News Shots

Sun Pharma Advanced Research reported Dilip Shanghvi has resigned as managing director of the company. He will continue to be associated with the board in his capacity as a non-executive director and Chairman.

HDFC will raise up to Rs 7,000 crore by issuing bonds on private placement basis. The base issue size for the secured redeemable non-convertible debentures (NCDs) is Rs 5,000 crore with an option to retain oversubscription of up to Rs 2,000 crore.

The Competition Commission of India (CCI) gave approval to a proposal pertaining to intra-group reorganisation of the Motherson Group under the green channel route.

HPCL shut one of the crude units at Vizag refinery, after an overheated line caught fire. The fire broke out at 3 pm and has been extinguished. No casualties were reported.

Hinduja Global Solutions to hire up to 250 remote customer service representatives in Montreal, Quebec to support its ongoing growth of its Canadian entity.

Zuari Agro Chemicals iIncurred a loss of Rs 2.5 crore due to the damages caused by Cyclone Tauktae to its fertilizer plant in Goa.

Computer Age Management Services reported a 39.6 percent increase in profit after tax to Rs 60.13 crore for the fourth quarter ended March 2021.

AstraZeneca Pharma reported a nearly three-fold jump in its net profit to Rs 27.27 crore.

Emami reported a three-fold jump in its consolidated net profit to Rs 87.73 crore for the quarter ended March 31.

Bajaj Electricals reported a consolidated net profit of Rs 54.26 crore compared to a net loss of Rs 81 lakh in the same quarter last year.

Some major Q4 result announcements today:

  • Bharat Petroleum
  • Berger Paints (India)
  • Pfizer
  • Cummins India
  • Manappuram Finance
  • V-Guard Industries
  • FDC
  • Burger King India
  • Hindustan Foods
  • Karur Vysya Bank
  • LT foods
  • Karnataka Bank
  • Arvind

What to expect today?

Yesterday, NIFTY opened with a gap up near 15,300 and moved down, consolidated around 15,200, moved down and tested 15,150 and then moved back up to close just above 15,200. The resistance at 15,300 and the support at 15,150 were respected. You can read all about yesterday’s movements here.

BANK NIFTY continued to move more than NIFTY as it moved nearly 1% down. The open was above 35,000 but that couldn’t be sustained and the index kept moving down in the day to close at 34,662.

The index heavyweight HDFC BANK moved down by more than 2% dragging both NIFTY and BANK NIFTY down.

PSU Banks moved down the most led by SBI. Banks and Financial Services stocks also moved down. Most of the other sectoral indices consolidated yesterday.

The European markets closed flat with a slight negative bias. The US markets opened with a gap up and then moved down very slowly throughout the day to close slightly in the red. The US indices are just 0.2% down. 

Economic data came out in the US which isn’t great but did not affect the market much. The new US home sales fell by more than estimates. The reason attributed was less demand due to higher prices.

Asian markets are mostly up. European and US futures are up. SGX NIFTY is currently trading higher at 15,242 indicating a flat to gap up opening in the Indian market. 

SGX NIFTY was below 15,200 at 8 am. There is a sudden up move in SGX NIFTY.

The immediate supports for NIFTY are at 15,200, 15,150, 15,100 and 15,050.

15,260, 15,300 and 15,340 are important resistances for NIFTY. 

35,000-35,200 is an important resistance to be watched out for in BANK NIFTY, above which it can show more strength. 

BANK NIFTY has support at 34,500 and 34,100.

There is a huge put option buildup at 15,000 indicating that 15,000 will act as a good support going forward. The largest call option buildup is at 15,500.

There was a good put option buildup at 15,200 yesterday. The number of puts added at 15,200 was higher than the number of calls added at 15,300. 

But looking at the total number, 15,300 calls have more contracts than 15,200 put. The expiry is going to depend on which of these levels NIFTY is going to test and break. 

Also, BANK NIFTY added MASSIVE call option buildup at 35,000 again indicating consolidation below 35,000. I feel this position to be very aggressive as BANK NIFTY will be opening around 35,000. One of my eyes will be on BANK NIFTY for the entire day to see what happens when it reaches 35,000.

Foreign institutional investors (FIIs) net bought worth Rs 959 crores, and domestic institutional investors (DIIs) net sold shares worth Rs 563 crores in the Indian equity market. 

With global and local positivity, and technical bullishness, it was expected NIFTY will move up this week. But we can see NIFTY consolidating and cooling down for the last 2 days. It is normal.

VIX is still very low and we have been seeing super steady movement in the market for many days.

There are high chances that NIFTY will consolidate between 15,100 and 15,300 for some time before there is a huge move. If there is a gap up opening and NIFTY moves up after that, 15,300 is the level to watch out for. NIFTY might give good movement above 15,300 and BANK NIFTY will give good movement above 35,200.

This is the last week of the month and thus, we might see some volatility. Please take safe trades only.

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