News Shots 

Wipro introduced regulatory literature monitoring for pharmaceutical organizations by entering a managed services engagement with Springer Nature. 

Cipla entered an agreement to acquire up to 33% partnership interest in Clean Max Auriga Power LLP to enhance the share of renewable power sources in its operation.

Sun Pharma’s wholly-owned subsidiary has received final approval from US FDA for its Abbreviated New Drug Application (ANDA) for generic Amphotericin B Liposome injection.

CCI approves acquisition of 40% shareholding in Sterling and Wilson Renewable Energy Ltd. by Reliance New Energy Solar Ltd.

RBI levied penalty of Rs 30 lakh on ICICI Bank for non-compliance with norms on levying fees against non-maintenance of minimum balance in savings accounts.

Adani Transmission signed share purchase agreement with Adani Ports and Special Economic Zone for acquisition of MPSEZ Utilities Limited for Rs 116.27 crores based on independent valuers’ report.

Adani Ports Technologies Pvt, a wholly-owned subsidiary, in joint venture with Empezar Software Labs Pvt. has incorporated a subsidiary company named EZR Technologies Pvt with share participation in the ratio of 51:49.

What to expect? 

Yesterday, NIFTY opened flat at 17,312 and exhibited volatility throughout the day, in a range once again. Support was taken near 17,200 multiple times and the day-high offered resistance towards the end. The last hour fall followed and NIFTY closed the day at 17,221, down 104 points or 0.6%.

BANK NIFTY opened the day with a gap-up at 36,957. The index consolidated in a range of 300 points. There were attempts to break 37,000 multiple times but failed. BANK NIFTY fell towards the end along with other sectors to end the day at 36,790, down 104 points or 0.28%.

All the sectors closed in the red except NIFTY AUTO (+0.49%).

The US markets closed well in the green with NASDAQ moving up by more than 2%.  The European markets were mixed yesterday ahead of Fed decision. 

The Asian markets are trading higher except Hang Seng. The U.S. Futures and the European Futures are flat.

SGX NIFTY is trading at 17,360 indicating a huge gap-up opening in NIFTY.

Major supports for NIFTY are at 17,250, 17,200, 17,100 and 17,000.  We can expect resistances at 17,300, 17,325, 17,375, 17,400, 17,500 and 17,550.

BANK NIFTY has supports at  36,500, 36,300, 36,200 and 36,000. Resistances are at 36,800, 37,000, 37,200 and 37,500.

There is heavy call OI build-up everywhere in NIFTY, with the highest at 17,600. There is large build-up at 17,300 as well. The highest put OI build-up is at 17,000, followed by 17,200.

Situation is the same in BANK NIFTY where the highest call OI build-up is at 37,000 and the highest put OI build-up is at 36,500.

INDIA VIX is at 17.22. The S&P VIX has declined by more than 10% to 19.3.

Foreign Institutional Investors net sold shares worth Rs 3,407 crores. Domestic Institutional Investors net bought shares worth Rs 1,553 crores.  

The Fed decision was in line with the expectations and when that happened, the US markets shot up. The tapering rate will be doubled and the Fed will end bond purchase by March 2022. Following the West, the Asian markets also rallied with the exception of Hong Kong.

BANK NIFTY was holding the market to an extent in the beginning but lost strength towards the close. There is a W pattern formed in the day candle chart which indicates a possible breakout if 37,350 is crossed. The level to watch in BANK NIFTY would be 36,500 breaking which the index can go further down to test 36,000.

NIFTY has a strong support at 17,200. Seeing the chance for a gap-up, 17,400 has to be closely watched if NIFTY rallies. Option sellers should enter a safe position today as there can be intraday volatility but without a rise in VIX that can kill the premium making the adjustments difficult. 

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