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.