News Shots

Infosys has almost completed its buyback programme and its buyback committee will meet on September 8 to consider closure of the buyback programme.

Fitch Ratings reported uncertainty over the bidder consortiums and process complexity, including valuation, may lead to potential delays in privatization of India’s second-largest fuel retailer, Bharat Petroleum Corporation.

Edelweiss Financial Services has raised Rs 400 crore through issuance of non-convertible debentures (NCDs).

The recently listed cement maker Nuvoco Vistas Corporation reported a more than 200 percent rise in consolidated profit to Rs 114.28 crore in June 2021 quarter as against a net profit of Rs 37.52 crore in the year ago period.

Domestic air passenger traffic continued on the growth trajectory in August with volumes growing up to 31 per cent to 66 lakh over the previous month. Airline stocks can be watched.

HDFC Asset Management Company sold 44.70 lakh shares in Orient Cement via open market transaction on September 3, reducing shareholding to 2.97% from 5.15% earlier.

Cochin Shipyard has emerged as the lowest bidder in the 6-vessel tender from the Indian Navy for the next generation missile vessels worth about Rs 10,000 crore and the formal contract signing is expected shortly.

What to expect today?

Yesterday, NIFTY opened with a gap up and traded above 17,400 but couldn’t sustain it and moved down and took support at yesterday’s high of 17,340. NIFTY managed to close 0.31% up at 17,377. You can read all about yesterday’s market movements here.

BANK NIFTY continued to be weak and moved down almost throughout the day to close 0.46% down at 36,592. It is good that the support at 36,500 has not been broken yet.

REALTY, IT and MEDIA moved up 1% on Friday. But it was mainly INFY and RELIANCE which powered the rally in NIFTY.

The European markets have all moved up considerably and closed 0.6-0.8% higher. The U.S. markets were closed yesterday.

Asian markets are mixed, where Japan is up by 0.7% and Hong Kong is down by 0.7%. The European futures and the U.S. futures are slightly up.

SGX NIFTY is trading higher at 17,416 indicating a gap-up opening in the Indian market. 

Supports for NIFTY are at 17,340, 17,300, 1250 and 17,200. The next pivot point resistance is only at 17,580 for Nifty. We can expect 17,500 to act as resistance. 

The supports for BANK NIFTY are at 36,500, 36,300 and 36,000. Resistances exist at 37,000, 37,200 and 37,500.

The highest call OI buildup in NIFTY is at 17,500 followed by 17,400. The highest put OI buildup in NIFTY is at 17,000 followed by 17,200. PCR is 1. This indicates upward move is limited and NIFTY may consolidate or cool down a bit.

The highest call OI builup in BANK NIFTY continues to be at 37,000 and PCR has come down to 0.6. There is a large straddle buildup at 36,500.

Foreign institutional investors (FIIs) once again net sold worth Rs 589 crores, and domestic institutional investors (DIIs) also net bought shares worth Rs 547 crores in the Indian market. 

RELIANCE and IT ook NIFTY up yesterday as BANKS continued to be weak. These 3 sectors to be in focus today as well. Let’s see BANK NIFTY is taking 36,500 as a support or is bouncing back from there.

Most of the market participants are waiting for profit booking to kick in but NIFTY is only going up. A healthy rally usually has corrections and falls along the way. The only question is will NIFTY touch 17,500 before the fall!

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