News Shots

Tata Consumer Products has forayed into the premium roast and ground coffee segment with the launch of ‘Sonnets By Tata Coffee’.

Emami has raised product prices on an average by four per cent in the current fiscal to offset the present input cost pressure that will help the company to retain a gross margin of 66-67 per cent.

Jammu & Kashmir Bank approved raising up to Rs 500 crore by issue of equity shares through preferential allotment to Government of Jammu & Kashmir.

NHPC incorporated a joint venture company with Jammu and Kashmir State Power Development Corporation called Ratle Hydroelectric Power Corporation on June 1. The JV will implement Ratle Hydro-electric Project (850 MW) in the Chenab River Basin. NHPC will hold 51% stake in the JV.

Punjab National Bank to exit shareholding in Canara-HSBC-OBC life insurance venture in 12-18 months. Bank had been given forbearance till March 31, 2021 to exit the second insurance business by the insurance regulator.

Bajaj Finance bounce rate in April-June quarter is 1.08x of the rate in January-March due to severity of second wave. Expects gross and net NPAs to be higher in Q1 and Q2 due to collections constraints.

BofA Securities Europe SA picked up 36.18 lakh shares of IndusInd Bank for Rs 364 crore through a market transaction. The shares were offloaded by UBS Principal Capital Asia Ltd.

Punjab National Bank posted a standalone profit of Rs 586.33 crore in the latest quarter, aided by a good increase in interest income, compared to a loss of Rs 697.20 crore in January-March period of 2019-20.

Water treatment player VA Tech WABAG has clocked standalone profit for the quarter ending March 31, 2021 at Rs 32.82 crore, compared to just Rs Rs 1.38 crore last year.

Some major Q4 result announcements today:

  • MRF
  • The New India Assurance Company
  • Union Bank of India
  • Central Bank of India
  • Jubilant Ingrevia
  • SMC Global Securities
  • Fairchem Organics

What to expect today?

Friday, NIFTY opened with a gap up above 15,700. NIFTY tried to remain above 15,700 but banks dragged the market down and NIFTY fell to 15,625 and closed at 15,670. You can read all about Friday’s movements here.

BANK NIFTY showed more weakness than NIFTY. HDFCBANK was especially weak taking strong resistance at 1520 levels. BANK NIFTY closed 1% down at 35,291.

RELIANCE has gone below 2,200. BANK NIFTY was the sector that performed the worst on Friday.

The European markets closed flat, with slight positivity. The US markets moved significantly up after the jobs data was announced.

Lesser number of jobs were added than expected in the US. This has increased the chances of an economic stimulus and Fed not increasing the interest rates soon. These are positives for the market.

But the momentum has changed a bit now that the Global Minimum Tax of 15% has been proposed by the Finance Ministers of G-7 countries. This is bad for the markets in the short term and good for the Indian economy and market in the long term.

Asian markets are mixed. They opened higher and many are moving down now. European and US futures are slightly in the red.

SGX NIFTY is currently trading higher at 15,750 indicating a gap up opening in the Indian market. SGX NIFTY had gone to 15,800 yesterday.

The immediate supports for NIFTY are at 15,600, 15,550 and 15,500.

With the huge call OI buildup there, Let’s see if 15,800 can act as a resistance. 

35,500 and 36,000 are the next important resistances to be watched out for in BANK NIFTY. 35,500 is very crucial because of the call OI buildup there since last week.

BANK NIFTY has support at 35,000. BANK NIFTY has been successfully sustaining it for many days now.

INDIA VIX has closed in 15 levels, which is the lowest ever since February 2020, indicating stability in the market.

As I have been saying, banks will decide the action for some days now as HDFC BANK and KOTAK BANK are far away from their all time high and that is the limiting factor in BANK NIFTY and thereby, NIFTY.

NIFTY has huge call OI buildup at 15,700, 15,800 and 16,000, indicating upside move is limited this week. NIFTY has good put OI buildup at 15,500 and downwards. PCR of NIFTY is 1.0.

BANK NIFTY has a crazy amount of call OI buildup at 35,500 and PCR is 0.6. Let’s see if BANK NIFTY will be bearish and that will take the whole market down.

Foreign institutional investors (FIIs) net bought worth Rs 1499 crores, and domestic institutional investors (DIIs) net sold shares worth Rs 1175 crores in the Indian equity market. 

There is strength in our market. We moved up in the last few days even though there was weakness in the global markets. 

There are concerns regarding profit booking or cooling down in our markets. The OI analysis is also suggesting that. So, let’s be prepared for that as well.

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