Short Covering? Can NIFTY Go Higher? Share Market Today

News Shots

Bharti Airtel nearly tripled its consolidated net profit for the fiscal fourth quarter, driven by the sharp tariff hikes taken last November, which helped boost average revenue per user (ARPU) and one-time gains. Consolidated net profit increased to Rs 2,008 crore in the March quarter from Rs 759 crore a year earlier.

TVS Motor Company has announced the sale of Intellicar Telematics Pvt Ltd, bought in December 2020, to Fabric IOT Pvt Ltd for Rs 45 crore. The divestment is part of the value creation initiatives on its digital portfolio.

Dr Lal Pathlabs reported lower than expected earnings for the March quarter. Net profit for the quarter stood at Rs 61.30 crore, down 23 percent from a year ago. Analysts expected a net profit of Rs 82.31 crore for the quarter. Revenue rose 13 percent YoY to Rs 486 crore. Analysts estimated revenue at Rs 534 crore for the quarter. Total cost rose 24 percent to Rs 414 crore.

Indian Oil Corporation consolidated net profit for the quarter ended March stood at Rs 6,645.72 crore, down 26.37 percent from Rs 9,026.49 crore in the same quarter last year due to a margin squeeze in petrochemicals and losses on auto fuel sales.

DLF said its net profit for the March quarter fell 16 percent year-on-year to Rs 405 crore from Rs 481 crore. Revenue dropped 9 percent from a year ago to Rs 1,550 crore. Total cost declined 10 percent to Rs 1,340 crore. Net profit rose to Rs 1,500.86 crore during the last financial year from Rs 1,093.61 crore in the 2020-21 fiscal year.

What to Expect?

NIFTY opened with a gap-up at 15,917 and broke the level of 16,070. That was a fine breakout and the index rallied 400 points yesterday. NIFTY closed the day at 16,259, up by 417 or 2.63%.

BANK NIFTY opened with a gap-up at 33,810 and tried moving down. There was a bounce back from 33,700 and the index moved up. There was consolidation near 34,100 and BNF finally closed the day at 4,302, up by 704 points or 2.1%.

METALS rallied yesterday.

The US markets and the European markets moved higher.

The Asian markets are trading in the red except for NIKKEI. The U.S. Futures and the European futures are trading slightly in the red.

SGX NIFTY is trading at 16,237 indicating a flat to gap-down opening.

NIFTY has supports at 16,140, 16,080 and 15,970. We can expect resistances at 16,370, 16,450 and 16,600.

BANK NIFTY has supports at 34,070, 33,900 and 33,750. Resistances are at 34,440, 34,700 and 35,000.

NIFTY has the highest call OI build-up at 17,000 followed by 16,500. The highest put OI build-up is at 15,000 followed by 16,000.

BANK NIFTY has the highest call OI build-up at 35,000 and the largest put OI build-up is at 34,000.

INDIA VIX is at 22.7.

Foreign Institutional Investors net sold shares worth Rs 2,200 crores. Domestic Institutional Investors net bought shares worth Rs 2,300 crores.

LIC got listed and it gave disappointment to those who got the allotment as there was no listing gain and the stock closed at 875.

Jerome Powell said yesterday that the FED will not hesitate to go beyond the ‘neutral’ to bring inflation down. This means that there will be massive rate hikes coming up if the inflation stays higher. We can expect 50 basis points hike if the condition stays the same. But the US markets did not react to Powell’s speech.

Russia fired missiles near the Polish border but there was no impact on the stock market.

Wholesale Price Index indicated a spike in inflation as the figure is at 15.08% for April. It was 14.55% in March. But we have already reacted to the CPI which came at 7.79% last week.

NIFTY has moved out of the bearish channel with that green candle on the day-chart. This along with the recovery in the global markets gave hope for NIFTY to give further up-moves in the coming days. However, we have hard resistances on the upside.

We had a similar rally in early March but we are back to the same spot in just two months. The global economic conditions have not changed much. It has worsened since the Ukrainian invasion with inflation spiking and interest rate hikes.

I will be watching 16,140 on the downside and 16,370 on the upside. 34,800 is the major level to watch in Bank Nifty if the up-move continues.