News Shots 

Coal India reported that production in November rose by 4.1% year-on-year to 53.8 MT versus 51.7 MT.

Infosys extended its strategic collaboration with Proximus to digitally transform, develop, and maintain their IT applications with leading AI and automation solutions.

Maruti Suzuki India reported that total production in November declined by 3.10% to 1,45,560 units Vs 1,50,221 units last year.

The Board of directors of JK Files & Engineering, a wholly-owned material subsidiary of Raymond, approved an initial public offering comprising an offer for sale for Rs 800 crore.

The Ministry of Railways has intimated RITES that a new line between Belgam and Dharwad via Kittur, a new Shimoga-Shikaripura-Ranebennur line, and Tumkur-Devangere via Chitradurga new line project will not be executed by the company.

Reliance New Energy Solar completed the acquisition of 100% shareholding of REC Solar Holdings AS from China National Bluestar (Group) Co Ltd.

JMC Projects (India) secured new orders of Rs 1,795 crore. The orders include water supply projects in India of Rs 1,085 crore and B&F projects of Rs 710 crore.

What to expect? 

Yesterday, NIFTY opened with a good gap-up at 17,105 and moved up to take resistance at 17,200 and fell. 17,100 offered support to the index tested 17,200 again, failing which NIFTY started moving down slowly. There was extreme volatility at 1:30 and the index bounced back after a fall to close at 17,167, up 184 points or 1.08%.

BANK NIFTY was stronger than NIFTY yesterday, opening with a gap-up at 35,834. The index faced resistance at 36,200 and 36,350. Though BANK NIFTY almost touched 36,000 towards the end, there was a bounceback and the index closed at 36,365, up 670 points or 1.88%.

All the sectoral indices closed in the green except NIFTY PHARMA(-1.62%).

The US markets opened strong with gap-up but soon crashed when the first Omicron case was confirmed in the US. The indices are down by 1.5% on average. The European markets closed well in the green, moving up by more than 2%.

The Asian markets are mixed. The U.S. Futures and the European Futures are trading in the green now.

SGX NIFTY is trading at 17,145 indicating a small gap-down opening in NIFTY.

Major supports for NIFTY are at 17,100, 17,000, 16,915, 16,880, 16,850 and 16,780. We can expect resistances at 17,200, 17,250, 17,325, 17,375 and 17,450.

BANK NIFTY has supports at 36,350, 36,000, 35,500, 35,300 and 35,000. Resistances are at 36,500, 36,650, 36,770 and 37,000.

The highest call OI build-up in NIFTY is at 17,500, followed by 17,400. The highest put OI build-up is at 17,000 followed by 16,500 and 17,100.

BANK NIFTY has the highest call-OI build-up at 37,000 and the largest put OI build-up is at 36,000.

INDIA VIX has dropped to 19.45.

Foreign Institutional Investors net sold shares worth Rs 2,766 crores. Domestic Institutional Investors net bought shares worth Rs 3,467 crores. 

Buy on dip investors had moved the US indices up when the markets opened but there was an intraday fall of 1000 points in Dow Jones following the first Omicron case being reported in the US. Also, the infected was already vaccinated and this has escalated the worries. 

Moreover, Jerome Powell, the Fed Chair reiterated his statement on tapering in the House Committee. He had earlier said in the Senate Committee that bond purchases should be reduced at a much higher pace. He added that inflation has become a major concern for the economy. The Fed will meet in mid-December to address tapering.

S&P VIX has crossed 30 and that indicates extreme volatility. At the same time, VIX futures are trading lower and we can expect the US markets to be stable once COVID worries are eased.

Omicron spread and Tapering worries will lead to volatility in the Indian market as well, with FIIs and DIIs actively contesting to set direction. There is no doubt that the market participants will be rather confused by volatility on the expiry day. I will watch 17,000 on the downside and 17,250 on the upside for immediate moves in NIFTY. 17,325 will act as a very good resistance. If the index drops on COVID worries, 16,780 will act as a good support.  

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