News Shots

Telecom operator Bharti Airtel’s Rs 21,000 crore rights issue will open on October 5.

Adani Ports has concluded the acquisition of the remaining 10.4 percent stake in Gangavaram port from the Andhra Pradesh government for Rs 645 crore.

Vodafone Idea will seek board approval afresh to raise funds after the government issued detailed guidelines on telecom reform measures, and its promoters will get a chance to participate in the fundraising round.

Ashok Leyland announced signing an initial pact with private sector lender Federal Bank for a strategic partnership for vehicle financing.

Infosys announced a strategic collaboration with Amazon Web Services (AWS) to develop quantum computing capabilities and use cases.

Chennai Petroleum Corporation Ltd, (CPCL), belonging to IndianOil Corporation Ltd, has begun work on a 9 MMTPA refinery and petrochemical complex being set up at an estimated investment of Rs 31,580 crore in Nagapattinam.

What to expect today?

Yesterday, NIFTY displayed absolute consolidation and traded within a range of 17,500 and 17,600. You can read all about yesterday’s market movements here.

BANK NIFTY also followed a similar pattern but was more bearish. The index consolidated with a negative bias and closed just below 37,000.

NIFTY MEDIA(+13.57%) shot up in the day once again with ZEEL rallying. NIFTY REALTY also moved up 8.45% as funds flowed into midcaps. NIFTY METAL and NIFTY AUTO gained just over 1% each.

The global markets were super positive yesterday. The European markets closed nearly 1%-2% up. The U.S. markets closed 1% up. The Fed Monetary Policy that we all waited for was announced and had a positive impact on the market.

The Federal Reserve said it will likely begin reducing its monthly bond purchases as soon as November and signaled interest rate increases may follow more quickly than expected.

Most of the Asian markets are trading much higher. The European futures and the U.S. futures are also now trading in the green.

SGX NIFTY is trading higher at 17,647 indicating a gap up opening in the Indian market.

Supports for NIFTY are at 17,600, 17,500, 17,390, 17,360 and 17,300. 17,660 and 17,700 can act as resistances for the index

The supports for BANK NIFTY are at 37,000, 36,800 and 36,500. Resistances exist at 37,500, 37,800 and 38,000.

Foreign institutional investors (FIIs) net sold worth Rs 1943 crores continuing their buying spree, and domestic institutional investors (DIIs) net bought shares worth Rs 1850 crores in the Indian market. 

In NIFTY, 17,600 has the highest call OI buildup, followed by 17,700 and 17,800. The highest put OI buildup is at 17,500 followed by 17,400.

These 17,600 call option sellers will have to run for cover and that might take the market a bit up, if there isn’t a sudden fall after opening.

37,000 has the highest call OI and put OI buildup in BANK NIFTY.

VIX is still at 16 indicating large, wild candles can form anytime in the market. Though yesterday was consolidating, there was intraday volatility. Volatility can be expected today as well as it is weekly expiry.

The global positivity will definitely impact our markets also. But if it is a huge gap up, there are chances for the market to move down a bit. If in case, after such moving down, NIFTY crosses day high again with strength, it will be an indication of major bullishness.

I will aggressively sell call options if BANK NIFTY goes below 37,000 and 36,800 today and if NIFTY goes below 17,550. I expect NIFTY to expire between 17,500 and 17,700.

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