News Shots 

IDFC Board approves the draft scheme of amalgamation. IDFC Alternatives Ltd., IDFC Trustee Company Ltd. and IDFC Projects Ltd. will be merged with IDFC Ltd. for streamlining of corporate structure and to focus on operating businesses.

Tata Motors will raise commercial vehicle prices in the range of 2.5%.

Wipro launched a supply chain command center solution in partnership with Celonis.

GSS Infotech acquired 100% of Indian “farm to store” company Polimeraas, with a combination of stock and cash at a valuation of Rs 250 crore.

Bajaj Auto incorporates a wholly-owned subsidiary by the name of Bajaj Auto Consumer Finance Ltd.

HCL Technologies plans to create 12k jobs in the U.S. in the next five years.

Karnataka Bank partners with Toyota Kirloskar Motor Pvt. Ltd. to extend retail vehicle finance support to its customers.

HFCL has launched its qualified institutional placement issue on December 6 and approved floor price at Rs 72.33 per share.

What to expect? 

Yesterday, NIFTY opened flat at 17,216 and looked bearish. Support was taken near 17,100 for a while but the index broke the level and continued to fall. NIFTY closed the day at 16,912, down 284 points or 1.65%.

BANK NIFTY opened the day with a small gap-up at 36,269 and moved down. The index bounced back from 35,900 and took resistance at 36,350. BANK NIFTY looked weak again, falling by nearly 600 points to close at 35,736, down 461 points or 1.27%.

All the sectoral indices closed in the red with NIFTY IT(-2.70%) falling heavily.

The US markets and the European markets closed well in the green.

The Asian markets are up. The U.S. Futures and the European Futures are neutral to positive.

SGX NIFTY is trading at 17,042 indicating a gap-up opening in NIFTY.

Major supports for NIFTY are at 16,900, 16,850, 16,780, 16,700 and 16,610 . We can expect resistances at 17,100, 17,200, 17,250, 17,325 and 17,375.

BANK NIFTY has supports at 35,700, 35,500, 35,300, 35,000 and 34,900. Resistances are at 36,000, 36,350, 36,500, 36,650, 36,800 and 37,000.

The highest call OI build-up in NIFTY is at 17,500, followed by 17,300. The highest put OI build-up is at 16,900 followed by 16,500.

BANK NIFTY has the highest call OI build-up at 37,000 followed by 36,500  and the highest put OI build-up is at 35,000 followed by 35,500.

INDIA VIX increased to 20.08.

Foreign Institutional Investors net sold shares worth Rs 3,361 crores. Domestic Institutional Investors net bought shares worth Rs 1,702 crores. 

FIIs again decided the course of NIFTY by selling and taking the market down by nearly 300 points. This is quite worrying for the investors as DIIs alone cannot take NIFTY back to the previous levels.

Morgan Stanley strategists commented that Fed is a larger threat than Omicron with tapering reaching next door. The view on S&P has shifted for many analysts, many opining that the valuation is declining. But the US markets recovered well yesterday.

BANK NIFTY has been bearish for days and it was IT that was supporting the market. But IT fell the most yesterday, accelerating the fall. Let us see if the stocks will be able to recover today.

I will be closely watching 16,780 on the downside and 17,200 on the upside for major moves this week. Let us watch 17,100 for a breakout today. If NIFTY lacks strength, 16,900 should be watched on the downside.

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