Sell-off in US After CPI; SGX Nifty Indicating a Major Gap-down - Share Market Today

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India Cements officials will meet investors and analysts on February 11 to discuss financial results.

Trent recorded sharply higher profit at Rs 113.78 crore in Q3FY22 against Rs 64.03 crore in Q3FY21. Revenue jumped to Rs 1,499.08 crore from Rs 853.63 crore YoY.

Torrent Power acquired 25 MW solar power plant from Blue Diamond Properties & Balrampur Chini.

Tata Chemicals profit shot up to Rs 300.98 crore in Q3FY22 against Rs 160.85 crore in Q3FY21, and revenue rose to Rs 3,141.58 crore from Rs 2,606.08 crore YoY

Zomato posted loss at Rs 63.2 crore in Q3FY22 against loss of Rs 352.6 crore in Q3FY21; revenue jumped to Rs 1,112 crore from Rs 609.4 crore YoY.

Bajaj Finserv officials will meet institutional investors and analysts on February 11 to discuss financial results.

Sun TV Network clocked higher profit at Rs 457.39 crore in Q3FY22 against Rs 441.82 crore in Q3FY21; revenue increased to Rs 1,033.1 crore from Rs 972.34 crore YoY.

What to expect?

NIFTY opened the day with a gap-up at 17,532 and moved down. The index took support at previous day high and bounced. It was a strong rally and NIFTY consolidated near the resistance zone of 17,600 with a positive bias. NIFTY closed the day at 17,606, up 142 points or 0.81%.

BANK NIFTY opened with a small gap-up at 38,717. After a small down-move, BANK NIFTY moved up but could not cross 39,200. The index closed the day at 39,010, up 400 points or 1.03%.

All the sectors closed in the green except for NIFTY AUTO that consolidated.

The US markets closed deep in the red yesterday. The European markets were mixed with DAX closing flat after a volatile day.

The Asian markets trading mixed with China trading in the green. NIKKEI is closed today on account of National Holiday. The U.S. Futures and the European futures are trading in the red.

SGX NIFTY is trading at 17,435 indicating a major gap-down.

NIFTY has supports at 17,540, 17,470, 17,430, 17,380 and 17,330. We can expect resistances at 17,630, 17,690, 17,740, 17,780 and 17,820. 17,780 is a major level.

BANK NIFTY has supports at 38,850, 38,720, 38,600 and 38,500. Resistances are at 39,200, 39,330, 39,500 and 39,700. Let us watch 39,330.

NIFTY has a good straddle build-up at 17,600. Apart from the straddle, NIFTY has the highest call OI build-up at 18,000 and highest put OI build-up at 17,400.

Similarly, BANK NIFTY has the highest call OI build-up at 40,000 and the highest put OI build-up at 38,000 apart from the straddle build-up at 39,000.

INDIA VIX is at 17.7.

Foreign Institutional Investors net sold shares worth Rs 1730 crores. Domestic Institutional Investors net bought shares worth Rs 2730 crores.

RBI monetary policy decision was the highlight yesterday. It was expected that the repo rate would be unchanged and the reverse repo rate would be increased from 3.35% to 3.55%. But it was a surprise for the market when the Governor said that they are continuing the accomodative stance without increasing the reverse repo rate for now. This created positive market sentiments. Not diving deeper into the complexities like arguments against the status quo, let us conclude that the dovish policy adoption helped boost the market sentiments.

US CPI inflation came out at 7.5%. The expected was around 7.2%. This is again at a forty year high. The jobs data also was good which indicates that it is high time for the Fed to hike interest rates. Also, the US ten year bond yield spiked to 2% yesterday and this is happening for the first time since August 2019. As a result, US markets fell heavily.

Looking at price action, you can see that 17,800 will be a major hurdle for NIFTY. The corresponding level for BANK NIFTY would be 39,450. It has been a sharp up-move in our market. NIFTY is now trading above the 50 ema indicating strength. Let us se if profit booking kick in with global markets in negative sentiments after yesterday’s sell-off.

For immediate moves, let us watch the range 17,540-17,640 if the gap-down is not a major one. If there is a sell-off, then 17,430 should act as a support.