News Shots

UK’s Standard Life, one of the promoters of HDFC Asset Management Company, is looking to sell up to 10.6 million shares of the mutual fund constituting 5 percent total equity through a block deal on Wednesday to raise to Rs 3042 crore.

Kayak Investments Holding, one of the promoters of Max Healthcare Institute is looking to sell 63.47 million shares or a 6.57 percent stake through a block deal on Wednesday.

Crisil Rating has upgraded the long-term rating on the bank facilities and debt program of Bharti Airtel to AA+ with a stable outlook. Earlier, the rating was AA with a stable outlook.

Drug maker Lupin has launched Droxidopa capsules, used in treating orthostatic dizziness, in the US market.

The Competition Commission of India (CCI) penalty of Rs 752 crore on United Breweries is a significant sentiment dampener for the beer company, which may have to raise debt to pay the fine.

BPCL plans to add 1,000 electric vehicles (EV) charging stations in the ‘short term’ to tap new business opportunities and as a ‘hedge against displacement of auto fuels’.

IT company Newgen Software has partnered with Tata Consultancy Services to deploy an enterprise-grade multi-channel, multilingual communication suite for the Banking Service Bureau (BSB) in Israel.

American Airlines and IndiGo announced codeshare agreement that would mean more domestic flight options for the passengers of American in India.

Godrej Industries has raised Rs 750 crore through private placement of non-convertible debentures.

Specialty chemicals manufacturer Anupam Rasayan has signed a letter of intent (LOI) worth Rs 145 crore with existing long-term European multinational customers for supplying a new life science-related active ingredient.

What to expect today?

Yesterday, NIFTY displayed major weakness as it fell 320 points to 17,580 but then phenomenally recovered 200 points to close 0.6% down at 17,748. You can read all about yesterday’s market movements here.

BANK NIFTY was down more than 2% at one point of time but showed a more bullish recovery and the index closed 0.59% down at 37,945.

NIFTY REALTY and NIFTY IT moved down by 3% and had a negative influence on the markets. Most of the sectors closed in the red. 

The global markets also witnessed heavy correction yesterday. The European markets, apart from UK’s FTSE have closed more than 2% down. FTSE is down 0.5%. The U.S. markets are also down 1.5% to 2.8%! 

The rise in US treasury bond yields is mainly being attributed as the reason behind the fall.

Most of the Asian markets are trading deep in the red following the weakness in the Western markets. Japan’s NIKKEI and South Korea’s KOSPI are down by more than 2% while TAIWAN and SHANGHAI are down by more than 1%. The European futures and the U.S. futures are trading in the green and indicating some recovery.

SGX NIFTY is trading lower at 17,630 indicating a gap down opening in the Indian market.

Such large gap-down openings are normally followed with an up move. But if the market, at one point today, gives an opening range breakdown or breaks the day’s low, we might see more down move.

One point is we were down 1.5-2% at one point yesterday. That is, we have already factored in the fall a bit. So, we might not fall again as much as the global markets are falling. If it happens, then there is a major weakness.

Supports for NIFTY are at 17,600-17,580 and 17,500. 17,700, 17,740 and 17,800 can act as resistances for the index.

The supports for BANK NIFTY are at 37,500 and 37,000. Resistances exist at 38,000 and 38,350.

Foreign institutional investors (FIIs) net sold worth Rs 1957 crores, and domestic institutional investors (DIIs) net bought shares worth Rs 161 crores in the Indian market. 

While the markets fell yesterday, call writers were busy writing calls everywhere. The largest call OI buildup continues to be at 18,000 followed by 17,900. Also, the largest put OI buildup in NIFTY is at 17,500 followed by 17,700 and the below strikes.

BANK NIFTY has the highest call OI buildup at 39,000. 37,000 has the highest put OI buildup. 38,000 has the highest straddles.

VIX has now shot up to 18 and thus indicates more volatility in the market. Wednesdays are said to be extra volatile. Let’s see how it goes today.

As I said in the show yesterday, 17,800 acted as a major support earlier. Now that it is broken, it will act as a stiff resistance in the coming days. 17,580 can be the first support to be watched and 17,500 after that. If 17,580 is broken, I’ll sell more call options aggressively.

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