News Shots

The Reserve Bank came out with modified guidelines that allow sound private sector banks to undertake government business, whether at the Centre or in states. According to the modified norms, scheduled private sector banks, which are not under the Prompt Corrective Action (PCA) framework of the RBI, can undertake government business after executing an agreement with the central bank.

Indian Overseas Bank to issue preference shares to the government for Rs 4,100 crore capital infusion.

InterGlobe Aviation has approved raising up to Rs 3,000 crore through sale of shares to institutional investors.

Punjab National Bank has approved raising equity capital from qualified institutional investors to enhance its capital base. For the Qualified Institutional Placement (QIP) purposes, the bank has fixed the floor price at Rs 35.51 per equity share.

The gross direct premium written by non-life insurance companies rose by over 22 per cent in April this year to Rs 17,309.54 crore, as per regulatory data. General insurance companies to be in focus.

Bajaj Finance has allotted 20,000 secured NCDs of the face value of Rs 10 lakh each on a private placement basis.

Some major Q4 result announcements today:

  • Godrej Consumer Products
  • Siemens
  • Aarti Industries
  • Linde India
  • BASF India
  • KEC International
  • Granules India
  • Alembic Pharma

What to expect today?

Yesterday, NIFTY opened with a gap up and consolidated extremely between 14,900 and 14,960. You can read all about yesterday’s movements here.

Bank Nifty, also opened with a gap up at 33,000 and then consolidated between 33,000 and 33,300. The support at 33,000 was tested once again.

All the sectoral indices closed in the green! METALS continued to outperform, as metal prices are skyrocketing.

The European markets closed flat, with a slight negative bias. Major sell off in the US markets, especially in NASDAQ which is 2.5% down and S&P 500 which is more than 1% down.

Asian markets have quickly reacted to the sell off in the US. Japan and Hong Kong are trading more than 2% down while many others are trading nearly 1% down. SGX Nifty is currently trading lower at 14,788 indicating a gap down opening in the Indian market. 

Everytime NIFTY has reached 15,000 in the last 2-3 times, profit booking has kicked in and the index has fallen. It is happening again. So focus should be on the low NIFTY will make this time. The last low made after touching 15,000 was 14,400. If the overall strength in the market continues, chances are high that a higher low will be made.

14,850-14,900, 15,000, 15,100 are importance resistances for NIFTY.

The immediate supports for NIFTY is at 14,750, 14,700 and 14,600.

33,300, 33,500 and 34,000 are the immediate resistances to be watched out for in BANK NIFTY.

Bank Nifty has supports at 33,000, 32,750, 32,300, 32,000 and 31,500. Slipping below 32,000 can cause weakness in Bank NIFTY.

We have a large call option buildup at 15,200 and a large put option buildup at 14,500.15,000 also has a good call option buildup.

Yesterday, 14,900 saw HUGE put option buildup indicating bullishness and strength in NIFTY. But, exactly as I said on yesterday’s “The Stock Market Show”, they are not to be taken seriously and see where NIFTY is opening today! All those 14,900 PE sellers will be in major trouble today!

What do you think about intraday OI buildups very near to spot price? Off late, do you think they give any idea about short term NIFTY movement? If not, why do you think they are not working anymore. Let me know in the comments section below. I will reply to your comments there.

Foreign institutional investors (FIIs) net bought shares worth Rs 583 crores, and domestic institutional investors (DIIs) net sold shares worth Rs 476 crores in the Indian equity market. 

HDFCBANK, RELIANCE and other heavy weights are not moving strongly. They have to move to take NIFTY higher.

Last week’s up move in NIFTY was without the support of BANK NIFTY. So if Banks also move up this week, NIFTY can go to higher heights.

The initial movement in NIFTY after the opening is important, to understand the trend for the day. Last Tuesday, we say NIFTY falling heavily.

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