News Shots

Tata Steel Mining and Jindal Stainless signed an MoU to jointly unearth chrome ore locked up in the boundary between their mines located at Sukinda in Odisha’s Jajpur district.

Bata India will focus on expansion in small towns and online channels as part of its efforts to save cash through enhanced productivity, cost-reduction and tight inventory management to overcome the challenges of the pandemic.

Vedanta said its aluminium vertical has invited partnerships from cement producers like ACC, UltraTech Cement and JK Cement to use its by-products for manufacturing low-carbon cement.

The leading microfinance lender CreditAccess Grameen has raised USD 25 million (about Rs 187 crore) debt from Swedfund International, the Swedish development finance institution, through the external commercial borrowing route.

HCL Technologies posted a 9.9 percent rise in consolidated net profit to Rs 3,214 crore for the June 2021 quarter, which disappointed analysts.

The cement maker ACC reported an over two-fold jump in consolidated net profit to Rs 569.45 crore for the second quarter ended June 2021, helped by a lower base, increase in sales and cost efficiency.

Indian Bank  reported a 220 per cent jump in its standalone net profit to Rs 1,182 crore for the quarter ended June 2021, helped by a steady growth in interest income and control over expenses.

City Union Bank approved raising capital through QIP of Rs 500 crores.

Major Q1 result announcements today:

  • Bajaj Finance
  • Asian Paints
  • ICICI Prudential Life Insurance Company
  • Syngene International
  • ICICI Securities
  • Crisil
  • DCM Shriram
  • Shyam Metalics and Energy
  • Newgen Software

What to expect today?

Yesterday, NIFTY opened with a huge gap down and then moved up strongly, as expected. But after the western markets displayed weakness, NIFTY fell heavily, tested 15,700 and closed near 15,750. You can read all about yesterday’s movements here.

BANK NIFTY was highly bearish, breaking multiple supports, breaking even the support at 35,000. There was a pull back towards the end so that the index could close nearly 2% down, just above 35,000.

BANKS and FINANCIAL SERVICES had a very bad day. PHARMA and REALTY continued to do well.

The global markets displayed major weakness and it is being attributed to the growing fear of the Delta variant of Coronavirus.

The European markets were the most hit, down by nearly 2.5%. US markets also opened with a major gap down and then consolidated with a negative bias to close 1-2% down!

Asian markets seem to be stabilizing now. Out of the open Asian markets, almost all are in red but only slightly – just 0.5% down. US and European futures are interestingly trading in green.

Since Asian markets are not continuing the free fall, SGX NIFTY is trading slightly lower at 15,731 indicating a slight gap down opening in the Indian market. FYI, it was trading at nearly 15,600 yesterday night!

We have strong local cues which help NIFTY take support at 15,600 ranges and to move back to 15,800-15,900 range.

If the Western markets also do not fall today like the Asian markets, then NIFTY can also stabilise or move up from here.

The immediate supports for NIFTY are at 15,700 and 15,640.

The immediate resistance for NIFTY will be 15,800.

36,500, 35,800 and 36,000 are the important resistances to be watched out for in BANK NIFTY. 

BANK NIFTY has good support at 35,000 and 34,500.

Foreign institutional investors (FIIs) net sold worth Rs 2198 crores, and domestic institutional investors (DIIs) net bought shares worth Rs 1047 crores in the Indian equity market. 

The largest call OI buildup is at 15,800 and the largest put OI buildup is at 15,700 and 15,500. The PCR is at 0.6 currently, indicating bearishness.

HDFC BANK and HDFC contributed a lot to the fall yesterday. Let’s see if it stabilises/moves up today – eyes on them!

The strength in our markets will be tested today. Look at how NIFTY has returned to its favourite consolidation position of 15,700-15,800. If 15,700 is broken, there will be further weakness. If 15,800 is broken, then the market is getting ready to move further up. Let’s see how it goes.

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