News Shots
Reliance Industries has abandoned a plan to buy Future Group’s retail assets amid protracted legal challenges from Amazon.com Inc.
Secured creditors of Future Group companies rejected a reorganisation scheme for merging their assets with Reliance Retail.
HDFC Bank board has approved a dividend of Rs 15.5 per share, weeks after it approved a merger with HDFC Ltd.
Tata Motors hiked passenger vehicle prices to offset rising costs.
The Reserve Bank of India has imposed a penalty of Rs 36 lakh on Central Bank of India for non-compliance with ‘Customer Protection–Limiting Liability of Customers in Unauthorised Electronic Banking Transactions’.
Torrent Power has agreed to buy out Sunshakti Solar at an enterprise valuation of Rs 417 crore.
What to Expect?
NIFTY opened with a gap-down at 17,253 and consolidated for a while on Friday. Breakout took NIFTY to 17,300 where there was a rejection followed by consolidation. And there was a huge fall. NIFTY closed the day at low, 17,172, down by 221 points or 1.27%.
BANK NIFTY opened with a gap-down at 36,579 and moved down. There was a huge fall and BNF closed at intraday low, at 36,045, down by 771 points or 2.10%.
All the major sectoral indices closed in the red.
The US markets closed deep in the red on Friday. The European markets also fell heavily.
The Asian markets are down. The U.S. Futures and the European futures are trading lower.
SGX NIFTY is trading at 16,980 indicating a gap-down opening.
NIFTY has supports at 17,150, 17,065, 17,000 and 16,880. We can expect resistances at 17,230, 17,310 and 17,400.
BANK NIFTY has supports at 35,600, 35,400 and 35,000. Resistances are at 36,400, 36,600 and 37,000.
NIFTY has the highest call OI build-up at 18,000 followed by 17,500. The highest put OI build-up is at 17,000 followed by 16,500.
BANK NIFTY has the highest call OI build-up at 37,000 and the largest put OI build-up is at 36,000.
INDIA VIX is at 18.35.
Foreign Institutional Investors net sold shares worth Rs 2,500 crores. Domestic Institutional Investors net bought shares worth Rs 1,600 crores.
Looking at the price action, it is clear that there is something big coming up. The indices closed at intraday low.
The market will first react to ICICI Bank results. The results were better than expected. Also, Reliance has called off its plan with Future Group.
It will be interesting to see how the market opens tomorrow seeing the put build-up and price action. Price action is rather bearish whereas you can see a large put OI build-up at 17,000, which is even larger than the 17,500 call OI build-up.
It is the inflation worries that is taking the markets down now. Crude oil price has to be watched as FIIs will not stop selling unless crude oil prices settle down.
Where Pre market settles will be crucial today. Keep an eye on ICICI Bank and Reliance.
Follow us on the marketfeed app’s Live Feed section to get real-time updates from the market. All the best for the day!