Mixed Global Markets; Will SBI Take BNF Down? Share Market Today

Here are some of the major updates that could move the markets today:

Stocks

State Bank of India reported a 6.70 per cent drop in its standalone profit after tax at Rs 6,068 crore for the quarter ended June on account of mark-to-market (MTM) losses. The lender had reported a profit after tax (PAT) of Rs 6,504 crore on a standalone basis in the April-June quarter of fiscal 2022.

Titan reported a multi-fold increase in consolidated net profit at Rs 790 crore in the first quarter ended June on the back of strong festive demand. The company had posted a consolidated net profit of Rs 18 crore in the year-ago period.

Mahindra & Mahindra reported a consolidated profit after tax of Rs 2,361 crore in the first quarter ended June, driven by strong performance of its automotive and farm sector segments. The company had posted a consolidated loss after tax of Rs 332 crore in the year-ago period.

Tata Motors said its subsidiary has inked a pact to acquire Ford India's Sanand-based manufacturing plant for Rs 725.7 crore. Tata Passenger Electric Mobility Ltd (TPEML), a subsidiary of Tata Motors and Ford India Pvt Ltd (FIPL), has signed a Unit Transfer Agreement (UTA) for the acquisition of the Gujarat-based plant.

Marico reported a 3.28 per cent increase in its consolidated net profit to Rs 377 crore for the first quarter ended June 30, 2022. The company had posted a net profit of Rs 365 crore in the April-June period a year ago.

What to Expect? 

NIFTY opened with a small gap-up at 17,417 on Friday and consolidated. Directional traders were trapped on both sides as the market was choppy. NIFTY finally closed below 17,400, flat at 17,397.

BANK NIFTY opened flat and was flat in the end like NIFTY. There was a trendline followed in the morning and it reversed in the second half. The index closed at 37,920, up by 165 points or 0.44%.

IT moved up by 0.6%.

The US markets closed mixed on Friday and the  European markets closed lower.

The Asian markets are trading lower but are recovering. The U.S. Futures and the European futures are trading flat.

SGX NIFTY is trading at 17,402 indicating a flat opening.

NIFTY has supports at 17,360, 17,265, 17,225 and 17,070. We can expect resistances at 17,430, 17,475, 17,500 and 17,600.

BANK NIFTY has supports at 37,800, 37,500 and 37,250. Resistances are at 38,000, 38,150 and 38,500.

NIFTY has the highest call OI build-up at 17,500. The highest put OI build-up is at 17,000.

BANK NIFTY has the highest call OI build-up at 38,500 and the largest put OI build-up is at 37,000.

Foreign Institutional Investors net bought shares worth Rs 1600 crores. Domestic Institutional Investors also net sold shares worth 500 crores.

INDIA VIX is at 18.9.

As mentioned in the Dalal street report, the markets will first react to the SBI results which have missed the street estimates. We had good results in general and were expecting positive results from the side of SBI as well. 

Looking at the global cues, there is no negativity except for news from Taiwan. However, we have not seen any market reaction. The local cues are strong when it comes to Manufacturing PMI and major results but negative when it comes to Services PMI and SBI results.

Though the blue chips in the US markets showed negativity, the IT stocks are an exception. Let us see how NASDAQ influences NIFTY IT today.

As you know, RBI has hiked the interest rate by 50 basis points against expectations but there has been no major reaction. The accommodative stance has been withdrawn but the GDP and inflation forecasts saw no change.

I will be watching 17,300 on the downside and 17,500 on the upside.

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