Tag: Fed

 News Shots 

SAIL declared a second interim dividend of Rs 2.5 per equity share, 25% on the paid-up equity share capital of the company.

Adani Power completed the acquisition of Essar Power MP Ltd. under the Insolvency and Bankruptcy Code for a total consideration of Rs 4,250 crore for the 1200 MW power plant.

NXT Digital has given in-principle approval to merge Hinduja Leyland Finance with itself.

Zydus Lifesciences signed a share purchase agreement to acquire up to an 11.86% stake in AMP Energy Green Nine for setting up a captive wind-solar hybrid power project in Gujarat.

JSW Energy approved the re-organisation of its renewables and thermal power businesses.

Mahindra and Mahindra agreed to increase their stake in Carnot Technologies from 15.6% to 52.69% for Rs 14 crore.

Oil India approved a joint venture with Assam Gas in three geographical areas offered by the Petroleum and Natural Gas Regulatory Board for city gas distribution. It also approved an investment of Rs 6,555 crore by Numaligarh Refinery for a petrochemical project.

What to expect? 

NIFTY opened with a huge gap-up at 16,856 and continued to move up. 16,935 offered resistance and NIFTY moved down. But support was taken at the day-low. The index stayed within the 90 points zone before it finally broke out in the last hour. NIFTY closed the day at 16,975, up 312 points or 1.87%.

BANK NIFTY opened with a gap-up at 35,462. There was an up-move till 35,800. BANK NIFTY stayed between the high and low through the day. There was a very good up-move in the end taking the index to 35,748, up 726 points or 2.07%.

All the sectors closed in the green.

The US markets closed well in the green after a volatile day. The European markets also moved higher.

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

SGX NIFTY is trading at 17,270 indicating a huge gap-up opening.

NIFTY has supports at 16,935, 16,840, 16,800 and 16,700. We can expect resistances at 17,000, 17,050, 17,100, 17,190, 17,350 and 17,500.

BANK NIFTY has supports at 35,700, 35,500 and 35,200. Resistances are at 35,800, 36,000 and 36,200.

NIFTY has the highest call OI build-up at 17,500 and the highest put OI build-up is at 16,500. There is significant call build-up at 17,000.

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

INDIA VIX  dropped to 24.1.

Foreign Institutional Investors net bought shares worth Rs 300 crores. Domestic Institutional Investors net bought shares worth Rs 700 crores. 

At around 2:50 pm, there was an update that the Russian delegate had said there is progress in the talks with Ukraine. This led to the last hour-breakout. Russia has proposed a neutral model for Ukraine, as in the case of Austria and Sweden. However, it is ironic that Sweden is actively discussing NATO membership. Russia has warned them and this is clear evidence of how the World has been polarised since the war, which will have serious impacts on businesses all around the world.

Reliance is at an important level, 2400. Though there was rejection from the level in the first half, it managed to close above the level with positivity in the general markets.

FIIs have finally become net buyers after a very long time. It was on 11th February that they had bought it the last time. It helped the markets rally higher with Nifty futures trading above 17,000.

Fed has hiked the key interest rate by 25 basis points, as expected. This is for the first time since 2018. The US 10 year bond yield has risen to the highest point since May 2019. It is expected that there will be at least 6 more rate hikes and this is a major concern. Jerome Powell said that the world is now worried about stagflation. Stagflation is a condition where the inflation is high but at the same time, economic growth slows down and the monetary committee will find it hard to design the policies to rein the ironic situation.

He added that the Ukrainian invasion has a serious impact on the economies and it has accelerated inflation. This would mean that it will take much more time for the inflation rate to return to the target of 2%. However, he expects inflation to fall in the second half of the year.

The US markets moved down with the Fed hike which could be profit booking or the impact of the announcement of seven hikes along with stagnation worries. With Powell’s speech that indicated a fall in inflation towards the end and the emphasis on the strength of the economy, the market shot up, closing in the green. There was positivity already set by the European markets with the positive shift in peace talks.

At the same time, Russia has defaulted on the bond payment that was due on Wednesday. They were due to make a payment of $117 million as interest payments to investors denominated in dollars. As the foreign exchange reserves of Russia are frozen by international sanctions, they may be unable to pay which would lead to a historic default! The Russian foreign minister said that they had already given the order but it is in the hands of the US authorities who should clarify whether the payment can be processed. If the payment is not done, it can have serious repercussions in the global economy. There is a grace period of 30 days.

The US has expressed disapproval of India’s decision to go ahead with crude import from Russia, though it is not a violation of sanction. Also, the European Union imposed an anti-subsidy duty on the import of stainless steel from India and Indonesia.

We will have to see whether there will be profit booking after the gap-up opening. It is certain that this is going to be a volatile expiry.

Follow us on the marketfeed app’s Live Feed section to get real-time updates from the market. All the best for the day!

News Shots 

ITC acquired 1,040 compulsorily convertible preference shares worth Rs 10 each of Mother Sparsh Baby Care.

Punjab National Bank reported a fraud of Rs 2,060.14 crore in IL&FS Tamil Nadu Power Co. at a corporate branch in Delhi. The bank has already made provisions amounting to Rs 824.06 crore.

Zomato is weighing an all-stock takeover deal for Blinkit, Bloomberg reported. Separately, it has agreed to acquire 16.66% stake in Mukunda Foods. It has also approved a $150-million loan to support its capital requirements.

Munish Ravinder Varma, managing partner at SoftBank Vision Fund, has stepped down from the board of Paytm‘s parent firm.

Future Enterprises defaulted on interest of Rs 9.91 crore on non-convertible debentures that was due on March 14.

Shyam Metalics approved capital expenditure of Rs 990 crore to expand its Sambalpur and Jamuria facilities.

What to expect? 

NIFTY opened with a gap-up at 16,906. There was a tough competition between the buyers and the sellers which the latter ultimately won. The fall continued by breaking even 16,610. NIFTY took support at 16,550 and finally closed the day at 16,663, down 208 points or 1.23%.

BANK NIFTY opened with gap-up at 35,488. Though there was an initial fall, the index tried moving up. But sellers succeeded finally and the index went down till 34,700. BANK NIFTY finally closed the day at 35,023, down 290 points or 0.82%.

Metals fell by more than 4%.

The US markets closed in the green. The European markets closed slightly in the red.

The Asian markets are trading well in the green. The U.S. Futures and the European futures are trading slightly in the red.

SGX NIFTY is trading at 16,916 indicating huge gap-up opening.

NIFTY has supports at 16,650, 16,610, 16,570 and 16,500. We can expect resistances at 16,700, 16,760, 16,800 and 16,840.

BANK NIFTY has supports at 34,800, 34,400 and 34,000.. Resistances are at 35,200, 35,500 and 35,700.

NIFTY has the highest call OI build-up at 17,000 and the highest put OI build-up is at 16,000.

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

INDIA VIX  is at 26.7.

Foreign Institutional Investors net sold shares worth Rs 1250 crores. Domestic Institutional Investors net bought shares worth Rs 100 crores. 

Tata Motors, Eicher Motors and Ashok Leyland have been approved for the PLI scheme and this is why Auto sector did not fall with the general market.

We have not received a solid conclusive update from the peace talks. The Russian representative said that it is premature to give an update whereas the Ukraine delegate said that there is either going to be an agreement or a full scale attack by Russia. However, Zelensky said that more time was needed though the peace talks are becoming more realistic.

The Russians had taken the attack towards the western region bordered by Poland. As you know, the NATO forces are deployed there and in case there is an accidental strike, it can lead to a disastrous war. The Yamal-Europe pipeline has been suspended now.

Reliance has erased the gains of the last three days. ICICI bank and SBI saw buying pressure and recovered well. Let us watch these stocks today.

Fed will announce their interest rate decision tonight. It is expected that there will be a hike of 25 basis points. If a 50 bp hike is announced tonight, then things can go wrong and the market may see a fall in the coming days. It is better not to hold an overnight position amid uncertainty.

Following the US Markets, we may have a huge gap-up today. However, there can be intraday volatility as it is a gap-up after a fall. We will have to closely watch where the support is taken if profit booking kicks in after the gap-up.

Follow us on the marketfeed app’s Live Feed section to get real-time updates from the market. All the best for the day!