Markets Fall on FED Citing Inflation; NIFTY to Open Gap-down - Share Market Today

News Shots

Lux said that there has been no violation and any infractions committed by the company after SEBI’s insider trader order.

SRF approved the project to create Pharma Intermediates Plant for undertaking precursor processes for the production of Pharma products at Dahej at a cost of Rs. 190 crore.

HG Infra has been declared as L-I bidder by the National Highways Authority of India.

Capital Square’s right issue offer of 64,95,000 shares will open on 2nd February and close on 16th February.

Raymond approved the scheme of arrangement between the company and Raymond Lifestyle, a wholly-owned subsidiary.

GE T&D India agreed to sell Global Engineering Operations Division.

What to expect?

NIFTY opened the day with a gap-down at 17,022 on Tuesday and moved up after initial volatility. With a pull-back to 17,000, NIFTY rallied to break the resistances. However, the index was unable to break 17,300. NIFTY closed the day at 17,278, up 129 points or 0.75%.

BANK NIFTY opened with a gap-down at 36,648 and started recovering the previous day’s fall. The index faced resistance at 37,300 but bounced back from 37,000. BANK NIFTY gave a fine rally and closed the day at 37,707, up 759 points or 2.05%.

All the major sectors showed signs of recovery except for NIFTY IT(-0.33%).

The US markets started the day with positivity but fell with the FED meeting. The European markets closed well in the green.

The Asian markets fell in the morning following the west. The U.S. Futures and the European futures also are trading in the red except for CAC.

SGX NIFTY is trading at 16,950 indicating a huge gap-down opening in NIFTY.

Major supports for NIFTY are at 17,050, 17,000, 16,900,16,850, 16,770, 16,700 and 16,600. There are resistances at 17,110,17,180, 17,320, 17,390, 17,420 and 17,500.

BANK NIFTY has supports at 37,500, 37,250, 37,100, 37,000, 36,800, 36,500 and 36,400. Resistances are at 37,900, 38,000, 38,200, 38,400 and 38,500.

NIFTY has the largest call OI build-up at 17,500 followed by 17,600 and the largest put OI build-up at 17,000 followed by 16,800.

BANK NIFTY has the highest call OI build-up at 38,000 and the highest put OI build-up at 37,000.

INDIA VIX cooled by 6% to 21.36.

Foreign Institutional Investors net sold shares worth Rs 7,094 crores. Domestic Institutional Investors net bought shares worth Rs 4,535 crores.

The US markets were volatile on Tuesday but closed the day without much gains or losses. The indices moved up yesterday but fell heavily from the intraday highs on account of FED event. You might be surprised at the fall when the FED outcome was exactly as expected. Interest rates will be hiked at the March meeting and there is also a chance that the rates will be hiked at every meeting thereafter. The market was prepared for the same. But during the press meeting, Jerome Powell stressed that inflation will stay higher in the coming months and it is absolutely necessary to fight the situation. This led to the fall and the Asian markets have reacted to it with a huge fall and the global futures are down.

NIFTY gave a good up-move on Tuesday though it was unable to recover the points lost on Monday. The breakout came after a pullback to 17,000 and as it is also a psychological level, the confidence of the buyers has strengthened even in the middle of bearishness.

The oil prices have hit another high with the Ukraine tensions in focus. The officials of Russia and Ukraine had discussions on resolving the conflict at the Paris meet. The Paris meet has been watched by political analysts as the road to peace. They have agreed to a ceasefire in Ukraine.

The market may open with a huge gap-down and as a result, there will be volatility. If BANK NIFTY crosses 36,400, the fall will be at a much higher pace. I will be closely watching the support at 16,850 today.