News Shots
Zomato will invest Rs 112.20 crore to acquire 19.48% stake in advertising technology company Adonmo. The company will also buy a 5% stake in software firm UrbanPiper Technology for Rs 37.38 crore.
Bharat Electronics declared an interim dividend of Rs 1.5 per share. It has also approved an increase in the Authorised Capital of the company from the existing Rs.250 crore to Rs.750 crore.
HPCL announced the opening of two more non-fuel Convenience Stores under its brand name ‘HaPpyShop.’
Newgen acquired 100% share capital of Number Theory Software.
L&T reported that their net profits went down by 16.7% QoQ.
Marico saw its net profit going up by 1% QoQ.
Kotak Mahindra Bank reported a 30.79 per cent jump in its consolidated December quarter net profit at Rs 3,402.74 crore, helped by an all-around performance across subsidiaries.
Earnings today: Tata Motors, Sun Pharma, UPL, BPCL, HPCL, IOC
What to expect?
NIFTY opened the day with a gap-up at 17,237 and continued the up-move till noon before the sell-off kicked in. NIFTY broke the day-low and formed a base at around 17,150. Selling pressure brought the index down again and NIFTY closed the day at 17,102 to close the day flat.
BANK NIFTY opened with a gap-up at 38,270. The index was rather volatile in the first half after facing resistance at 38,400. All the major supports were broken and BANK NIFTY closed the day at 37,689, down 293 points or 0.77%.
NIFTY AUTO(-0.60%) closed in the red joining BANK NIFTY. Other sectors closed in the green.
The US markets closed well in the green on Friday fuelled by Apple results. The European markets closed in the red.
The Asian markets are trading in the green now. It is a market holiday for China and South Korea and a half-day for Hong Kong on account of the Lunar New Year. The U.S. Futures and the European futures are flat.
SGX NIFTY is trading at 17,268 indicating a gap-up opening in NIFTY.
NIFTY has supports at 17,100, 17,000, 16,900, 16,820 and 16,610. We can expect resistances at 17,135, 17,200, 17,250, 17,300, 17,370 and 17,530.
BANK NIFTY has supports at 37,700, 37,500, 37,380, 37,250 and 37,000. Resistances are at 37,800, 37,900, 38,000, 38,200, 38,350 and 38,500.
NIFTY has the highest call OI build-up at 18,000 followed by 17,500.
The highest put OI build-up is at 16,500 followed by 16,700.
The OI creators are cautious in BANK NIFTY ahead of the Budget. The highest call OI build-up is at 39,000 and the highest put OI Build-up is at 36,000.
INDIA VIX is at 20.7.
Foreign Institutional Investors net sold shares worth Rs 5,045 crores. Domestic Institutional Investors net bought shares worth Rs 3,359 crores.
There is a positive cue from the US markets as the indices moved up with the help of the Tech sector mainly fuelled by Apple results. Though the Asian Markets are trading in the green, the Chinese economic data on manufacturing output was disappointing.
Banking stocks will be in focus today. The sector had shown strength despite the global sell-off last week. We have the Budget presentation tomorrow and thus it is a crucial week for the Banks. The IT sector dropped by more than 6% last week. The sector had closed in the green on Friday. With NASDAQ closing well in the green, there is hope in NIFTY IT.
You can follow the events related to the Ukraine-Russia conflict to have a better understanding of the global influence on our market. The UK has tightened sanctions on Russia recently and there are reports that Britain would double their deployment in teh region. Oil prices stay at a 7-year high due to the tense situation there with US and Russia warning each other.
Infrastructure output data and Fiscal deficit data will be out today. Also, there are quarterly results of some major stocks declared today.
Looking at price action, NIFTY looks weak and BANK NIFTY looks strong. With the gap-up opening, I will be watching the resistance zone 17,280-17,320.
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