News Shots

Bajaj Electricals has bought the remaining stakes of Starlite Lighting Ltd for a cash consideration of around Rs 60 crore from its promoters.

Amara Raja Batteries has received closure orders from the Andhra Pradesh Pollution Control Board (APPCB) for its plants located in the state.

IndusInd Bank reported a 193 per cent jump in consolidated profit after tax at Rs 926 crore for the March quarter. But, NPS has increased.

Reliance Industries Limited reported more than doubling of its March quarter net profit, compared to last year. But when compared to last quarter, the result is just satisfactory.

Tech Mahindra is in the process of filing a patent, along with Reagene Biosciences, for a drug molecule that can potentially attack coronavirus.

Jet fuel price was hiked by steep 6.7 per cent on Saturday, reversing price cuts of last month. Indigo and Spicejet to be affected.

Multiplex major Inox Leisure has partnered with food delivery apps, including Zomato and Swiggy, to deliver its food and beverages products to customers to their homes as the pandemic continues to impact cinema operations in the country.

State Bank of India has reduced home loan interest rate to 6.70 per cent. The lender said home loan interest rates are now starting from 6.70 per cent for loans up to Rs 30 lakh and 6.95 per cent for loans above Rs 30 lakh to Rs 75 lakh.

Auto sales data for the month of April is out and the numbers of all major manufacturer has gone down. Auto stocks can be watched today.

Major Q4 Result Announcements Today:

  • Godrej Properties
  • IDBI Bank
  • Kotak Mahindra Bank
  • SBI Life Insurance
  • L&T Tech
  • Varun Beverages
  • Tata Chemicals
  • Mahindra Holidays

What to expect today?

Friday, NIFTY opened with a gap down at around 14,750, consolidated till 1.30 pm and fell towards the end to close at 14,631. You can read all about yesterday’s movements here.

Bank Nifty, also opened with a gap down and then crossed 33,000 but could not sustain it. It also fell in the afternoon to close 2.7% down, just above 32,700.

It was Banks and Financial Services that dragged NIFTY down. NIFTY PHARMA was the only sector to close in the green.

The European markets closed flat, slightly in the red. The US markets slightly moved down on Friday.

Asian markets, which are open, are all down. European and US Futures are mixed. SGX Nifty is currently trading lower at 14,450 indicating a gap down opening in the Indian market. SGX NIFTY opened at 14,630 and has been falling continuously since the open.

A selling pressure was expected to kick in when NIFTY reached around 15,000. Selling pressure again on Friday indicated weakness in NIFTY. NIFTY is back into oscillating between 14,200 and 15,000.

But these are crazy times in the market is what I would say. 6 days before NIFTY was at 14,150. Then it moved 800 points in 4 days to reach 15,050. Then it is down 600 points in 2 days to be below 14,500 again. HIGHLY UNCERTAIN AND VOLATILE. And it has been like this for more than a month now. As a pure options seller, this is the worst kind of situation for me!

There are multiple good and bad news in India. Many economic data coming in are good while many are bad. There isn’t any major breakthrough update on the COVID front as well. Market will continue to be unstable and volatile.

So, it looks like 15,000 will act as a strong resistance for NIFTY.

34,000 and 34,500 are the immediate resistances to be watched out for in BANK NIFTY.

The immediate supports for NIFTY is at 14,400, 14,350 and 14,250. Below that, we have support at previous low 14,150.

Bank Nifty has supports at 32,300 and 32,000.

The highest call OI buildup is at 16,000 followed by 15,000. The highest put OI buildup is at 14,000 followed by 14,500.

There was huge call OI buildup on Friday leading to a PCR of 0.7 indicating bearishness in the market. There was call addition even at 14,600 indicating major bearishness. We can see all of them making amazing returns over the weekend as NIFTY is opening below 14,600.

Foreign institutional investors (FIIs) net sold shares worth Rs 3465 crores, and domestic institutional investors (DIIs) net bought shares worth Rs 1419 crores in the Indian equity market. 

This is a major sell off by FIIs when market reached higher levels.

Reliance and IndusInd Banks are majors who announced their results on Friday. The results are not interesting enough. Kotak Mahindra Bank to announce its result today. Banks can be watched.

The state election results will not have a major impact on the market.

We have been seeing buying kicking in when NIFTY reaches lower levels. Let’s see if that will happen today. The challenge for NIFTY today will be to close above 14,500.

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