News Shots

Reliance Industries has cancelled a proposed deal to sell a 20% stake in its oil refinery and petrochemical business to Saudi Aramco for $15 Billion(~Rs 1.1 lakh crores).

PayTM said its gross merchandise value or payments made to merchants through its platform jumped 131% YoY to $11.2 Billion in October.

IRB Infra said that its shareholders have approved a deal for the sale of shares worth Rs 5,347 crore to private equity firms.

After Reliance’s failed deal, ONGC has signed a deal with Saudi Aramco to explore a long-term supply of crude oil, refined petroleum and petrochemical products. 

Kesoram Industries’ Board approved raising funds up to Rs 2,500 crore to reduce debt and borrowing costs.

Vedanta said that the Supreme Court has permitted the government to sell its complete stake in Hindustan Zinc in the open market. Hind Zinc is a subsidiary of Vedanta.

Route Mobile has raised Rs 867.49 crore via Qualified Institutional Placement(QIP).

Maruti Suzuki has ruled out getting back into diesel cars as it believes sales of such vehicles would fall with the next phase of emission norms in 2023, according to a senior official.

Amber Enterprises and its subsidiary IL JIN Electronics have received approval from the Ministry of Commerce under the Production-Linked Incentive scheme for air conditioners.

What to expect today?

On Thursday, NIFTY opened flat at 17,895 and after making a deceptive up move, started falling. NIFTY took support at 17,690 and moved up to take resistance near 17,830. Another fall led the index to close at 17,765, down 134 points or 0.75%.

BANK NIFTY also opened flat at 38,060 and started moving down. There was a good recovery after taking support near 37,750 making it a less volatile day for the index compared to NIFTY. BANK NIFTY closed at 37,976, down 65 points or 0.17%.

The US markets were mixed with Dow Jones seeing profit booking, NASDAQ moving up and S&P 500 consolidating. European markets went down on lockdown worries as there is a fresh surge of cases. 

The Asian markets are mixed with HANG SENG and NIKKEI trading in the red whereas the Chinese market has moved up as the Central Bank has indicated policy changes to support the economy. The U.S. Futures and the European Futures are trading in the green except for CAC 40 futures.

SGX NIFTY is trading at 17,778 indicating a flat opening in NIFTY. 

Major supports for NIFTY are at 17,750, 17,690, 17650, 17,610 and 17,550. We can expect resistances at  17,800, 17880, 17,950, 18000 and 18,050.

BANK NIFTY has supports at 37,750, 37,500, 37,350, 37,000. Resistances are at 38,000, 38,100, 38,350 and 38,500.

The highest call OI build-up in NIFTY is at 18,000, followed by 18,500 and the highest put OI build-up is at 17,500 followed by 17,400.

Both the highest call OI build and put OI build-up are at 38000 in BANK NIFTY. There is a good call OI build-up at 40,000 and put OI build-up at 37,000. 

INDIA VIX is now at 14.86.

Foreign Institutional Investors net sold shares worth Rs 3930 crores. Domestic Institutional Investors net bought shares worth Rs 1885 crores. 

There is mixed opinion about how the market would react to the decision to cancellation of the three controversial farm laws. It could signal the government’s willingness to accept changes and may give the ruling party a boost in upcoming elections. Markets like political stability.

The major FMCG companies were supposed to receive PLI schemes upon enactment of the laws. Logistics companies and farm equipment companies would see a negative impact.

Reliance Industries and Saudi Aramco are re-evaluating the deal. Reliance’s plan to become a zero net carbon emitter by 2030 might have been a factor. Let us closely watch the stock movement.

US-based IT firm Cognizant has said it expects its revenue to grow 8-11% during 2022-24. Indian IT firms tend to react positively to such news from companies like Cognizant and Accenture.

There are Covid worries in Europe. With fewer cases being reported in India, there is a chance for cash flow into the Indian market. At the same time, global sentiments will play a significant role as there are no major domestic cues this week.

Looking at Open Interest data for the monthly expiry, 17,500-18,000 could be the range for the week. However, if 17,650 is breached towards the downside, the next major support is at 17,325. 18,230 will be a major resistance, 17,950-18,000 is crossed with strength. 

BANK NIFTY is also taking support at the all-time high from Budget Week in February. If this is broken, it may be a big fall incoming for the index.

Expecting the first 30 minutes to be volatile thanks to Reliance. Keep a watch on it and trade safely.

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