News Shots 

Reliance Industries signed an MoU for an investment of Rs 5.95 lakh crore in Green Energy and other projects in Gujarat.

Public shareholder Rakesh Jhunjhunwala has increased his stake in Titan Company to 4.02% in the quarter ended December, holding about 3,57,10,395 shares.

Tata Motors global wholesales in Q3, including Jaguar Land Rover, rose 2% to 2,85,445 units over Q3 FY21

RPSG Ventures approved the issue of up to 30 lakh, 3% compulsorily Convertible Non-Cumulative Preference shares to Integrated Coal Mining Ltd at Rs 780 per share for an aggregate value of Rs 234 crore on a private placement basis.

EaseMyTrip has recommended a bonus issue of equity shares in the proportion of 1:1.

IRCON has incorporated a subsidiary and joint venture company Ircon Renewable Power Ltd as Special Purpose Vehicle for the setting up of 500 MW Grid Connected Solar PV Project awarded by the Indian Renewable Energy Development Agency Ltd.

What to expect? 

Yesterday, NIFTY opened with a gap-up at 18,259  and faced resistance at 18,270. The index made a bounce-back after going below 18,200. NIFTY was unable to cross 18,250 in the first attempt. The range-bound volatility continued and NIFTY closed the day at 18,258, up 45 points or 0.25%.

BANK NIFTY opened flat at 38,692 and was bearish. Buying emerged whenever BANK NIFTY touched 38,400. The index traded in a narrow range in the second half of the day unable to sustain above 38,500. BANK NIFTY closed the day at 38,470, down 258 points or 0.67%.

NIFTY METAL(+3.4%) and NIFTY PHARMA(+1.5%) performed well.

The US markets closed deep in the red with NASDAQ down by 2.5%. The European markets closed slightly in the green except for CAC.

The Asian markets fell heavily following the US markets. The U.S. Futures are flat to red. European futures are trading lower and CAC futures are deep in the red.

SGX NIFTY is trading at 18,224 indicating a gap-down opening in NIFTY.

Major supports for NIFTY are at 18,210, 18,110, 18,050 and 18,000. There are resistances at 18,270, 18,340, 18,420 and 18,500.

BANK NIFTY has supports at 38,500, 38,400, 38,300, 38,100 and 38,000. Resistances are at 38,800, 39,000, 39,115, 39,200 and 39,350.

NIFTY has the largest call OI build-up at 18,300 and the largest put OI build-up at 18,000 if the straddle build-up at 18,200 is ignored.

BANK NIFTY has the highest call OI build-up at 38,500 and the highest put OI build-up also at 38,500, forming a straddle.

INDIA VIX dropped to 16.7.

Foreign Institutional Investors net sold shares worth Rs 1,391 crores. Domestic Institutional Investors net bought shares worth Rs 1,065 crores. 

FED Governor Lael Brainard said that there would be a hike in the interest rates much early, most probably in March to bring prices under control. US initial jobless claims saw an unexpected jump. Both contributed to the fall in the markets. Let us see how NIFTY reacts to the fall.

BANK NIFTY finally formed a red day candle on the chart after a rally of ten days. HDFC Bank started the day with a wide red candle and was bearish throughout the day. We will have to see if this is just a pause or a reversal. We will have to closely watch which level BANK NIFTY breaks: 38,400 or 38,500.

HDFC Bank will announce the quarterly results tomorrow. Let us keep an eye on the stock. The focus will shift from inflation data to the US corporate results as the season begins.

I will be closely watching the crucial levels of 18,270 on the upside and 18,210 on the downside in NIFTY. 

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