News Shots

Wipro has sold its entire stake in Denim Group, a provider of application security firm, for $22.4 million (about Rs 160 crore)

Tata Power’s wholly-owned subsidiary, Tata Power Solar, has received a Letter of Award to build 210 MWp of Solar PV projects for NTPC in Gujarat. The total order value of the projects is Rs 686 crore.

Deepak Fertilisers & Petrochemicals is in talks with multiple foreign companies for potential partnerships, as it looks to hive off its key businesses into separate corporate entities.

The US health regulator has accepted Lupin’s application for a biosimilar product which is used to treat cancer patients.

The speciality-Chemicals manufacturer Rossari Biotech announced the acquisition of Unitop Chemicals, a supplier of surfactants, emulsifiers, and specialty chemicals, for Rs 421 crore.

The government has brought forward the target date for achieving 20 per cent ethanol-blending with petrol by two years to 2023 to help reduce India’s dependence on costly oil imports. This can have an impact on sugar stocks.

NHPC board to meet on June 10 to consider a proposal for raising of debt up to Rs 4,300 crore through issuance of corporate bonds, raising of term loans or external commercial borrowings in suitable tranches.

Shriram Transport Finance Company board to meet on June 7 to consider raising of funds by way of issue of equity shares, convertible securities or warrants through preferential issue.

Some major Q4 result announcements today:

  • General Insurance Corporation of India
  • APL Apollo Tubes
  • Gujarat State Petronet
  • Quess Corp
  • Nilkamal
  • Arvind Fashions
  • Cupid

What to expect today?

Yesterday, NIFTY opened with a small gap down and kept moving down till afternoon. All major large cap stocks dragged NIFTY down to 15,450 and then came a rally towards the close which made NIFTY close just below 15,600. You can read all about yesterday’s movements here.

BANK NIFTY was not as bearish as NIFTY. It consolidated throughout the day before the rally towards the close. BANK NIFTY closed 0.1% up at 35,373.

RELIANCE has crossed 2,200. NIFTY PSU BANKS and METALS did exceptionally well yesterday.

The European markets closed flat with a slight positive bias. The US markets were consolidating but fell in between and then gained towards the last to close flat.

Asian markets are mostly up. European futures are positive and US futures are absolutely flat.

SGX NIFTY is currently trading higher at 15,703 indicating a gap up opening in the Indian market. 

The immediate supports for NIFTY are at 15,550, 15,500, 15.450 and 15,400.

15,700 can act as a resistance where there is a considerable amount of call option contracts. Also, if 15,700 is broken with strength, that may lead to a short covering rally as well.

35,500 and 36,000 are the next important resistances to be watched out for in BANK NIFTY. There are chances that that opening will be above/near 35,500.

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

Huge amount of call options were created in the market yesterday and there was net unwinding of put option contracts. The PCR of NIFTY has come down to 1, indicating the cooling down of the market.

Interestingly, a lot of these call options created yesterday saw heavy unwinding when the market rallied in the last hours.

The largest call option buildup is at 15,700 followed by 15,600. The largest put option buildup is at 15,000 followed by 15,500.

BANK NIFTY PCR has further come down to 0.7 as more calls were written yesterday. 35,500 has an insane amount of call contracts. 

So, if the gap up opening is sustained and NIFTY crosses 15,700 and BANK NIFTY crosses 35,500, a lot of option sellers will be in trouble and further a short covering rally may happen.

An unusually huge gap up opening is normally followed by a down move. Let’s see how much gap up will NIFTY open with.

INDIA VIX has climbed back to 17 levels, still indicating consolidation. But we can see the kind of steady volatility that we saw yesterday.

RELIANCE can be watched if it sustains 2,200.

Foreign institutional investors (FIIs) net bought worth Rs 921 crores, and domestic institutional investors (DIIs) net bought shares worth Rs 241 crores in the Indian equity market. 

It looks like there is good strength in the market but it’s an expiry. The market can get very volatile and things can get very tricky. Expiry can mostly be in the 15,500 – 15,700 range with the upper side extendable to 15,750. What do you think?

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