News Shots 

Hero Motocorp will make a strategic investment in Gogoro Inc. raising the oversubscribed private investment in public equity deal from $257 million to $285 million.

NTPC  sought bids from developers for 900 MW Cuba Solar PV Park, reported Bloomberg.

HCL Technologies launched a dedicated Intel Ecosystem Unit to help build focused, innovative and industry-tailored solutions for Intel clients.

Zee Learn appointed Anish Shah as the Chief Financial Officer with immediate effect.

Sharat Industries approved a rights issue of not more than Rs 50 crore.

Major Results

Bajaj Auto, ICICI Lombard General Insurance, JSW Energy, Tata Communications, CEAT

What to expect? 

Yesterday was a crazy day in the market. NIFTY opened with a gap-up at 18,349 following positivity in the Asian markets. But 18,350 acted as a stiff resistance and NIFTY started falling along with the global indices. NIFTY retraced and crossed 18,300 but fell with Europe opening in the red. The fall continued and NIFTY broke all the major supports and finally closed the day at 18,113, down 195 points or 1.07%

BANK NIFTY opened the day at 38,381 and was rather volatile with huge red candles. The sector rallied after a fine breakout but faced resistance at 38,850. BANK NIFTY made another attempt to break the level after retracing to 38,680 but what followed was a heavy fall. BANK NIFTY moved below day-low and closed the day at 38,210, flat to the surprise, down 6 points or 0.02%.

All other sectors closed deep in the red.

The US markets and the European markets fell heavily.

The Asian markets are trading deep in the red with NIKKEI down by more than 2%. The U.S. Futures and the European futures are trading lower. But Dow futures is only 0.1% down.

SGX NIFTY is trading at 18,132 indicating a flat opening in NIFTY.

Major supports for NIFTY are at 18,110, 18,060, 18,000, 17,970 and 17,900. There are resistances at 18,160, 18,200, 18,270, 18,290 and 18,320.

BANK NIFTY has supports at 38,100, 38,000, 37,800 and 37,500. Resistances are at 38,300, 38,500, 38,750, 38,850 and 39,000.

NIFTY has the largest call OI build-up at 18,300 followed by 18,400 and the largest put OI build-up at 17,500 followed by 18,000. There was huge unwinding in the put writing.

BANK NIFTY has the highest call OI build-up at 38,500 and the highest put OI build-up at 38,000.

INDIA VIX rose to 17.8.

Foreign Institutional Investors net sold shares worth Rs 1,255 crores. Domestic Institutional Investors net sold shares worth Rs 220 crores. 

No trader will forget the day for the size of the candles, the volatility and the heavy fall. There was positivity in the Asian markets in the morning and NIFTY was inspired in the absence of cues from the US market. But the situation flipped when Oil price rose to a 7-year high amid Houthi related tensions in UAE and the stocks fell globally. The bond yield rising all over the world added fuel to the fire. The 2-year bond yield touched 1% for the first time since February 2020. As you know, there is always concern about the Ukraine conflict. The news saying Finance Minister will address the press also aggravated the scene. All these factors contributed to the fall.

NIFTY has formed a bearish engulfing candle in the day-chart and you will be scared to see how the candle is formed. BANK NIFTY on the other hand closed the day flat. However, price action gives a weak signal. Keep in mind that we had a similar engulfing candle in October and what followed was a 2,000 points fall. But yesterday’s fall was due to global negativity and I think the down-move will be limited this time.

Bajaj Finance had good results yesterday. Keep an eye on the twins and also the Banking stocks as the heavyweight banks closed in the green yesterday despite the fall.

The Pre-Open market will be crucial today and let us see how NIFTY reacts at 18,160. Bears will be convinced only if 18,000 is broken on the downside. 

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