News Shots

  • The Legend MS Dhoni had retired from Indian Cricket on Saturday. This is me paying tribute to the Captain. He will always remain as an inspirational leader figure, in business and in the stock market. Traders always face the problem of managing emotions and thus, end up losing. All traders could learn a lesson or two from the master to remain cool under pressure and emerge victorious. 
  • PM Modi’s Independence Day speech was highly positive and forward looking. It again reinforced confidence in the Great Indian Dream. We will soon write a detailed article decoding the speech. Stay tuned.
  • AGR hearing was postponed again by the Supreme Court on Friday to today. So, again, telecom companies like Vodafone Idea and Bharti Airtel will be in focus. Also, banks like IndusInd Bank can also be affected by the verdict.
  • In an interesting turn of events, the Supreme Court had suggested Reliance Industries to pay the AGR dues of Reliance Communications as Jio had been using RCom’s spectrum since long. That is, now Reliance Industries can also be affected by the verdict!
  • Reliance Industries (RIL) is in talks to acquire online furniture brand Urban Ladder and milk delivery platform Milkbasket. This should be seen as a wonderful move from Reliance Retail to strengthen its e-tailing presence.
  • With Tata Group’s talks with the British government on a financial rescue package failing, the conglomerate has to look for a strategic partner for Jaguar Land Rover (JLR) and sell its UK steel plant lock, stock, and barrel.
  • Glenmark Pharmaceuticals on Friday posted an over two-fold increase in consolidated net profit at Rs 254.04 crore for the quarter ended June.
  • ICICI Bank completed the allotment of equity shares under its qualified institutions placement and raised about Rs 15,000 crore through the issuance of 41.89 crore equity shares at an issue price of Rs 358 per unit.
  • BPCL has scaled down capex plans for FY21 to Rs 8,000 crore from Rs 12,500 crore originally planned as projects are stuck due to unavailability of skilled manpower.
  • Wipro has completed the acquisition of Brazilian IT firm IVA Servicios de informatica Ltda for nearly Rs 169 crores.
  • Prices of natural gas in India are likely to be cut to $1.9-1.94 – the lowest in more than a decade – from October, denting revenues of producers such as ONGC who are already incurring huge losses on gas production.
  • Mahindra & Mahindra (M&M) unveiled the all new version of its iconic SUV Thar, which it plans to launch later this year. It has grabbed a lot of attention right after the launch.

What to expect today?

  • As mentioned in yesterday’s live session, the fall on Friday was just a one-off event and does not indicate bearishness. Looking at last week’s picture, the market was consolidating. So we can expect a breakout or breakdown this week, with more chances for a breakout. Click here for a detailed analysis of Friday’s market and stock movements. 
  • As mentioned, since Reliance has been dragged into the AGR case and if the verdict comes against Reliance, then Reliance can go down. In that case, given Reliance’s huge weightage in NIFTY, there are chances for NIFTY to test lower levels. Let’s be cautious about that.
  • US Markets closed mixed on Friday. Asian markets are also mostly positive. SGX NIFTY is currently trading more than 100 points higher (as I mentioned in yesterday’s live), indicating a positive gap up opening in the Indian Market.
  • Traders should be cautious if the gap is large. There might be profit booking and that can drag the market down. Wait and understand the trend and momentum.
  • NIFTY is likely to trade between 11,170 and 11,350 today. There is support at 11,250, 11,170 and 11,130 and resistance at 11,250, 11,280 and 11,320.
  • Highest Call Open Interest at 11,500, followed by 11,300. Highest Put Open Interest at 11,000, followed by 11,200. 
  • Foreign institutional investors (FIIs) bought shares worth Rs 46.39 crore while domestic institutional investors (DIIs) sold shares worth Rs 797.08 crore in the Indian equity market on August 14
  • HDFC Bank hasn’t been moving well. It definitely has to be in focus. It has to move high to help NIFTY hold up even if Reliance goes down. And as I always say, watch the banks. Also, pharma sector needs to be in focus.