News Shots

Joe Biden unveils plan to pump US $1.9 trillion into pandemic-hit economy, in a major move. Even after such positive news, global markets are down.

The government’s sale of its 5% shareholding in India’s largest steelmaker SAIL was oversubscribed 3.6 times on the first day of its opening yesterday. Happy with the response, the government has decided to exercise the greenshoe option of selling another 20.65 crore shares or 5% of the total equity.

Bharat Dynamics has signed a Teaming Agreement with Thales to manufacture STARStreak Air Defence System in India. BDL will become a part of the STARStreak global supply chain.

MSCI(Morgan Stanley) said Bharti Airtel will be a part of February 2021 Quarterly Review.

HFCL posted an 87% jump in its consolidated net profit for the December quarter at Rs 85.1 crore. The company gave a very “optimistic” outlook on the back of strong demand for optical fibre cables, FTTH as well as increased speed in transformational projects, and 5G prospects.

The voting for the resolution plans of DHFL will likely conclude late evening today. The major bidders are Piramal Group, Oaktree Capital, and Adani Group who have submitted their offers for the housing finance company.

US-based asset manager Vanguard sold shares worth Rs 1,286.1 crore in 30 stocks including Infosys, Hindustan Unilever, Wipro through several block deals on the BSE, exchange data showed. Beginning of FII sale?

A credit card allowing cash withdrawal – and interest free – sounds too good to be true. But IDFC First Bank is offering one, claiming another industry-first offer by way of the lowest finance charges that would be tied to customer ratings. The lender is set to take finance charges at an annual rate of 9% for the best-rated customer, climbing up to 36% for lower-rated customers.

Market leader IndiGo and SpiceJet have launched fare sales starting at less than Rs 900 for travel between April and September. IndiGo’s five-day sale, from January 13 to January 17, will offer customers all-inclusive fares on domestic flights starting at Rs 877 for travel from April 1, 2021 to September 30, 2021.

Dixon Technologies – the contract manufacturer of electronic goods said its board will meet early next month to consider a stock split. It will also consider and approve Q3 financial results.

Security solutions provider Quick Heal Technologies has signed an agreement to invest $2 million (about Rs 14.6 crore) in Israel-based L7 Defense. Quick Heal Technologies had invested $300,000 (about Rs 2.19 crore) in L7 Defense in the previous financial year also.

State Bank of India (SBI) said its foreign currency bonds of $600 million, under its $10 billion global Medium Term Note Programme, have been listed on India INX’s Global Securities Market (GSM) platform.

Bajaj Finance has allotted 2,220 secured NCDs of face value of Rs 10 lakh each aggregating to Rs 222 crore on a private placement basis.

Major Q3 results to be announced today:

  • HCL Tech
  • PVR
  • Shoppers Stop
  • L&T Finance Holdings
  • Hathway Cable
  • Aditya Birla Money

What to expect today?

NIFTY, after opening flat at 14,550, was volatile. It fell more than 100 points intraday but then later climbed back up and closed at 14,595. You can read all about yesterday’s movements here.

Bank Nifty, also consolidated but with a bearish bias. There is extreme consolidation around 32,500 for Bank Nifty. It traded in a tight range of just nearly 250 points yesterday.

Following the rise in global crude oil prices, energy stocks went up and NIFTY ENERGY became the top gaining sectoral index. Pharma and FMCG also did well yesterday. Heavy profit booking kicked in to IT.

Europe, especially the FTSE, closed higher. US fell marginally after the Biden announcement. Asian markets are mixed. SGX NIFTY is trading lower at 14,570, which is nearly 50 points lower, indicating a gap down opening in the Indian Market. 

The market can be volatile today, with high chances of moving down. Watch out for 14,450 and 14,400 as resistance in NIFTY. If they are also broken, we might see larger falls. 32,000 can act as a support for Bank Nifty.

India VIX has cooled down, which indicated less volatility going ahead.

Highest Call Open Interest at 15,000, followed by 14,600. Highest Put Open Interest at 13,500, followed by 14,500. 

Foreign institutional investors (FIIs) net bought shares worth Rs 1,076 crore, and domestic institutional investors (DIIs) net sold shares worth Rs 188 crore in the Indian equity market.

There are many more results to come and some expected rallies. But the global markets seem to be consolidating. So be ready for a consolidation/correction in the days to come.

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