News Shots

The Centre is selling up to 58 million shares in Axis Bank, held via the Specified Undertaking of the Unit Trust of India (SUUTI) to raise around Rs 4,000 crore, via Offer for Sale. The floor price of Rs 680 per share is at a 4.48% discount to Tuesday’s closing price. The OFS opens for non-retail investors today and for retail investors tomorrow.

Central Bank of India shareholders have approved allotment of preference shares to the government for a Rs 4,800-crore capital infusion.

Infosys and Majesco announced a strategic collaboration to work together to help joint customers accelerate their digital transformation journey.

Bharti Airtel is experiencing financial pressures in the second wave of the COVID-19 pandemic, but expects the recovery to start soon, a top company official.

The wholly-owned subsidiary of JSW Energy, JSW Hydro Energy, has raised $707 million by allotment of dollar-denominated senior secured notes.

Tata Motors reported a consolidated net loss at Rs 7,585 crore for the latest quarter. The loss is attributed to an exceptional loss in the JLR unit worth Rs 15,000 crores.

The realty firm Brigade Enterprises reported a sharp rise in its consolidated net profit at Rs 39.57 crore for the latest quarter. Its net profit, after minority interest, stood at Rs 2.68 crore in the year-ago period.

Ujjivan Small Finance Bank reported an 86 percent jump in its net profit to Rs 136 crore for the last quarter.

Some major Q4 result announcements today:

  • Indian Oil Corporation
  • IRFC
  • Tanla Platforms
  • Indiabulls Housing Finance
  • Prism Johnson
  • JK Tyres & Industries
  • Heritage Foods
  • Gravitas India
  • SML Isuzu

What to expect today?

Yesterday, NIFTY opened with a huge gap up around 15,050 and moved up strongly to consolidate around 15,100 and then close at 15,108. You can read all about yesterday’s movements here.

BANK NIFTY also opened with a gap up around 33,850 and then consolidated throughout the day to close just below 34,000.

PSU Banks moved the most yesterday. Metals also regained and are back on the bullish track.

The European markets closed flat. But if you look at the charts, after strong green candles just after opening, the European markets kept moving down throughout the day.

The US markets were also trading flat/positive but all indices started falling strongly towards the close and thereby all ended in the red. The fall towards the end can be attributed to the Fed’s last meeting’s minutes that will be released today. Investors are keen on knowing changes in the interest rates.

Asian markets are all down after the weakness in the global markets. Markets are closed in Hong Kong and South Korea for holidays.

SGX NIFTY is currently trading lower at 15,076 indicating a gap down opening in the Indian market.

The immediate supports for NIFTY are at 15,050, 15,000 and 14,900. If 15,000 is broken with strength today, then there will be more weakness in the market.

15,100, 15,200 and 15,270 are important resistances for NIFTY. 

34,000 and 34,400 are the immediate resistances to be watched out for in BANK NIFTY. It can go up strongly if 34,400 is broken.

BANK NIFTY has supports at 33,700, 33,500 and 33,300. 

There is a huge call buildup at 15,300. Major put buildups are at 14,700 and 14,900. NIFTY PCR remains at 1.2. Interestingly, more puts at 14,900 than 15,000. Does that indicate NIFTY going below 15,000?

Foreign institutional investors (FIIs) net bought worth Rs 618 crores, and domestic institutional investors (DIIs) net bought shares worth Rs 449 crores in the Indian equity market. 

FIIs finally turn buyers. But as we have seen historically, when FIIs turn buyers, DIIs turn sellers. Let’s see what will happen today.

As I said on The Stock Market Show yesterday, I will be watching for NIFTY and BANK NIFTY to break previous day’s high and low for getting a trend for the day. If yesterday’s low is broken in NIFTY, 15,000 will be the target. If 15,000 is broken, then more weakness can be expected. Likewise, if 15,140 is broken on the upper side, 15,200 will be the target.

VIX is still very low. Normally, we see volatility on Wednesdays. Will we see it today with such low VIX is an interesting thing to watch out for.

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