Another Fed Hike - Pre Market Analysis
Here are some of the major updates that could move the markets today:
Titan has posted a standalone net profit of Rs 734 crore for the quarter ended March, up 49% over previous year period. Revenue from operations surged 33% to Rs 9,704 crore.
Godrej Properties has reported a consolidated net profit of Rs 412 crore for the fourth quarter. Revenue from operations zoomed 23% in the said period to Rs 1,646 crore
Havells India's net profit rose by a marginal 2% to Rs 362 crore for the January-March period, while revenue from operations jumped 10% to Rs 4,850 crore in the same period.
Tata Chemicals consolidated net profit rose 53% to Rs 711 crore in the March quarter. Revenue from operations jumped 27% to Rs 4,407 crore.
GR Infraprojects has emerged as the lowest bidder for road transport tender worth Rs 737 crore.
What to Expect Today?
NIFTY opened with a gap-down at 18,092 and had a consolidating day. There was resistance taken at 18,110, the weekly chart level and the zone of 18,040 supported the market. NIFTY closed at 18,090, down by 58 points or 0.32%.
BANK NIFTY opened with a gap-down at 43,165. There was an up-move but it was limited by the sellers around 43,300. BNF closed at 43,312, down by 40 points or 0.09%.
IT moved down by 1%.
The US markets continued their down-move due to the Fed hike. The European markets closed in the green.
The Asian markets are trading mostly in the green.
The U.S. Futures and European futures are trading higher.
SGX NIFTY is trading lower at 18,105.
All the factors combined indicate a flat to gap-down opening.
NIFTY has supports at 18,065, 18,035, 18,000 and 17,955. We can expect resistances at 18,100, 18,120, 18,180 and 18,225.
BANK NIFTY has supports at 43,265, 43,120 and 43,000. Resistances are at 43,350, 43,480 and 43,630.
NIFTY has the highest call OI build-up at 18,200 followed by 18,100. The highest put OI build-up is at 18,000 followed by 17,900.
BANK NIFTY has the highest call OI build-up at 43,500. The highest put OI build-up is at 43,000.
INDIA VIX is at 11.8.
Foreign Institutional Investors net-bought shares worth Rs 1,300 crores. Domestic Institutional Investors also net-sold shares worth 600 crores.
Fed hiked the interest rate by another 25 basis points. Is this the last hike in the cycle is the question. Though Powell said that no decision was made on this, the language of the statement was similar to the way rate hikes ended back in 2006.
Powell said that the banking system is strong and the investors need not worry as the government will interfere more.
The Chinese markets reopened today and are trading higher. Nikkei remains closed today on account of Greenery Day. HANG SENG can be followed for better clarity. You can see that there is a big up-move happening there.
The crude oil prices fell again yesterday. It was a 4% down-move after a 5% fall on the previous day.
Fin Nifty option sellers got better premiums on Tuesday with VIX rising in the opening candle. There will be an IV crush today as the Fed event is over.
HDFC will release their quarterly earnings today. It is expected that there will be a 4% increase in net profits YoY. Adani Enterprises, Dabur, Tata Power, TVS, and Hero Motocorp also will announce their results.
The European Central Bank will take a call on the interest rate today.
Keep in mind that it is alright for bulls to see a small down-move considering the kind of rally we had. At the same time, bulls would be able to take the markets higher with the help of short sellers as well. This means that both directions with magnitude are possible today.
I will watch 18,035 on the downside in NIFTY. 18,120 can be watched on the upside.
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