News Shots

Reliance Industries will hold its 44th Annual General Meeting. Mukesh Amabni led entity will not only shed light on the company’s performance of the last year but also reveal the company’s growth plan for the near future, among other things.

Infosys will commence its up to Rs 9,200 crore buyback from June 25, wherein the IT major intends to buy back shares at a maximum price of Rs 1,750 apiece.

Tata Motors confirmed Guenter Butschek will step down as its MD and CEO with effect from June 30. He will, however, continue as a consultant to the company till the end of this fiscal year.

Adani Ports and SEZ may abandon the Myanmar project if it violates U.S. sanctions and will write-down investments in the project in full. The write down will not materially affect the balance sheet as it is equivalent to about 1.3% of the total assets of the company.

The micro finance institution Spandana Sphoorty Financial has raised Rs 337.5 crore through the issuance of market-linked debentures (MLD). The market-linked debentures were issued at an 11 percent yield and will mature in 30 months.

Tata group hospitality firm Indian Hotels Company has crossed the milestone of over 10 lakh meals delivered by its culinary platform – Qmin to healthcare providers during the second wave of coronavirus pandemic.

Some major Q4 result announcements today:

  • ONGC
  • Ashok Leyland
  • Mishra Dhatu Nigam
  • PTC India
  • Nirlon
  • West Coast Paper Mills

What to expect today?

Yesterday, NIFTY opened with a gap up and fell continuously throughout the day to close below 15,700. You can read all about yesterday’s movements here.

BANK NIFTY also opened with a gap up and fell continuously. The resistance att 35,000 looks very strong and the support at 34,650 was broken towards the close as BANK NIFTY closed at 34,574.

NIFTY AUTO performed the best among sectors as Maruti Suzuki shot up more than 2%. IT and METALS had a very bad day.

The European markets closed slightly down. The US markets consolidated throughout the day, and closed slightly in the red. 

There was positive news reporting a record peak for U.S. factory activity in June. Still, the markets consolidated in the US, near their all time high.

Almost all Asian markets are consolidating, slightly in the green. US and European futures are up currently.

SGX NIFTY is trading higher at 15,720 indicating a flat to small gap up opening in the Indian market.

The immediate supports for NIFTY are at 15,650 and 15,600. The index has seen some good buying whenever it has gone down to 15,550 to 15,600 levels.

Meanwhile, 15,800, 15,840 and 15,900 will act as strong resistances.

34,650 and 35,000 are the important resistances to be watched out for in BANK NIFTY. 

BANK NIFTY has good support at 34,400 and 33,900 to 34,000 zone. 

The highest call OI buildup in NIFTY is at 15,800 followed by 15,900. The highest put OI buildup is at 15,500 followed by 15,600. PCR is 0.8, indicating bearishness.

BANK NIFTY continues to have the highest call OI at 35,000, which will act as a huge resistance. 

Foreign institutional investors (FIIs) net bought worth Rs 3,156 crores, and domestic institutional investors (DIIs) net bought shares worth Rs 1,317 crores in the Indian equity market. There was a bulk deal in UBL which led to such a big buying amount in FIIs. If the bulk deal is kept apart, then FIIs are net sellers for over Rs 2000 crores.

The confidence of call option writers is on another level. 15,800 in NIFTY and 35,000 in BANK NIFTY had more than 1 lakh call contracts written there before noon yesterday! This indicates that the up move might be limited today.

But, let’s not talk about OI, technicals, supports and resistances etc today. Whatever we say can be taken out by Reliance Industries based on the AGM, which starts at 2 pm.

Reliance, being such a strong index heavy weight, can make wild moves (as we have seen historically) and that can reflect as movement in NIFTY also.

So, even though it’s an expiry (money making day), I wouldn’t try speculating much in the market today, as safety is the foremost priority.

There can be a calm before the storm. The market may consolidate after opening till noon. Let’s see how it goes.

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