News Shots
Vedanta announced it has made an oil discovery in its exploratory well in Rajasthan’s Barmer district.
NHPC said its 120 MW Sewa-II power station in Mashka in Union Territory of Jammu and Kashmir has resumed power generation. The power station was under complete shutdown from September 25, 2020 due to damage of the Head Race Tunnel (HRT).
7NR Retail informed exchanges that it has approved the sub-division of equity shares from face value of Rs 10 each to face value of Re 1 each.
Flowering Tree Investment Management Pte Ltd sold 36,000 shares in Shankara Building Products via open market transactions on February 18. With this sale, Flowering Tree now holds 4.85 percent stake from 5.01% earlier.
Himachal Pradesh gave an order to Krsnaa Diagnostics for providing diagnostic and laboratory services in the state.
What to expect?
NIFTY opened with a gap-down at 17,209 and moved down before it made a good bounce-back from 17,070. There was selling pressure towards the end and NIFTY closed the day at 17,206, down 70 points or 0.40%.
BANK NIFTY opened with a gap-down at 37,483 and moved similar to NIFTY. Resistance at 38,000 was strong enough to push BNF below 37,700. BANK NIFTY closed the day at 37,686, up 86 points or 0.23%.
Metals moved down by more than 2%.
The US markets were closed yesterday on account of President’s day. The European markets fell heavily.
The Asian markets are trading lower. The U.S. Futures and the European futures are in the red.
SGX NIFTY is trading at 16,990 indicating a huge gap-down opening.
NIFTY has supports at 17,000, 16,900 and 16,850. We can expect resistances at 17,100, 17,250 and 17,410.
BANK NIFTY has supports at 37,300, 37,000 and 36,700. Resistances are at 37,800, 38,000 and 38,400.
NIFTY has the highest call OI build-up at 18,000. The highest put OI build-up is at 17,000.
BANK NIFTY has the highest call OI build-up at 39,000 and the highest put OI build-up at 37,000.
INDIA VIX is at 22.9.
Foreign Institutional Investors net sold shares worth Rs 2,300 crores. Domestic Institutional Investors net bought shares worth Rs 2,400 crores.
Ukraine was again the hot topic yesterday. Russian military said that they have killed five men trying to cross the Ukraine-Russia border and this has been denied by Ukraine. We can expect Biden-Putin summit this week. The Foreign ministers of the countries will meet soon. Russia has asked for the recognition of the rebel republics that broke away from Ukraine whereas Ukraine has sought UN Security Council to come forward to intervene.
After a while, Russia recognised the sovereignty of the two Separatist territories and EU Commission said that this is a violation of International Law. Putin ordered troops to Ukraine following the act of recognition. Ukraine said that Russia has turned down all the peace efforts but they will not give up their land. UN Security Council met a few minutes ago and the US said that the consequences Russia will have to face will be dire. US and UK have announced new sanctions on Russia now. As you can see, the situation is turning worse there and the global markets are significantly down now.The Russian markets fell by more than 10% yesterday.
The other factors and technical analysis have become insignificant today. Today’s market will be driven by news coming from various parts of the world. As the report is being written, Japan’s PM has condemned the Russian actions and warned of a strong response in case invasion happens.
We will have to wait till evening to see how the US markets would reopen after a gap of three days. Conservative option sellers can wait till Wednesday to enter a position after seeing how US performs.
Let us closely watch 16,800 in case fall continues.
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