News Shots

Adani Green’s total operational capacity nearly doubled to 5,410 MW on YoY basis. Sale of energy is up by 61% YoY at 1,901 million units in Q2 FY22.

Tata Motors Group global wholesales in Q2 FY22, including Jaguar Land Rover, were at 2,51,689 units, up 24% year-on-year. 

Ujjivan Small Finance Bank reported total deposits are up 31% year-on-year at Rs 14,090 crore in Q2. CASA Ratio has also improved at 22% compared to 16% last year.

Invesco fund has sent an open letter to Zee Entertainment’s shareholders, raising questions regarding its management, governance and value destruction.

The Competition Commission of India(CCI) has approved internal restructuring of TVS Group.

HCL Technologies has partnered with Google Cloud to launch healthcare and life sciences solutions for customers.

Bearings manufacturing company SCHAEFFLER is discussing a stock split on October 28 for its shares, currently worth more than Rs 7,000.

Maruti witnessed a huge 51% drop in production last month at 81,278 units. The company has blamed it on a shortage of semiconductor chips.

Angel Broking has added a huge 23.8 lakh customers during April-September, taking the overall client base to 65.2 lakh.

Delta Corp posted a consolidated loss at Rs 22.57 crore in Q2FY22 against a loss of Rs 54.91 crore in the same quarter last year. Meanwhile, revenue jumped to Rs 74.72 crore, up nearly 95% YoY.

HFCL, the domestic telecom gear maker has posted a 61% increase in its consolidated net profit to Rs 85.94 crore in the September quarter.

Earnings Today: 

  • GM Breweries
  • JTL Infra
  • Bhansali Engineering Polymers

What to expect today?

Yesterday, NIFTY opened with a small gap down at 17,867 and shot up. It broke all previous resistances and rallied above both 17,950 and 18,000 by 1 PM. Profit booking pulled down the index and it fell to close the day at 17,945, up 50 points or 0.28%. You can read all about yesterday’s market movements here.

BANK NIFTY also broke its all-time high and took resistance only near 38,500. A small fall was seen towards the end and the index closed the day at 38,293, up 518 points or 1.37%.

NIFTY AUTO(+2.6%), NIFTY REALTY(+1.7%), NIFTY METAL(+1.5%) and FIN NIFTY(+1.3%) outperformed on the day. The NIFTY IT(-3.3%) index saw some correction led by TCS(-6.3%).

European markets managed to gain after opening. The U.S. market saw profit booking towards its second half of trading. 

Asian markets are now trading mostly in the red. The European futures and the U.S. futures are trading in the red.

SGX NIFTY is trading lower at 17,864 indicating a gap down opening in the Indian market. 

The supports for NIFTY are 17880, 17780 and 17680. We can expect Nifty to take resistance once again at the levels of 17950 and 18,000 and 18,040.

BANK NIFTY has support at 37880, 37500, and 37300. Resistances are at 38000, 38350 and 38500.

NIFTY has the highest call OI buildup now at 18,500 followed by 18,000 although there is not much difference. The highest put OI buildup is at 17,800 followed by 17,600. Considerable put options were also sold at 18,000, with option sellers expecting the market to close around that zone by Thursday.

The highest call OI buildup in BANK NIFTY is at 40,000 followed by 39,000 and 38,500. The highest put OI buildup is at 38,000 followed by 37,500. 

Interestingly, yesterday Foreign institutional investors (FIIs) net sold worth Rs 1303.22 crores, and domestic institutional investors (DIIs) net sold shares worth Rs 373 crores in the Indian market. This was maybe due to some block deals, as the market easily rallied above 18000 yesterday.

The short-covering movement we expected was seen yesterday in BANKNIFTY. A high number of call OI at 38,000 disappeared and was replaced by puts in the same level. 

HDFC Bank pushed up the market yesterday and IT stocks saw heavy volatility yesterday. We can expect more moves from these stocks ahead of their results this week.

Will be interesting to see who will be weak in today’s gap-down. If BANKNIFTY falls below 38,000 at the opening and moves down, we can expect high volatility in the index. I will be watching this level along with 38,500 in BANKNIFTY today. 

The power crisis issue in the country is still not solved and the sector should be watched. Asian markets fell in the morning due to rising concerns of energy shortage and a report saying that the government of China is widening its scrutiny on private industries by examining ties to state banks.

Also, there is an incentive to move for BANKNIFTY after the Air India sale. Banks will be more confident about loan paybacks from other airlines as ticket prices could be increased in the fully private airline industry now. 

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