News Shots

The Centre approved a PLI scheme for the auto sector, especially focusing on environment-friendly automobiles such as electric vehicles (EVs). The over Rs 25,000 crore scheme is likely to boost the production of components as well as give a push to the sector. Auto Stocks to be watched.

The telecom services providers like Airtel, Vodafone and Jio will be in focus after the government announced nine structural reforms and five process reforms for the sectors, approved by the cabinet. These reforms will change the framework of the entire telecom sector.

Adani Transmission has received a letter of intent for acquisition of MP Power Transmission Package-II for Rs 1,200 crore. It won the project through Tariff-Based Competitive Bidding (TBCB) process and received the letter of intent.

The government will sell 5 percent of its stake in state-owned Hindustan Copper through an offer for sale (OFS) this week. The floor price of Rs 116 per share is at a 6.82% discount to Wednesday’s closing price.

Mahindra & Mahindra announced the commercial launch of the all-new New Furio 7 range of light commercial trucks with a price starting at Rs 14.79 lakh.

Tata Motors has launched its first electric sedan under XPRES brand – the XPRES-T EV, exclusively for fleet customers, with a price starting at Rs 9.54 lakh. The sedan would come in two trims — XpresT 165 and XpresT 213, with a range of 165 km and 213 km, respectively.

Wipro received multi-year IT managed services contract from Kuala Lumpur- headquartered Maxis Broadband Sdn Bhd, a leading converged solutions provider.

JSW Renew Energy Two Limited, a wholly-owned subsidiary of JSW Energy, has signed Power Purchase Agreements with Solar Energy Corporation of India (SECI) for the cumulative contracted capacity of 450 MW awarded against Tariff based Competitive bid invited by SECI.

What to expect today?

Yesterday, it was a textbook uptrend day in NIFTY. Opened above 17,400 and then kept moving up throughout the day breaking the previous all-time high and the resistance at 17,500 to close at 17,519. You can read all about yesterday’s market movements here.

BANK NIFTY consolidated in the first half but then sharply moved up in the second half to close at 36,852, up 0.65%.

NIFTY PSU BANK, IT, METALS did well yesterday while all the others consolidated. The previous day’s star NIFTY MEDIA closed in the red.

The European markets consolidated yesterday and closed in the red. The U.S. markets moved up and closed 0.5%-0.8% up.

Most of the Asian markets trading in the red even after the US moved up yesterday. Japan, Hong Kong, Korea – all are displaying weakness, trading more than 0.5% down. The European futures and the U.S. futures are now trading flat.

SGX NIFTY is trading flat at 17,529 indicating a flat opening in the Indian market.

Supports for NIFTY are at 17,450, 17,400 and 17,350. 17,600 with the highest call OI buildup can act as resistance. 

The supports for BANK NIFTY are at 36,750, 36,500, 36,300-36,200 and 36,000. Resistances exist at 37,000 and 37,200.

The highest call OI buildup in NIFTY continues to be at 17,600 followed by 17,500. The highest put OI buildup in NIFTY is at 17,400 followed by 17,500.

The highest call OI buildup in BANK NIFTY is now at 37,000. The largest put OI buildup is also at 36,500. There still are straddles around 36,500 which means that option sellers expect the market to close around this level today.

Foreign institutional investors (FIIs) net bought worth Rs 232 crores, and domestic institutional investors (DIIs) also net bought shares worth Rs 167 crores in the Indian market. 

The PLI scheme for the auto sector and the AGR dues relaxations for the telecom sectors have pumped some positivity in the markets yesterday.

Even when major banks moved up, HDFCBANK did not join the rally. It can be watched today. KOTAKBANK has moved much in the last few days and so it is rightly in the watchlist today.

Maybe we will see volatility in the market today, given yesterday was steady.

If NIFTY breaks and moves below 17,500, I’ll maintain consolidation view point in NIFTY. If NIFTY breaks 17,450-440 on the lower side, I’ll turn bearish for the day. The simillar levels in BAKN NIFTY are 36,750 and 36,500.

I am expecting NIFTY to expire below 17,600.

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