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One97 Communication, the parent company of PayTM reported a widening of consolidated loss to about Rs 473 crore in the second quarter ended September 2021, mainly on account of increase in payment processing charges. The company had posted a loss of Rs 436.7 crore in the same quarter a year ago.

IndusInd Bank, who had earlier applied to RBI seeking to increase their holding in the lender, welcomed the RBI move to allow promoter holding of up to 26 per cent in private-sector lenders.

GHCL has signed an MoU with the Government of Tamil Nadu for investing Rs 500 crore in the state.

RBI has imposed Rs 1 crore penalty on SBI. Penalty was levied after RBI’s supervisory inspection of SBI’s financial position as of March 2018 and March 2019. On supervisory inspection it was revealed that SBI, as pledgee, held stake higher than 30% in borrower companies. This is in contravention of Section 19 of the Banking Regulation Act.

ITC will acquire a 16 percent stake in Mother Sparsh, a D2C Ayurvedic and natural personal care brand, for Rs 20 crore through a share subscription agreement. Mother Sparsh is a premium Ayurvedic and natural personal care start-up in the D2C space, focusing on mother and baby care segments.

Following the footsteps of Vodafone Idea and Bharti Airtel, Reliance Jio announced up to 21 percent hike in its prepaid tariffs from the next month. Despite the increase in rates, Jio has kept the price of plans lower than Airtel and Vodafone Idea.

Vedanta has raised $800 million (Rs 6,000 crore) by pledging shares in the company. Promoter group firms pledged 242.26 crore or 65.18 per cent shareholding in Vedanta Ltd in three facility agreements to raise the money.

Tata Steel will focus on augmenting iron ore production from 30 million tonne per annum to 45 mtpa in the next five years. The total iron ore production from the steelmakers’ captive mines in Noamundi in Jharkhand and in Katamati, Joda and Khondbond blocks in Odisha, is about 30 mtpa.

What to expect today?

On Friday, there was a bloodbath in the market with NIFTY opening the day at 17,343, nearly 200 points down. The index bounced back after taking support at 17,100 but faced multiple resistances near 17,200. Last hour selling followed and NIFTY closed at 17,026, down 510 points or 2.91%.

BANK NIFTY opened with a gap-down at 36,850 and fell further. 36,250 offered support for a while before sell-off took the index below 36,000. The index closed at 36,025, down 1339 points or 3.58%.

All the sectors fell heavily except NIFTY PHARMA(+1.7%) with the spread of the new COVID variant.

The US markets and the European markets fell heavily. Large bearish engulfing candles have been formed in NASDAQ and S&P 500 in the weekly timeframe.

The Asian markets are still trading slightly in the red whereas The U.S. Futures and the European Futures have moved up except CAC 40 futures.

SGX NIFTY is trading higher at 17,182, indicating a gap-up opening in NIFTY.

Major supports for NIFTY are at 16,995, 16,915, 16,880, 16,850, 16,765 and 16,690. We can expect resistances at 17,100, 17,200, 17,250, 17,325, 17,375 and 17,450..

BANK NIFTY has supports at 36,000, 35,700, 35,500, 35,300 and 35,000. Resistances are at 36,500, 36,650, 36,800 and 37,000.

The highest call OI build-up in NIFTY is at 17,500. There is good call OI build-up at 17,300. The highest put OI build-up is at 17,000 followed by 16,000 and 16,500. However, OI analysis would not be of much help as markets have fallen heavily.

BANK NIFTY has the highest call-OI build up at 37,000 and the largest put OI build-up is at 35,000.

INDIA VIX has shot up by 25% to 20.8 as there is fear in the market.

Foreign Institutional Investors net sold shares worth Rs 5785 crores. Domestic Institutional Investors net bought shares worth Rs 2294 crores. 

There is COVID fear everywhere and the investors worry whether the sell-off will take the form of 2020 fall. Markets worldwide have fallen. But it is too early to conclude that the new variant will have adverse impacts as the world worries. The UK has banned flights from countries with the new variant reported including Botswana, South Africa and Hong Kong. Several nations including Germany have announced lockdown.

Crude prices have fallen after the US released the surplus. But if OPEC+ does not join, the price will go up again. COVID will have a major impact on the prices and this will directly influence the markets worldwide.

FIIs have net sold shares worth Rs 21,000 crores last week. This takes the financial year figure to nearly Rs 90,000 crores. If Fed tapers at a faster rate, FIIs would sell more as there will be less distinction between the US and emerging economies. Also, FIIs may move to China as there is an expectation that the government may ease policies. It will not be easy for NIFTY to reach the previous levels.

NIFTY is at 50% Fibonacci retracement level now. Close above 17,000 is crucial for the index. If that is broken, we have a major level at 16,700 that is important in terms of price action and technical analysis. It is the 61.8% Fibonacci level and also 10% away from the all-time high, making it a major level. I will be watching 16,915 as the immediate support if 17,000 is broken and a close above 17,100 for strength. 

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