News Shots 

RBI initiated insolvency proceedings against Reliance Capital. The central bank has filed insolvency application at Mumbai bench of NCLT. 

Biocon Pharma, a subsidiary of Biocon received approval of its ANDA for Mycophenolic Acid from the U.S. FDA.

Unichem Laboratories received ANDA approval for its Aripiprazole Tablets USP from the U.S. FDA.

Bharti Airtel has given a clarification on report of talks to buy stake in Dish TV.  The company said that they do not comment on media speculation or reports as a matter of policy.

NHPC to consider the proposal regarding monetisation of Return on Equity of one power station of the company through securitisation for suitable tenure on December 7.

Waterways Shipyard, an associate company of Delta Corp will acquire 50% stake in WSPL Containers for Rs 5 crore. The acquisition is expected to be completed by December 31.

DCB Bank has revised Marginal Cost of Funds based Lending Rate across tenors. It has also revised its Base Rate to 10.50% per annum from the earlier Base Rate of 10.64% p.a. The revised rates will be applicable with effect from December 6, 2021.

Canara Bank said it has raised Rs 1,500 crore by issuing Basel-III compliant bonds.

What to expect? 

Yesterday, NIFTY opened with a small gap-up at 17,189 and moved up. The index faced resistance at 17,300 and consolidated near the level for long. NIFTY broke out with strength at 2 PM and moved up by more than 100 points to close at 17,401, up 235 points or 1.37%. 

BANK NIFTY opened with a gap-down at 36,308 and was weak once it failed to break 34,500. The index consolidated throughout the day with an up-move in the last hour to close at 36,508, up 143 points or 0.39%.

All the sectoral indices closed in the green with NIFTY IT (+2.06%) performing well.

The US markets moved up with strength. The European markets closed deep in the red.

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

SGX NIFTY is trading at 17,373 indicating a gap-down opening in NIFTY.

Major supports for NIFTY are at 17,325, 17,290, 17,200, 17,100 and 17,000. We can expect resistances at 17,400, 17,450, 17,550, 17,600 and 17,690.

BANK NIFTY has supports at 36,350, 36,000, 35,500, 35,300 and 35,000. Resistances are at 36,650, 36,770, 37,000, 37,250 and 37,500.

The highest call OI build-up in NIFTY is at 18,000, followed by 17,500. The highest put OI build-up is at 17,000 followed by 17,300.

BANK NIFTY has both the highest call OI build-up and the highest put OI build-up at 36,500. There is a good call OI build-up at 37,000 and put OI build-up at 36,000.

INDIA VIX dropped by 7% to 18.09.

Foreign Institutional Investors net sold shares worth Rs 910 crores. Domestic Institutional Investors net bought shares worth Rs 1,373 crores. 

Morgan analysts commented that this is a buy on dip market and the Omicron worry is transitory. However, they also shared concerns regarding inflation and tapering. The fall we saw in the US market on Wednesday was a knee jerk reaction to the first Omicron case in the country. 

The US jobs data showed a rise in Americans applying for unemployment benefits. But the figure is still low. The markets recovered well yesterday. The S&P VIX which had crossed 30 on Wednesday has dropped below 28.

The first Omicron case has been reported in India. Let us hope that this does not cause a major impact. 

Though FIIs were net sellers yesterday, the figure has dropped below Rs 1000 crores. Once the FIIs support the market, NIFTY can touch 18,000 once again.

NIFTY exhibited strength by closing above 17,400. I will be watching for a close above 17,600 for long term strength. 17,200 can be watched on the downside for weakness.

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