News Shots

NSDL has frozen the accounts of three foreign funds — Albula Investment Fund, Cresta Fund and APMS Investment Fund — which together own over Rs 43,500 crore worth of shares in four Adani Group companies. The entities, which are registered at the same address in Port Louis and do not have websites, together hold 6.82 per cent in Adani Enterprises, 8.03 per cent in Adani Transmission, 5.92 per cent in Adani Total Gas and 3.58 per cent in Adani Green.

Adani Enterprises has incorporated a wholly-owned subsidiary, Adani Cement Industries Limited (ACIL), to manufacture all types of cements.

The edible oil firm, Ruchi Soya, which is owned by Baba Ramdev-led Patanjali Ayurveda, has filed a draft document with SEBI to launch a follow-on public offer (FPO) for raising up to Rs 4,300 crore. The FPO is being launched to meet the SEBI norm of minimum public shareholding of 25 per cent in a listed entity.

The drug firm Lupin has received a warning letter from the US health regulator for its Somerset facility in the US.

BSE and NSE will suspend trading in the shares of Dewan Housing Finance Corporation Ltd (DHFL) with effect from Monday.

The state-run power giant NTPC has floated a global expression of interest (EoI) for setting up a hydrogen fuel-based power backup system and a standalone fuel-cell based microgrid system.

Axis Bank is likely to raise its stake in Max Life Insurance to about 20 per cent over the next 12-18 months.

Bank of Maharashtra to raise up to Rs 2,000 crore through qualified institutional placement (QIP) route before July-end.

The glassmaker, Saint-Gobain India, which has entered into the B2C segment in the housing solutions business, is looking at a revenue in the range of Rs 750 crore to Rs 1,000 crore in three to five years.

Eicher Motors expects the current fiscal to be one of the best for the company in terms of new model launches as it looks to drive in an array of new products for domestic and international markets.

Some major Q4 result announcements today:

  • Coal India
  • Indian Overseas Bank
  • IDFC
  • Arti Industries
  • Kajaria Ceramics
  • JB Chemicals and Pharmaceuticals
  • IFB Industries
  • Hemisphere Properties India
  • Responsive Industries
  • Greenply Industries

What to expect today?

Friday, NIFTY opened with a gap up and was trading above 15,800 for a long time and then moved down in the noon and recovered towards the end to close at 15,799. You can read all about Friday’s movements here.

BANK NIFTY was weak and moved down throughout the day. One good thing was BANK NIFTY close just above the support at 35,000.

NIFTY Metal, IT and Pharma did especially well on Friday.

The European markets are up. The US markets closed flat. After the inflation data announcement in the US, the market has been moving up and down in the day and closing flat.

Interestingly, all the Asian markets are trading flat and mixed ahead of the Indian market opening. Markets of China and Hong Kong are closed today.

SGX NIFTY is currently trading lower at 15,760 indicating a gap-down opening in the Indian market.

There are concerns regarding whether Sucheta Dalal’s tweet will affect the market. Now that 3 FPI’s holding shares worth over Rs 43,000 crores in Adani companies have been frozen by the NSDL (explained above in the News Shots section), the issue is getting serious.

Adani stocks can be watched today. There are lesser chances that the whole market will be greatly affected by this. Let’s see how it goes.

The immediate supports for NIFTY are at 15,700, 15,620, 15,570 and 15,500.

15,800 which was broken on Friday can act as a good resistance, going forward. 

35,000 35,400, 35,500 and 35,800 are the next important resistances to be watched out for in BANK NIFTY. 

BANK NIFTY has good support at 34,650 and in the 35,000 zone. The 20-day moving average is at 34,650 and the next support is 34,159.

INDIA VIX stands just above 14, indicating major consolidation in the market.

The highest call OI buildup is at 16,000 followed by 15,800. The highest put OI buildup is at 15,700 followed by 15,500. The PCR in NIFTY is 1. All this also indicates consolidation in the coming days.

But as we have been discussing, the spoil sport is BANK NIFTY, where PCR is 0.7. The highest call option buildup is interestingly at 35,000 which is an in the money strike! This indicates weakness expected in BANK NIFTY by market participants.

Foreign institutional investors (FIIs) net bought worth Rs 18 crores, and domestic institutional investors (DIIs) net sold shares worth Rs 666 crores in the Indian equity market. 

The global markets are once again consolidating after the inflation data. Indian inflation data are to be announced today.

If banks continue their weakness, NIFTY will find it difficult to move up. So, eyes on banks as well. If BANK NIFTY opens gap down below 35,000, let’s see if it can close above 35,000, which can be crucial for the index.

Yes, the alleged Adani led SCAM 2021 fear is in everybody’s mind. Remember, nothing concrete has been announced officially by the Govt. 

In the previous weeks, we have been seeing the market displaying strength on Mondays/Tuesdays. Let’s see how it goes this week.

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