News Shots

  • Like every week, there is a COVID 19 vaccine update. It is again from Russia this week. Their Health Minister has gone on record stating that clinical trials are over for a vaccine and it might be available for the masses from October.
  • Promoters of Bandhan Bank are set to raise about Rs 10,500 crore by selling shares in the secondary market. In the process, the promoter holding will decrease by 20%. Bandhan will sell 337.4 million shares in the open market and has set a floor price of Rs 311 per share. They are doing this mostly because RBI’s bank licence rules state that promoters of private banks should cut their shareholding to 40% within three years and 20% in 10 years.
  • State Bank of India (SBI) on Friday reported an 81 per cent Y-o-Y surge in net profit at Rs 4,189.34 crore for the quarter ended June 2020. Net Profit was Rs 2,312.20 crore in the same quarter last year. The profit came in a bit higher than Rs 4,000 crore estimated by the street.
  • Tata Motors reported a consolidated net loss of Rs 8,443.98 crore for the first quarter ended June 2020. The company had posted a net loss of Rs 3,679.66 crore in the year-ago quarter.
  • Sun Pharma went on in recording a Loss of Rs.1665.50 Cr as compared to Rs. 1,387.48 Cr. profit last year and Rs.399.84 Cr. in the quarter ending March 20′
  • Torrent Pharmaceuticals reported a rise in net profit by 49% in the quarter ended June. Last year in the same quarter, net profit was amassed to be Rs 216 crore as compared to Rs 321 crore in this quarter.
  • July’s automobile sales data is positive. Maruti Suzuki and Hero MotoCorp returned to levels seen a year ago in July. Tata Motors has seen a 45% jump in sales.
  • Lupin is recalling 35,928 bottles of a generic antibiotic drug in the US market following unfavourable results in retention samples, the US health regulator said in a report.
  • Indian Oil Corporation (IOCL) will invest Rs 13,805 crore to set up a plant in Odisha’s Paradip to manufacture raw materials for the textile sector, an official said on Sunday. The project is expected to be completed by 2024.
  • Tata Power said it plans to double its consumer base in the distribution business to 10 million over the next five years.
  • Zydus Cadila has received a tentative nod from the USFDA (United States Food and Drug Administration) to market Carbidopa and Levodopa extended-release capsules. The drugs are used for the treatment of symptoms of Parkinson’s disease. Cadila Healthcare is bullish about its growth momentum in the United States driven by new product launches and expansion in overall product offerings. 
  • Q1 Results Announcement Today:
    • Exide Industries
    • Dhanlaxmi Bank
    • VST Industries
    • Tata Consumer Products

What to expect today?

  • Last week closed on a low, mainly attributed to the fall in Reliance Industries and the banking sector, led by HDFC Bank. Global and local cues seem to be on the positive side. But these 2 index heavyweights are bringing NIFTY down. So tread with caution. Once the market has clearly taken support and starts moving up, it will be a great opportunity to buy heavily.
  • Technically, there is support at 11,000 and at 10,850-10,900. Even if NIFTY moves down, these are important price levels to watch out for.
  • US Markets fell heavily but regained later. Asian markets are mostly down. SGX NIFTY is currently trading lower at 11,018, indicating a gap down opening in the Indian Market!
  • NIFTY is likely to trade between 10,950 and 11,200 today. There is support at 11,000 and 10,950 and resistance at 11,150 and 11,200.
  • Highest Call Open Interest at 11,500, followed by 11,000. Highest Put Open Interest at 11,000, followed by 11,200. 11,000 can act as a huge support.
  • Foreign institutional investors (FIIs) sold shares worth Rs 958.64 crore while domestic institutional investors (DIIs) bought shares worth Rs 442.73 crore. FIIs ended as net sellers after continuous days of being net buyers.
  • IT and Pharma continue to be highly bullish. They need to be watched. Auto sector needs to be in focus with regards to the positive auto sales data. The bearishness in Banks needs to be observed too.