News Shots

Eicher Motors sold 63,643 units of Royal Enfield in May 2022, registering a growth of 133 percent compared to 27,294 units sold in same month last year. In year-ago month, several states had imposed lockdowns to control the spread of Covid virus. Eicher exported 10,118 units in May 2022, up by 40 percent over 7,221 units sold in corresponding month last year.

Ashish R Kacholia & PAC (Himalaya Finance and Investment Company) sold 2.25 percent equity stake in Mold-Tek Packaging via open market transactions on May 31. With this, their shareholding in the company stands reduced to 4.55 percent, down from 6.8 percent earlier.

Knowledge Marine & Engineering Works has received a contract from Dredging Corporation of India, for ‘capital dredging at Mangrol Fishing Harbour Phase III Part B’, for a tenure of 12 months. The project cost is Rs 67.85 crore.

Mishtann Foods has seen good response for Mishtann Pink Rock Salt and has bagged orders from major retail stores for 1700 metric tonnes. The supply of these orders will commence from July 2022

Reliance Brands and Plastic Legno SPA have signed a joint venture through which Reliance Brands will acquire a 40 percent stake in Plastic Legno SPA’s toy manufacturing business in India. Plastic Legno SPA is owned by the Sunino group that boasts of more than 25 years of toy production experience in Europe.

What to Expect? 

NIFTY opened flat at 16,622 and bounced upward from the previous day-low. The index was unable to cross the day-high and fell breaking the low and then took support at 16,450. There was a final hour buying and NIFTY closed at 16,522, down by 62 points or 0.37%.

BANK NIFTY opened flat at 35,407 and moved higher. There was stiff resistance at 35,700 and the index fell heavily. BNF closed higher with the help of last hour bullishness, at 35,621, up by 133 points or 0.38%.

IT moved down by 1.4%.

The US markets closed lower with a minor recovery towards the end. The  European markets also moved down.

The Asian markets are trading lower. The U.S. Futures and the European futures are flat.

SGX NIFTY is trading at 16,437 indicating a gap-down opening. 

NIFTY has supports at 16,440, 16,400, 16,360 and 16,240. We can expect resistances at 16,590, 16,640 and 16,700.

BANK NIFTY has supports at 35,300, 35,000, 34,800, 34,400 and 34,000. Resistances are at 35,750, 36,000 and 36,300 .

NIFTY has the highest call OI build-up  at 17,000 followed by 16,800 and the largest put OI build-up is at 16,000 followed by 16,500.

BANK NIFTY has the highest call OI build-up  at 36,000 and the largest put OI build-up is at 35,000.

INDIA VIX is at 20.8.

Foreign Institutional Investors net sold shares worth Rs 1,900 crores. Domestic Institutional Investors net bought shares worth Rs 1,000 crores. 

If last hour selling was the highlight of Tuesday, heavy buying shook the aggressive short sellers in the last thirty minutes with NIFTY flying above 16,500 from the low. There has been huge volume in the last hour for the past two days. 

The initial fall of the US markets, though not huge, could be a reaction to the strong factory data which is an indicator that we may NOT fall into recession as the demand is still high. This can push the policymakers to continue with rate hikes.

The Auto Sales data showed recovery. However, tractors and two-wheelers showed no improvement and Bajaj Auto was hit by unsatisfactory sales. The AUTO sector closed flat.

GST collection came out at 1.4 lac crore which is a fall of 16% from last month figure. But this is a good figure as May collection always has to come lower than April since the financial closing month returns are collected in April. 

Manufacturing PMI for May came out at 54.6%, which shows an improvement despite inflation. Though we have different data and cues, many of them are contradictory and also, our market may be more action-based rather than news-driven in the coming days.

Hope you remember how volatile the last week expiry was! The chart stands apart from the other days. Make sure that you have stricter SLs. Note that NIFTY futures are trading at discount.

I will be watching 16,400 on the downside if the down-move continues.

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