More Negativity to Come in? Share Market Today

News Shots

Bharti Airtel entered into an agreement with Vodafone Group Plc to buy 4.7% stake in Indus Towers on the principal condition that the amount paid shall be inducted by Vodafone as fresh equity in Vodafone Idea and simultaneously remitted to Indus Towers to clear VIL’s outstanding dues.

Hindalco signed a share purchase agreement with Terrabel Empreedimentos Ltd

Sandhar infused additional funds of Rs 2,88,64,510 in Sandhar Amkin Industries

Duocon increased authorised share capital from Rs 25 crore to Rs 30 crore and recommended a bonus issue in proportion of 1:10.

Sun TV will consider declaration of interim dividend on March 7.

Patel Engineering subsidiary Patel Energy Resources has sold its entire stake in Naulo Nepal Hydroelectric for Rs 11.53 crore.

What to expect?

NIFTY opened with a gap-up 16,525 and moved higher. The index consolidated in a range of 100 points after resistance and closed the day at 16,658, up 410 points or 2.53%.

BANK NIFTY also opened with a gap-up at 35,921 and moved up. After resistance at 36,650, banks consolidated closed at 36,431, up 1,203 points or 3.41%.

All the sectors closed in the green.

The US markets and the European markets closed well in the green on Friday.

The Asian markets are trading lower now. The U.S. Futures and the European futures are trading deep in the red.

SGX NIFTY is trading at 16,650 indicating a gap-down opening.

NIFTY has supports at 16,600, 16,530, 16,400 and 16,250. We can expect resistances at 16,700, 16,740, 16,840, 16,900 and 17,000.

BANK NIFTY has supports at 36,400, 36,300, 36,000 and 35,900. Resistances are at 36,550, 36,630, 37,000, 37,250 and 37,390.

NIFTY has the highest call OI build-up at 17,500 and the highest put OI build-up at 16,000.

BANK NIFTY has the highest call OI build-up at 38,000 and the highest put OI build-up at 36,000.

INDIA VIX dropped to 26.7.

Foreign Institutional Investors net sold shares worth Rs 4,500 crores. Domestic Institutional Investors net bought shares worth Rs 4,300 crores.

NIFTY is trading below 200 ema now. We will have to see a close above the moving average to see a momentum to fill the gap and close above 17,100.

There will be uncertainty in the market as long as the war continues. The EU countries are providing military supply to Ukraine. Also, SWIFT has sanctioned Russia as a result of which Russian currency has suffered. Putin has asked to put the nuclear forces on alert as there are aggressive statements from NATO. The US and France have asked their citizens to leave Russia. There will be talks between the representatives of Ukraine and Russia soon.

Crude oil had crossed 100 last week and it has been a 40% rise since the last two months. India being a heavy importer will suffer if the hike continues.

FII selling is another major concern as they have sold for nearly Rs 20,000 cr last week. We will have to see how DIIs would support the market without their contribution.

Tomorrow is a market holiday on account of Mahashivratri. It can be risky if you carry overnight positions in the midst of geopolitical tensions. I will be watching 16,840 on the upside in NIFTY.