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.

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