News Shots

Larsen & Toubro said its wholly-owned subsidiary won a significant order from Petronet LNG.

Adani Ports’ acquisition of over 10% stake in Gangavaram Port Ltd from the Andhra Pradesh government was approved by the Competition Commission of India(CCI).

Yes Bank announced a partnership with Visa for credit card issuances, after RBI paused issuance of MasterCard based cards.

Jindal Steel said it has increased the inspection capacity of rails to one million tonnes per year. It has been upgraded with 5th generation auto tech for unmanned inspection.

AU Small Finance Bank said it has issued over 40,000 credit cards since its launch a few months back, with more than half of them being first time users.

Action Construction Equipment launched its Qualified Institutions Placement for fundraising. The floor price has been fixed at Rs 254.55/share, higher than the current market price of Rs 247.

3.2 crore shares of SBI Cards are being sold by CA Rover Holdings through a block trade, according to Bloomberg. Shares are being offered at Rs 1,021 to Rs 1,072.3 each at a range 4.8% to no discount to yesterday’s close.

What to expect today?

Yesterday, NIFTY opened with a gap down near 17,450 and moved up till 17,600, took resistance and then fell steeply to close 1% down at 17,396. You can read all about yesteday’s market movements here.

BANK NIFTY also followed a similar pattern by opening gap down, moving up and then crashing down. The index closed at 37,145, down 1.76%.

NIFTY METAL(-6.6%) and NIFTY PSU BANK(-4.1%) saw sharp sell-offs today. All sectoral indices except NIFTY FMCG(+0.91%) closed in the red, with REALTY(-2.1%) and PHARMA(-1.8%) both closing over 2% down.

The effect of the Evergrande issue was seen in the global markets yesterday. The European markets closed nearly 1%-2% down. The U.S. markets also fell nearly 2%. But it was super positive to see the last half an hour rally and recovery in the US markets.

Most of the Asian markets are trading flat, and stabilizing after yesterday’s fall. HONG KONG is just 0.07% percent. NIKKEI is down nearly 2% but that is because is NIKKEI was closed yesterday and it is factoring in the global down move today. The European futures and the U.S. futures are now trading in the green.

SGX NIFTY is trading higher at 17,430 indicating a gap up opening in the Indian market.

Supports for NIFTY are at 17,390, 17,360 and 17,300. 17,500, 17,540 and 17,600 can act as resistances for the index

The supports for BANK NIFTY are at 37,000 and 36,800. Resistances exist at 37,500, 37,800 and 38,000.

Foreign institutional investors (FIIs) net bought worth Rs 92 crores continuing their buying spree, and domestic institutional investors (DIIs) net sold shares worth Rs 1626 crores in the Indian market. 

In NIFTY, 17,800 has the highest call OI buildup, followed by 17,700 and 17,600. The highest put OI buildup is at 17,000 followed by 17,400.

38,000 has the highest call OI buildup in BANK NIFTY and 37,000 has the highest put OI buildup.

The PCR in both NIFTY and BANK NIFTY has dropped to 0.6 levels indicating weakness in the market.

It is very interesting to see the Asian markets stabilize after huge falls in the US and Europe yesterday. Evergrande is down nearly 4% but the broader markets in China are not showing major weakness anymore.

I think we have to give some time to the markets so that a clear trend can be established.

VIX has increased to 17.49, which is nearly a 4 month high. There was high volatility in the market yesterday, We can expect the same in the coming days as well.

For the week, 17,250 is a major support. If that is broken, I will turn bearish.

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