News Shots 

Maruti Suzuki India expects an adverse impact on vehicle production in Haryana and Gujarat plants in December due to chip shortage. Total production volume across both locations to be around 80-85% of normal production.

UltraTech Cement commenced mining of coal from its Bicharpur Coal mines situated in Madhya Pradesh. The mines have extractable reserves of 29 MMT.

Rail Vikas Nigam entered into an MoU with the Economic Policy Research Institute of Kyrgyz Republic for the development of railway corridor projects between Bishkek to Karakechenskoye.

NTPC: Unit-4 of 250 MW capacity of Nabinagar Thermal Power Project of Bhartiya Rail Bijlee Company, a subsidiary company of NTPC, has commenced commercial operation. With this, the commercial capacity of NTPC group will become 67,907.5 MW.

Coal India will invest Rs 19,650 crore to boost rail transport infrastructure.

India Pesticides has received an allotment letter for additional 1,300 square metres of land adjacent to its existing Sandila Plant.

Infosys will transfer Daimler’s High-Performance Computing (HPC) workloads used to design vehicles and automated driving technologies to one of Europe’s greenest data centres, Lefdal Mine Datacenter in Norway.

What to expect? 

Yesterday, NIFTY opened with a small gap-up and moved up with strength. With news about vaccine inefficiency against Omicron spreading, NIFTY fell heavily by more than 300 points. Though there was a recovery of nearly 200 points in between, the index fell towards the end of the day and closed at 16,983, down 70 points or 0.41%.

BANK NIFTY also moved up in the beginning after opening at 36,025. Sell-off took the index down by 1000 points and consolidation followed. BANK NIFTY fell further in the last hour and the index closed at 35,695, down 281 points or 0.78%.

Major sectoral indices were mixed with NIFTY IT(+0.5%) moving up and NIFTY METAL(-1.9%) closing in the red.

The US markets fell by nearly 2% yesterday. The European markets also closed in the red though there were efforts to recover.

The Asian markets are trading in the green. The U.S. Futures and the European Futures are trading in the green now except CAC 40 futures.

SGX NIFTY is trading at 17,137 indicating a gap-up opening in NIFTY.

Major supports for NIFTY are at 16,915, 16,880, 16,850, 16,780 and 16,700. We can expect resistances at 17,000, 17,100, 17,160, 17,200, 17,250 and 17,325.

BANK NIFTY has supports at 35,500, 35,300, 35,000 and 34,900. Resistances are at 36,350, 36,500, 36,650, 36,800 and 37,000.

The highest call OI build-up in NIFTY is at 17,500, followed by 17,600. The highest put OI build-up is at 17,000 followed by 16,500.

BANK NIFTY has the highest call-OI build-up at 37,000 and the largest put OI build-up is at 36,000, followed by 35,000.

INDIA VIX increased further to 21.17.

Foreign Institutional Investors net sold shares worth Rs 5,445 crores. Domestic Institutional Investors net bought shares worth Rs 5,350 crores. 

There was a very good upmove in the morning yesterday. But the spread of the statement by the CEO of Moderna that vaccines would struggle to combat Omicron caused panic in the market and the index fell by more than 300 points. 

FIIs have sold for another day. The news acted as the best trigger for FIIs to offload another 5000 crores in the Indian market. DIIs have bought for almost the same amount but FII selling leads to loss of confidence in the market. Who got trapped in the volatility were retailers witnessing huge intraday moves. VIX has shot up again.

The GDP data was favourable with Q2 growth standing at 8.4% YoY. But it was insignificant as FIIs sold heavily. Unless FIIs stop their heavy selling, it would be hard for our market to bounce back even though DIIs are buying huge quantities.

Jerome Powell, the US Fed Chair hinted at a possibility of quicker tapering as the US is in the grip of inflation. This accelerated the fall of the US markets yesterday. However, US futures and Asian markets are trading in the green now.

Price action in the day time frame is interesting. The Tuesday candle turned out to be deceptive as it had hinted at reversal. But the following candle was a bearish one. It will be hard for NIFTY to break the high of the previous candle making it a range-bound week with a good support at 16,780.

Make sure that you go for safe positions as the market is highly volatile. I will closely watch 16,780 which is the week-low. I will watch 17,325 on the upside in the coming days for strength. 

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