News Shots

February month auto sales data came out strong. Almost all auto manufacturers have sold a considerably higher number of vehicles, MoM and YoY. Auto and auto ancillary stocks can still be in watch. 

India’s first auction of telecom spectrum in five years attracted Rs 77,146 crore of bids on the opening day on Monday with Reliance Jio, Bharti Airtel, and Vodafone Idea participating. The auction will close today.

Bharat Petroleum Corporation will exit Numaligarh refinery in Assam by selling its entire stake to  Oil India Ltd and Engineers India Ltd for Rs 9,876 crore.

Broadband technology company Sterlite Technologies announced orders worth Rs 700 crore from telecom firms in Middle East and Africa, taking the company’s total order book to over Rs 11,300 crore.

Siemens announced that it has completed the acquisition of electrical equipment manufacturer C&S Electric in India, after regulatory approval from the Competition Commission of India.

The government has asked Oil India to relocate its corporate head office to Assam from Delhi after the fire in its oilfield that claimed three lives, and took five months to douse.

Kotak Mahindra Bank has announced a 0.10% point cut in its home loan rates for a limited period, claiming its offering to be the lowest in the market.

NMDC production in February rose 19.13% year-on-year to 3.86 MT. Sales up 11.68% year-on-year to 3.25 MT.

Petronet LNG has incorporated a wholly-owned subsidiary, Petronet Energy Limited, for undertaking GUCD operations, LNG Bunkering and other allied services.

Some great data regarding Aditya Birla Fashion and Retail – Apparel Market is projected to grow at a 10% CAGR and reach $107 billion by FY25. Organized Retail (Brick n Mortar & Online) to grow from 33% to 41% in next 5 years. Lifestyle brands have been consistently profitable with 50%+ ROCE and are projected to be Rs 9,000 crore by FY26. Share of casual business grew from 34% to 59% for Lifestyle Brands. Peter England Red plans to build a Rs 900 crore business spread across 1000 stores over next 3 years. Allen Solly Prime plans to open 500 stores in 3 years. On course to increase the share of Private labels from 61% in FY20 to 75% in FY25. The company plans to add 250 stores in the next 3 years across 100 new towns. E-commerce channel scaled up 3x during FY21; to contribute 8-10% of sales by FY25.

What to expect today?

Yesterday NIFTY consolidated with huge volatility and has closed very positively 1.6% up. NIFTY moved between 14630 and 14800. You can read all about yesterday’s movements here.

Bank Nifty also rose nearly 1.4% but the intraday movement saw a lot of volatility. Bank Nifty slipped below 35,000 at one point but that was not sustained. It closed at 35,296.

As we wrote in the pre market report yesterday, there are positive global cues and they are taking the markets up.

Europe closed nearly 1.5% up yesterday. In the US, DOW is up nearly 2% and NASDAQ is up more than 3%! Positivity is back in the markets!

Following these, most of the Asian markets are trading in the green today morning. Japan’s NIKKEI was down at one point but now it is also recovering. SGX NIFTY is trading higher at 14,840, indicating a gap-up opening in the Indian Market. 

Chances are high that NIFTY will move up from here. Moving up NIFTY has resistance at 14,900 and 15,000. Both of them have large Call OI buildups as well.

Moving down, 14,800, 14700-14,740, 14,630 can act as strong supports. We could see fresh put writing happening at these strikes yesterday.

India VIX has come down but still we might see volatility in the market. 

Interestingly Foreign institutional investors (FIIs) net bought worth Rs 125 crores, and domestic institutional investors (DIIs) net sold shares worth Rs 194 crore in the Indian equity market.

Maximum put option contracts strong at 14,500. Maximum call options at 15,000. The calls at 15,000 might get trapped today. We can watch the shift in OI today to have an understanding of this expiry.

Once NIFTY opens with a gap up, give it some time to establish a trend. Then enter trades with confidence. 

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