News Shots

Eight months after barring the country’s largest private sector lender HDFC Bank from selling new credit cards, the Reserve Bank of India (RBI) has lifted the ban. However, the ban on launching new technology initiatives remains.

Coal India suffered losses to the tune of Rs 700 crore in the April-June quarter owing to a sharp rise in diesel prices.

Canara Bank opened its QIP to raise up to Rs 2,500 crore and set the floor price of the issue at Rs 155.58 per equity share.

Zydus Cadila has received tentative approval from the US health regulator to market Lenalidomide capsules used for the treatment of various types of cancers.

Hindustan Aeronautics has placed an order of Rs 5,375 crore for 99 F404-GE-IN20 engines and support services with GE Aviation, USA to power the Tejas Light Combat Aircraft.

SBI Cards and Payment Services has raised Rs 500 crore by issuing bonds on a private placement basis.

Siemens and Tata Power Delhi Distribution Ltd (Tata Power-DDL) have jointly announced deployment of smart metering technology for over two lakh smart meters in north Delhi.

Ruchi Soya, the edible oil firm, owned by Baba Ramdev-led Patanjali Ayurveda, has received capital markets regulator Sebi’s go-ahead to raise Rs 4,300 crore through a follow-on public offer (FPO).

HCL Technologies signed a five-year, end-to-end IT transformation services deal with Wacker Chemie AG, a German multinational chemical company. HCL Tech will help Wacker Chemie AG to establish a modernised digital workplace and improve its quality-of-service delivery.

Bharat Dynamics has signed a licencing agreement with MBDA to establish a facility for the final assembly, integration, and test of Advanced Short Range Air-to-Air Missile (ASRAAM) missiles in India.

What to expect today?

Yesterday, NIFTY consolidated between 16,590 and 16,500 throughout the day before giving a spike towards the end to close at a fresh all time high of 16,614. You can read all about yesterday’s market movements here.

BANK NIFTY was bearish throughout the day as it opened below 36,000 and broke supports at 35,800 and 35,700. It also recovered a bit at the end to close at 35,867.

NIFTY IT made a large up move yesterday with almost all large and mid cap IT stocks moving up considerably.

Apart from UK’s FTSE, the European markets have closed in the red. The US markets also opened with a gap down and moved down to close 0.7% to 1% down. The US markets were 1.5% down at one point. There was a recovery towards the end.

Most of the Asian markets are in the green. The European futures are a bit up while the US futures are trading flat.

SGX NIFTY is trading higher at 16,648 indicating a gap up opening in the Indian market. 

The immediate supports for NIFTY are at 16,500, 16,450 and 16,380-360, with more strong supports at 16,290 and 16,150. The all time highs are acting as a good resistance now.

The 35,800 zone is an important support for BANK NIFTY. The next support is at 35,500.

36,200-36,350 will act as an immediate resistance for the index. 36,500-600 is also an important resistance to be watched out for in BANK NIFTY. 

Foreign institutional investors (FIIs) net sold worth just Rs 343 crores, and domestic institutional investors (DIIs) also net bought shares worth Rs 266 crores in the Indian equity market. 

In NIFTY, the largest call OI buildups are at 16,700, 16,600 and 16,800 while the largest put OI buildup is at 16,500 followed by 16,400.

In BANK NIFTY, the largest call OI buildup is at 36,000 and largest put OI buildup is at 35,000.

HDFCBANK will be the centre of attraction today as it can move up after RBI has lifted the ban. HDFC BANK, being an index heavyweight, can move both NIFTY and BANK NIFTY.

The Taliban issue in Afghanistan is causing the global markets to consolidate or to be cautious but our market is just moving up, up and up. 

There was intraday volatility yesterday which may continue in the coming days as well.

It is important to understand the trend today. Normally a gap up opening might get sold into and then the market goes down. 

So, let’s see what happens after the opening. If HDFCBANK decides to move up throughout the day or breakout from 1520-1540 levels, then the indices will also move similarly.

NIFTY breaking 16,650 and BANKNIFTY breaking 36,350 are bullish signals. NIFTY breaking 16,550 and BANKNIFTY breaking 35,800 are bearish signals.

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