News Shots

  • Reliance fell heavily, also taking the whole market along with it, after its AGM, just as expected. Reliance is a classic example of “buy on rumour, sell on news”. If you really want to know the reasons for the fall, the reasons could be the postponement of the Aramco deal, no clarity on Jio IPO etc. According to me, this was one of the best AGMs ever and the greatest year for Reliance. So, I am personally not trying to understand why exactly the stock fell but I’m more interested in the investment opportunity that the fall has offered.
  • Google to invest Rs 33,737 crores in Jio Platforms for a 7.7% stake. (RIP Vodafone Idea and Airtel?)
  • Infosys Q1 results – revenue increases 8.5% and net profit increases 11.4%, took the whole market by a storm. (What sorcery is this!)
  • Zydus Cadila has begun the adaptive phase-I and II human trials of its plasmid DNA vaccine for Covid-19.
  • State Bank of India board approved raising up to Rs 25,000 crore via bonds in FY21
  • Federal Bank reported a marginal 4.3 per cent rise in its standalone net profit to Rs 400.77 crore for the first quarter ended June.
  • IDBI Bank will raise up to Rs 11,000 crore equity capital through various modes, including a qualified institutional placement (QIP), in about a year to strengthen its capital base.
  • ONGC has evacuated a drillship in Mumbai High following the outbreak of Covid-19 among workers, the third instance in three months of rig evacuation that highlights the growing challenge of operating offshore sites during a pandemic.

What to expect today?

  • Yesterday, the market fell heavily after the Reliance AGM and NIFTY closed just above 10,600. It was another volatile day where NIFTY moved nearly 250 points. But the fall towards the closing need not be a concern. Otherwise, the market looks strong.
  • US Markets continue to go up. The latest stimuli are Goldman Sachs earnings and COVID-19 vaccine updates. This is exactly what the Indian market is also offering – better than expected corporate earnings and vaccine hope. So, our market is under performing as of now.
  • US Markets are up. Asian Markets are mixed. SGX NIFTY is currently trading at 10,628, indicating a flat to positive opening in the Indian Market. 
  • NIFTY is likely to trade between 10,560 and 10,800 today. There is support at 10,560 and 10,500, and resistance at 10,700 and 10,750.
  • Highest Call Open Interest at 11,000, followed by 10,800. Highest Put Open Interest at 10,500, followed by 10,200. 
  • Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) sold shares worth Rs 221.7 crore and Rs 899.37 crore, respectively.
  • I hope you benefited from Wipro yesterday. Similar move can be expected from Infy today. In fact, watch all major IT stocks. Reliance should also give good movement today. So are the banking stocks.