What a rebound of Nifty! Where to next?
Good Morning, We saw a big rebound in Nifty yesterday as it rallied up 3% to recover from the previous day's losses in a single day, on the expectation that the Ukraine tensions might subside, as Russia said some troops near Ukraine's borders would begin returning to their bases.
US markets rebounded too .. but the futures are slightly low.
But one major concern of the FII's selling is still not solved as it continues as it was.
However, the recovery is a good sign and we can expect 17250-17300 acting as a support and major resistance coming in at 17500 and then 17800.
We can expect Nifty to behave range-bound until it crosses 18600 on the top and 16500 on the bottom.
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Look at that sharp recovery.
The US stock markets closed higher on Tuesday on the expectation that the Ukraine tensions might subside, as Russia said some troops near Ukraine's borders would begin returning to their bases. Wall Street indices S&P 500 rose 1.6 percent, Dow Jones surged nearly 1.2 percent, while tech-heavy Nasdaq gained 2.5 percent after witnessing a fall on the previous day.
The U.S. Federal Reserve will kick off its tightening cycle in March with a 25-basis-point interest rate rise, a Reuters poll of economists found, but a growing minority says it will opt for a more aggressive half-point move to tamp down inflation.
While inflation is rising across the globe, it is particularly hot in the United States, hitting a 40-year high last month.
That is putting pressure on the Fed to not only raise rates from a record low but also to reduce its nearly $9 trillion balance sheet, drastically inflated by emergency bond purchases as the Fed resuscitated the economy from COVID-19 pandemic damage.
Now that the economy has recovered its pre-pandemic level, all 84 respondents in a Reuters poll taken Feb. 7-15 expected the Fed to raise the federal funds rate by at least 25 basis points at its upcoming March 15-16 meeting.
Almost a quarter of those respondents, 20, forecast a 50-basis-point move to 0.50-0.75% following the debate in markets over the past week after Fed officials discussed the merits of such a move. Rate futures are pricing in more than a 50% likelihood of a half-point hike.
Asian stocks fell broadly on Tuesday as a cautious undertone prevailed against the backdrop of a hawkish Fed, rising oil prices, and Russia-Ukraine tensions. The Nikkei average dropped 214.40 points, or 0.79 percent, to 26,865.19 - marking its lowest close since Jan. 28. The broader Topix index ended 0.83 percent lower at 1,914.70.
Oil prices tumbled more than 3% as they retreated from a seven-year high. U.S. crude futures fell $3.39 to settle at $92.07 a barrel, while Brent futures settled down $3.20 at $93.28 a barrel.
Trends on SGX Nifty indicate a flat opening for the broader index in India with a gain of 25.50 points.
Despite retail inflation rising to 6.01 percent in January, and likely to remain elevated till April, a foreign brokerage report expects RBI to leave key policy rates unchanged throughout the first half of 2022. Swiss brokerage UBS Securities India sees the policy to change only from the second half wherein the Monetary Policy Committee (MPC) may deliver a 50 basis points hike in the second half starting from the August policy.
FII and DII data
Foreign institutional investors (FIIs) have made net selling of Rs 2,298.76 crore worth of shares, whereas domestic institutional investors (DIIs) have net bought Rs 4,411.60 crore worth of shares in the Indian equity market on February 15.
Stock Specific News:
Vedant Fashions | The company will make its debut on the bourses today. The final issue price has been fixed at Rs 866 per share.
Tech Mahindra | The company will acquire 80 percent equity shares in Geomatic.ai for consideration of A$6m.
Cipla | Two promoters on Tuesday divested shares worth over Rs 1,835.6 crore in the firm, through open market transactions. This represents 2.5 percent of the total shareholding of the company. According to bulk deal data on the BSE, Mustafa Khwaja Hamied and Yusuf Khwaja Hamied offloaded 67.23 lakh shares and 1.34 crore scrips, respectively, for Rs 611.91 crore and Rs 1,223.69 crore, respectively.
Punjab & Sind Bank | NPA account, IL & FS Tamil Nadu Power Company with outstanding dues of Rs 148.86 crore has been declared as fraud. The bank reported this fraud to RBI and has already made provisions amounting to Rs 59.54 crore.
IDBI Bank | The government is reportedly set to launch the IDBI Bank stake sale process next week.
Wheels India | ICRA has downgraded its long-term rating for bank lines to ‘A-‘, from ‘A’ earlier while keeping the outlook stable. The rating agency also downgraded its short-term rating for bank lines to ‘A2+’, from ‘A1’ earlier.
Burger King India | The company closed its qualified institutional placement issue and has finalized the issue price at Rs 129.25 per share, a discount of 5 percent to the floor price of Rs 136.05 per share.
Redington India | Investor Marina IV (Singapore) Pte Ltd sold a 2.14 percent equity stake in the company through open market transactions on February 11. As a result, its shareholding in the company dropped to 3.22 percent from 5.36 percent.
Textile companies | The Union government and states will implement a proposed structural revamp of the goods and services tax in phases, a report said. The proposed revisions will include pruning tax exemptions, removing anomalies from taxing raw materials and intermediates higher than finished products, and reducing the number of GST slabs, the report added.
Aditya Birla Fashion and Retail | The company could invest in and build as many as 30 internet-first brands in the next 3-5 years, a report said.
Metropolis Healthcare | The stock ended 3.10 percent lower after the lower-than-expected earnings for the December quarter.
Shree Cement | Shares of the cement company ended 4.91 percent higher. The stock was the top gainer on Nifty50.
Manappuram Finance | Shares of Manappuram Finance ended 10.77 lower. In an exchange filing, the company said it has fixed Feb 25 as the record date for the purpose of payment of interim dividend.
Tanla Platforms | The stock was the top gainer on Nifty500 and ended 10 percent higher.
SpiceJet | The airline company reported a consolidated net profit of Rs 42.5 crore in Q3 FY22 against a loss of Rs 66.7 crore on a YoY basis. Its revenue rose nearly 34 percent at Rs 2,263 crore against Rs 1,692 crore YoY. With this, the stock settled 8 percent higher.