News Shots

Infosys and Wipro reported their Q2 earnings after market hours yesterday. Infosys saw revenue rise 6% QoQ to Rs 29,602 crore and net profit up 4% at Rs 5,421 crore beating estimates. 

Wipro reported a revenue increase of 7% QoQ at Rs 19,668 crore but net profit fell 9.62% to Rs 2,930.70 crore, still beating estimates.

Reliance sent sparks flying as they said a deal was offered to Zee Entertainmen’s MD at a ‘fair valuation’ in March of this year. The deal was rejected by MD Puneet Goenka stating that the founding family could not increase stake.

On the other side, Zee Entertainment’s Board filed a response to Invesco’s open letter to shareholders and clarified about  the deal with Sony. It asked Invesco to stop spreading ‘half truths’.

Westlife Development, the master franchisee of McDonald’s said it will add 150-200 stores and invest Rs 800-1,000 crore in the business across the next 3-4 years. This is expected to create 6,000-8,000 direct and indirect jobs in the country.

UltraTech Cement commissioned a 1.2 MTPA cement capacity in October 2021. This is expected to help the company to service the fast-growing cement demand in the Eastern Indian markets. 

KEC International has completed the acquisition of Spur Infrastructure, and it is now a wholly-owned subsidiary of the company.

Major Earnings Today:

  • HCL Technologies
  • Mahindra CIE Automotive
  • Indiabulls Real Estate
  • Inox Wind
  • GTPL Hathway
  • Den Networks
  • Cyient
  • Century Textiles

What to expect today?

Yesterday, NIFTY gave a surprise by opening with a huge gap-up at 18,099 and tried to move down. But there was enough strength in Nifty and the index rallied to 18200 where it faced resistance to close at 18162, up 170 points or 0.94%.

The support at 18,050 looks very strong.

BANK NIFTY consolidated in a range of 300 points after opening at 38,737 and the index closed at 38,635, up 114 points or 0.3%.

NIFTY AUTO(+3.4%), NIFTY IT(+1.1%) and NIFTY METAL(+1.4%) were the top performers. Only NIFTY REALTY(-0.24%) closed in the red. 

European markets closed in the green with a very good up-move soon after the initial fall. US markets moved up with the help of tech stocks but Dow closed flat.

Asian markets are in the green now, with Nikkei more than 1% up.

U.S. Futures and European Futures are up.

SGX Nifty is trading at 18,264, indicating a very good gap-up for Nifty.

Major supports for NIFTY are at 18200,18100 and 18040. We can expect resistances at 18250 and 18300.

BANK NIFTY has supports at 38500, 38350 and 38000. Immediate resistances are at 38780, 39000 and 39,200.

Foreign Institutional Investors net bought shares worth Rs 937 crores, breaking their selling spree. Domestic Institutional Investors net sold shares worth Rs 432 crores.

Highest call build up is at 18200, followed by 18300. There is good Put build up at 18000, followed by 17900 and 18100.

BANK NIFTY has the highest call OI at 40000 and the highest put build up at 38000. There are straddles at 38500. India VIX is at 16.1 now.

Fed minutes indicate tapering by Mid November or Mid December. U.S inflation has climbed to 5.4%. This is higher than expected. Still the US markets performed well by falling in the morning and recovering towards the end. There is positivity in the East as well. 

Infosys results were better than expected. As the TCS results were not up to the mark, Infosys Futures were trading at a discount yesterday, which can take the stock higher if short-covering happens. Wipro results are also looking good.

Once 18,000 was crossed earlier this week, the short-covering took NIFTY up till where it is. BANK NIFTY has already completed its short covering from 38,100 to 38,600 and is not expected to move above 39,000.

We have HDFC bank results to be announced on Saturday. BANK NIFTY was consolidating yesterday and if it joins the rally, Nifty can sustain the gap-up. There is good call build-up at 18200 and the gap-up can drive the short sellers to run for cover. Expecting Nifty to expire between 18,150 and 18,300 after a volatile weekly expiry. 

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