News Shots

HDFC Bank has signed a pact with the National Small Industries Corporation (NSIC) for providing credit support to the micro, small and medium enterprise (MSME) sector.

Dr Reddy’s Laboratories has initiated supply of the first dose component of Russian COVID-19 vaccine Sputnik V to partner hospitals all over the country. Earlier, it suspended the supply of the first dose of Sputnik V following supply constraints from Russian Direct Investment Fund.

Tyre maker Ceat has initiated an exercise to revamp its retail sales network to enhance customer experience. The company said it would be revamping Ceat Shoppes nationwide, which will start with 10 new design stores in metro cities and key markets in the coming months.

Life Insurance Corporation of India sold more than 2.07 lakh equity shares in ICRA via open market transaction, reducing shareholding to 5.81 percent from 7.96 percent earlier.

EID Parry India has approved the setting up of a 120 KLPD grain/sugar syrup/molasses based Distillery at Sankili unit in Andhra Pradesh.

Electronic biggies, including Voltas, Blue Star, Dixon Tech, Amber Enterprises and Hindalco, are set to apply for the government’s production-linked incentive (PLI) scheme for air-conditioner components, bringing immediate investments of more than Rs 3,000 crore.

TVS Motor Company appointed ETG Logistics as new distributor. ETGL will operate 30 dealerships for TVS Motor in South Africa as part of this partnership.

What to expect today?

Yesterday, NIFTY moved down initially as expected and moved back up later after taking support at 17,300. It was a very volatile day and NIFTY managed to close 0.09% down at 17,362. You can read all about yesterday’s market movements here.

BANK NIFTY continued to be weak, broke 36,500 almost and moved down till 36,200. Later, just like NIFTY, BANK NIFTY also moved up but still closed 0.34% down at 36,468.

The sectors which did really well in the last many days like REALTY and IT moved down considerably. But it was mainly HDFC which powered the rally in NIFTY.

The European markets have all moved down considerably and closed 0.5% lower. The U.S. markets also displayed weakness and closed 0.3 to 0.7% down. Only NASDAQ closed flat, slightly in the green.

Asian markets are mostly down, just Japan and Hong Kong are in the green. The European futures and the U.S. futures are slightly up.

SGX NIFTY is trading higher at 17,415 indicating a slight gap-up opening in the Indian market. 

Supports for NIFTY are at 17,340, 17,300, 1250 and 17,200. The next pivot point resistance is only at 17,580 for Nifty. We can expect 17,500 to act as resistance. 

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

The highest call OI buildup in NIFTY is at 17,500 followed by 17,400. The highest put OI buildup in NIFTY is at 17,300 followed by 17,000. PCR is 0.9. This indicates upward move is limited and NIFTY may consolidate or cool down a bit.

The highest call OI builup in BANK NIFTY continues to be at 37,000 and PCR continues to be at 0.6. There is a large straddle buildup at 36,500. The largest put OI buildup is now at 35,000.

Foreign institutional investors (FIIs) net sold worth Rs 145 crores, and domestic institutional investors (DIIs) also net sold shares worth Rs 136 crores in the Indian market. 

If not for HDFC’s stellar rally, NIFTY would have fallen greatly yesterday. Even after the Western markets have moved down, SGX NIFTY is indicating a positive opening. This is mostly because the Chinese markets are up.

But, as we saw yesterday, the volatility can continue and the downside risk continues to be there.

If NIFTY breaks 17,340, I’ll turn slightly bearish for the day. If NIFTY breaks 17,300 strongly, I’ll sell call options aggressively. The similar support level I’ll be watching in BANK NIFTY is 36,150.

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