News Shots

Tech Mahindra is looking for acquisitions in Europe to upgrade its capabilities in various segments, including cloud computing, 5G, SAP and Salesforce softwares.

Tata Motors board to meet on June 14 to consider raising Rs 500 crore via non-convertible debentures.

A proxy advisory firm has raised questions on PNB Housing Finance’s decision to raise up to Rs 4,000 crore by way of preferential issue of shares instead of a rights issue, and termed it an “unfair transaction” which is against public shareholders as well as the promoter bank PNB.

Private equity firm Advent International Corp divested its entire 5.36 per cent stake in household appliances firm Crompton Greaves Consumer Electricals for a little over Rs 1,348 crore through multiple open market transactions.

YES Bank’s board will meet today to consider fund raising.

GAIL India reported a 28 per cent jump in March quarter net profit as petrochemical margins soared and gas marketing business turned around on rise in international prices.

Bata India reported 23.3 per cent fall in consolidated net profit at Rs 29.47 crore for the fourth quarter ended March 31, 2021.

Some major Q4 result announcements today:

  • Steel Authority of India
  • NHPC
  • Century Plyboards (India)
  • Cera Sanitaryware
  • Mazagon Dock Shipbuilders
  • eClerx Services
  • Responsive Industries
  • Tide Water Oil Company
  • National Fertilizers

What to expect today?

Yesterday, NIFTY opened with a small gap up above 15,750 and then moved up to test 15,800. There was consolidation around 15,800 for a very long time after which profit booking kicked in and NIFTY fell more than 200 points to 15,560. There was a small recovery at the end and NIFTY closed at 15,640/ You can read all about yesterday’s movements here.

BANK NIFTY was even more bearish and led the fall. BANK NIFTY broke the important support of 35,000 and closed at 34,800.

NIFTY IT, PHARMA and FMCG performed comparatively better on a day where all the indices closed in the red.

The European markets closed flat. The US markets closed slightly in the red, ahead of the inflation data announcement today.

Interestingly, all the Asian markets are trading in the green. European and US futures are slightly positive.

SGX NIFTY is currently trading flat at 15,700 indicating a gap up opening in the Indian market.

The immediate supports for NIFTY are at 15,700, 15,600, 15,550 and 15,500.

The way in which it worked yesterday, 15,800 definitely is a strong resistance. 

35,000, 35,200 and 35,500 are the next important resistances to be watched out for in BANK NIFTY. 

BANK NIFTY has a huge support at 34,650 and it was tested multiple times yesterday. In daily chart, there is 20 DMA also at around this level. If you remember, 34,500 range is a very good support for BANK NIFTY.

INDIA VIX closed in the 14 range thereby hinting that yesterday’s move was a single, one-off profit booking rather than a confirmed trend reversal. Today’s movements will confirm it.

NIFTY has the highest call OI buildup at 15,800 followed by 16,000 and 15,700, indicating 15,800 can be the upper limit this expiry. NIFTY has the highest put OI buildup at 15,500 followed by 15,600. 

NIFTY PCR has come down from 1 to 0.8, indicating the loss of strength in the market.

BANK NIFTY has crazy amounts of call OI buildup at 35,500 and 35,000 and PCR is 0.5. The highest amount of put OI buildup is far away at 34,000.

As mentioned above, watch out for 34,500-34,650 range in BANK NIFTY. If that is also broken, there will be major weakness in BANK NIFTY.

Foreign institutional investors (FIIs) net sold worth Rs 846 crores, and domestic institutional investors (DIIs) net sold shares worth Rs 271 crores in the Indian equity market. 

The global markets are consolidating ahead of the US inflation announcement.

We saw a profit booking led sell off yesterday. Only today’s price action can confirm if that was just a one off event or if it is an actual trend reversal.

If banks continue their bearishness and break the above mentioned levels, then NIFTY also will be bearish.

NIFTY is likely to expire between 15,800 and 15,600 (or 15,500 safely).  If in case 15,600 is broken towards the lower side and BANK NIFTY also breaks 34,500, I will sell call options aggressively.

There can be volatility owing to the expiry. Let’s trade safely and get out of this expiry as well with some handsome profits.

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