News Shots

State Bank of India (SBI) will consider raising up to USD 2 billion (around Rs 14,942 crore) through bonds in this fiscal year.

Info Edge will sell stake worth Rs 750 crore in the IPO of its investee company Zomato. 

Axis Bank posted a consolidated net profit of Rs 2,960.40 crore for the March quarter, as against a loss of Rs 1,250 crore in the year-ago period.

Bharti Airtel backed OneWeb has secured $550 million (about Rs 4,100 crore) in funding from Eutelsat Communications, which will get about 24 percent stake in the broadband satellite communications company.

NCLT approved the resolution plan submitted by Bharat Forge for acquisition of Sanghvi Forging & Engineering.

Maruti Suzuki India reported 6.14 percent decline in consolidated net profit at Rs 1,241.1 crore for the fourth quarter ended March 31, 2021.

Bajaj Finance reported a higher consolidated profit at Rs 1,347 crore in Q4 FY21 against Rs 948 crore in Q4 FY20.

PNB Housing Finance reported a consolidated net profit of Rs 127 crore for the last quarter of fiscal ended March 2021. The company had posted a net loss of Rs 242 crore in the same quarter a year ago.

HDFC Asset Management Company reported a 26.52 percent growth in profit after tax (PAT) at Rs 316.08 crore for the three months to March 2021.

Major Q4 Result Announcements Today:

  • Bajaj Finserv
  • Biocon
  • Tata Communications
  • UTI Asset Management Company
  • KPIT Tech

What to expect today?

Yesterday, NIFTY opened silently at around 14,500 but moved up throughout the day to close just above 14,650. You can read all about yesterday’s movements here.

Bank Nifty, continued to outperform NIFTY by closing 1.43% up. It crossed the resistance of 32,300 and went up strongly to close at 32,735.

PSU Banks and Metals performed really well yesterday. All the sectors closed in the green.

The European and US markets closed flat with a negative bias. The markets await updates on government and central bank stimulus, with U.S. President Joe Biden set to address Congress and the Fed delivering its policy statement Wednesday.

Asian markets are mixed. European and US Futures are also mixed. SGX Nifty is currently trading higher at 14,706 indicating a gap up opening in the Indian market. SGX NIFTY has been continuously moving up from 14,620 levels after opening.

Looking at where NIFTY is now and the Open Interest, 14,500 can act as a good support going ahead. But the worry is a sudden fall that can happen anytime.

32,000 and 31,350 are the immediate supports to be watched out for in BANK NIFTY.

The resistances for NIFTY are at 14,700, 14,750 and 14,870-14,900 while for Bank Nifty, they are at 32,900 and 33,200.

The largest call OI buildup is at 15,000 followed by 14,800. The largest put OI buildup is at 14,000 followed by 14,500. But the number of puts at 14,000 and 14,500 is higher than the number of calls at 14,800 and 15,000. This indicates strength in NIFTY, with a PCR of 1.4, which we haven’t seen in a long time.

Foreign institutional investors (FIIs) net sold shares worth Rs 1454 crores, and domestic institutional investors (DIIs) net bought shares worth Rs 1463 crores in the Indian equity market. 

FIIs have been selling heavily for many days now. If they also start buying, markets can go further up. On the other hand, if DIIs stop supporting the market, that can be bad.

India VIX is still high indicating volatility and high premiums (mostly in the put side). Also, today is Wednesday and major volatility can be expected.

NIFTY has to break 14,750 for it to regain strength is what I believe. Let’s see if that will happen today.

Reliance tested 2000 yesterday. If that is crossed, we might see another quick up move and that can take NIFTY up. Do watch out.

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