News Shots
Yes Bank approved a proposal to raise Rs 10,000 crore via issue of new shares, debt or any other permissible mode.
Burger King India seeks shareholder approval to raise Rs 1,500 crore via qualified institutional placement.
JSW Energy (Barmer) Limited, a wholly-owned subsidiary of JSW Energy, has completed the buyback of shares aggregating to Rs 1,000 crore.
IRB Infrastructure executed a concession agreement with NHAI for the six-lane Chittoor-Thachur highway worth Rs 909 crore.
HCL Tech signed a five-year agreement with CEMEX, a global construction materials company, for the end-to-end transformation of IT lifecycle management.
The 90 day negotiation period of Zee Entertainment Enterprises with Sony Pictures Networks India over merger ended Tuesday. Final terms of the potential deal are expected soon.
A flash fire in Haldia refinery of Indian Oil Corporation led to burn injuries to 44 persons and 3 deaths.
What to expect?
Yesterday, NIFTY opened with a gap-up at 16,782. It was a volatile day with NIFTY touching 16,930 in the noon but lacking momentum to move up further. Selling kicked in at 2 pm and NIFTY even broke day-low. The index bounced back from 16,700 in the last hour to recover some points and NIFTY closed at 16,771, up 57 points or 0.94%.
BANK NIFTY opened the day with a gap-up at 34,871. The index did not exhibit strength as NIFTY did but still managed to cross 35,000. BANK NIFTY consolidated around 35,000 level for a while before the sell-off happened. Support was taken at 34,400 and BANK NIFTY closed at 34,608, up 168 points or 0.49%.
NIFTY METAL (+2.94%) and NIFTY IT (+1.98%) performed well along with all other sectors.
The US markets moved up higher with Dow Jones closing near 35,000 and NASDAQ closing 2.4% in the green. The European markets closed well in the green.
The Asian markets are trading in the green now. The U.S. Futures and the European Futures are flat.
SGX NIFTY is trading at 16,878 indicating a gap-up opening in NIFTY.
Major supports for NIFTY are at 16,700, 16,600, 16,500 and 16,410. We can expect resistances at 16,800, 16,900, 16,930, 17,000 and 17,100.
BANK NIFTY has supports at 34,400, 34,300, 34,000, 33,900 and 33,600. Resistances are at 34,800, 35,000, 35,230 and 35,350.
NIFTY has the largest call OI build-up at 17,200 and the largest put OI build-up at 16,500.
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 17.54. There was a drop of 7.5% yesterday.
Foreign Institutional Investors net sold shares worth Rs 1,210 crores. Domestic Institutional Investors net bought shares worth Rs 1,405 crores.
The UK government has announced a 1 Billion Pound of economic support for Omicron hit businesses. This is a good cue for the market. The Indian government has written a letter to states wherein it is said that the Omicron variant is at least three times more transmissible than the delta variant.
Tensions in Ukraine continue as Putin warned the US of military action if NATO continues expansion. However, a diplomatic solution can be expected and the markets may not react to it.
NIFTY will be more volatile today as there is a wide range of 16,400-17,000. It will be hard for NIFTY to break these levels. BANK NIFTY has tested 35,000 multiple times. Let us closely watch the level for a breakout. 34,000 on the downside can provide strong support for BANK NIFTY.
Seeing recovery after the major correction, you can make use of the opportunity to average some of your favourite long term picks. But make sure that they are fundamentally strong.
Follow us on the marketfeed app’s Live Feed section to get real-time updates from the market. All the best for the day!