The US markets fell heavily (and recovered partially later) after the Fed made their announcements after the policy meeting. They hinted at least two interest rate hikes in 2023, a year earlier than forecasted in the March meeting. They also talked about reducing their bond buying programme. All these were discussed as they feel that the economy is recovering well and that inflation is rising rapidly.
Shriram Transport Finance will buy back bonds issued by it in January 2019 for a limit up to Rs 450 crore.
Dr Reddy’s Labs has expanded the pilot of Sputnik vaccine which is in the final leg to other cities such as Mumbai, Bangalore and New Delhi.
Punjab & Sind Bank has declared Lanco Infratech Ltd as a fraud account. The NPA account, Lanco Infratech Ltd, with outstanding dues of Rs 215.17 crore has been declared as fraud and reported to RBI today as per regulatory requirement
Amid concerns raised in certain quarters about its proposed Rs 4,000 crore-deal with Carlyle group, PNB Housing Finance confirmed that the process followed in determining the issue price for its securities was in line with the “market practice” followed by listed companies and in compliance with the applicable law.
Federal Bank has approved issuing equity shares to World Bank arm International Finance Corporation and associates for over Rs 916.25 crore.
Some major Q4 result announcements today:
- Power Grid Corporation
- Tube Investments of India
- Natco Pharma
- Indostar Capital Finance
- Novartis India
- Healthcare Global Enterprises
- Jammu & Kashmir Bank
- DB Corp
- Nava Bharat Ventures
What to expect today?
Yesterday, NIFTY opened around 15,850 and moved down slowly throughout the day to close just above 15,750. IT continued to perform strongly. You can read all about yesterday’s movements here.
BANK NIFTY showed great weakness and moved down quickly, even breaking the support at 35,000 at one point of time. But it regained towards the end to close slightly above 35,000.
NIFTY IT continued to do well, with INFY leading the pack. FMCG also continued their good run.
The European markets closed flat. The US markets fell rapidly after the Fed announcement. After the quick fall, there was a partial recovery as well, which made sure that none of the indices closed more than 1% down.
The Fed has maintained near zero interest rates now. But what has brought down the market is their remarks that they are planning to increase the interest rates in 2023 and are also planning to bring down the scale of buying government bonds.
The Asian markets are also mostly in the red. Only Japan’s NIKKEI is more than 1% down. European and US futures are down.
SGX NIFTY is currently trading much lower at 15,666 indicating a gap down opening in the Indian market.
Recently, we have been seeing that the market moves up just after opening in case of large gap down openings. So, the first few candles today are going to be important.
The immediate support for NIFTY are at 15,620, 15,570 and 15,500.
15,800 will act as a very strong resistance.
35,000 35,500 and 35,800 are the important resistances to be watched out for in BANK NIFTY.
BANK NIFTY has good support at 34,650 and 34,400.
Keep an eye on INDIA VIX today as it can hint at trend reversal, if that is happening.
The highest call OI buildup is at 16,000 followed by 15,800. The highest put OI buildup is at 15,600 followed by 15,700. The PCR in NIFTY is 0.8.
The put sellers at 15,700 will definitely be in trouble. Even the straddle makers at 15,800 will be in trouble.
BANK NIFTY has huge amounts of calls and puts at 35,000. The second largest put buildup is at 34,500. Let’s see if BANK NIFTY can take support there.
Foreign institutional investors (FIIs) net sold worth Rs 870 crores, and domestic institutional investors (DIIs) net sold shares worth Rs 874 crores in the Indian equity market.
It will be great if you can look into the charts of NASDAQ or S&P500 as you can see the kind of volatility that they witness yesterday. Let’s see how our market moves for the first few minutes to have an understanding of the day’s trend.
Huge downside risk is there today. NIFTY recovered strongly in the last 2 times it had fallen to 15,600 levels. If that is broken with strength this time, there can be more weakness. But Asian markets are not hinting at such a large fall. Let’s see.
The European markets opening at noon will also be important today. Do watch them.
It’s an expiry day. So, trade with caution.
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