News Shots

We have positive updates from the US. Fed expects great GDP growth and an inflation jump in 2021 but still are firm on the decision that they will not increase interest rates. This is a dovish view by the Central Bank which is good for stock markets all around the world.

Punjab National Bank (PNB) has set up a wholly-owned subsidiary to manage its credit card business.

BHEL has emerged as the lowest bidder for supply of equipment for 6×700 MW nuclear power projects of Nuclear Power Corporation of India.

CA Rover Holdings divested 4.25 per cent stake in SBI Cards and Payment Services Ltd for Rs 3,943 crore through an open market transaction.

Godrej Properties will launch 10 projects in Q4, the highest ever in any quarter.

Indian Oil Corporation and Israeli battery developer Phinergy formalised a joint venture to manufacture ultra-lightweight metal-air batteries for electric vehicles (EVs), a venture that got its first customers in Maruti Suzuki and Ashok Leyland.

Blue Star expects a growth of 25 per cent in sales of refrigeration products and cooling products next fiscal compared to 2019-20.

DLF plans to raise up to Rs 500 crore through issue of non-convertible debentures (NCD) to investors.

HFCL has bagged an order worth Rs 221.16 crore from Uttar Pradesh Metro Rail Corporation, for design, manufacture, supply, installation, testing and commissioning of telecommunication systems for Kanpur Metro and Agra Metro Projects.

What to expect today?

Yesterday, NIFTY fell heavily again, breaking many major supports to close at 14,721. You can read all about yesterday’s movements here.

Bank Nifty, which was more bearish, fell by breaking the support at 34,500 and closed at 34,229.

All sectors moved down yesterday, with PSU stocks falling heavily.

When there was bearish signals all around and with Bank Nifty breaking major supports scaring the Indian investors, Fed has come out with a monetary policy that is a relief to markets all around.

The Fed is maintaining near 0 interest rates even though they are expecting an inflation hike. The US markets moved up after the announcement.

All Asian markets are in the green, with most of them trading more than 1% up. SGX Nifty is currently trading higher at 14,950 indicating a gap-up opening in the Indian market.

Moving up, NIFTY has strong resistances at 15,000, 15,070 and 15,100. NIFTY has strong supports at 14,900, 14,850 etc

As I mentioned in yesterday’s The Stock Market Show, NIFTY had broken the major support of 14,750 and Bank Nifty had broken the even more important support at 34,500. This shows weakness in the market.

So, even if the market opens with a gap up, I will turn bullish only if NIFTY sustains at least above 15,100 and Bank Nifty sustains at least above 35,500.

India VIX has further gone down to 20.16 but may go up today.

Foreign institutional investors (FIIs) net bought worth Rs 2625 crores, and domestic institutional investors (DIIs) net sold shares worth Rs 562 crores in the Indian equity market. 

As NIFTY fell yesterday, a lot of call options were written at 14,800 and above. 15,500 and 15,000 have the largest call buildup. Put option buildups are at 14,800, 14,600 and below. 

The Central banks of England and Japan will also announce their rates and policies this week.They may also maintain same rates just like the Fed did, which will again be positive for the markets.

We will have to see if the Fed announcement has completely turned the tables for the markets or if it is just a bull trap.

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