Markets Await Fed Minutes; Asia Trading Higher - Share Market Today

News Shots

Grasim Industries: reported a 55.56 per cent increase in its consolidated net profit at Rs 4,070.46 crore for the fourth quarter ended March 31, 2022. The company had posted a net profit of Rs 2,616.64 crore during the January-March quarter of 2020-21.

Dr Reddy’s Laboratories said it along with Senores Pharmaceuticals, Inc has launched Ketorolac Tromethamine tablets, used for managing severe pain, in the US market. The product is a therapeutic generic equivalent of the reference listed drug Toradol tablets.

Bayer CropScience reported a more than twofold jump in profit to Rs 152.7 crore for the quarter ended on March 31, 2022, compared to the same period of the previous financial year. The company’s profit stood at Rs 61.9 crore during the corresponding period of 2020-21.

Muthoot Finance said it will raise up to Rs 300 crore through a public issue of bonds. Announcing its 27th series of public issue of secured redeemable Non-Convertible Debentures (NCDs) of face value Rs 1,000 each, it said the issue comprises base issue size of Rs 75 crore with an option to retain oversubscription up to Rs 225 crore.

DVI Fund Mauritius offloaded shares of GMR Infrastructure for Rs 624.38 crore through an open market transaction by selling 17.03 crore shares of the company at an average price of Rs 36.35 apiece.

Metropolis Healthcare said its consolidated net profit has declined by 34 per cent to Rs 40 crore for the fourth quarter ended March. The company had reported a net profit of Rs 61 crore in the January-March period of previous fiscal.

Dollar Industries said it expects to become a Rs 2000 crore company by 2024-25 and will invest Rs 120 crore by the same year to double its spinning capacity.

What to Expect?

NIFTY opened flat at 16,230 and faced rejection from 16,250. There was a fall till 16,120 from where the index bounced back only to face resistance at 16,250. NIFTY closed at 16,125, down by 90 points or 0.55%.

BANK NIFTY opened flat at 34,330 and consolidated in a range of 300 points. Though the index tried to move above 34,550, there was a quick sell-off. BNF closed at 34,290, up by 43 points or 0.12%.

IT fell by 1.88%.

The US markets were mixed with NASDAQ falling heavily and DOW JONES closing just in the green. The European markets fell heavily.

The Asian markets are trading higher. The U.S. Futures and the European futures are trading in the green.

SGX NIFTY is trading at 16,160 indicating a flat to gap-up opening.

NIFTY has supports at 16,080, 16,000, 15,950 and 15,870. We can expect resistances at 16,150, 16,190, 16,250 and 16,340.

BANK NIFTY has supports at 34,200, 34,000, 33,700, 33,400 and 33,200. Resistances are at 34,440, 34,800, 35,000 and 35,200.

NIFTY has the highest call OI build-up at 17,000 followed by 16,500. The highest put OI build-up is at 16,000 followed by 15,500.

BANK NIFTY has the highest call OI build-up at 35,000 and the largest put OI build-up is at 34,000.

INDIA VIX spiked to 25.6.

Foreign Institutional Investors net sold shares worth Rs 2,400 crores. Domestic Institutional Investors net bought shares worth Rs 2,000 crores.

IT stocks have fallen again. Looking at NASDAQ, it is not surprising. There was negativity in the US market right from the premarket session as Snapchat had fallen by 30% due to weak forecasts.

European Central Bank may go for a 50 basis points hike in July. New Zealand has raised the rate by 50 basis points today. Powell admitted for the first time that he may not be able to defend the recession coming in. The major event we have to watch is Fed Minutes for the 4th May meeting that will be out tonight.

It is frightening to see the premium in deep OTM put options. This shows that the market fears a fall. Remember how NIFTY fell on the last expiry day after a huge gap-down opening.

Piyush Goyal said that the wheat harvest will be down by 8% this year. You might have come across certain reports saying a food shortage is imminent. UN reports that there is a 30% rise in global food prices over the last year.

Look at the 1 PM candle where the market tried moving higher with a good green candle formation immediately followed by a deep red candle. Be prepared to handle volatility.

I will be watching 16,190 on the upside and 16,090 on the downside.