News Shots

TCS reported Q2 net profits up 6.84% at Rs 9,624 crore against last quarter. Revenue moved up 3.2% QoQ to Rs 46,000 crores. A second interim dividend of Rs 7/share was announced. Earnings report had mixed reactions from market participants and we will have to see if the stock takes resistance at its 52-week high.

Tensions between Taiwan and China have increased with various strong worded statements from leaders of the states.

Reliance Industries’ subsidiary – Reliance New Energy Solar has acquired REC Solar Holdings AS from China National Bluestar Co for an enterprise value of $771 Million(~Rs 5,800 crores). The company is one of the world’s leading solar cell and panels manufacturers.

Tata Motors’ subsidiary Jaguar Land Rover Q2 retail sales continued to be affected by the semiconductor shortage, with retail sales down 18.4% year-on-year at 92,710 vehicles. Wholesales totalled 64,032 units (excluding the China JV), down 12.8% YoY.

Maruti Suzuki reported total production in September down 51.06% to 81,278 units, with the company blaming the semiconductor shortage.

Equitas Small Finance Bank has reported Q2 FY22 CASA Ratio at 45% compared to 40% in Q1. Total deposits up 6% at Rs 18,094 crore with loans also showing marginal improvement.

Aditya Birla Sun Life AMC will get listed on the market today..

Macrotech Developers has sold properties worth Rs 3,000 crore during the last 6 months with better demand, and expects to double its sales bookings in the second half to reach its Rs 9,000 crore target this fiscal year.

Ultratech Cement has emerged as preferred bidder for a limestone block in Madhya Pradesh which has reserves of 209.77 million tonnes

Results announcements today:

  • Delta Corp
  • HFCL
  • Krsnaa Diagnostics
  • Ramkrishna Forgings
  • Saregama India
  • Tata Metaliks
  • Tinplate Company of India.

What to expect today?

On Friday, NIFTY opened with a big gap up at 17,891 and consolidated. But in between the consolidation, the index tested its all-time high for 15 minutes straight.The index took resistance and fell to close the day at 17,895, up 105 points or 0.59%. You can read all about yesterday’s market movements here.

BANK NIFTY also opened with a gap up and tested 38,100. From here, a sharp fall of more than 400 points was seen. The index closed the day at 37,775, up 22 points or 0.06%.

NIFTY IT(+1.96%) and NIFTY PSU Bank(+1.65%) closed in the green. NIFTY REALTY(-2.2%) saw some correction.

Even the global markets consolidated on Friday. The jobs data from the U.S. came out much worse than expected, and markets are waiting for an indication this week from the inflation data.

Asian markets are trading mostly in the green. The European futures and the U.S. futures are trading flat.

SGX NIFTY is trading higher at 17,916 indicating a flat to gap up opening in the Indian market. 

Supports for NIFTY are at 17880, 17780 and 17680. We can expect Nifty to take resistance at the all-time high of 17942, 17950 and 18,000.

BANK NIFTY has supports at 37500, 37300, 37200 and 37000. Resistances are at 37800, 38000 and 38350.

NIFTY has the highest call OI buildup at 18,000 followed by 18,500. The highest put OI buildup is at 17,800 followed by 17,000. We can expect good moves if NIFTY moves and closes above the levels with the highest open interests, with option sellers running for cover.

The highest call OI buildup in BANK NIFTY is at 38,000 and the highest put OI buildup is at 37,000. 

Foreign institutional investors (FIIs) net sold worth Rs 64.01 crores, and domestic institutional investors (DIIs) net sold shares worth Rs 168.19 crores in the Indian market.

VIX continued to move down, falling more than 10% this last week.

If this week continues to volatile globally and locally like the last, the aggressive option sellers could be the ones creating a short covering movement. NIFTY and BANKNIFTY are just a single move away from their all time highs. 

More results including that from major IT companies and HDFC Bank is expected this week. This could create movements in the markets but could also result in net consolidation. I feel the breakout in midcaps and smallcaps can be watched.

The power crisis in the country is also worsening with many including Delhi CM fearing a total blackout in multiple states due to lack of coal-based energy. Tata Power asked its Delhi customers to use electricity with care. The Union Minister for Power however said that such an issue is due to miscommunication and that there are enough reserves.

I’ll be watching NIFTY between 17,800 and 17,950 today. If NIFTY crosses and closes above 18,000, bulls are showing their strength and the market could rally more. Otherwise, we can expect consolidation with weekly support at 17,500.

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