News Shots 

Tata Teleservices decided to convert interest related to AGR dues of Rs 850 crore into equity. The government will hold approx. 9.5% stake as per company’s estimates.

Shriram Transport Finance raised $475 million Fixed Rate Senior Secured 144A /Reg S Bond (available ECB limit for FY22) for a 3.5-year tenor at an interest rate of 4.15%.

Delta Corp. reported a net profit of Rs 70.38 crore in Q3 as compared to a loss of Rs 22.57 crore in the previous quarter.

Ultratech Cement has commissioned Line II of the Bara Grinding Unit in Uttar Pradesh taking its total cement manufacturing capacity in India to 114.55 mtpa.

The Great Eastern Shipping company bought back 30,000 shares at Rs 310.01 from Kotak Securities.

RITES has signed a memorandum of understanding with the SMEC group to explore infrastructure opportunities.

What to expect? 

Yesterday, NIFTY opened with a small gap-up at 18,028 and was volatile during the first hour. NIFTY crossed the day-high and hesitated at 18,050. The index moved higher in the second half but profit booking took the index below 18,050. Support was taken at 18,000 and NIFTY closed the day at 18,055, up 52 points or 0.29%.

BANK NIFTY opened flat at 38,379 and took resistance at 38,500. The level of 38,000 offered support and the index bounced back to face resistance again at 38,500. The index closed the day at 38,442, up 94 points or 0.25%.

NIFTY AUTO (-0.19%) consolidated and NIFTY IT(+1.03%) moved up fuelled by HCL Tech. NIFTY METAL(-1.90%) saw a fall.

The US markets closed well in the green. The European markets also moved higher.

The Asian markets are trading well in the green. The U.S. Futures and the European futures are trading in the green.

SGX NIFTY is trading at 18,239 indicating a gap-up opening in NIFTY.

Major supports for NIFTY are at 18,000, 17,950, 17,900, 17,850 and 17,800. There are resistances at 18,110, 18,210, 18,270 and 18,340.

BANK NIFTY has supports at 38,350, 38,250, 38,100, 38,000 and 37,700. Resistances are at 38,500, 38,700, 39,000 and 39,100.

NIFTY has the largest call OI build-up at 18,500. The largest put OI build-up is at 17,800.

BANK NIFTY has the highest call OI build-up at 38,500 and the highest put OI build-up is at 38,000.

INDIA VIX is at 17.68.

Foreign Institutional Investors net bought shares worth Rs 112 crores. Domestic Institutional Investors net bought shares worth Rs 379 crores. 

Quarterly results of IT stocks will be released today. The stocks namely Infosys, TCS and Wipro will be volatile today. BANK NIFTY is just near the level of 38,500 and it will be interesting to see how the index reacts to the level today.

Though the largest call OI build-up shifted from 18,500 to 18,400 during the day when NIFTY looked weak in the first hour, 18,500 soon redeemed the position. BANK NIFTY saw a huge call OI build-up at 38,500 and if the index crosses the level today, you can see short covering coming into action.

Major economic data will be out today late in the evening. We have our CPI inflation data releasing today. China may release the data earlier in the day and can give us a clue. But the most important one is the US CPI inflation data which will be out tonight. The world will be watching it closely as this is the first one after the December FED minutes were released. 

Since Jerome Powell, the FED Chairman gave an expected testimony yesterday, the US markets have rebounded. This positivity has spread to the East and the Asian Markets trading well in the green. SGX NIFTY is trading higher as a result. However, we have strong resistances for NIFTY on the upside.

 I will be closely watching how NIFTY reacts to 18,210 if not 18,110. Both are major price action levels. A fall below 18,000 may bring NIFTY another 100 points down. It is better to enter safe positions today as we have results and major data releasing today.

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