Stock Market Highlights: The Indian equity benchmark indices, Sensex and Nifty ended at record closing highs Wednesday led by financial stocks. Broader markets, midcap and smallcap indices underperformed the frontliners to end a percent lower each. Except for banks, all other sectoral indices ended the red.
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Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short term trend of the Nifty continues to be up and the sharp upside breakout has been confirmed. Having moved up sharply in last 2 sessions and a weak market breadth is likely to pull the market into profit booking from the highs in the next 1-2 sessions. Any dips down to the 16K mark is going to be a buy on dips opportunity. Our initial upside target of 16,300 has almost been reached (made a high of 16,290 on Wednesday). The next upside levels to be watched are around 16,500 in the next week.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services
Technically, Nifty formed a Bullish candle on daily scale and is forming higher highs - higher lows from the past five sessions. If Index manages to sustain the current momentum, we can witness an up move towards 16,400-16,500 zones, while on the downside 16,000 could act as key support. India VIX came down marginally by 3.9% to 13.21 levels. Stability in volatility indicates that bulls are holding the market to cheer the fresh momentum.
Ajit Mishra, VP - Research, Religare Broking
The market continued its surge for the second consecutive session and gained nearly a percent. Since the Nifty has almost tested the immediate target of 16,300, we may see a pause in the following session. However, the recent buoyancy in banking and financials would help the index to maintain the positive bias. At the same time, the profit-taking in the other sectors and broader indices demands extra caution in the selection of stocks. We advise aligning positions accordingly.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
Bulls continue with the positive momentum as benchmark Nifty hit another fresh all-time high of 16,290.20 after a massive breakout. The uptrend was largely supported by the HDFC twins, private banks and financial stocks. Technically, on daily charts, the index has formed breakout continuation formation, which is broadly positive for the market. But intraday charts and momentum indicators suggest a temporary overbought situation and traders may take a cautious stance near the 16,300 -16,330 level. We are of the view that in the next few trading sessions buying on dips and sell on rallies would be the ideal strategy for the day traders. The trade setup suggests that 16,200- 16,150 would be the key support level for the bulls. On the flip side, the 16,300-16,330 level could be the immediate hurdle for the market.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty rose with another gap up reflecting the pent up demand in index heavyweights. The advance-decline ratio however has turned very negative despite Nifty being up, suggesting profit-taking in the broader markets. With other markets doing well, Nifty could continue to remain steady/up, while the broader market correction could continue for a few sessions.
Rahul Sharma, Co- Founder, Equity99
On the technical front for tomorrow, Nifty on daily charts has again formed a white candle which has been formed after 2 consecutive bullish candles which shows a further continuation of bullish sentiments and rally in the market.
Important Support Levels – 16220 – 16150 – 16075
Important Resistance Levels – 16280 – 16350 - 16385
Similarly Bank Nifty after regaining the 36k mark now going ahead 35,960 will act as immediate support and further below at 35,700-35,400, on the upper side 36,250-36,400-36,560 will be the resistance levels. Banks, IT, Realty & Auto sector and stocks will remain in focus for tomorrow session.
Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities
The rupee spot touched a low of 74.08 against the dollar on the back of strong FPI and lumpy corporate $ inflows. It is the lowest level since June 21. The bias continues to be downward for the rupee/dollar and a strong equity market and weak US dollar index will exert more downward pressure on the currency. We expect a range of 73.90-74.30 for the spot.
Ruchit Jain, Senior Analyst - Technical and Derivatives, Angel Broking
For the second consecutive session, Nifty showed immense strength and continued to march higher led by the banking heavyweights. The Bank Nifty index showed a catch-up move to the recent underperformance and surpassed the 36000 mark. However, in spite of the key indices holding strong, the broader markets witnessed profit booking and hence, the Nifty Midcap index ended with a loss of over a percent. This could be seen as a divergence which indicates that the market moves may not be as smooth as one would like it to post such breakout. Traders should be very selective in picking stocks and look to trade only such pockets which are showing strength. Positional traders should also look to take some money off the table as profit booking is also one of the most important parts of trade management.
As far as Nifty levels are concerned, immediate supports for Nifty are placed around 16,175 and 16,000 while 16,300-16,400 are the levels to watch on the higher side. In the next couple of sessions, events such as weekly expiry and then the RBI Policy outcome could lead to some volatility. Hence, traders are advised to trade with proper risk management and keep booking timely profits.
Manish Shah, Founder, Niftytriggers.com
Nifty50 closed the day higher by close to 128 points. It was a narrow range candle for the day. Nifty remains below the weekly R3 resistance at 16,303 and this pivot needs to be taken out for the rally to move higher. MACD has moved into a buy mode as MACD crosses above the signal line. The directional moment system is already in a buy mode. Nifty has already broken above the rectangle pattern and Nifty has already moved a distance from 15,960. A small pullback towards 15,960-16,000 is going to be a normal movement. There could be a small pullback towards 15,950-16,000 and then the rally could continue. Any drop to 15,950-16,000 is an opportunity to buy the market. Interesting to note that the mid-cap index has seen a red candle where the Nifty50 is a green long candle. Is Nifty mid-cap signalling something important? We will wait for a few days and observe.
Rupee At Close | The Indian rupee ended higher at 74.18 amid gains in the domestic equity market led by strong FII inflows resulting in the benchmark indices touching fresh record highs. Rupee hit a 6-week high of 74.08 intrday. The local unit opened higher at 74.15 per dollar against the previous close of 74.28 and traded in the range of 74.08-74.24.
Market Watch: Kunj Bansal, CIO, Karvy Capital
Bharti Airtel has given reasonably decent quarterly numbers and the expectation of the stock to do well has been for almost six quarters. Unfortunately, it is quite surprising and difficult to fathom why the stock is not performing in such a bullish market but yes, it is positive for Bharti Airtel.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The markets got off to a flying start but decided to take a breather closer to the 16,300 level. If we can get past 16,300, the next target for the Nifty should be 16,600. The new support for the market is at 15,700 and hence any dip or intraday correction can be used to accumulate long positions for higher targets.
Fear gauge eases 3 percent
NSE's India VIX (Volatility index) dipped 3.89 percent to 13.21 as the Sensex and Nifty stayed near their record highs. Why does VIX matter? Because it tells you the kind of volatility that investors are expecting in the market. In other words, the reading reflects the fear of risk among market participants. Hence the volatility index is also known as the fear index. Lower the VIX reading, less the volatility (risk) expected and higher the reading, more the volatility (risk) expected.
Benchmark indices—Nifty and Sensex—have an inverse co-relation with VIX. As in both typically trend to move in opposite directions. When investors expect less volatility, they become bullish on stocks and this results in the Nifty and Sensex climbing higher. Likewise, they reduce their positions if market volatility is expected to rise in future.
India VIX soared to a five-year high of over 60 points in March 2020—the same month India announced a complete lockdown. It had surged to similar levels when Lehman Brothers collapsed in September 2008 during the sub-prime mortgage crisis.
Market At Close | Nifty bank gains 821 points to 36,028
Market At Close | Market breadth favours declines with advance-decline ratio at 2:5
Market At Close | Here are the highlights of today's trading session
- Sensex & Nifty End At Record Closing Highs For 2nd Straight Day Led By Financials
- HDFC, HDFC Bank, ICICI & Kotak Bank Lift Nifty By More Than 140 Points
- Sensex Rises 563 Points To 54,386 & Nifty 128 Points To 16,259
- Nifty Bank Gains 821 Points To 36,028 While Midcap Index Slips 338 Pts To 27,928
- 31 Of 50 Nifty Stocks Close In The Red On The Day Index Is At A Record High
- HDFC Top Nifty Gainer For 2nd Straight Day After Q1 Earnings
- Cipla Rises Over 1% Ahead Of Its Q1 Earnings Tomorrow
- SBI Closes With A Gain Of 2% After Reporting In-line Q1 Earnings
- Vodafone Idea Falls 20% & It Leads To A Fall In IDFC First, Indus Towers
- AU SFB Moves 4% Higher After Equitas SFB Reports July Biz Updates
- M&M Fin Gains 3% Following Positive Business Updates For July
- Coforge Falls Over 4% After A Block Deal Of More Than 7% Equity
- Dabur Sees Profit Booking After Better-than-expected Q1 Earnings
- Market Breadth Favours Declines With Advance-Decline Ratio At 2:5
Closing Bell | The Indian equity benchmark indices ended at record closing highs Wednesday led by financial stocks. The Sensex rallied 546.41 points, or 1.02 percent, to 54,369.77, while the Nifty ended 128.05 points, or 0.79 percent, higher at 16,258.80. Broader markets, midcap and smallcap indices underperformed the frontliners to end a percent lower each.
Barring banks, all other sectoral indices closed in the red. HDFC, Kotak Mahindra Bank, ICICI Bank, SBI and HDFC Bank were the top Nifty50 gainers, while Grasim Industries, Titan Company, Tata Motors, Adani Ports and Hindalco Industries were among the top losers. Read here.
Rakesh Jhunjhunwala promoted Akasa Air gets no-objection certificate from civil aviation ministry, DGCA
Rakesh Juhunwala promoted Akasa Air has received a no-objection certificate from the civil aviation ministry and Directorate General of Civil Aviation (DGCA), sources said. Akasa Air is aiming to begin operations by end-2021. The airline is likely to opt for Boeing fleet of narrow-body aircraft and it will receive air operator permit post aircraft acquisition. Former CEO of Jet Airways Vinay Dube will play a key role in Akasa Air.
Akasa Air is likely to be a Bengaluru-based low-cost carrier and may initially plan route network close to Bengaluru. Lower lease rentals, lower expenses due to Covid may benefit Akasa Air. Uncertain demand environment due to Covid is likely to be a risk factor.
Devyani International IPO: Aim to turn profitable in FY22, says management
Devyani International’s IPO has opened today (Aug 4) and the price band is Rs 86 to 90 share. The company's brands are household names such as KFC, Pizza Hut and even Costa Coffee. The total size of the issue is Rs 1840 crores out of that the fresh issue is Rs 440 crores. To discuss the business outlook going forward, CNBC-TV8 spoke with Ravi Kant Jaipuria, Chairman of Devyani International and to know if one should subscribe to the IPO, the channel spoke with Gurmeet Chadha, Co-Founder & CEO, Complete Circle Consultants. Talking about where the funds raised via the IPO would be utilised, Jaipuria said it is basically going to be used for repaying the debt, and we have enough cash flows to expand our business and we would not be looking for any borrowing or diluting further. The company has been loss-making for the last three years but the losses have narrowed in FY21 compared to the previous year. When asked when they would turn profitable, he said. Read here.
Market Watch: Prakash Diwan, Market Expert
On SBI | The stock should move towards Rs 500. This quarter was supposed to be tough. The moment things normalise and the credit growth comes back, you will probably have a book that looks healthier. So I think it is time for some upgrades.
On Maruti Suzuki | It looks like very clearly the export segment for Maruti would get impacted because of the semiconductor shortage issue. One good thing is that you are in a phase where demand is also contracted quite a bit. This could be probably an advantage for them to get over this shortage issue, utilise their unsold inventory, get it out of the way and then start looking at resuming normal production numbers. If this shortage persists for too long then you have a problem. Raw material input prices going up and demand contraction were already two big issues and this is probably going to add to that woes. So it could go sideways for some time. The stock hasn’t been in the best of situations after the numbers were out.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The market witnessed yet another session of a strong trend. After overcoming the resistance level around the Nifty 50 Index level of 16,000 in yesterday’s session, the market has been able to sustain above the previous all-time high. While sustaining above 16,200 is the key factor from a short-term perspective, maintaining above this level is important for the market to gain momentum and extend the rally until 16,500. The momentum indicators like RSI and MACD indicating a positive outlook to continue.
SBI on Telecom exposure
Ashwani Bhati, MD, SBI says that there is one particular telecom account where exposure is large. We are following up closely with the company. All of us are concerned about one large telecom exposure, but by and large, we are okay on the telecom sector. Dinesh Khara, Chairman, SBI said that the bank eill take steps to insulate its balance sheet from any potential threat of hit from the telecom sector.
Tata Consumer Products Q1FY22 | The company's net profit rose to Rs 413.6 crore from Rs 394.9 crore and revenue increased 24.4 percent to Rs 2,894.4 crore versus Rs 2,327.3 crore, YoY.
PNB Housing Finance Q1FY22 | The company's net profit fell 5.4 percent to Rs 243.3 crore from Rs 257.2 crore, while revenue declined 9.5 percent to Rs 1,691.8 crore from Rs 1,870.1 crore, YoY.
Chambal Fertilisers Q1FY22 (Consolidated, YoY)
-Net profit up 27.8% at Rs 381.3 cr Vs Rs 298.4 cr
-Revenue up 10% at Rs 3,539.3 cr Vs Rs 3,218.7 cr
-EBITDA down 6.3% at Rs 581.2 cr Vs Rs 620.6 cr
-EBITDA margin at 16.4% Vs 19.3%
Tata Steel BSL Q1FY22 | The company posted a net profit of Rs 2,478 crore against a loss of Rs 650 crore, YoY. Revenue was at Rs 7,858.3 crore as against Rs 2,697 crore, YoY.