Tag: Russia

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Daily Market Feed Pre Market Report

Crude Oil Spikes Again; Markets Down – Share Market Today

News Shots 

Ruchi Soya raised Rs 1289.80 crore through anchor investors. 46 anchor investors were allotted 1.98 crore shares at issue price of Rs 650.

Sun Pharmaceuticals settled with two plaintiff groups for amount of $485 million in Ranbaxy Generic Drug Application Antitrust Litigation ongoing in the U.S. District Court for the District of Massachusetts.

The Reserve Bank of India has granted approval to SBI Funds Management to acquire upto 9.99% stake in ICICI bank.

Adani Total Gas was granted authorization for development of City Gas Distribution Network by Petroleum and Natural Gas Regulatory Board in 10 geographical areas.

Zomato’s Canada unit, Zomato Canada has been dissolved. It didn’t have any active business operations.

IIFL Finance will buy back 5.875% US $400 million secured notes.

What to expect? 

 NIFTY opened with a gap-up at 17,415 and moved down. There were some up-moves with volume trapping the buyers. The fall continued and NIFTY closed the day at 17,246, 70 points down or 0.4%.

BANK NIFTY opened higher at 36,630 and a proper downtrend followed. But the index managed to stay above 36,000. BANK NIFTY closed the day at 36,147, 201 points down or 0.55%.

Metals moved higher.

The US markets closed deep in the red. The European markets also closed in the red.

The Asian markets also are down. The U.S. Futures and the European futures are trading flat to green.

SGX NIFTY is trading at 17,210. All the factors together indicate a gap-down opening.

NIFTY has supports at 17,200, 17,175, 17,100 and 17,000. We can expect resistances at 17,280, 17,350, 17,480 and 17,620.

BANK NIFTY has supports at 36,000 and 35,500 and 35,300. Resistances are at 36,450, 36,600, 36,900 and 37,400. 

NIFTY has the highest call OI build-up at 18,000 followed by 17,500. The highest put OI build-up is at 16,000.

BANK NIFTY has the highest call OI build-up at 37,000 and the largest put OI build-up is at 36,000.

INDIA VIX is at 24.7.

Foreign Institutional Investors net bought shares worth Rs 500 crores. Domestic Institutional Investors net sold shares worth Rs 300 crores. 

Crude oil prices have again spiked above $120. This is a major concern for India. We cannot expect the crude oil prices to calm down without an agreement being reached in the peace talks. 

Russia said that it is getting harder to go on with the peace talk with Ukraine as the latter changes the stance often. Putin’s adviser, Chubais has quit and left Russia over the war. There are reports that many insiders oppose Putin on the same.

A major move taken by Russia yesterday was the decision to accept the payment for gas in Rubles, for the ‘unfriendly nations’. He added that Russia will continue to supply natural gas unconditionally.

HDFC twins, Kotak Bank and Infosys led the fall yesterday. Reliance closed in the green for another day. Kotak Bank had a blockdeal today and that could be the reason why it fell heavily.

The five minutes candle at 2:30 was a perfect example of trapping the traders where there was a sudden up-move with good volume but there was no follow-up candle. Be prepared for such moves and make sure that you do not fall prey to the moves.

You can see that all the global markets are down. At the same time, FTSE was able to restrict the losses. UK reported inflation at 6.2%, a 30 year high. This is certainly bad for the economy but the stock market did not show any reflection. This is because UK stock market shows a different correlation with inflation data as there is focus on the defensive stocks.

PCR is 0.5. At the same time, the second-highest call build-up is not at 17,400 but 17,600. 16,800 put sellers look safe. Let us see how the OI changes after the market opens.

I will be watching 17,000 on the downside and 17,350 on the upside in NIFTY.

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

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Daily Market Feed Pre Market Report

Global Markets in the Green; NIFTY to Move Even Higher? Share Market Today

News Shots 

Infosys will acquire Germany-based digital marketing agency Oddity for €50 million. The firm will merge with Infosys’ earlier acquisition Wongdoody.

Adani Ports and Logistics cargo volumes crossed 30 crore metric tonne in FY2022.

SBI Life Insurance approved dividend of Rs 2 per share with a face value of Rs.10 each.

SBI acquired 7.84% stake in Open Network for Digital Commerce for Rs 10 crore.

HCL signed a collaboration agreement with NEORIS for integrated IT services.

Adani Power approved scheme of amalgamation of wholly owned subsidiaries – Adani Power Maharashtra, Adani Power (Mundra), Adani Power Rajasthan, Udupi Power Corporation, Raipur Energen and Raigarh Energy Generation with the company.

What to expect? 

 NIFTY opened flat at 17,132. The index moved down but took asupport at 17,000. After a W pattern was formed, Nifty moved higher by more than 300 points. NIFTY closed the day at 17,315, up 198 points or 1.16%.

BANK NIFTY opened flat at 36,012 and fell heavily. This was followed by a strong bounce-back and the index closed at 36,349, up 330 points or 0.92%.

Most of the sectors closed in the green whereas Pharma and FMCG moved down.

The US markets closed well in the green. The European markets moved up.

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

SGX NIFTY is trading at 17,450. All the factors together indicate a gap-up opening.

NIFTY has supports at 17,250, 17,175, 17,100 and 17,000. We can expect resistances at 17,350, 17,480 and 17,620.

BANK NIFTY has supports at 36,000 and 35,500 and 35,300. Resistances are at 36,600, 36,900 and 37,400..

NIFTY has the highest call OI build-up at 18,000 followed by 17,500. The highest put OI build-up is at 16,000.

BANK NIFTY has the highest call OI build-up at 37,000 and the largest put OI build-up is at 36,000.

INDIA VIX is at 24.

Foreign Institutional Investors net bought shares worth Rs 400 crores. Domestic Institutional Investors net sold shares worth Rs 700 crores. 

Zelensky said that he is willing to discuss his commitment not to join NATO. The global markets rallied around the time of this news update. Russia said that Ukraine is not keeping up the pace in peace talks. 

Fed’s Bullard said that the current Fed policy fuels inflation. He added that an aggressive rate hike is needed for reining inflation. This is after Jerome Powell said that Fed may go for a 50 basis points hike in May.

Reliance is at major level after leading the breakout yesterday. Let us keep an eye on the stock along with HDFC Bank that is just below 1,500.

The bearish engulfing candle in Nifty daily chart has been negated with yesterday’s movement. The global markets also are in favour of an up-move.

I will be watching 17,500 on the upside for confirmation of strength.

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

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Daily Market Feed Pre Market Report

Crude Oil Impacts Nifty; Global Markets in Consolidation- Share Market Today

News Shots 

Bank of India invested Rs 108.81 crore in the National Asset Reconstruction Company for 9% of its stake.

Wipro considers declaration of interim dividend on March 25.

KM Sugar approved modernisation, including updating the double sulphitation refining process, at its Ayodhya plant.

Kohinoor Foods considers selling its factory unit in Haryana.

Manappuram Finance postponed fundraising meeting to March 26.

Gulshan Polyols plans to raise Rs 150 crore through a qualified institutional placement. The floor price is Rs 343.66/share, a 7.96% discount to Monday’s closing price.

What to expect? 

 NIFTY opened with a small gap-up at 17,330 and started falling. The gap-filling is in progress. NIFTY closed the day at 17,118, down 170 points or 0.98%.

BANK NIFTY also opened with a small gap-up at 36,570 and fell. The index was able to move above 36,000 towards the end. BANK NIFTY closed at 36,019, down 10 points or 1.13%.

Most of the sectors closed in the red whereas Metals moved up.

The US markets closed in the red. The European markets were mixed with DAC moving down and FTSE moving up.

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

SGX NIFTY is trading at 17,200. All the factors together indicate a flat to gap-up opening.

NIFTY has supports at 17,100, 17,000 and 16,880. We can expect resistances at 17,175, 17,260 and 17,350.

BANK NIFTY has supports at 36,000 and 35,700 and 35,300. Resistances are at 36,300, 36,450, 36,600 and 36,900.

NIFTY has the highest call OI build-up at 18,000. The highest put OI build-up is at 16,500.

BANK NIFTY has the highest call OI build-up at 37,000 and the largest put OI build-up is at 35,000.

INDIA VIX  dropped to 22.9.

Foreign Institutional Investors net sold shares worth Rs 3,000 crores. Domestic Institutional Investors net bought shares worth Rs 250 crores. 

Crude oil spiked again and this led to the negativity in our market. There is a huge gap in Nifty and Bank Nifty. This gap is being filled and we will have to see if this gets completed. Fuel prices have been hiked for bulk sales and this can be followed by a retail price rise as well.

Russia said that though there is progress in the talks, it is way below the expectation with respect to the time spent on it. 

It has been a great up-move in the last few days for our market. The US markets also had performed well, moving up by more than 5% last week. So, the fall is not a surprise especially when crude oil prices have spiked.

Jerome Powell added on Monday that Fed may go aggressive to contain inflation and if the situation demands a 50 basis points hike, Fed will not be reluctant. This led to the negativity in the US markets yesterday.

Looking at the charts, you can notice that the day candle was a bearish engulfing one.

I will be closely watching 17,000 on the downside as it is a psychological level as well.

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

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Daily Market Feed Pre Market Report

SGX Nifty Up, US Futures down; Eyes on Ukraine And Crude Oil – Share Market Today

News Shots 

The Gautam Adani-led conglomerate is exploring potential partnerships in Saudi Arabia, including the possibility of buying a stake in Saudi Aramco, Bloomberg reported citing people with knowledge of the matter.

Indian Oil, BPCL, HPCL: The price of diesel sold to bulk users has been hiked by about Rs 25 per litre in line with a near 40% rise in international oil prices, but retail rates at petrol pumps remain unchanged,

Cochin Shipyard signed an agreement with Dredging Corporation of India to build India’s largest dredger in collaboration with IHC Holland. The project cost is Rs 950 crore.

Tata Consultancy Services reappointed Rajesh Gopinathan as managing director and chief executive officer and extended N Ganapathy Subramaniam’s appointment as chief operating officer for five years.

Bharat Electronics declared a second interim dividend of Rs 1.5 per share.

What to expect? 

 NIFTY opened with a huge gap-up at 17,203 and moved higher on Thursday. The Fed outcome was in line with the expectations and this added to the bullishness. The index faced resistance at 17,350. NIFTY closed the day at 17,287, up 312 points or 1.84%.

BANK NIFTY opened with a gap-up at 36,317. It was a huge gap-up but what followed was a long consolidation. 36,600 offered stiff resistance and BANK NIFTY closed the day at 36,429, up 680 points or 1.9%.

All the sectors closed in the green except for IT.

The US markets closed well in the green on Friday. The European markets closed slightly in the green.

The Asian markets are trading slightly in the green. Nikkei remains closed on account of the equinox. The U.S. Futures and the European futures are trading in the red.

SGX NIFTY is trading at 17,379. All the factors together indicate a flat to gap-up opening.

NIFTY has supports at 17,250, 17,175 and 17,000. We can expect resistances at 17,350, 17,480 and 17,620.

BANK NIFTY has supports at 36,300, 36,000 and 35,700. Resistances are at 36,450, 36,600 and 36,900.

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 37,000 and the largest put OI build-up is at 36,000.

INDIA VIX  dropped to 22.9.

Foreign Institutional Investors net bought shares worth Rs 2,800 crores. Domestic Institutional Investors net sold shares worth Rs 700 crores. 

The markets remained closed on Friday on account of Holi. Thursday saw a heavy up-move, due to the positivity set by the expected Fed outcome and progress in peace talks. The positivity continued in the west on Friday as well.

FIIs ended up as net buyers for the last week. Vanguard group bought stakes in 19 Indian companies on Thursday. The figure stood at Rs 2,300 crores. We will have to keep an eye on FII activity this week as they can take NIFTY again to the highs.

The war is intensifying with Russia attacking Mariuopol. The US will provide Ukraine with javelins and missiles. The US has also asked Turkey to provide Ukraine with Russian made missiles. Russian Ambassador to Bosnia Herzegovina said that they have plans against NATO’S threats.

Let us keep an eye on the crude oil prices which is now just above 110 USD.

It is going to be a range bound market between 17,000 and 17,500 unless there is a trigger. Any positive trigger could take the markets to a new high whereas a negative trigger can have a bigger impact by taking the markets below 17,000 again. Let us watch these levels.

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

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Daily Market Feed Pre Market Report

Fed Hikes Rates as Expected; Nifty To Open With a Huge Gap-Up – Share Market Today

 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!

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Daily Market Feed Pre Market Report

Nifty to Open Higher Following the US Markets; Eyes on Fed Interest Rate Decision – Share Market Today

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!

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Daily Market Feed Pre Market Report

Inflation Above 6% Again; Will Nifty Still Test 17,000? Share Market Today

News Shots 

Reliance New Energy acquired assets of Lithium Werks for $61 million. Assets include entire patent portfolio of Lithium Werks, manufacturing facility in China, key business contracts and hiring of existing employees.

Embassy Office Parks REIT will consider raising funds on March 17.

Jai Corp approved redemption of 84,000, 1% non-cumulative, non-participating redeemable preference shares on March 15.

Wipro partnered with Speira to strengthen the technology infrastructure and cybersecurity requirements of Speira.

RITES declared third interim dividend of Rs 7.5 per share (75% of paid up share capital).

Black Box approved a share split that breaks up shares of face value Rs 10 each into shares of face value Rs 2 each.

What to expect? 

NIFTY opened flat at 16,651 and moved higher. Though there was intermittent profit booking, the rally was steady and the hard task of crossing 16,840 also was done yesterday. NIFTY finally closed the day at 16,871, up 241 points or 1.45%.

BANK NIFTY opened with a small gap-up at 34,734. Though there was a downmove, it rallied heavily throughout the day. The 5 minute chart may look volatile but there was a steady up-move in the 15 minute charts. BANK NIFTY closed the day at 35,312, up 766 points or 2.22%.

IT moved up by 2%.

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

The Asian markets are mostly down except for Nikkei. The U.S. Futures and the European futures are trading in the green.

SGX NIFTY is trading at 16,850 indicating a flat opening.

NIFTY has supports at 16,840, 16,750 and 16,650. We can expect resistances at 16,900, 17,000 and 17,100.

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

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

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

INDIA VIX  is at 25.7.

Foreign Institutional Investors net sold shares worth Rs 180 crores. Domestic Institutional Investors net bought shares worth Rs 1,100 crores. 

Though Sgx Nifty was indicating a gap-down, a flat opening was expected as US futures were trading higher on positive remarks by the representatives of both Russia and Ukraine ahead of the talks. It is expected that there will be a consensus in the coming days.

Bloomberg reported that Paytm banks barred from adding customers as there are reports that they gave data access to Chinese entities that did not own direct stake in Paytm CEO said that it is a baseless allegation.

The Consumer Price Inflation for February came out at 6.07% against an expected 5.9%. WPI stood at 13.11%. We will get to know the impact on the market along with the Fed interest rate decision on Wednesday. 

BANK NIFTY had a strange candle at 11:05 where a wide red candle was under formation soon after a full green candle. AU Bank had fallen by 10% in the same candle. There were rumours spreading in social media about an RBI probe on the bank. The bank has come up saying these are just rumours.

The LIC IPO has been postponed and it was expected. The market is rather volatile now and is never a good time for the largest IPO.

I will be watching 17,000 on the upside and 16,750 on the downside. 

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

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Editorial

Behind the Metal & Mining Stocks Rally: The Bigger Picture

The Indian Metal and Mining Stocks are on a rally. NIFTY Metal, the benchmark index for metal and mining stocks, is trading at record levels. Amidst the Ukraine-Russia crisis, rising oil prices, damaged supply chain, and high inflation levels, metal and mining stocks have offered great returns in the last 3-4 months. What exactly could be the reason for such a rally?

The Big Picture

The NIFTY Metal index was off for a casual start after the beginning of CY2022. With two consecutive waves of rallies and subsequent profit bookings taking place, we did notice significant gap-down openings towards the end of February. This was around the time when the Ukraine-Russia escalations were fresh, and there was a bear run in the broader markets. 

Consequently, we notice a steep hike in the NIFTY Metal index just a day after Russia declared war on Ukraine. Around this time, NIFTY Metal grew by nearly 16% in three consecutive trading sessions.  After Russia declared war on Ukraine, the NIFTY Metal index moved against the broader NIFTY 50 index, i.e. Nifty Metal rallied but NIFTY 50 stocks tanked. After an abrupt rally, we notice a drop in NIFTY Metal, possibly due to profit booking. 

Why Did The Metal Sector Rally Amidst Global Financial and Socio-Political Tensions?

Rising Metal Prices Would Mean Greater Margins

There was an inherent fear in the market that the Ukraine-Russia crisis would impact the supply chain of metals globally. Eventually, stock prices across the world started to soar. The cost of churning out a metal, be it steel, nickel, aluminum, or copper, remains in a fixed price range. If the market price is greater than the production cost, the producer makes a profit. The fact remains that metal prices have soared to record levels. Indian companies have managed to churn metal while demand was stable. An increase in metal prices can help them bag greater profit margins. 

Weaker Rupee Helps Export-based Segments

A weaker rupee generally tends to benefit exporters. An exporter would get more rupees for every dollar worth of goods exported. The Indian National Rupee (INR) has hit its weakest of all times, crossing Rs 77 for every US Dollar. This means that for every dollar worth of metal that an Indian company exports, it would get more rupees in return. Even if metal prices were to subside, Indian metal players could benefit from exports if the rupee remains weak. 

Potential Gain From Global Supply Shortage

Russia accounts for around 9-10% of global aluminum exports, ~11-12% of nickel exports, 20% of thermal coal exports, and 12% of global steel trade. The ongoing and increasing number of sanctions on Russia could significantly damage its ability to export crude oil, natural gas, and metals. India could potentially use this opportunity and hype its exports in the metal industry. 

What Next?

In the first week of March, Ukraine and Russia organized a meeting in Turkey to discuss a ceasefire. Unfortunately, the talks failed. Oil prices crashed after reaching record highs as UAE pushed OPEC to increase oil production amidst a global call to boycott Russian oil. More production of oil would mean lower oil prices and therefore lower inflation rates. The fact that Ukraine and Russia have both agreed to make ‘compromises’ could have added to the crash in oil prices. 

By now, Indian metal players would already be looking out for opportunities to pump up the export. A rise in international prices could eventually lead to an increase in metal prices in domestic markets. This could make infrastructure projects more expensive. Rising metal prices, a weak rupee, and the potential to capture a missing market seem to have fuelled the current bull run in the metal markets. Investors should look out for other factors like export volumes, sanctions, and the global supply chain to track the metal markets. It is advised that investors perform thorough research before investing in the markets.

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Market News Top Crypto News

Russians Liquidating Crypto in UAE as They Seek Safe Havens – Top Crypto News

bitcoin crosses $50000

Russians liquidating crypto in UAE as they seek safe havens

According to a Reuters report, crypto firms in the United Arab Emirates (UAE) are being flooded with requests to liquidate billions of dollars of virtual currency as Russians seek a safe haven for their fortunes. Some clients are using crypto to invest in real estate in the UAE. Others want to use firms there to turn their virtual money into hard currency and stash it elsewhere. Russian clients are afraid Switzerland will freeze their assets.

Crypto prices today: Bitcoin falls 1%, ETH down 0.3%

Bitcoin is currently trading at $39,770.6, a 0.97% decline over the previous day. Ethereum is down 0.36% over the last 24 hours to $2,578.12. Solana fell 2.4% to $80.4, while Cardano is up 1% to $0.804. Meanwhile, Terra (LUNA) jumped 3% to $90.13. The global crypto market cap stands at $1.73 trillion, a 1.12% decline over the previous day.

Crypto among Ukraine’s best weapons against Russia: Ethereum co-founder

Crypto has proven a powerful weapon for Ukraine in its battle against Russia, said Ethereum co-founder Joe Lubin. He added that the crisis in Eastern Europe is becoming “a point of no return” for crypto’s steady integration into global markets. Nearly $60 million in cryptocurrency has been channeled into Ukraine as donations so far.

Bored Ape Yacht Club slammed by crypto fans for new KYC project

Creators of Bored Ape Yacht Club (BAYC) have faced backlash from its fans after the company’s latest collaboration with Animoca Brands. The project requires users to undergo know-your-customer (KYC) verification. The ape community will need to reveal their photo identities and government documents to take part in BAYC’s latest project. BAYC had tweeted out a link to a website where fans can apply.

Asking for personal information underlines the whole purpose of crypto that offers anonymity to the collectors. 

Binance discusses crypto license with Dubai WTC

Binance is in discussions with Dubai World Trade Centre free zone for a virtual asset service provider license. The move comes off the back of Bahrain giving Binance an in-principal approval to be a crypto-asset service provider in the country. The global crypto exchange will support Dubai’s ambition to drive economic prosperity through digital innovation.

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Daily Market Feed Pre Market Report

Mixed Reaction to the Positive Shift in Peace Talks – Share Market Today

News Shots 

GAIL India approved second interim dividend of Rs 5 per equity share, 50% of the paid up share capital.

Lupin received U.S. FDA approval for its Abbreviated New Drug Application (ANDA), Vigabatrin for Oral Solution USP, 500 mg to market a generic equivalent of Sabril for Oral Solution, 500 mg of Lundbeck Pharmaceuticals.

The Reserve Bank of India has allowed HDFC Bank to resume new digital initiatives, removing all previous curbs.

The Reserve Bank of India has barred Paytm Payments Bank from adding new customers.

Tech Mahindra acquired Thirdware Solutions for $42 million.

IDBI Bank executed an investment agreement in National Asset Reconstruction Company for 5% stake.

Torrent Power completed acquisition of Surya Vidyut that operates 156 MW Wind power plants spread across the states of Gujarat, Rajasthan, and Madhya Pradesh.

What to expect? 

NIFTY opened with a small gap-down at 16,537 and had a consolidating day. There was an up-move which was stopped by the resistance 16,700. The index closed at 16,630, up 56 points or 0.2%.

BANK NIFTY also had a flat day. There was a good buying pressure in the morning but the index chose to consolidate in the second half. BANK NIFTY closed the day at 34,546, up 70 points or 0.2%.

Pharma moved higher.

The US markets closed in the red. The European markets had a green close.

The Asian markets are mixed with Nikkei trading higher and Hang Seng trading well in the red . The U.S. Futures and the European futures are trading in the green.

SGX NIFTY is trading at 16,555. All the factors combined indicate a flat opening.

NIFTY has supports at 16,500, 16,450 and 16,320. We can expect resistances at 16,650, 16,700 and 16,800.

BANK NIFTY has supports at 34,150, 34,000 and 33,600. Resistances are at 34,800, 35,200 and 35,500.

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

BANK NIFTY has the largest call OI build-up at 36,000 and the largest put OI build-up at 33,000.

INDIA VIX  is at 25.3.

Foreign Institutional Investors net sold shares worth Rs 2,300 crores. Domestic Institutional Investors net bought shares worth Rs 1,700 crores. 

The war has intensified with Russian forces inching closer to Kyiv. Though there were positive sentiments in the markets after Putin said that there has been a positive shift in the talks, Ukraine’s foreign minister said that there has been no ceasefire and absolutely no progress in the talks. Zelensky hopes for an end to the war in talks but he added that if the war continues, he and his men are ready to fight till death.

The latest update from the war zone is that both the Russian and Ukrainian representatives have said that there are positive outcomes in the new talks that were conducted online and a result will be attained in the coming days, leading to positivity in the Global futures.

The market will first react to the Industrial Output data which came out at 1.3% against an expected 0.9%. We have February CPI data to be out today.

Another major concern we have now is the Covid spread in China. Lockdown has been imposed in some of the cities as cases are spreading at a much higher rate.

It is going to be a tough time for BANK NIFTY with HDFC Bank getting sold heavily. Being a heavyweight, it is continuously dragging both the major indices.

I will be watching 16,700 on the upside and 16,450 on the downside. 

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

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Daily Market Feed Pre Market Report

US Inflation Again at a 40 Year High – Share Market Today

News Shots 

Colgate Palmolive Managing Director and CEO Ram Raghavan has been promoted to president of the company’s enterprise oral care division.

Wipro announced a long-term partnership with Pandorum Technologies for development of technologies that shorten time-to-market and maximise patient outcome during R&D and clinical trials of regenerative medicine.

Indraprastha Gas eceived a letter of intent from the Petroleum and Natural Gas Regulatory Board for for development of CGD network in Banda, Chitrakoot and Mahoba in Uttar Pradesh.

Infosys announced a multi-year transformational collaboration with International Tennis Hall of Fame, making the company ITHF’s official digital innovation partner and title sponsor of the annual ATP Tour tournament — the Infosys Hall of Fame Open.

What to expect? 

NIFTY opened with a huge gap-up at 16,757 and moved down. But 16,610 offered a good support. However, NIFTY was unable to cross the day-high. There was a major sell-off in the noon and NIFTY closed the day at 16,594, up 250 points or 1.53%.

BANK NIFTY also opened with a gap-up at 34,953. The index moved up further but was pushed down by the resistance at 35,400. The second half sell-off took the index down and BANK NIFTY closed the day at 34,476, up 660 points or 1.95%.

All sectors except for IT moved higher.

The US markets closed in the red yesterday. The European markets fell.

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

SGX NIFTY is trading at 16,520 indicating a gap-down opening.

NIFTY has resistances at 16,650, 16,700 and 16,800. We can expect supports at 16,500, 16,450 and 16,320.

BANK NIFTY has supports at 34,150, 34,000 and 33,600. Resistances are at 34,800, 35,200 and 35,500.

Open Interest data will not help much today.

INDIA VIX  dropped to 25.6.

Foreign Institutional Investors net sold shares worth Rs 2,000 crores. Domestic Institutional Investors net bought shares worth Rs 900 crores. 

DAX had moved up very well on hope of an end to the war. The US markets also moved up and as a result, Asian markets opened with a gap-up and continued the rally. Nifty followed the global sentiments and opened with a gap-up. Huge intraday volatility was expected as it was a big gap-up and also, the election results were to be declared. We had a major sell-off in the second half disrupting the positions of traders.

Zelensky said that Putin will not stop with Ukraine and the west will have to put an end to it. The Ukaine foreign ministry said that there has been no progress in ceasefire. However, UK defence ministry reported less air activity. There is still uncertainty in the zone.

The election results were appealing to the market as the ruling party BJP could retain power in Uttar Pradesh and got into power in other states as well. Punjab saw the rise of AAP as expected. This will be a boost to the market sentiments.

The US inflation data was out at 7.9%, a 40 year high again. This has led to the negative sentiments in the global markets now.

I will be looking at 16,750 on the upside and 16,400 on the downside.

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

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Daily Market Feed Pre Market Report

Elections Results: Get Ready For A Volatile Expiry! Share Market Today

 News Shots 

Jindal Stainless (Hisar) became the first company producing coils, sheets and plates in the country to be certified with AS 9100D Certification—a quality management system for aviation, space and defence organisations.

Bharti Airtel agreed to aquire a little over 9% equity stake in Avaada CleanTN Project, a special purpose vehicle for owning and operating the captive power plant. The deal value is pegged at Rs 7.88 crore.

Future Lifestyle received termination notices on sub-leased properties from Reliance entities. Notices pertain to 34 Central stores and 78 Brand Factory stores that contribute 55-65% of retail revenue operations.

PNB Housing Finance approved proposal to raise Rs 2,500 crore by way of issue of equity shares on rights issue basis to eligible shareholders.

Uttam Sugar has redeemed 1,00,000, 6.50% non-cumulative redeemable preference shares of Rs 100 each.

Restaurant Brands Asia has completed acquisition of 87.75% stake in Burger King Indonesia (PT Sari Burger Indonesia).

What to expect? 

NIFTY opened with a gap-up at 16,082 and moved up. It spent time at 16,150 before a fantastic breakout. There was resistance at 16,320 in the noon but NIFTY managed to break the level and close at 16,345, up 332 points or 2.07%.

BANK NIFTY opened flat at 33,159 and showed weakness. The index consolidated till noon before it gave a breakout that has begun the gap-filling. BANK NIFTY closed the day at ,815, up 657 points or 1.98%.

All sectors except for Metals moved higher.

The US markets closed more than 2% in the green. The European markets gave a fantastic rally with DAX moving up by nearly 8%.

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

SGX NIFTY is trading at 16,630 indicating a huge gap-up opening.

NIFTY has supports at 16,320, 16,240 and 16,170. We can expect resistances at 16,410, 16,500 and 16,610.

BANK NIFTY has supports at 33,600, 33,200 and 32,900. Resistances are at 34,150, 34,400 and 34,800

NIFTY has the highest call OI build-up at 17,000 followed by 16,800 and the highest put OI build-up is at 16,000 followed by 16,200.

BANK NIFTY has the highest call OI build-up at 35,000 and the highest put OI build-up at 33,000 ignoring the deeper strikes.

INDIA VIX  dropped to 27.5.

Foreign Institutional Investors net sold shares worth Rs 4,800 crores. Domestic Institutional Investors net bought shares worth Rs 3,300 crores. 

With Zelensy saying Ukraine no longer has expectation of joining NATO as he believes NATO is not prepared to confront Russia, the markets moved higher. This is because it was the demand for NATO membership that sparked the invasion. The world expects a shift to diplomatic dialogues from this aggressive war. Also, Putin said that they have no intention to overthrow the government in Ukraine. All these point out a possibility of an end to the war.

However, we must not forget the sanctions that have been imposed on Russia. These will continue to have an impact on the global economy. Also, the war would end only if all the demands of Russia are met as we discussed yesterday. As you know, any war has much longer repercussions in every aspect.

The European markets had a phenomenal rally yesterday. DAX moved up by nearly 8% in a single day! Crude oil prices have fallen though still at a higher price compared to the pre-war period.

IT was firing in the morning and BANK NIFTY was struggling. But the Banking sector broke out of the consolidation zone in the noon and contributed heavily to NIFTY. Looking at the charts, IT is just at the swing point and Bank Nifty is on the way to fill the gap. Be it Nifty or Bank Nifty, both the indices spent enough time consolidating before giving a fine breakout and sustained the move in the second half adding confidence to the bulls.

SEBI has approved LIC IPO. This would mean that there will be pressure on the big players to keep the market strong enough to be prepared for the IPO. It would also mean that liquidity will get sucked out of the secondary market. 

The highlight of the day is the election results. The outcome of five states will be out today including Uttar Pradesh. If the ruling party BJP suffers a setback in UP, it can lead to a fall in the markets. So the conservative traders can wait for the counting to settle a bit to get an overall picture and then only enter as there can be huge volatility.

Where the Pre-Market settles will be significant today as Sgx Nifty shows quite a big gap. 16,700 should be the upper limit for the expiry day unless news drives the market.

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