News Shots 

Jet Airways has given a clarification on new reports stating Captain Sudhir Gaur has resigned as the Interim CEO of Jet Airways.

RBL Bank reported that their gross advances rose 3.5% in Q3 to Rs 59,941 crore over the preceding quarter.

The division bench of the Delhi High Court ordered stay on arbitration proceedings between Amazon and Future Group entities FCPL and FRL.

India’s coal production stood at 74.78 million tonnes in December and this is a good news for Coal India.

Union Bank of India started lending in alternate reference rate.

Rohit Ferro-Tech has defaulted on loans of Rs 2,638.28 crore till 31st December.

Promoters agreement has been signed between NHPC and Green Energy Development Corporation of Odisha Limited on 4th January for formation of joint venture company for development of 500 MW floating solar power projects in various water reservoirs in Odisha. NHPC will hold 74% stake in JV and the rest will be held by GEDCO.

What to expect? 

Yesterday, NIFTY opened flat at 17,823 and was volatile in the beginning. The index decided the direction and moved up. NIFTY crossed 17,900 by 1 PM and consolidated with volatility. Though the bears tried to bring the index down, buying kicked in instantly and NIFTY closed the day at 17,925, up 120 points or 0.67%.

BANK NIFTY opened with a gap up at 36,945 and moved up with strength. There was a rally of more than 800 points with the index crossing the major levels of 37,000 and 37,500. BANK NIFTY consolidated towards the end forming a base and closed the day at 37,695, up 856 points or 2.32%.

There was profit booking in NIFTY IT (-1.93%). NIFTY METAL(+1.38%) moved up.

The US markets fell heavily on Fed Minutes. The European markets closed well in the green.

The Asian markets are down following the US fall. The U.S. Futures are trading flat and the European Futures are trading in the red.

SGX NIFTY is trading at 17,792 indicating a huge gap-down in NIFTY.

There are multiple supports for NIFTY and these are at 17,850, 17,800, 17,750, 17,650 and 17,600. There are resistances at 17,950, 18,000, 18,040, 18,100 and 18,200. Watch these levels as supports or resistances if NIFTY opens with a huge gap.

BANK NIFTY has supports at 37,500, 37,320, 37,150, 37,000 and 36,900. Resistances are at 37,750, 37,850, 38,000, 38,350, 38,500 and 38,700.

NIFTY has the largest call OI build-up at 18,000 followed by 18,100. The largest put OI build-up is at 17,800 followed by 17,700.

BANK NIFTY has the highest call OI build-up at 38,000 followed by 38,500 and the highest put OI build-up is at 37,000 followed by 37,500.

INDIA VIX saw a jump of 7% to 17.23.

Foreign Institutional Investors net bought shares worth Rs 337 crores. Domestic Institutional Investors net bought shares worth Rs 1272 crores. 

FED Minutes took the US markets down and NASDAQ closed more than 3% in the red. This will have an impact on NIFTY. The new COVID variant detected in France and the Hong Kong restrictions on an untraceable case in the city were in focus until Fed Minutes were out. The minutes indicated that the FED will increase the interest rates sooner than expected, probably in March. We will have to see whether supports will be able to stop NIFTY from falling.

Various states in India are announcing weekend lockdowns and other restrictions on COVID worries. Services PMI for December was reported to be 55.5, which is still expansion but at a slower pace owing to inflation pressure. But our market is fuelled by FII buying and that too with DIIs not booking their profits. We will have to be cautious of profit booking as we had a steep rally for the last four days.

IT fell yesterday after days of rally. There was global sell-off in tech stocks with Hong Kong’s Tech index at its lowest since May 2020. This encouraged profit booking in the stocks. But TCS made a good reversal in the second half. The IT stocks can be watched closely.

Despite the sell-off in IT, NIFTY moved higher with the spectacular rally by BANK NIFTY. For the past few days, BANK NIFTY was not exhibiting the strength the way NIFTY did. The index broke all the major levels yesterday and has closed above 37,500, indicating strength.

There are numerous supports for NIFTY which will make the expiry day volatile. Looking at the Open Interest data, there is unwinding on the call side. There is considerable put build-up at 37,500 for BANK NIFTY. But the global scenario has changed overnight with FED minutes announced taking the US indices down. I will closely watch the support levels mentioned earlier. Make sure that you enter positions with caution as there can be volatile moves.

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