News Shots

  • The Supreme Court asked the telcos to submit within the next five days their roadmap for payment of dues and the timeline along with the security they will furnish to protect future payments to the government. Vodafone Idea submitted before the court that dues are huge and the firm would not be able to file the affidavit in 3-4 days. The telco said it does not even have enough money to pay salaries to employees and meet expenses. The company also expressed its inability to give any bank guarantee.
  • HDFC will raise up to Rs 4,000 crore by issuing bonds on a private placement basis. The issue size of the secured redeemable non-convertible debentures, to open on June 15, 2020, is of Rs 2,100 crore.
  • SBI  may sell 2-3% in SBI Life via Offer for Sale (An Offer for Sale is a simpler method wherein promoters in public companies can sell their shares and reduce their holdings in a transparent manner through the bidding platform for the Exchange.)
  • IDFC announced that it has divested entire stake in its step-down subsidiary IDFC Securities Ltd for Rs 86 crore
  • Lupin received approval for its Albendazole Tablets from the United States Food and Drug Administration to market a generic equivalent of Albenza Tablets, of Impax Laboratories. Drug is used to treat tapeworm diseases.
  • Trent is planning to increase Zara’s presence in India, with new stores potentially opening over the next 12 months.

What to expect today?

  • The entire Global Markets are bleeding, NASDAQ fell more than 5% in a single day!! We could see such huge falls in the European and the Asian markets as well. SGX NIFTY is trading at very low levels, currently at around 9620, indicating a huge gap down opening in the Indian market. In fact, SGX NIFTY had made a low of 9465! So, Brace Yourselves
  • NIFTY had broken the 10,000 and 9,950 supports with ease yesterday and tested 9,900 as well. A global second wave of COVID 19, India moving to 4th position in number of cases, Federal Reserve’s and World Bank’s negative outlook finally led to collective profit booking.
  • Yesterday, Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) sold shares worth Rs 800 crores
  • NIFTY is likely to trade between 9,500 and 9,800 today. There are supports at 9,820 and 9,740. The key resistance levels are 10,050 and 10,200. Obviously, these do not matter much today
  • Highest Call Open Interest at 10,000, followed by 10,200. Highest Put Open Interest at 9,500, followed by 9,900. 

Let’s look at this as a retracement at this point in time. 9500 is strong resistance and when that is broken is when we might fear NIFTY to fall strongly again. And as the bulls keep saying, a never-seen-before-kind bull run is just a VACCINE away. Meanwhile, when you get trending markets like yesterday, you can short with ease and use the situation to your benefits.