News Shots

Nazara Technologies lists on the market today. Nazara, backed by Rakesh Jhunjhunwala, would be the first gaming company to list in India.

Dr Reddy’s expects the Russian vaccine Sputnik V to get approved by the Indian regulator in the coming weeks.

Adani Transmission is in a pact with Essel InfraProjects (EIL) to take over Warora-Kurnool Transmission at a valuation of Rs 3,370 crore.

Manappuram Finance is planning to separate off its microfinance arm Asirvad Microfinance and take it public within a year.

Piramal Capital, which is set to acquire Dewan Housing Finance Corp (DHFL), will likely put DHFL’s property developer loan portfolio of about Rs 53,000 crore on sale.  Piramal is looking to become a retail mortgage lender.

The world’s largest miner, Coal India, is likely to post a marginal fall in output for the year 2020-21 by 5-6 million tonnes, with total production under 600 million tonnes.

Adani and Torrent Group have submitted expressions of interest (EoIs) to buy South East UP Power Transmission Company. Its Spanish owner, Isolux Corsan, has filed for bankruptcy in Spain and informed Indian lenders it cannot continue the project.

Tata Power’s consumers in Mumbai including retail, industrial and commercial establishments will soon be able to switch to 100% renewable energy by paying an additional 66 paise/unit. It is purely voluntary.

HCL Technologies has announced a new innovation center in Ontario, Canada to focus on digital acceleration. Plans to create 2,000 new jobs in Canada in the next three years, and use their local talent to serve global clients.

JSW Energy’s board has approved a proposal for issuance of ‘green bonds’ by JSW Hydro Energy, the company’s subsidiary, to raise $750 million from international markets.

Biocon has partnered with Libbs Farmaceutica to launch generic formulations in Brazil.

What to expect today?

Last week, NIFTY moved down from 14,900 levels to even 14,270. On Friday, NIFTY consolidated and closed above 14,500. You can read all about Friday’s movements here.

Bank Nifty also managed to stay strong on Friday and closed just above 33,300.

All indices closed in the green on Friday with all metal stocks moving up strongly. We could see many stocks recovering the losses they had made in the previous days.

The European markets consolidated and closed near flat. Though there were concerns regarding a huge sell off in the US, the US markets displayed positivity. DOW JONES moved up 0.3% and hit all time high at one point of time. NASDAQ was a bit weak.

Asian markets are mostly trading in the green. US Futures are down. SGX Nifty is currently trading higher at 14,778 indicating a gap up opening in the Indian market. 

The 10 year US treasury bond yield has again gone back up to above 1.7 levels. Last time our market fell whenever bond yield went to 1.7 levels.

Such gap ups are difficult to be sustained and if sustained, may give good up moves. Let’s see what is going to happen.

There was clear weakness in the market. But Bank NIFTY closing above 33,300 and NIFTY closing above 14,500 are HUGE. FIIs started selling less on Friday which is also a good indication.

NIFTY has strong resistances at 14,750, 14,800 and 14,900. NIFTY has to cross at least 14,900 to gain back upwards momentum.

The next supports for NIFTY are at 14,600, 14,500, 14,360 and 14,260 while for Bank Nifty, they are at 33,000, 32,850 and 32,500.

India VIX fell 10% on Friday thereby taking option premiums down – not great for option sellers.

Foreign institutional investors (FIIs) net sold worth Rs 50 crores, and domestic institutional investors (DIIs) net bought shares worth Rs 1703 crores in the Indian equity market. 

There is good put OI buildup at 14,000 followed by 14,500. Similarly, the largest call option buildup is at 15,000 followed by 15,500.

This week has good expectations like Joe Biden’s 3 trillion USD package and multiple global economic data coming in. At the same time, rising COVID cases is a real concern in India.

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