News Shots

The online bus ticketing platform redBus announced foray into rail ticketing with the launch of redRail, a rail ticket booking service in collaboration with IRCTC as their authorised partner.

The B2B e-commerce firm Indiamart Intermesh has acquired a stake in trade receivable discounting system services firm M1xchange for Rs 32.4 crore.

Dish TV, which is facing a notice from its largest shareholder Yes Bank to reconstitute its board, has again postponed its Annual General Meeting for a month after getting regulatory approval.

The Reserve Bank of India (RBI) has imposed a penalty of Rs 1 crore on the state run lender Union Bank of India for deficiencies in regulatory compliance.

The Reserve Bank superseded the board of Anil Ambani promoted Reliance Capital (RCL) and will soon initiate bankruptcy proceedings against the debt-ridden NBFC for payment defaults and serious governance issues.

The wholly-owned subsidiary of NTPC, NTPC Renewable Energy, has signed power purchase agreements for 325 MW solar projects.

Mastek U.K. has been awarded a healthcare contract of £45 million by National Health Services Digital.

What to expect today?

Yesterday, NIFTY opened with a gap-up at 17,069 and fell nearly 300 points in less than ten minutes. The index bounced back and crossed 17,000. NIFTY faced multiple resistances near 17,150 and finally fell towards the end to close the day at 17,054, up 28 points or 0.16%.

BANK NIFTY followed a similar pattern after opening with a gap-up at 36,242. The index gained strength after an initial fall but it was not as strong as NIFTY. Resistance was taken at 36,350 and BANK NIFTY fell in the last hour to close below 36,000 at 35976, down 49 points or 0.14%.

Major sectoral indices were neutral to negative except for NIFTY IT(+0.76%). NIFTY MEDIA(-2.2%) closed deep in the red.

The US markets moved up, recovering much of the losses due to the COVID fall of last Friday. The European markets closed in the green, moving up by 1% on average.

The Asian markets are trading higher except HANG SENG as HONG KONG has imposed travel restrictions. The U.S. Futures and the European Futures are in the green.

SGX NIFTY is trading at 17,073,  indicating a small gap-up opening in NIFTY.

Major supports for NIFTY are at 17,000, 16,915, 16,880, 16,850 and 16,780. We can expect resistances at 17,100, 17,160, 17,200, 17,250 and 17,325.

BANK NIFTY has supports at 35,700, 35,500, 35,300 and 35,000. Resistances are at 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 16,000 followed by 17,000 and 16,500. 

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

INDIA VIX stays above 20.

Foreign Institutional Investors net sold shares worth Rs 3,332 crores. Domestic Institutional Investors net bought shares worth Rs 4,611 crores. 

Reliance, HDFC Bank and Kotak Bank along with the IT sector contributed significantly, supporting the market. I will keep an eye on these stocks.

As COVID fear eases, the global markets showed signs of recovery. At the same time, another fall cannot be ruled out as the governments worldwide are cautious and have already imposed several restrictions. The US government has asked its citizens to go for another vaccine shot as a precaution.

Though there are reports that Omicron is not as dangerous as thought earlier, WHO still stands with its earlier statement that the consequences can be severe.

GDP data for the second quarter will be announced towards the end of the day and thus you can expect volatility in the market. The market is already volatile with FIIs selling all at once rather than offloading in steps and the DIIs buying to support the market.

Though the market bounced back even after 17,000 was crossed, I will not change the bearish view on the market as FIIs keep selling. I will wait for a close above 17,350 for strength. Similarly, I will watch 16,700 on the downside which is a major support.

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