News Shots
NHPC signed a letter of intent with Rajasthan Renewable Energy Corporation for the development of 10,000 MW Renewable Energy Projects/ Parks in Rajasthan.
Tata Steel Long Products accepted the Letter of Award for the acquisition of Neelachal Ispat Nigam. It will acquire a 93.71% equity stake in Neelachal Ispat Nigam and the acquisition process is likely to be completed within the next couple of months.
Dr Reddy’s announced the launch of its authorized generic version of Par Pharmaceutical’s VASOSTRICT (vasopressin injection, USP) vials in the U.S. market approved by the U.S. Food and Drug Administration.
PCBL: The company has approved sub-division of equity share of the company having a face value of Rs. 2 each into one equity share of the face value of Re. 1 each and alteration of authorized share capital clause in the Memorandum of Association and Articles of Association of the company.
Kirloskar Oil Engines: The company has approved a dividend of Rs 1.5 per share.
Results: Mahindra & Mahindra, Hindalco Industries, Hero MotoCorp, Hindustan Aeronautics, Zomato, Bharat Forge and Tata Chemicals
What to expect?
NIFTY opened the day with a gap-up at 17,371. The index consolidated in a range of nearly 50 points and finally gave a breakout in the last hour. NIFTY closed the day at 17,464, up 197 points or 1.14%.
BANK NIFTY opened with a gap-up at 38,208. There was resistance offered by 38,500 and the swing high 38,560. The last hour breakout helped the index close at 38,610, up 582 points or 1.53%.
The US markets moved higher for another day. The European markets closed well in the green.
The Asian markets opened higher but are now trading mixed ahead of the US inflation data. The U.S. Futures and the European futures are trading in the red except for CAC futures.
SGX NIFTY is trading at 17,519. All the factors are indicating a chance for a small gap-up opening.
NIFTY has supports at 17,380, 17,330, 17,280, 17,210 and 17,150. We can expect resistances at 17,540, 17,610, 17,670 and 17,700.
BANK NIFTY has supports at 38,400, 38,200, 38,000 and 37,750. Resistances are at 38,800, 39,000, 39,150 and 39,400.
NIFTY has the highest call OI build-up at 18,000 followed by 17,700. The highest put OI build-up is at 17,000 followed by 17,400.
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 18.56.
Foreign Institutional Investors net sold shares worth Rs 893 crores. Domestic Institutional Investors net bought shares worth Rs 1793 crores.
That was a good bullish follow-up for the hammer formation in the day charts in both NIFTY and BANK NIFTY. The week candle has turned green now. The global markets have set positive sentiments for our markets. The China state funds helped the market recover well.
The US markets rallied for the second day with a fall in US bond yields helping the markets. At the same time, crude oil resumed the rally. Tech stocks performed well yesterday and this gave a push to the Asian tech sector as well. But NIKKEI slid from +1% in the green to red in the morning and is now trading slightly in the green. So, we have to be cautious in direction.
It is a crucial day for our markets with RBI announcing monetary policy today at 10 AM. It is expected that the repo rate will stay unchanged but the reverse repo rate may see an increase from 3.35% to 3.55%. This can be followed by a repo rate hike in April. RBI’s words on inflation and future rate hike can have a major impact on the market.
US CPI inflation data will be out tonight. Since there was a good Jobs data, the market is convinced that the Fed will hike interest rates soon. CPI can play a major role in the decision.
I will be looking a close above 17,540 and if the level is crossed, 17,610 that has been a major resistance for NIFTY can be a crucial point.
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