News Shots
NTPC Board meeting is scheduled on 20th December to issue bonds worth Rs 1,175 crore.
Ahmedabad-Mumbai Central Tejas Express will now run five days a week instead of four starting 22nd December; good news for IRCTC investors.
Bharti Airtel agreed to an additional acquisition of up to a 2.86% stake in Vahan Inc.
ICICI Bank has fully redeemed the outstanding notes under Tokyo pro-bond programme.
A fire broke out at one of the multi-product plants of Gujarat Fluorochemicals at its Ranjitnagar site in Gujarat. Three casualties and ten injuries have been reported.
Jindal Stainless said they target Rs 500 crore sales from chequered steel.
Yes Bank Board of directors to meet on Dec. 21 to seek approval for raising of funds.
What to expect?
Yesterday, NIFTY opened with a gap-up at 17,373 following the US market positivity. Profit booking kicked in and NIFTY fell by more than 130 points. The index tried to bounce back but faced resistance at 17,300. There was extreme intraday volatility with NIFTY going even below 17,200 but bounced back to close at 17,248, up 27 points or 0.16%.
BANK NIFTY opened the day with a gap-up at 37,094 and underperformed NIFTY after days of consolidation. The index crossed 36,500 in the last hour but a bounce-back helped BANK NIFTY close at 36,549, down 241 points or 0.65%.
All the sectors closed in the red except NIFTY IT (+1.18%).
The US markets have closed in the red with Dow Jones ending the day flat, S&P 500 nearly 1% down and NASDAQ falling heavily by more than 2%. The European markets closed well in the green as they were reacting to the Fed decision which was in line with the expectations.
The Asian markets are trading in the red, following the US market. The U.S. Futures and the European Futures are slightly in the green now.
SGX NIFTY is trading at 17,282. NIFTY may have a flat opening.
Major supports for NIFTY are at 17,250, 17,200, 17,100 and 17,000. We can expect resistances at 17,300, 17,325, 17,375, 17,400, 17,500 and 17,550.
BANK NIFTY has supports at 36,500, 36,300, 36,200 and 36,000. Resistances are at 36,800, 37,000, 37,200 and 37,500.
Both the largest call OI build-up and the largest put OI build-up is at 17,300 in NIFTY.
The highest call OI build-up is at 37,000 and the highest put OI build-up is at 36,500 in BANK NIFTY.
INDIA VIX is at 15.9, crashing by more than 7% yesterday.
Foreign Institutional Investors net sold shares worth Rs 1,469 crores. Domestic Institutional Investors net bought shares worth Rs 1,533 crores.
Our market by opening with a huge gap-up gave the best opportunity for those who were waiting to book profits. The momentum of bears was not lost and NIFTY was taken below 17,200 at a point. A close above the level is a good sign but NIFTY will have to come back to the level of 17,600 to exhibit strength.
The IT sector was strong throughout the day with a major contribution from Infosys. Reliance also supported the market or the fall would have been a steep one. BANK NIFTY that was consolidating for a while succumbed to the selling pressure yesterday. The index has also made a bearish engulfing candle in the daily chart.
I will closely watch 17,200 on the downside. It will be hard for NIFTY to close above 17,400 with no support from the global markets and FII action. But if this happens, NIFTY can go ahead for a strong recovery, though 17,600 is a hurdle.
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