News Shots
Great Eastern Shipping Co. approved a proposal to buy back its own fully paid-up equity shares at Rs 333 apiece for Rs 225 crores.
Mahindra Logistics will acquire Meru by the end of February.
Inox Wind Energy approved to create, offer, issue and allot on a preferential issue basis of up to 10,62,574 convertible warrants at an issue price of Rs 847 per warrant.
MOIL may buy back up to 3.38 crore shares at Rs 205 apiece.
RBL Bank extended partnership with Bajaj Finance for co-branded credit cards till December 2026.
RBI approved the re-designation of Rajiv Anand as the Deputy Managing Director of Axis Bank till 3rd August 2022.
Greenlam Industries is considering fundraising plan including QIP.
What to expect?
Yesterday, NIFTY opened with a gap-down at 16,949. The first few minutes were extremely volatile and the index bounced back from 16,833. NIFTY started moving up but volatility killed intraday traders. The bulls could take the index above 17,000 and also to 17,100 though for a brief duration. NIFTY finally closed the day at 17,086, up 83 points or 0.49%.
BANK NIFTY opened the day with a gap-up at 34,596. After taking support at 34,233, BANK NIFTY started moving up. 35,000 was crossed in the second half and the index finally closed at 35,058, up 201 points or 0.58%.
NIFTY IT(+0.69%) and NIFTY PHARMA (+1.62%) moved up whereas NIFTY MEDIA (-1.02%) dropped. Other sectors consolidated.
The US markets closed well in the green and S&P 500 created a new all-time high. The European markets also closed in the green except FTSE that closed flat.
The Asian markets are trading with a positive bias. The U.S. Futures are slightly in the red and the European Futures are mixed with DAX futures slightly in the red.
SGX NIFTY is trading at 17,183 indicating a gap-up opening in NIFTY.
Major supports for NIFTY are at 17,000, 16,900, 16,830 and 16,770. We can expect resistances at 17,150, 17,200, 17,250, 17,325 and 17,400
BANK NIFTY has supports at 35,000, 34,800, 34,600, 34,400 and 34,000. Resistances are at 35,150, 35,230, 35,330, 35,530, 35,700 and 36,000.
NIFTY has the largest call OI build-up at 17,500 and the largest put OI build-up at 17,000.
BANK NIFTY has the highest call OI build-up at 36,000 and the highest put OI build-up is at 34,000.
INDIA VIX is at 17.12, up by 6%.
Foreign Institutional Investors net sold shares worth Rs 1038 crores. Domestic Institutional Investors net bought shares worth Rs 956 crores.
The fact that S&P 500 is at all-time high has shrugged off all the worries the market had on Omicron spread. But the Asian markets have not embraced it though most are trading in the green. SGX Nifty is indicating a good gap-up. Whether this gap-up will be sustained is the question.
17,200 will be a strong resistance. Even if this level is crossed, there is the hurdle of 17,300 for NIFTY to continue the recovery. There is no doubt that the market will try to keep NIFTY above 17,000 as the global cues are positive.
BANK NIFTY is above the 35,000 mark. But the journey upward will be hard with so many major resistances. 35,500 once crossed with strength can give a good up-move. Let us keep an eye on NIFTY IT also which is at all-time high.
We have less volume traded in the market as this is the last week of the year. This along with the RBL news had created extreme volatility yesterday. You can expect volatility today as well if NIFTY opens with a gap-up. Watch the price action of the first hour and enter safe trades accordingly.
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