*CALCULUS DERIVATIVES CORNER*

8 AM.

*Market Summary:*

• Nifty June Futures ended Wednesday’s session at a premium of +07 vs discount of -16 in its previous trading session.

• The 24th June expiry Put-Call Open Interest Ratio was at 0.83 for Nifty whereas it was 0.67 for Bank Nifty.

• The 24th June expiry Put-Call Volume Ratio was at 0.91 for the Nifty and 1.01 for Bank Nifty.

• For Nifty, Maximum Call Open Interest (OI) stands at 15800 Strike Price, followed by 15900 Strike Price for 24th June Series. Short buildup was seen at strike prices 15600-15900.

• Maximum Put Open Interest (OI) was seen at strike price 15500 followed by 15600 strike prices for 24th June series. Short covering was seen at strike prices 15800-16000.

• For Bank Nifty, Maximum Call Open Interest (OI) stands at 35000 Strike Price and Maximum Put Open Interest stands at 34000 Strike Price.

• As per Tuesday’s Provisional Data available on the NSE, FIIs bought shares worth Rs. 3156.53 crores in the Indian Equity Market. DIIs too bought shares worth Rs. 1317.20 crores in the Indian Equity market.


• Long Buildup: BEL, MARUTI, HEROMOTOCORP.

• Short Buildup: NMDC, HDFC, KOTAKBANK, ADANIENT.

• Short Covering: ONGC, CUB, M&M, TATACONSUM.

• Long Unwinding: TATAMOTORS, SAIL, GAIL, TATASTEEL.


• Stocks banned in F&O segment: IDEA, SUNTV.

• New in Ban: NIL.

• Out of Ban: NIL.

Good Morning Early Readers!

24th June 2021.

*Good Morning & Welcome to Thursday’s trading action at Dalal Street dated 24th of June 2021.*

Overnight at Wall Street, the Nasdaq set an intraday record high.

Amidst this backdrop, Dalal Street may consolidate. Helping sentiments are likely to be the comments of Federal Reserve Chairman Jerome Powell who said a spike in inflation likely was temporary, easing worries that the central bank could soon pull back on economic support.


*7 AM GLOBAL UPDATE*

• SGX Nifty (+13, 15708)
• DOW (-71, 33874)
• NASDAQ (+18, 14271)
• BRAZIL BOVESPA (-339, 128428)
• Nikkei (+22, 28897)
• HANG SENG (+48, 28865)



*OUTLOOK & INSIGHTS:*

• Global: Neutral.
• FII: Positive (+3156.53 Cr)
• DII: Positive (+1317.20 Cr)
• F&O: 15300-16000 zone
• Trend: Sideways
• Sentiment: Precarious
• Technicals: Overbought
• Theme: Nifty 16000.


*All ABOUT NIFTY & BANK NIFTY*

*NIFTY (CMP 15687):*

• SUPPORT: 15459/15213
• RESISTANCE: 15907/16101
• RANGE: 15559-15589
• BIAS: Positive.


*BANK NIFTY (CMP 34574):*

• SUPPORT: 33769/32511
• RESISTANCE: 35811/37709
• RANGE: 33951-34951
• BIAS: Positive.


*THEME OF THE DAY:*

• We are bullish on Nifty with aggressive interweek targets at 16000 mark as we suspect the Fed’s new outlook will not translate into significantly higher policy rates any time soon.

• Volatility likely to be the hallmark as June F&O expiry expires today.


• Q4 earnings to trickle in today: ONGC, ASHOK LEYLAND, BODAL CHEMICALS.

• Stock banned in F&O segment: IDEA, SUNTV.


*Disclaimer:* Our subscribers/clients may have positions in the stocks recommended in this note. Please note that the actual subscribers may receive additional information in real time not available to the viewers of this note. This does not construe to be an investment advice. Stock market investments are subject to market risks. No content on this blog should be construed to be investment advice. You should consult a qualified financial advisor prior to making any actual investment or trading decisions. All information is a point of view, and is for educational and informational use only. The author accepts no liability for any interpretation of articles or comments on this blog being used for actual investments. While we may talk about strategies or positions in the market, our intent is solely to showcase effective risk-management in dealing with financial instruments. This is purely an information service and any trading done on the basis of this information is at your own, sole risk.

*Pre-Market Derivatives and Technical Set-up*

◆ Nifty index opened positive but failed to even hold its opening levels and after a volatile swing it drifted towards 15673 levels. It has been finding sustained selling pressure near to its life time high of 15850-15900 zones from last few trading sessions. It formed a Bearish Belt Hold sort of candle on daily scale and closed with losses of around 85 points

◆ Now, it has to hold above 15700 zones to witness an up move towards 15800 and 15900 zones while on the downside support can be seen at 15600 and 15550 zones

◆ India VIX moved up by 4.24% from 14.73 to 15.36 levels. India VIX has come to the levels of Feb 2020 when it spiked to higher zones. Lower volatility indicates an overall bullish market bias but small bounce in VIX could give some volatile cues to the market

◆ On option front, Maximum Put OI is at 15500 followed by 15600 strike while maximum Call OI is at 15800 followed by 16000 strike. Call writing is seen at 15800 then 15750 strike while Put writing is seen at 15550 then 15600 strike. Option data suggests a wider trading range in between 15500 to 15900 zones while an immediate range in between 15600 to 15800 zones.

◆ Bank Nifty opened positive but failed to surpass 35000 zones and remained under pressure for most part of the session. It formed a Bearish candle on daily scale and stuck in the grip of option writer ahead of its monthly expiry. Now it has to hold above 34500 zones to move up towards 34750 and 35000 zones while on the downside support exists at 34250 and 34000 levels.

◆ Bullish setup in BEL, Maruti, Lalpathlabs, Titan, Siemens, Bajajfinsrv, MFSL, Ultracemco and ICICI Pru

◆ Bearish setup in NMDC, Adaniports, Indus Tower, Ibulhsgfin, IGL, Jswsteel, Lichsgfin and Muthootfin

*Technical & Derivatives Research, Motilal Oswal*

IPO Allotment Links

Shyam Metalics: https://kosmic.kfintech.com/ipostatus/

Dodla Dairy Ltd: https://kosmic.kfintech.com/ipostatus/

KIMS Ltd: https://linkintime.co.in/IPO/public-issues.html

Sona BLW: https://kosmic.kfintech.com/ipostatus/

India Pesticides: https://kosmic.kfintech.com/ipostatus/

Insider Trades

🔆Adani Ports and SEZ: Promoter Worldwide Emerging Market Holding bought 10 lakh shares on June 22.

🔆Adani Green Energy: Promoter Infinite Trade and Investment bought 19.19 lakh shares on June 22.

🔆JK Cement: Promoter Ramapati Singhania sold 3,692 shares between June 21-22.

🔆Kotak Mahindra Bank: Promoter Janak Desai sold 1,500 shares between June 3-21.

🔆Kabra Extrusiontechnik: Promoter Kolsite Industries bought 14,300 shares between June 17-18.

🔆LG Balakrishnan & Bros: Promoter V Rajvirdhan sold 55,350 shares between June 17-18.

🔆Titagarh Wagons: Promoter Titagarh Logistics Infrastructures bought 2.37 lakh shares between June 17-18.

🔆Solara Active Pharma Sciences: Promoter Triumph Venture Holdings LLP sold 5,989 shares on June 15.

🔆Ultramarine & Pigments: Promoters (Sridhar Sundararajan HUF and Kala Sundarvedha) sold 12,469 shares on June 22.

🔆Vardhman Special Steels: Promoter Sachit Jain bought 9,000 shares between June 22-23.

🌟Good Morning All🌟

☀️ BSC Exclusive Morning Market News & Update☀️

🔹Tata Motors: Guenter Butschek to step down as CEO & MD on June 30, to continue as consultant till the end of the financial year. Girish Wagh, President of the commercial vehicles unit also appointed as the Executive Director to the board from July 1.

🔹Adani Ports and SEZ: May abandon Myanmar project if it violates U.S. sanctions and will write-down investments in the project in full, the company said. The write down will not materially affect the balance sheet as it is equivalent to about 1.3% of the total assets of the company. APSEZ is in discussion with its U.S. based counsels to
ensure that it is in compliance with the OFAC sanctions programs. Further, the company declined to comment on KLP Fund share sale report.

🔹Jaypee Infratech: Suraksha ARC wins the bid for Jaypee Infratech by a small margin. The final resolution plans of Suraksha Realty along with Lakshdeep Investments and Finance got 98.7% votes.

🔹HDFC: Chairman Deepak Parekh calls for regulatory clarity as housing finance companies come under RBI regulation and supervision. Difference in accounting standards used by NBFC/HFCs versus banks leading to differences in interpretation between inspectors, auditors and regulated entities, Parekh said. HFCs should be allowed to retain customers by lowering interest rate on loans, without these loans being seen as restructured. Home loan insurance and home insurance should be classified as a component of home loans.

🔹Reliance Industries: Fitch Ratings has upgraded the company’s foreign-currency debt rating to a level higher than India’s sovereign ranking, citing strong external debt-servicing capabilities. RIL now has a long-term foreign-currency rating of BBB, while the local-currency rating stands at BBB+.

🔹UCO Bank: Approved raising up to Rs 500 crore in Tier II capital.

🔹Orchid Pharma: Promoter Dhanuka Laboratories to sell up to 32.80 lakh shares, representing 8.04% of the total equity share capital, through an Offer for Sale. The floor price is set at Rs 375 per share. The OFS opens for non-retail investors today and for retail investors tomorrow.

🔹Piramal Enterprises: Board to meet on June 28 to considerraising up to Rs 1000 crore through the issue of secured NCDs on private placement basis. The base issue size will be Rs 100 crore with an oversubscription of up to Rs 900 crore.

🔹Union Bank of India: Extended the tenure of BS Venkatesha, General Manager as Chief Risk Officer of the bank for a further period of six months

🔹Earnings: ONGC, Ashok Leyland, PTC India, Authum Investment & Infrastructure, Bodal Chemicals, Everest Kanto Cylinder, Mishra Dhatu Nigam, Nath Bio-Genes (India), Nirlon, Rushil Décor, Take Solutions, Thangamayil Jewellery, West Coast Paper Mills

Pledge Share Details

💫Aurobindo Pharma: Promoters (Kambam Spoorthi and M Sumanth Reddy) revoked pledge of 35.30 lakh shares between June 17-21.

💫Asian Granito India: Promoter Kamleshkumar Patel revoked pledge of 2.63 lakh shares between June 19-21.

💫Kuantum Papers: Promoter Kapedome Enterprises created a pledge of 4.45 crore shares on June 22.

What We’ve Been Reading
This is what’s caught our eye over the past 24 hours:

Hong Kong accountants push back after a government power grab. 
China’s debt cut campaign is reshaping its $12 trillion credit market.
Hong Kong’s Apple Daily prints final edition after China crackdown.
For Airlines trying to survive the pandemic, it is survival of the fittest.
Batteries could add billions to Australia’s economy.
Warren Buffett steps away from middleman spot in Gates’ divorce.
Toshiba’s chairman faces a vote for survival as opposition grows.
PETA goes on the attack in India over milk industry’s treatment of cows. 

S&P 500 Stuck in Trading Lull While Bonds Retreat: Markets Wrap

Stocks traded in a tight range Wednesday as investors assessed prospects for an economic recovery and continued Federal Reserve support amid the threat of inflation. Treasuries fell.

The S&P 500 drifted between gains and losses throughout the day, with companies tied to a broader reopening of the economy -- such as retail and financial shares -- outperforming. A rally in Tesla Inc. drove the Nasdaq Composite to a fresh record even as the gauge rose just 0.1%. Fannie Mae and Freddie Mac tumbled as the Supreme Court dealt a blow to investors in their challenge to the U.S. collection of more than $100 billion in profits from government-sponsored enterprises.

The economy will likely meet the Fed’s threshold for tapering its asset purchases sooner than people think, noted Dallas Fed President Robert Kaplan, who’s penciled in a rate hike next year. His Atlanta counterpart Raphael Bostic said the central bank could decide to slow its asset purchases in the next few months. Meantime, Treasury Secretary Janet Yellen said her department may exhaust emergency measures to avoid breaching the debt limit as soon as August unless Congress acts to avert a potential default that would be “catastrophic.”

Data Wednesday showed U.S. manufacturing activity expanded in June at the fastest pace in records dating back to 2007. Meantime, sales of new homes unexpectedly fell last month as elevated home prices continued to weigh on affordability. The reports came a day after Fed Chair Jerome Powell reiterated his views that policy makers will be patient in waiting to lift rates despite higher inflation.

“You’ve got this inflation issue that has captured the imagination of investors for the first time in a long time,” said David Donabedian, chief investment officer of CIBC Private Wealth Management. “I don’t have a great case for why the market takes another leap forward here over the summer. It’s going to be more of a churn, and we usually do get a little bit more volatility because volumes are down.”

One-month correlations between the Bloomberg Barclays U.S. Treasury Index and the S&P 500 Total Return Index have fallen back below zero. Stocks and bonds moving in lockstep create headaches for fund managers who use fixed-income securities to diversify their portfolios and protect them against a selloff in equities.

For more market commentary, follow the MLIV blog.

Here are some events to watch this week:

Bank of England interest rate decision Thursday
The Fed releases Thursday the results of stress tests on the largest U.S. banks
U.S. wholesale inventories, initial jobless claims, GDP, durable goods due Thursday
U.S. personal income/spending, University of Michigan sentiment on Friday
These are some of the main moves in financial markets:

Stocks
The S&P 500 fell 0.1% as of 4 p.m. New York time
The Nasdaq 100 was little changed
The Dow Jones Industrial Average fell 0.2%
The MSCI World index was little changed

Currencies
The Bloomberg Dollar Spot Index was little changed
The euro fell 0.1% to $1.1924
The British pound was little changed at $1.3959
The Japanese yen fell 0.3% to 110.99 per dollar

Bonds
The yield on 10-year Treasuries rose three basis points to 1.49%
Germany’s 10-year yield declined one basis point to -0.18%
Britain’s 10-year yield was little changed at 0.78%

Commodities
West Texas Intermediate crude rose 0.6% to $73.26 a barrel
Gold futures fell 0.1% to $1,775.40 an ounce

Economy likely to see cyclical upturn, says DSP Investment Managers' Sambre
https://mybs.in/2ZfDamX

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Govt issues fresh guidelines for BPO companies
https://www.livemint.com/news/india/govt-issues-guidelines-for-bpo-companies-to-make-india-a-favourable-destination-for-voice-related-centres-11624441622266.html