News Shots
Hero MotoCorp launched Retail Finance Carnival, offering zero down payment, zero rate of interest and zero processing fee to customers.
IRCON International entered into a share subscription agreement with Ayana Renewable Power Private Limited to set up a 500 MW solar power plant through a joint venture.
Safari Industries purchased land in Gujarat for setting up a luggage manufacturing unit.
RBL Bank has been authorised to collect direct and indirect taxes.
Kotak Mahindra Bank has acquired a 7.5% stake in Entroq Technologies Pvt. Ltd. for Rs 3 crore.
NTPC-Sail Power Co. will give Rs 100 crore as an interim dividend.
Indiabulls Real Estate Board will meet on 22nd December to discuss raising funds.
What to expect?
On Friday, NIFTY opened with a gap-up at 17,298 and started falling. After a bounce-back from 17,000, resistance was taken at 17,100 and NIFTY fell below 17,000 and closed at 16,985, down 263 points or 1.53%.
BANK NIFTY opened the day flat at 36,550 and was more bearish than NIFTY. The index broke 36,000 and consolidated in a range of 250 points before another resistance was taken at 36,000. BANK NIFTY closed the day at 35,619, down 930 points or 2.54%.
All the sectors fell heavily except NIFTY IT (+1.35%).
The US markets closed in the red but NASDAQ could close flat after underperforming throughout the week. The European markets too closed in the red but FTSE closed slightly in the green.
The Asian markets are trading deep in the red. The U.S. Futures and the European Futures also are in the red.
SGX NIFTY is trading at 16,906 indicating a gap-down opening in NIFTY.
Major supports for NIFTY are at 16,900, 16,780, 16,720, 16,690 and 16,600. We can expect resistances at 17,000, 17,100, 17,200, 17,250, 17,300, 17,325 and 17,400.
BANK NIFTY has supports at 35,500, 35,330, 35,000 and 34,900. Resistances are at 35,700, 36,000, 36,300 and 36,500.
NIFTY has the largest call OI build-up at 17,300 followed by 17,500 and the largest put OI build-up at 17,000 followed by 16,500.
BANK NIFTY has the highest call OI build-up at 37,000 and the highest put OI build-up at 36,000 which is ITM.
INDIA VIX is at 16.3.
Foreign Institutional Investors net sold shares worth Rs 2,070 crores. Domestic Institutional Investors net bought shares worth Rs 1,479 crores.
Omicron has spread to 90 countries. The UK Government is now planning tougher restrictions. As the number of Omicron cases has crossed 100 in India, the Health Ministry has asked to avoid unnecessary travel.
Inflation and tapering are major concerns for this week as Fed would stop bond purchase by March 2022 and inflation data is unsatisfactory everywhere. Bank of England has even hiked the interest rate which was not expected by investors.
Prime Minister has met the major investors to get inputs for the Budget. This is a good sign for the market as this shows that the Government is concerned about the investors’ interests.
Seeing a high possibility for a gap-down opening, some of the short-sellers may book their profits as it has been a major fall from the recent high. There is ITM put build-up in NIFTY and BANK NIFTY. These factors altogether can make a rather volatile day.
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