News Shots

Private equity group Carlyle has emerged as the frontrunner to acquire Hexaware Technologies from its PE owner Baring Private Equity Asia (BPEA) with a bid of $3 billion (Rs 22,500 crore)

Vodafone Idea has paid its licence fee dues for first quarter 2021-22. A report had earlier suggested that the operator fell Rs 150 crore short on payment of licence fees.

HDFC Bank fixed the coupon rate of its $1 billion additional tier- I (AT-1) bonds at 3.70 per cent per annum. The notes will be listed on the India International Exchange (IFSC) Limited.

IndiGo will resume flights to Dubai from early Friday morning after a brief ban by Dubai authorities.

Larsen & Toubro Infotech, the globally-focused tech consulting and digital solutions provider from the Larsen & Toubro stable, is hiring 4,500 freshers this year, compared to 3,000 last year, as it faces high attrition rate.

AU Small Finance Bank has received shareholders’ nod for raising equity and debt capital totalling up to Rs 14,500 crore to fund its business growth.

Tata Consultancy Services (TCS) is expanding its strategic partnership with Google Cloud with the launch of Google Garages at its TCS Pace Port co-innovation and advanced research centers in Amsterdam, New York, and Tokyo.

What to expect today?

On Wednesday, NIFTY opened with a huge gap up and tested 16,700 for some time and then fell heavily and closed at 16,568. You can read all about Wednesday’s market movements here.

BANK NIFTY was more bearish throughout the day as it fell 800 points intraday from 36,250 to 35,450. It managed to close just above 35,500. 

BANKNIFTY fell the most with all the major banks moving down by 2%+. HDFCBANK started the day with high positivity as the RBI lifted the ban on issuing credit cards but the positivity did not sustain long.

There is negativity in the global markets. The European markets have closed deeply in the red, down by 1.5-2.5%. The US markets also fell heavily (more than 1%) on Tuesday and consolidated yesterday.

Most of the Asian markets are in the red, led by Japan and Chinese markets. The European and US futures are also trading in the red.

SGX NIFTY is trading much lower at 16,335 indicating a gap down opening in the Indian market. In fact, SGX NIFTY had gone as low as 16,235 yesterday.

The sudden negativity in the markets is being mostly attributed to the Fed meeting minutes hinting at the Fed planning to taper the bond purchase. Also, the tech stocks in China continuing to face hurdles and delta variant of coronavirus posing threats are also being attributed.

There is also the fact that the Taliban has halted India-Afghanistan trade. But that is not a market shaking event yet but it would be wise to keep watching that space also closely.

The immediate supports for NIFTY are at 16,370, 16,290 and 16,150. There are strong resistances at 16,450, 16,500 and 16,590.

The 35,300-35,000 is the support for BANK NIFTY. 35,500, 35,800 and 36,000 will act as immediate resistances for the index. 

Foreign institutional investors (FIIs) net sold worth just Rs 595 crores, and domestic institutional investors (DIIs) also net sold shares worth Rs 729 crores in the Indian equity market. 

A lot of derivative traders will be in trouble today. There were lots of puts written in NIFTY which will all be in trouble today. In NIFTY, the largest put OI buildup is at 16,500 followed by 16,400. The largest call OI buildup is at 17,000 followed by 16,500.

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

This is a classic example of the risks of carrying positions over a holiday as the market is opening with a huge unexpected gap. All were looking good on Wednesday but today all of a sudden the mood has changed in the market.

Let’s see how the market moves after the gap down opening. After such a gap down, there are chances that the market consolidate or recover a bit. Watch closely and understand the trend.

Watch out for the supports mentioned above. VIX will spike up and there can be intraday volatility.

Follow us on marketfeed app’s livefeed section to get real time updates from the market. All the best for the day!

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