News Shots

Bharti Airtel board will meet on August 29 to consider various capital raising options, including equity and debt.

Infosys will set up a new digital development center at its largest Canadian office in Mississauga, a move that will help in creating 500 high-quality jobs in the Toronto region over the next three years.

JSW Steel’s wholly-owned indirect subsidiary JSW Steel USA Ohio is considering a proposal to raise long-term funds from the municipal bond market in the US.

Cipla and Bengaluru based biopharmaceutical Contract Development and Manufacturing Organization (CDMO) Kemwell Biopharma Private Limited, entered into a joint venture agreement to develop, manufacture and commercialize biosimilars for global markets.

The government is open to the idea of tweaking tax rates on automobiles to increase their affordability, a top official said. The stance comes amid a prolonged slowdown that has dragged volumes lower across segments. Auto stocks can be watched today.

Kaveri Seed Company approved buyback of equity shares up to Rs 120 crore at a price up to Rs 850 per share.

What to expect today?

Yesterday, we saw NIFTY opening with a gap-up and consolidating near 16,700 for a long time. There was a brief attempt at breaking 16,700 which failed and the index started falling and closed at 16,634. It was IT stocks and RELIANCE which gave power to NIFTY. You can read all about yesterday’s market movements here.

BANK NIFTY was bearish throughout the day and kept falling from 35,900 till the major support 35,500, before it closed at 35,586.

NIFTY IT, NIFTY METAL and NIFTY FMCG performed well yesterday. All other indices led by BANKS moved down.

The Western markets continue the consolidation. The European markets closed slightly in the green. The US markets touched fresh all time highs but closed just 0.1-0.2% up.

But, the Asian markets are mostly down. The European and US futures are also slightly in the red.

Following the Asian markets, SGX NIFTY is trading lower indicating a muted opening in the Indian market. 

The immediate supports for NIFTY are at 16,590 and 16,500. There will be strong resistance at the all time high of 16,700-16,720.

The 35,500 support exists for BANK NIFTY, which might be taken out in the morning hours. 35,300-35,250 and 35,000 are the next support levels. 35,800 and 36,000 will act as immediate resistances for the index. 

Foreign institutional investors (FIIs) net sold worth Rs 1071 crores, and domestic institutional investors (DIIs) net sold shares worth Rs 151 crores in the Indian equity market. FIIs have been heavily selling for many days now. 

In NIFTY, the largest put OI buildup is at 16,500 and 16,600. The largest call OI buildup is at 16,700 followed by 16,800.

In BANK NIFTY, the largest call OI buildup is at 36,000 and largest put OI buildup is at 35,000. 

RELIANCE crossed the important resistance at 2,200 yesterday. Let’s see if it takes support there today. Also, watching HDFCBANK around 1,565. There can be an eye on IT stocks too.

If there is a weakness in NIFTY as it opens, I’ll watch behaviour around 16,630 and 16,590. If 16,590 is broken, I will be selling call options aggressively. 

Looking at all these, I feel the expiry will be between 16,500 and 16,700.

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