News Shots

State Bank of India’s board has approved raising capital up to an amount of Rs 14,000 crore.

VST Tillers Tractors reported Q4 profit at Rs 12.93 crore against a loss of Rs 3.38 crore last year. Revenue jumped 20% YoY to Rs 194.74 crore.

Dish TV has approved the raising of funds up to Rs 1,000 crore through a rights issue. The rights issue will be priced at Rs 10 per share, a discount of 50% to current market price.

LIC sold a 2.02% stake in SAIL via open market, reducing shareholding to 8.69% from 10.71%.

KPIT Technologies has signed an agreement to acquire controlling stake in PathPartner Technology.

Sun Pharma has announced the settlement of patent litigation for cancer drug Revlimid with Celgene Corp.

Bharti Airtel and Tata Group have announced a strategic partnership for implementing 5G network solutions for India. TCS and Bharti Airtel will work together to push the technology.

Adani Transmission will seek shareholders approval to raise up to Rs 2,500 crore through issuing equity shares, debentures etc.

Jaiprakash Associates reported a fall of 86.2% YoY in its consolidated net profit to Rs 424.41 crore for Q4. 

IIFL Finance’s home finance arm is planning to raise up to Rs 5,000 crore, to boost the lending business. Fundraise will be through public issue of non-convertible debentures.

Delta Corp’s casinos in Goa and Sikkim will remain closed till June 28 as lockdowns have been extended in the states.

Some major Q4 result announcements today:

  • BEL
  • ITI
  • NMDC

What to expect today?

Yesterday, NIFTY opened with a 150 point gap-down and shot up. It went up nearly 250 points from day-low, just like Friday’s recovery and closed at 15,746. You can read all about Friday’s movements here.

BANK NIFTY also opened with a gap-down and shot up nearly 1,000 points from low to high. The index crossed Friday’s high and closed at 34,871.

PSU Banks moved up 4% after privatisation news in the industry. The Realty index also gained more than 2%. HDFC Bank and Reliance closed with good strength.

The European markets all closed in the green. The US markets are up nearly 1.5%, with strong green candles right from their market opening.

Markets around the world seem to have calmed down since falling heavily last week after the Fed announcement. Interestingly, not just India, all global markets which were moving very calmly for many weeks are now very volatile.

Most of the Asian markets are in the green, reversing from yesterday. Japan’s NIKKEI, which was down 3% yesterday, is up by 3% today. 

SGX NIFTY is trading higher at 15,800 indicating a gap up opening in the Indian market.

The immediate supports for NIFTY are at 15,750 and 15,650. The index is seeing some good buying when it hits the 15,500-15,600 zone.

Meanwhile, 15,830 and 15,900 will act as strong resistances.

Expecting Nifty to be a tough fight between bulls and bears with no one winning. Even with the gap-up, we might see some red candles at first. Of course, I will be watching the 15,830 zone which can be a good resistance and 15,690 for a small bearish indication. 

35,000, 35,115 and 35,300 and are the important resistances to be watched out for in BANK NIFTY. 

BANK NIFTY has good support at 34,650 and 33-950 to 34,000 zone. 

The highest call OI buildup is at 16,000 followed by 15,800. The highest put OI buildup is at 15,000 followed by 15,500.

Foreign institutional investors (FIIs) net sold worth Rs 1,244.71 crores, and domestic institutional investors (DIIs) net bought shares worth Rs 138.09 crores in the Indian equity market. Very interesting to see how DIIs are still buying near the market top.

Nifty has crossed a short term bearish trendline and has closed with power. IT stocks are seeing some pressure near the top, with TCS, Infy, TechM and more closing in the red. High crude oil prices(Now at $75/barrel) might push up dollar even more which could give a boost to these stocks in the short-term, but they seem to have lost bullishness according to charts.

There is clearly bullishness in the market, but the 15,750-15800 zone is a tight consolidation space that might hold down Nifty. Volatility has returned to the market from last week even with India VIX still at just 15. Expecting this week also to be volatile.

Reliance and its group stocks need to be watched ahead of the AGM. HDFC Bank also closed bullish and I will be watching the 1,500 zone for the stock and 2,530 for HDFC. All are heavyweights for Nifty.

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