News Shots

Manufacturing PMI drops to 10-month low in May with a value of 50.8. PMI is a month-on-month calculation, and a value above 50 represents an expansion when compared to the previous month.

Automobile companies posted a sharp fall in sales in May because of the lockdown situation. All auto companies reported a rise in YoY sales and a drop in QoQ sals.

Coal India’s coal offtake rose by 38 per cent to 55 million tonnes (MT) in May on the back of revival of fuel demand from the power sector.

The government has issued operational guidelines for the production linked incentive (PLI) scheme for the pharmaceutical industry, with an outlay of Rs 15,000 crore, to enhance India’s manufacturing capabilities by increasing investment and production in the sector.

Gujarat Gas has approved the acquisition of the City Gas Distribution business for Amritsar and Bhatinda geographical areas from Gujarat State Petronet for Rs 163.31 crore.

ITC Limited reported a 3% YoY decline in consolidated net profit to Rs 3,755 crore for the quarter ended March (Q4). The revenue has risen well but the margins have fallens, which is a concern. The company’s board has recommended a final dividend of Rs 5.75 per share.

Balrampur Chini Mills Ltd reported a 2.46% YoY decline in consolidated net profit to Rs 235.5 crore for the quarter ended March (Q4).

Glenmark Pharmaceuticals Ltd announced the launch of anti-epileptic drug Rufinamide tablets in the US market.

Some major Q4 result announcements today:

  • Motherson Sumi Systems
  • Muthoot Finance
  • PVR
  • MTAR Technologies
  • Panacea Biotec

What to expect today?

Yesterday, NIFTY opened flat and moved up suddenly to a fresh all time high at 15,660 where profit booking suddenly kicked in. NIFTY fell to 15,530 and then consolidated to close just below 15,600. You can read all about yesterday’s movements here.

BANK NIFTY was more bearish than NIFTY, thanks to ICICIBANK. BANK NIFTY also moved up similar to NIFTY and came under heavy profit booking. BANK NIFTY took support at 35,200 range and closed 0.53% down at 35,337.

RELIANCE took perfect resistance at 2,200. HDFCBANK could not sustain above 1520. KOTAKBANK could not sustain above 1815. NIFTY METAL fell considerably. All other sectors consolidated.

The European markets moved up strongly yesterday to close more than 1% up. The US market opened with a huge gap up and then moved down heavily and consolidated towards the end to close flat.

Asian markets are mixed. European and US futures are absolutely flat.

SGX NIFTY is currently trading flat at 15,613 indicating a flat to slightly positive opening in the Indian market. 

The immediate supports for NIFTY are at 15,500, 15.450 and 15,400.

15,600 and 15,700 can act as a resistance where there is a considerable amount of call option contracts.

35,500 and 36,000 are the next important resistances to be watched out for in BANK NIFTY.

BANK NIFTY has support at 35,000. Let’s see if BANK NIFTY can sustain it.

Huge amount of call options were created in the market yesterday and there was net unwinding of put option contracts. The PCR of NIFTY has come down to 1.1, indicating the cooling down of the market.

The largest call option buildup is at 16,000 followed by 15,600. The largest put option buildup is at 15,000 followed by 15,400. There is a good enough put buildup at 15,500 as well.

BANK NIFTY PCR has further come down to 0.7 as more calls were written yesterday. Now, 35,500 has an insane amount of call contracts. If BANKNIFTY cannot cross 35,500, then we may not see NIFTY also moving up much during this week. So, keep any eye on BANK NIFTY around 35,500.

INDIA VIX has climbed back to 17 levels, still indicating consolidation.

The 3 major levels mentioned above in RELIANCE, HDFCBANK, KOTAKBANK can be watched today as well.

Foreign institutional investors (FIIs) net sold worth Rs 449 crores, and domestic institutional investors (DIIs) net bought shares worth Rs 230 crores in the Indian equity market. 

Manufacturing PMI data came out weak but is okay and is in line with estimates. Same is the case with auto sales data as well.

The upside in NIFTY should be limited from here, at least for this week. We may find good consolidation. There are chances of profit booking as well. 

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