Stock Market Highlights: Indian equity benchmark indices ended at record highs on Tuesday, with the Nifty50 index closing above 16,100. Broader markets, smcallcap and midcap indices underperformed the frontliners. Among sectors, Nifty FMCG, Nifty Auto, Nifty Private Bank, Nifty Financial Services and Nifty IT gained over 1 percent, while metal and media indices ended in the red.
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Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short term trend of Nifty seems to have turned up sharply. The much-awaited upside breakout of the broader high low range at 15,960 could signal more upside for the Nifty ahead. The next upside levels to be watched are around 16,300-16,500 in the next 6-8 sessions. Important support is placed at 15,960-16,000 levels.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
Nifty registered fresh highs and closed above the 16,000-mark. The intraday rally was largely supported by HDFC Ltd, Titan, and IndusInd Bank, which gained over three per cent. Technically, on daily charts after a long time, the index has formed a strong breakout formation which is broadly positive for the market. The strong bullish candle on daily charts clearly suggests a further uptrend from current levels. For the breakout traders, 16050-16020 levels would be the sacrosanct level to watch out on Nifty. Above the same, the breakout formation could continue up to 16,200-16,250. On the flip side, below the 16,020 level, a strong possibility of quick intraday correction up to 15,950-15,925 could be seen.
Ajit Mishra, VP - Research, Religare Broking
Nifty finally ended its 2-month long consolidation phase and tested a new milestone of “16,000” levels. The bias was upbeat from the beginning and buying in select index majors pushed the benchmark higher as the day progressed. Further, short covering in the latter half triggered sharp momentum in the last hour of the trade. Markets have resumed trend after two months of the range-bound move so it’s unlikely to fade away anytime soon. However, the participation of the banking index would be the critical factor as that would decide the pace of rising from hereon. Nifty has the potential to test 16,300+ zone now. Traders should align their positions accordingly.
Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities
The Rupee-Dollar spot slowly drifted down by barely 6 paise to 74.24 levels as equity markets roared to life. RBI remains a major buyer of US Dollars and that did not allow the Rupee to appreciate much. Thanks to the weak US Dollar Index and strong equity markets, bias remains mildly downward for USDINR.
Rupee At Close | The Indian rupee rose by 6 paise to close at 74.28 against the US dollar amid buying in the domestic equity market and a weak American currency. The local unit opened at 74.36 against the greenback and traded in the range of 74.21 and 74.36.
Sneha Poddar, AVP – Research, Broking & Distribution, Motilal Oswal Financial Services
Nifty today finally managed to break its two-month long consolidation to touch the most awaited level of 16,000. It had shown strong resilience since the start of June and moved in a very narrow range despite weak global cues and finally managed to leap forward towards the 16,000 zone. What really provided support to the market was the 1QFY22 earnings report which begun on a very healthy note despite the Covid 2.0 impact. It helped the market to largely sail through the headwinds of a possible third COVID wave, commodity led inflation and volatility around the US Fed taper talk.
The damage from the second COVID wave and the consequent lockdowns in April'21/May'21 has been much lesser than that from the 1QFY21 national lockdown. Management commentaries across the board suggest an improved demand environment post-June 2021, led by the easing of restrictions, lower active COVID-19 cases, and a pickup in vaccinations. We estimate corporate earnings to continue to recover, as the underlying economy opens up, with progressively higher vaccination trends, thus offering many bottom-up opportunities.
Rahul Sharma, Co- Founder, Equity99
Today Nifty on daily charts has closed forming a big white candle with no lower shadow, typically it is a bullish sign for nifty to travel more on the upside which is supported by 2 bullish candles formed in the last two sessions, going further for nifty 16,050 - 16,000 will act as immediate support followed by 15,900-15,850. Resistance is placed at 16,175 followed by 16,200-16,250. Bank Nifty which has underperformed have a major support at 35,000 levels followed by 34,850-34,600, similarly on upside hurdles for Bank Nifty are placed at 35,350-35,400-35,600.
Manish Shah, Founder, www.Niftytriggers.com
Nifty today moved out the consolidation phase in style. The range-bound action seen in Nifty the index since the last 8 odd weeks has finally resolved with a breakout on the upside. Nifty has broken out the shackles, and it is time for a nice trending action to emerge. The pattern seen in Nifty is a long wide-ranged candle that opened with a gap. The gap is out of a consolidated area which makes it a breakaway gap. The Bollinger Bands, which were hitherto, experiencing a squeeze have opened up. Plus DMI on the directional movement system is showing a positive crossover. These are signs of pent up demand showing up on the price charts. Time and again we have been stating that the narrow ranged move in Nifty should resolve into a continuation pattern and we did see this. Expect Nifty to see a rally towards 16,300-16,350 before the end of the expiry. Support is now at 15,700. As long as 15,700 holds Nifty should have its tail up.
Sumeet Bagadia, Executive Director, Choice Broking
Nifty made a fresh new lifetime high at 16146.90 levels after 25-day consolidation along with the midcap index saw their highest close. In the dying hours of the session, sharp moves were witnessed in both the indices with the Bank Nifty taking the lead.
On the Technical Front, the index has finally given a breakout of 16,000 phycological levels and given closing above the same suggests a bullish movement in the upcoming day. Furthermore, the Index has given breakout above the Upper Band of Bollinger, which signifies strength for the next session. Momentum indicator MACD has also shown positive crossover on the daily time frame which suggests an upside rally in the counter. On a daily chart, the Index has formed Bullish Marabozu Candle, which adds strength to the counter. At present, the Nifty support shifted to the 15,800 level while resistance comes at 16,150 levels.
Market At Close | Market breadth neutral with advance-decline ratio at 1:1
Market At Close | Sensex, Nifty & Midcap index climb to record highs
Market At Close | Here are the highlights of today's trading session
- Sensex, Nifty & Midcap Index Climb To Record Highs
- Nifty Surges Past 16,100 & Sensex Above 53,800, Led By IT & Financials
- Sensex Rises 873 Points To 53,823 & Nifty 246 Points To 16,131
- Nifty Bank Gains 497 Points To 35,207 & Midcap Index 15 Pts To 28,266
- Titan Top Nifty Gainer Ahead Of Its Q1 Earnings; Stock Up 4%
- HDFC Moves 4% Higher On +ve Mgmt Commentary, Contributes 38 Pts To Nifty
- IndusInd Bank Rises Over 3% After RBI Empanels Bank As An Agency For Govt Svcs
- SBI At A 52-week High Ahead Of Earnings; NIMs Seen Improving QoQ & YoY
- Cummins, Dr Lal, Ashok Leyland, Havells, Bharat Forge, Federal Bank Top Midcap Gainers
- RBL Bank Slips 4% After Reporting A Weak Set Of Earnings In Q1
- PVR Falls 4% After Maharashtra Govt Decides Not To open Movie Theatres
- Coforge, Shriram Trans, Voda Idea, AU SFB, Chola Invest Top Midcap Losers
- Market Breadth neutral With Advance-Decline Ratio At 1:1
Closing Bell | The Indian equity benchmark indices ended at record closing highs on Tuesday, with the Nifty50 index settling above 16,100. The Sensex rallied 872.73 points, or 1.65 percent, to close at 53,823.36, while the Nifty ended 245.60 points, or 1.55 percent, higher at 16,130.75. Broader markets underperformed the frontliners as the Nifty Smcallcap100 fell 0.24 percent and the Nifty Midcap100 closed flat.
Among sectors, Nifty FMCG, Nifty Auto, Nifty Private Bank, Nifty Financial Services and Nifty IT gained over 1 percent, while metal and media indices ended in the red. On the Nifty50, Titan Company, HDFC, IndusInd Bank, Nestle India and UltraTech Cement were the top gainers, while JSW Steel, Shree Cement, Bajaj Auto, UPL and Tata Steel led the losses.
Aarjeet Maurya - AVP - Mid Caps, Angel Broking on Devyani International IPO
Devyani International Ltd (DIL) is the largest franchisee of Yum Brands in India and is among the largest chain operators of quick service restaurants (“QSR”) in India on a non-exclusive basis, and operates 696 stores across 166 cities in India, as of June 30, 2021. In terms of valuations, the post-issue FY2021 EV/Sales works out -9.9x to (at the upper end of the issue price band), which is low compared to peers (Jubilant Foodworks-15.4x, Burger King India -14.8x, Westlife Development – 10x). Further, Devyani International has a better operating margin compared to Westlife Development & Burger king. We believe this valuation is at reasonable levels. Thus, we recommend a subscribe rating on the issue.
Godrej Properties Q1FY22 | The company reported a net profit of Rs 17 crore as against a loss of Rs 19.4 crore, YoY. Revenue rose 19.2 percent to Rs 86.2 crore from Rs 72.3 crore, YoY. EBITDA loss was at Rs 63.5 crore as against a loss of Rs 53.6 crore, YoY. Other income increased to Rs 175.8 crore from Rs 123.4 crore, YoY.
Nilesh Shah, MD, Kotak Mahhindra AMC
- Portfolio Should Have Defensives As Well As Cyclicals
- This Can Be A Good Time To Buy Some Defensives
- There Can Be Many Reasons For Momentum
- Some Pockets Of The Market Can Have Over Speculation
- Some Stocks Are Excessively Valued
- See Revival Of Investments Happening, A Positive For Industrials
- There Are Multiple Drivers Of Real Estate, Including Low Rates
- Good Opportunities For Home Improvement Players
- Industrials And Home Improvement Are Two Themes For The Coming Future
Axis Bank expects credit cost to be lower in FY22 versus FY21
Private lender Axis Bank's first-quarter earnings missed estimates due to elevated slippages, decreased net interest margin and deteriorating asset quality. Amitabh Chaudhry, MD, and CEO, Axis Bank said, in the months and the quarters to come, the credit cost should be lower. “Credit cost in this year will be lower than that of last year,” he said. “The demand resolution for the retail portfolio was 98 percent for Q1FY22. It reached close to 99.5 percent of March 2021 levels in June and July is back to pre-COVID levels across all our asset classes. We are seeing much better collections than what we had seen in the first three months of the quarter, including in June which was a way better month than May,” he said. Read here.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The market witnessed some strong trends and after overcoming the resistance level around the Nifty 50 Index level of 16,000. While sustaining above 16,000 is the key factor from a short-term perspective, maintaining above this level is important for market to gain momentum and extend the rally until 16,200. The momentum indicators like RSI and MACD to stay positive and market breadth to improve, further strengthening a short-term bullish outlook.
Oil rises as markets expect continuous fall of inventories
Crude oil rose on Tuesday on the expectation of a continuous decline in US oil inventories, recouping some losses from the previous session due to lingering concern over rising cases of the Delta coronavirus variant. Brent, the international benchmark for oil prices, rose 60 cents, or 0.8 percent, to $73.49 a barrel. US West Texas Intermediate (WTI) crude was up 63 cents, or 0.9 percent, at $71.89 a barrel.
Nykaa cautions ahead of IPO: Draft e-commerce rules could increase costs, affect operations
The e-commerce rules, the draft for which was released in June for industry feedback, could impact Nykaa's operations and increase costs, the company has said in its draft red herring prospectus (DRHP) filed with the regulator. The company is looking to raise Rs 525 crore through a fresh issue of shares and investors will also sell over 4.3 crore equity shares as part of the Offer for Sale. As part of the Risk Factors, the beauty and fashion commerce company has said that changing regulations in India could lead to "new compliance requirements that are uncertain." Read full report here.
Buzzing | Vodafone Idea slumps over 10% to hit a 52-week low
The share price of Vodafone Idea plunged over 10 percent to hit a fresh 52-week low of Rs 7.17 apiece on the BS after Kumar Mangalam Birla offered to give up his stake in the company. The Aditya Birla Group chairman has written to the government that he is ready to “hand over stake” in Vodafone-Idea to a government entity. Birla said in a June 7 letter to Cabinet Secretary Rajiv Gauba that, with a "sense of duty" towards 27 crore Indians connected with Vodafone Idea, Birla is willing to hand over his stake to the Public Sector Unit (PSU), a government entity or any domestic financial entity, or any other entity that the government may consider worthy of keeping the company as a going concern. Birla had also stated that VI’s operations will be at an "irretrievable point of collapse" if it did not receive immediate and active support from the government.
Jio to soon launch fully homegrown 5G solution; to bring revolutionary capabilities to auto industry
Reliance Jio is planning to launch its fully homegrown 5G service soon, said Kiran Thomas, Director and President, Jio Platforms, adding that the technology will bring a host of additional revolutionary capabilities to the automotive industry. "5G is an absolutely integral part of Jio’s network vision and you may know Jio has already built a 5G solution that is fully homegrown, cloud-native, software-defined, digitally managed, really cutting-edge and we are planning to launch that service very soon," said Thomas in an interview with CNBC-TV18. Read here.
Market Watch: Avneesh Sukhija, BNP Paribas
The demand in the real estate sector is real and it looks like it will sustain in the next 6-12 months and end-user markets like Bengaluru or Chennai, most of the property developers are indicating that inquiries are at an all-time high in the last 3-4 years. Therefore, I wouldn’t be surprise in December, which is one of the strongest quarter, will be the best quarter for housing finance companies.
Arun Malhotra, Founder & CIO, CapGrow Capital Advisors LLP
Markets are buoyant and the large caps have started moving up. The majority of the buoyancy in the last three months have been witnessed in small and midcaps that are due for a correction. The Q1FY22 results have been descent and will keep the market steady. A shift from small caps to large caps seems to be the trade right now.