News Shots

Reliance Industries will be investing $1.2-1.5 billion in JV facility with Abu Dhabi National Oil Co in a factory to produce ethylene dichloride (EDC), located next to Adnoc’s integrated refining and petrochemicals site in Ruwais — the biggest such complex in the Middle East.

Adani Enterprises aims for its airports to annually handle 80 million passengers once all the eight projects in its kitty are up and running.

Tata Motors plans to have 10 new battery electric vehicles (BEVs) in its domestic product portfolio by 2025. Tata Motors owned Jaguar Land Rover (JLR) aims to be the world’s most profitable luxury car manufacturer.

Foreign promoter Standard Life (Mauritius Holdings) to sell 3.46% stake in HDFC Life for $640 million (over Rs 4,600 crore) via a block deal. Standard Life will sell 7 crore shares at Rs 658-678 apiece, which is at a discount of 2.6-5.5% to Monday’s close of Rs 696.20.

Piramal Enterprises approved the allotment of 3,650 secured NCDs of face value of Rs 10 lakh each aggregating to Rs 365 crore on private placement basis.

RITES has secured an order of approximately Rs 45 crore from Metro Express, Mauritius.

Credit ratings agency ICRA has upgraded Godrej Consumer Products long-term rating to AAA (Stable) from AA+ (Stable).

SEBI has put the proposed IPO of Aditya Birla Capital’s Aditya Birla Sun Life AMC on hold.

Some major Q4 result announcements today:

  • General Insurance Corporation of India
  • Indian Railway Catering and Tourism Corporation
  • Indian Railway Finance Corporation
  • Ruchi Soya Industries
  • NBCC (India)
  • EID Parry
  • Finolex Cables
  • Suzlon Energy
  • KRBL
  • Angel Broking
  • Rail Vikas Nigam

What to expect today?

Yesterday, NIFTY opened with a gap up above 15,900 at its all time high and then kept moving down throughout the day to close just above 15,800. You can read all about yesterday’s movements here.

BANK NIFTY was less bearish than NIFTY and closed absolutely flat at 35,359. HDFC BANK took resistance at 1520-1530 levels and moved down.

PSU BANKS performed the best as privatisation news influenced multiple stocks to move up aggressively.

The European markets closed down. The US markets closed flat and mixed. Dow is down while NASDAQ is up. Looking at the charts, all the US indices did not move much in a direction yesterday, though they are at their all time high.

The global market seems to be tired. Even though S&P 500 and NASDAQ hit all time high yesterday, most of the Asian markets are trading in the red. US and European futures are also slightly down.

SGX NIFTY is trading higher at 15,850 indicating a slightly positive to flat opening in the Indian market.

The immediate supports for NIFTY are at 15,800 and 15,750. 

Meanwhile, the all time high of 15,900 will act as strong resistance. NIFTY has been rejected 3 times from 15,900 already.

35,500 and 35,800 are the important resistances to be watched out for in BANK NIFTY. 

BANK NIFTY has good support at 35,000, 34,650 and 34,400. 

The highest call OI buildup in NIFTY is at 16,000 followed by 15,900. The highest put OI buildup is at 15,800 followed by 15,500. There is an enormous amount of straddles built at 15,800.

We discussed the interesting PCR of 1.1 in BANK NIFTY yesterday. It did not last long. PCR is 0.7 now with a huge amount of call options written at 35,500, making it a tough resistance again.

Foreign institutional investors (FIIs) net sold worth Rs 1,658 crores, and domestic institutional investors (DIIs) net bought shares worth Rs 1,277 crores in the Indian equity market. 

16,000 seems to be a major target for NIFTY with a super strong resistance at 15,900 on its way. 

If our markets continue the bearishness from yesterday (also thanks to the Asian markets today), 16,000 will be difficult to achieve in this expiry.

RELIANCE has hugely underperformed after its AGM. Let’s see if it will recover. Also, HDFC BANK to be watched in 1500 and 1520 levels for a breakdown or break out respectively.

I feel downside move is also limited. But put sellers seem to be conservative with the down side as the second largest put buildup is at 15,500 after the straddles at 15,800. So, NIFTY looks like it is planning to continue in its long time trading range of 15,500 to 15,900.

Follow us on marketfeed app’s livefeed section to get real time updates from the market. All the best for the day!