News Shots
Infosys posted its consolidated net profit for the third quarter ending December at Rs 5,809 crore from Rs 5,197 crore of last year, an 11.8% rise.
Tata Consultancy Services (TCS) reported the consolidated net profit for the quarter ended December at Rs 9,769 crores compared to Rs 8,701 crore in the same quarter last year, a 12.3% jump. It also announced a share buyback worth Rs 18,000 crores at Rs 4500 per share and a third interim dividend of Rs 7 per share.
Wipro reported a flat net profit of Rs 2,969 crore for the third quarter compared with Rs 2,968 crores reported in the year-ago period.
Jaguar Land Rover retail sales continued to be constrained by the global semiconductor shortage in Q3. This will affect Tata Motors. Retail sales declined 13.6% quarter-on-quarter to 80,126 vehicles.
The stockholders’ agreement between Cipla’s subsidiary InvaGen Pharmaceuticals and Avenue Therapeutics remains in force and InvaGen will continue to hold shares in Avenue.
Nazara Technologies will consider a preferential issue of shares on Jan. 17.
Dixon Technologies signed the joint venture agreement with Rexxam for manufacturing printed circuit boards for air-conditioners. JV has received approval under the PLI scheme.
PB Fintech has reached an annualised loan disbursal rate of $1.1 billion (excluding credit card issuance). The fintech disbursed Rs 695 crore in December 2021 across 668 cities in India.
What to expect?
Yesterday, NIFTY opened with a huge gap-up at 18,170 and traded in a range before breakout took the index above 18,200. The resistance at 18,210 pushed the index down but the level was broken in the second attempt. NIFTY closed the day at 18,212, up 157 points or 0.87%.
BANK NIFTY opened with a gap-up at 38,725. The index was volatile but traded in a range of 250 points. There was a spike downwards in the second half but there was no continuation. The support level at 38,600 was not broken today. The index was not able to give a clean move above 38,800 as well. BANK NIFTY closed the day at 38,726, p 285 points or 0.74%.
NIFTY AUTO (+1.45%) moved up and NIFTY IT (0.00%) closed flat.
The US markets closed in the green as the inflation data was in line with the expectations though its high. The European markets also moved up.
The Asian markets are down with Japan deep in the red after a good up-move yesterday. The U.S. Futures and the European futures are trading lower except CAC futures.
SGX NIFTY is trading at 18,339 indicating a gap-up opening in NIFTY.
Major supports for NIFTY are at 18,210, 18,110, 18,050 and 18,000. There are resistances at 18,230, 18,270, 18,340 and 18,420.
BANK NIFTY has supports at 38,500, 38,500, 38,300, 38,100 and 38,000.. Resistances are at 38,800, 39,000, 39,115, 39,200 and 39,350.
NIFTY has the largest call OI build-up at 18,500 followed by 18,400. The largest put OI build-up is at 17,700 followed by 18,000.
BANK NIFTY has the highest call OI build-up at 39,000 and the highest put OI build-up is at 38,500.
INDIA VIX is at 17.18.
Foreign Institutional Investors net sold shares worth Rs 1,002 crores. Domestic Institutional Investors net bought shares worth Rs 1,332 crores.
Infosys and TCS results were above estimates. Wipro results were not good and its ADR went down. Let us see how the stocks react to the results today.
There is a very good straddle build-up at 18,200 with a sum of 120 points. The put build-up at 18,100 and the call build-up at 18,400 looks significant enough hinting at the expected range for expiry, 18,100-18,350. But this is all about open interest data and can change as the day progresses with volatility.
India’s CPI inflation spiked to 5.59% in December. But there is a high-base effect and also, the average CPI for the quarter came out to be at 5%, which is lower than the expected 5.1% forecasted by RBI.
The US CPI inflation jumped to a 40-year high at 7%. But this is in line with the expectations. As a result, the US markets Also, the Chinese inflation data was satisfactory.
The Industrial output data for November showed 1.4% growth, which is still good, though this is at a slower pace as compared to October. There were worries as so much data were to be announced yesterday and the in-line outcome is a relief.
It has been a continuous up-move for BANK NIFTY without a red candle. Looking at charts, we cannot rule out the chance for an island reversal considering continuous momentum without exhaustion. It is the same in the case of NIFTY as well. The index is at a major level and it will be a crucial day for the market. The Pre-Open Market will be more than important today. I will be watching 18,270 on the upside and 18,150 on the downside for immediate moves.
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