News Shots

Taiwanese IT hardware firm Acer has roped in domestic electronic manufacturing services firm Dixon Technologies for making its laptops in India, both companies said in a joint statement on Wednesday. The facility will have a capacity to manufacture up to 5 lakh Acer laptops annually.

ICICI Bank raised Rs 3,595 crore through infrastructure bonds for the second time this financial year.

Tata Steel announced the commissioning of an 8 million tonne iron ore crushing and washing plant in Odisha.

Coal India is aiming at investing Rs 40,000-50,000 crore as capital expenditure in the next 4-5 years. The Rs 17,000-crore capex (capital expenditure) for the current fiscal is “on track”.

Union Bank of India has entered into a co-lending partnership with Capri Global Capital, under which they will disburse loans to MSMEs. Capri Global Capital Ltd (CGCL) is a non banking financial company focused on lending to MSMEs and the affordable housing finance segment.

State-owned power producer SJVN has signed a pact with PTC India to develop products for supplying round-the-clock renewable energy.

What to expect today?

Yesterday, NIFTY opened with a gap-up at 17,561 and just after a momentary fall below 17,500, started moving up steadily. Multiple resistances were taken at 17,600 and the index fell by more than 200 points with heavy institutional selling. NIFTY closed at 17,415, down by 88 points or 0.50%.

BANK NIFTY opened with a gap-up at 37,412 and moved up with a breakout. Resistance was taken near 37,900 and the index fell, finally closing at 37,442, up 169 points or 0.45%.

NIFTY MEDIA(+2%) moved up whereas NIFTY AUTO(-1.2%), NIFTY IT(-1.5%) and NIFTY FMCG(-0.99%) fell.

The US markets recovered well after the gap down and closed in the green except DOW JONES which could close flat only. The European markets were mixed with FTSE closing in the green, CAC 40 closing flat and DAX trading in the red for the whole day with a recovery of nearly 1% towards the close.

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

SGX NIFTY is trading at 17,430 indicating a flat to small gap-up opening in NIFTY. 

Major supports for NIFTY are at 17,375, 17,325, 17,215 and 17,050. We can expect resistances at 17,450, 17,550, 17,650, 17690 and 17,800.

BANK NIFTY has supports at 37,350, 37,000, 36,650 and 36,500. Resistances are at 37,500, 37,750, 37,900 and 38000.

The highest call OI build-up in NIFTY is at 17,500 followed by 17,600 and the highest put OI build-up is at 17,000 followed by 17,300.

BANK NIFTY has the highest call-OI build up at 38,000 and the largest put OI build-up is at 37,000.

INDIA VIX cooled down to 17.

Foreign Institutional Investors net sold shares worth Rs 5,123 crores. Domestic Institutional Investors net bought shares worth Rs 3,810 crores. 

It was a steady up-move the market exhibited for most of the day. But Foreign Institutional Investors continued to sell heavily resulting in a huge intraday fall. It’s been a long time since FIIs sold huge figures back to back and this has become a concern for the bulls.

Though NIFTY fell, BANK NIFTY closed in the green outperforming the market. KOTAK and ICICI Bank made significant contributions to the index. Reliance and Infosys were the major stocks that pulled NIFTY down.

Germany is planning for a lockdown as COVID cases have surged. The news led to panic selling in our market as well. DAX had fallen by more than 1.2% yesterday before it could recover well towards the close. The US markets opened with a gap down because of the same but went up later. The US Government has clarified its stand on lockdown by saying they would curb COVID by other means.

New Zealand has raised interest rates yesterday and South Korea has followed by hiking the rates today. This is a warning signal for Central Banks around the world. However, the Reserve Bank of Australia said that it has no plan to hike interest rates in the near future.

17,325 is a major support for NIFTY. If the index moves down, I will closely watch 17,215 for further fall. 17,500 being the strike with the largest call OI build-up can act as a good resistance. If the level is broken, 17,550 should be watched closely. I will aggressively sell options seeing which level is broken. Reliance and Infosys should be tracked today and you can expect volatility as today is monthly expiry.

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