News Shots
Bank of Baroda will acquire 21% stake of Union Bank of India in IndiaFirst Life Insurance Company, a joint venture between Bank of Baroda, Union Bank of India and Carmel Point Investments.
Sapphire Foods approved merger of Gamma Pizzakraf and Gamma Pizzakraft (Overseas) with the company with appointed date as April 1, 2022.
Karur Vyasa amended External Benchmark Rate- Repo Linked from 7.05% to 7.15% effective from Feb. 14.
Dr. Reddy’s Laboratories entered into an exclusive sales and distribution agreement with Novartis India Limited (“NIL”) for the Voveran range, the Calcium range and Methergine in India.
EKI Energy acquired 51% stake in Glofix Advisory Services for an aggregate amount of Rs 43,68,150.
Birla Corporation’s subsidiary RCCPL’s first white cement-based wall putty plant was inaugurated at Maihar, Madhya Pradesh with annual production capacity of almost 2 crore tons.
What to expect?
NIFTY opened the day with a huge gap-down at 17,455 on Friday and moved further down. A strong support was taken at 17,300 and NIFTY attempted a bounceback. Facing resistance at 17,450, NIFTY moved down and closed at 17,375, down 231 points or 1.31%
BANK NIFTY opened with a gap-down at 38,600 and tried to move up. After rejection from 38,750, the index fell but bounced from 38,400 which is a strong support. The index moved down after resistance from 38,800 and closed the day at 38,517, down 494 points or 1.27%.
All the sectors closed in the red.
The US markets fell heavily on Friday. The European markets closed in the red.
The Asian markets fell heavily with NIKKEI down by more than 2%.. The U.S. Futures are flat after the fall on Friday whereas the European futures are flat to green.
SGX NIFTY is trading at 17,150 indicating a major gap-down.
NIFTY has supports at 17,210, 17,150, 17,125, 17,050 and 17,000. We can expect resistances at 17,300, 17,400, 17,435, 17,540, 17,575 and 17,640.
BANK NIFTY has supports at 38,400, 38,200, 38,000 and 37,750. Resistances are at 38,600, 38,800, 39,000 and 39,200.
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 and 16,500.
BANK NIFTY has the highest call OI build-up at 39,000 and the highest put OI build-up at 38,000.
INDIA VIX is at 17.7.
Foreign Institutional Investors net bought shares worth Rs 110 crores. Domestic Institutional Investors net sold shares worth Rs 700 crores.
CPI and WPI will be released today. This does not have much significance as eyes will be on how Banks react to the ABG Shipyard scam.
The Fed will have an emergency meeting today. There are rumours that this is on the rate hike as inflation is at 7.5% and also, the jobs data was favouring inflation.
Jake Sullivan, the US National Security Adviser said that Russia may invade Ukraine before the Winter Olympics ends, on Feb 20. Biden had a 1-hour phone call with Putin on Saturday. Putin reiterated that Russia has no intention to invade. But satellite pictures show that there is a huge deployment by Russia for which the Russian officials said that the troop movements on Russian territory are an internal matter. We will have to keep a close watch on the events in Ukraine this week.
Oil prices that had stabilised for a while on news about Iran nuclear deal have again spiked. I will keep an eye on the oil prices along with the US bond yields that had touched 2% for the first time since August 2019.
17,000 should act as a support breaking which we will see further down-moves. The zone of 37,000-37,300 will be a good support in BANK NIFTY.
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