Profit Booking or Santa Rally? Share Market Today

News Shots

Zee Entertainment gets merged into a new entity. The new board will decide on which brand is to be kept.

Tata Motors incorporated a wholly-owned subsidiary named Tata Passenger Electric Mobility Ltd.

Axis Bank approved allotment of Rs 2,600-crore worth debentures at 6.99%.

HFCL received the purchase order of Rs 119.1 crore, from one of the network and engineering service providers, for the supply of optical fibre cable.

Kotak Mahindra Prime acquires the Indian captive financing arm of Ford Motor Company, Ford Credit India. The acquisition gives Kotak Prime access to over 16,000 customers with outstanding loans of Rs 425 crore.

National Company Law Tribunal, Mumbai Bench has approved the scheme of merger by absorption of Phoenix Hospitality Company Pvt. Ltd. into Phoenix Mills.

Zomato, Swiggy, Ola and Uber served the petition filed by the Indian Federation of App-Based Transport Workers. Petitioners seek directions from the Supreme Court to the government to notify or recognize app-based workers as ‘workers’ or as ‘unorganised workers’ or ‘wage workers’ under various labour legislations.

What to expect?

Yesterday, NIFTY opened with a gap-up at 16,870 and tried to break 16,900. But profit-booking kicked in and NIFTY moved down to bounce back from 16,820. NIFTY tried to break 16,900 for long and finally succeeded at 2:45 PM. The index crossed the previous day’s high and closed at 16,955, up 185 points or 1.1%.

BANK NIFTY opened the day with a gap-up at 34,866. Resistance at 35,000 pushed the index lower and a sharp bounce was taken from 34,700. The index faced resistance at 34,900 and consolidated in the region before a breakout happened. 35,000 was crossed and BANK NIFTY closed at 35,030, up 422 points or 1.22%.

NIFTY REALTY (+2.95%) closed well in the green along with the other sectors.

The US markets and the European markets closed well in the green for another day.

The Asian markets are trading in the green. The U.S. Futures and the European Futures are flat.

SGX NIFTY is trading at 17,081 indicating a gap-up opening in NIFTY.

Major supports for NIFTY are at 16,935, 16,900, 16,820, 16,770 and 16,700. We can expect resistances at 17,000, 17,100, 17,200 and 17,250.

BANK NIFTY has supports at 35,000, 34,900, 34,700, 34,400 and 34,000. Resistances are at 35,100, 35,230, 35,330, 35,530 and 35,700.

NIFTY has the largest call OI build-up at 17,200 and the largest put OI build-up at 16,800.

BANK NIFTY has the highest call OI build-up at 36,000 followed by 35,500 and the highest put OI build-up at 34,000 followed by 34,500.

INDIA VIX is at 16.58.

Foreign Institutional Investors net sold shares worth Rs 827 crores. Domestic Institutional Investors net bought shares worth Rs 1,593 crores.

BANK NIFTY crossed 35,000 in the last hour. 35,100 is also a hurdle but we will have to see if the index opens above 35,100. In this case, there is a chance of profit-booking as well and we will closely watch for a retracement that can pave the way for a fantastic rally filling the gap. Meanwhile NIFTY has almost filled the gap.

The global markets have left Omicron in the path of recovery as it is expected to have little impact on the economy. The UK government scientists said that the Omicron patients have milder symptoms compared to the delta variant though transmissibility is higher. This is a positive cue for the world.

Let us watch the first hour carefully as there is a gap to be filled in BANK NIFTY and a psychological barrier of 17,000 for NIFTY. Though bulls have an edge now, we cannot rule out the possibility for a profit booking. Initial price action will be very important.