9,99,84,208 by subscribing to 1,921 Cumulative Convertible Preference Shares. It will hold o 15.17% stake in Exactspace Technologies.
SJVN submitted a Letter of Intent to develop solar power projects to the tune of 10,000 MW in the next five years in the state of Rajasthan with an estimated cost of investment of Rs 50,000.
Mahanagar Gas announced an interim dividend of Rs 9.5 per share.
Mayur Uniquoters approved buyback of 6,25,000 fully paid-up equity shares for Rs 650 per share.
What to expect?
NIFTY opened the day with a small gap-up at 17,282. What followed was a huge fall and a fantastic recovery. After volatile moves, NIFTY closed the day at 17,267, up 53 points or 0.31%.
BANK NIFTY also opened with a gap-up at 38,194 and followed the general trend. The index bounced back from 37,300 to end the day in green. BANK NIFTY closed the day at 38,028, up 33 points or 0.09%.
All the sectors consolidated after volatile moves. NIFTY METAL stayed strong gaining 0.8%.
The US markets closed well in the green yesterday. The European markets had a positive close except for FTSE which closed slightly in the red.
The Asian markets are trading higher. The U.S. Futures and the European futures are trading in the green.
SGX NIFTY is trading at 17,326 indicating a gap-up opening.
NIFTY has supports at 17,210, 17,150, 17,125, 17,050 and 17,000 . We can expect resistances at 17,270, 17,330, 17,380, 17,435 and 17,500.
BANK NIFTY has supports at 37,800, 37,600, 37,300 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 even after the intraday fall.
INDIA VIX is at 19.7.
Foreign Institutional Investors net sold shares worth Rs 1968 crores. Domestic Institutional Investors net bought shares worth Rs 1115 crores.
Despite net selling by institutions, NIFTY could close above the opening price. This shows the confidence of the retailers in the market. At the same time, there is a fear of sell-off in heavyweights by FIIs.
Interestingly, the Chinese market fell heavily yesterday and recovered towards the close exactly as our market did. China is now trading higher along with the other Asian markets.
Along with the positive news from the US markets, crude oil also gave hope to the market as there was a drop in the prices yesterday. We will have to see whether prices stabilise.
The open interest data may look similar to yesterday’s data but there have been huge intraday shifts in the positions. 17,500 looks like the upper limit seeing the build-up. At the same time, price action says NIFTY will try for a reversal as the day candle though red, is bullish. Let us see if NIFTY recovers the fall in the coming days.
17,150 and 37,600 should act as strong supports in NIFTY and BANK NIFTY. I will be watching 17,400 on the upside.
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