News Shots

Adani Green Energy is in advanced talks to take over SoftBank-backed SB Energy for $650 million through an all-stock deal. The deal could help Adani Green to reach its planned generation capacity of 25 gigawatts by 2025.

Hero MotoCorp to restart production at three of its plants – Gurugram and Dharuhera in Haryana and at Haridwar in Uttarakhand – from today.

Bata India has appointed Gunjan Shah as CEO and Whole-time Director with effect from June 21. Shah will replace Sandeep Kataria who has been elevated as the Global CEO of Bata Brands.

PNB approved closure of QIP at an issue price of Rs 33.75 per share. The issue price is at a discount of 4.96% to the floor price of Rs 35.51 per share.

HPCL approved closure of buyback on May 14. The company has bought back 10.52 crore shares at a volume-weighted average price of Rs 227.76 per share for an aggregate amount of Rs 2,397 crore.

Larsen & Toubro reported higher consolidated profit at Rs 3,293 crore in Q4FY21 against Rs 3,197 crore in Q4FY20, revenue jumped to Rs 48,087.9 crore from Rs 44,245.3 crore YoY.

Cipla reported sharply higher consolidated profit at Rs 411.5 crore in Q4FY21 against Rs 239 crore in Q4FY20, revenue rose to Rs 4,606.4 crore from Rs 4,376 crore YoY.

Geojit Financial Services reported higher consolidated profit at Rs 37.16 crore in Q4FY21 against Rs 19.7 crore, revenue jumped to Rs 121.38 crore from Rs 82.3 crore YoY.

Aarti Drugs reported lower consolidated profit at Rs 51.7 crore in Q4FY21 against Rs 58.9 crore in Q4FY20, revenue rose to Rs 501.8 crore from Rs 449.6 crore YoY.

Some major Q4 result announcements today:

  • Bharti Airtel
  • Colgate-Palmolive (India)
  • 3i Infotech
  • Federal Bank
  • Gland Pharma
  • Subex
  • Aarti Industries

What to expect today?

Friday, NIFTY opened with a small gap up around 14,750 and remained volatile with a negative bias in the day. It tested 14,600 at one point of time and closed at 14,677. Most of the major sectors and stocks fell. It was Reliance, ITC and Asian Paints that gave strength to NIFTY. You can read all about Friday’s movements here.

BANK NIFTY, also opened with a gap up around 32,600 and then moved down to close at 32,169. 32,100 acted as a good support and was tested multiple times.

Metals saw heavy profit booking on Friday. Except FMCG, all sectoral indices fell heavily.

The European markets closed very strongly gaining 1-2%. The same is the case with US markets where the major indices are up by more than 1%.

Asian markets were mostly up but a fall can be seen since the last one hour across all Asian markets. Now many Asian markets are trading in the red.

SGX NIFTY was trading well above 14,820 but after the down move in the last one hour, it is currently trading at 14,740 indicating a slight gap up opening in the Indian market. 

The global cues were slightly positive till today morning but we can see Asian markets getting weak now. The weakness can be attributed to some major economic data that China reported today.

China’s industrial output grew 9.8% in April from a year ago, slower than the 14.1% surge in March. The result just matched street estimates. Also, China retail sales rose 17.7% year-on-year in April, much weaker than a 24.9% uptick expected by analysts and down from the 34.2% jump seen in March.

The local cues are improving with good economic data – inflation at 4.2, increased Index of Industrial Production, highest GST collection and lesser COVID cases. But the country is still looking at another 1-2 months of lockdown, which is not great.

We are expecting April month’s Wholesale Price Inflation Index data today. Hopefully, that should also turn out positive.

The immediate supports for NIFTY are at 14,650, 14,600 and 14,500. I believe 14,400 should be the lower level for this week. If that is broken, NIFTY will turn really bearish.

14,750, 14,850-14,900 and 15,000 are important resistances for NIFTY. 15,000 should act as the upper range for this week.

32,900, 33,000, 33,300, 33,500 and 34,000 are the immediate resistances to be watched out for in BANK NIFTY.

BANK NIFTY has supports at 32,100, 32,000 and 31,500. Slipping below 32,000 can cause weakness in BANK NIFTY.

There was huge call buildup on Friday thereby taking PCR of NIFTY to 0.7. There is huge call buildup at 14,700, 14,800, 14,900 and 15,000. Major put buildups are at 14,000 and 14,500.

Personally, I did not see enough bearishness in the market that would result in such an amount of call options than put options.

Foreign institutional investors (FIIs) net sold shares worth Rs 2607 crores, and domestic institutional investors (DIIs) net bought shares worth Rs 613 crores in the Indian equity market. 

FIIs continue to sell vigorously. Out of the 4 trading sessions last week, they sold for 3 days.

All looked good in the market till the China economic data and the following fall in the Asian markets. Let’s see how our markets are going to react. By the time I have finished writing the article, SGX NIFTY has regained to 14,770.

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