Stock Market Highlights: Indian equity indices, Sensex and Nifty ended higher Monday led by sharp gains in banks, metals and realty stocks. Midcap and smallcap indices outperformed the benchmarks. Barring Nifty IT and Nifty Auto, all other sectoral indices closed in the green.
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Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
The market once again strongly resisted going below 15,500/51,700. With 15,500/51,700 levels holding support for the second day in a row, the market saw a strong short-covering trend today. After Friday's indication, the market has formed a bullish continuation formation today and according to that 15,800/52,800 will be a big hurdle. However, if indices manage to close above 15,800/52,800, it could reach 16,000/16,050 (53,400/53,500). On Tuesday, 15,800/52,800 and 15,650/52,400 could be the trading range of the market. The Bank-Nifty moved from 33,900 to close at 34,900, which is remarkable and looks appropriate considering the yield of the bond.
Ajit Mishra, VP - Research, Religare Broking
Markets started the week on a choppy note but finally ended nearly half a percent higher. We’re seeing consolidation in the index on the expected lines however the buying interest on every dip clearly shows the market mood. We reiterate our advice to utilise intermediate correction to go long in quality counters until we see some sign of trend reversal. Having said that, it’s not easy to identify performers at the record high and the risk of false breakout is also there. We thus recommend limiting the naked leveraged bets and maintaining strict risk management rules.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short term trend of Nifty has turned up after a dramatic fall and a swift upside bounce of the last two sessions. A sustainable move above 15,800 levels is likely to pull the market into new all-time highs in the next few sessions. Any weakness could find support around 15,650-15,600 levels.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
We have seen a sharp rally in Nifty which has gone past 15,650-15,700 on a closing basis. This negates the short-term weakness of the market. Traders would now seek buying opportunities starting tomorrow as that would take the index to 16,000-16,100. 15,450-15,500 is now the new support for the market.
Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS
For a second session, Nifty has registered a remarkable intraday recovery, gaining over 200 points from the low of each session. The index seems to have found support right near the vicinity of its previous record high of 15,431. The index also failed to close below the 20-day moving average on both the sessions, which is a positive sign. From a candlestick parlance, Nifty formed a ‘Bullish Belt Hold’ type candle today, which indicates strength.
The sharp reversal from the 15,600-15,500 zone indicates that the near-term selling pressure has subsided. The immediate resistance to now watch out for is 15,770, which has held firmly over the last three sessions. If the index sustains above this resistance going forward, we could see a march towards 16,000 in the next few days. On the downside, 15,600 remains the key short-term support from a closing basis perspective.
Rupee At Close | Rupee falls 24 paise to close at 74.10 against US dollar
The Indian rupee slumped 24 paise to breach the 74 per US dollar level on Monday as participants turned risk-averse. At the interbank forex market, the domestic unit opened weak at 74.20 against the American currency, pared some initial losses and finally closed at 74.10, showing a fall of 24 paise over its previous close.
On Friday, the rupee had settled at 73.86 against the American currency. The local unit witnessed an intra-day high of 74.08 and a low of 74.28 against the greenback. Read here.
Manish Shah, Founder, www.Niftytriggers.com
Nifty saw a reversal of sorts opening at the low of the day at 15,505 and closing at the high of the day. Pattern formed highlights the predicting power of right candlestick pattern at the right location and in the right context. Nifty continues to attract buyers on declines. Expect the up move to continue for some time. Simple price action now points out at Nifty rallying towards 15,900 before the expiry and above that to 16,200.
Market At Close | Market recovers from opening lows to close at day’s high; Sensex gains 834 points & Nifty 241 points from intra-day lows.
Market At Close | Here are the highlights of today’s trading session
- Market Recovers from Opening Lows To Close At Day’s High
- Sensex Gains 834 Points & Nifty 241 Points From Intra-day Lows
- Midcap Index & Nifty Bank Gain 1% Each To Outperform Benchmarks
- Market Breadth Favours Advances With Advance-Decline Ratio At 3:2
- Sensex Gains 257 Points To 52,602 & Nifty 63 Points To 15,747
- Nifty Bank Rises 313 Points To 34,871 & Midcap Index 209 Points To 26,705
- Adani Stocks Extends Friday’s Gains; Adani Ports Up 5% & Adani Ent 3%
- NTPC Amongst Top Nifty Gainers After In-line Q4 Earnings
- PSU Banks Surge On Divestment Dvpt; IOB & Central Bk At Upper Circuit
- Bandhan Bank Moves 8% Higher On Assam’s Package For MFIs
- PVR, SRF, Balkrishna Ind, Voda Idea, JSPL Top Midcap Losers
Closing Bell | The Indian equity benchmark indices ended higher Monday led by sharp gains in banks, metals and realty stocks. The Sensex recovered from early losses to end 230.01 points, or 0.44 percent higher at 52,574.46, while the Nifty gained 63.15 points or 0.40 percent to close at 15,746.50. Broader markets outperformed the benchmarks as the Nifty Midcap100 and Nifty Smallcap100 ended 0.79 percent and 0.65 percent higher.
Among sectoral indices, Nifty PSU Bank rallied over 4 percent followed by Nifty Realty, Nifty Metal, Nifty Financial Services, Nifty Media and Nifty Pharma. Selling was seen in IT and auto indices. On the Nifty50 index, Adani Ports, NTPC, Titan Company, SBI and Bajaj Finserv were the top gainers while UPL, Wipro, Tata Motors, Maruti Suzuki and Tech Mahindra led the losses.
Bitcoin slumps in wake of China crackdown
Bitcoin tumbled as much as 9% on Monday as recent volatility in the cryptocurrency market showed no signs of dampening down, with market players citing thin liquidity and China's expanding crackdown on bitcoin mining. Bitcoin fell as low as $32,288, its lowest in 12 days, and was last down 7.5%. If sustained, the drop would be its biggest in around a month.
Rakesh Jhunjhunwala bullish on banking and healthcare stocks; here's why
Rare Enterprises is bullish on banks, the so-called inefficient ones as well, Rakesh Jhunjhunwala, ace investor and a partner at the firm, told CNBC-TV18. “I am extremely bullish on the banks and I am extremely bullish on the so-called inefficient banks because I think the non-performing asset (NPA) cycle has turned. The inefficient banks have got very high-cost income ratios, the cost-income ratios are going to come down dramatically," Jhunjhunwala said. “Therefore, I am very bullish on the banking sector as a whole and especially on the old inefficient banks whether in the public sector or otherwise because they have the cheapest valuations and they are going to see the cheapest upside in earnings,” he said. Year to date, the Nifty Bank index is 11 percent in the green and in the last six months has risen 18 percent. Read here.
Aim to make PMC Bank operational in next 90-120 days, says Centrum Group’s Jaspal Bindra
The Reserve Bank of India (RBI) has given its in-principle approval to Centrum Financial and BharatPe to jointly take over the crisis-hit Punjab and Maharashtra Co-operative (PMC) Bank. Jaspal Bindra, the Executive Chairman at Centrum Group discussed the near-term plans in an interview with CNBC-TV18. We hope to have the bank operational within the next 90-120 days,” he said. “Immediately post amalgamation of PMC Bank, we will depositors access to better deposits and start from there,” he added. The plan is to infuse USD 250 million ( or approximately Rs 1,852 core) as of now. Read here.
Would like to become net zero-debt firm by next year, says Eveready’s Amritanshu Khaitan
Amritanshu Khaitan, MD of Eveready Industries spoke to CNBC-TV18 on the fineprint and outlook for FY22. He expects the company to become a net zero-debt firm by next year. The firm is fairly comfortable with the debt-to-equity ratio currently, he further stated. Khaitan also noted that the battery segment is expected to grow by 7-8 percent in the current year. "With lot of medical equipment, the demand for AAA batteries is seeing a very healthy double-digit growth. Especially thermos scan and oximeter are two new categories which are driving battery demand,” he stated. On margins, he said, “As a category, we have achieved 25 percent EBITDA margins and our aim is to maintain those margins going forward in the current year.” Watch here.
Jet Airways open to alternate slots, plans to employ 50-75 people per aircraft
As the NCLT order nears, Jet Airways is getting ready with a plan in place to resume flights, sources said. While clarity on Jet Airways slots is likely to emerge with the National Company Law Tribunal order, the airline has indicated to the court and the regulator that it is open to alternate slots with a margin of 15 minutes plus or minus on an average if the requirement for a slot cannot be met on account of non-availability.
Bharat Dynamics Q4FY21 | The company's net profit fell 15.9 percent to Rs 260.4 crore from Rs 309.7 crore, while revenue declined 21 percent to Rs 1,136.9 crore from Rs 1,439.4 crore, YoY. EBITDA decreased 16.9 percent to Rs 344.3 crore from Rs 414.1 crore and EBITDA margin improved to 30.3 percent as against 28.8 percent, YoY.
Oil prices firm on summer demand as Iran talks drag
Oil prices edged higher on Monday, underpinned by strong demand during the summer driving season and a pause in talks to revive the Iran nuclear deal that could lead to a resumption of crude supplies from the OPEC producer.
Market Watch: Ruchit Jain, Angel Broking
- Buy Max Financial with a stop loss of Rs 963 and a target of Rs 1,085.
- Buy HDFC Life with a stop loss of Rs 692 and a target of Rs 763.
Market breadth will improve as economy recovers from pandemic, says Alchemy’s Hiren Ved
Occasional correction is a good thing for the market because it brings some semblance of sense back, said Hiren Ved, CEO, Director, and CIO at Alchemy Capital Management, in an interview with CNBC-TV18. “We continue to be very constructive on the broader market,” he added. “As the economy recovers from the pandemic blow, I believe that the breadth of the market will improve and it will be here to stay,” he said. According to him, there is an opportunity in certain sectors like IT services, speciality chemicals and a few select pharma companies. These are likely to do reasonably well. “Also, select auto companies, auto ancillaries, capital goods are likely to do reasonably well,” he shared. Read here.
Motilal Oswal on Dalmia Bharat
With ~35% capacity growth over FY20–22E, Dalmia Bharat Ltd (DBL) is well placed to gain market share. We estimate a strong 16% CAGR in volumes over FY21–23E. As DBL turns net-cash (including the value of its 20% stake in IEX), growth plans and the capital allocation policy hold the key. We remain positive on the stock given the price hike in eastern India and major expansions coming on board. Valuations are reasonable at 10.4x FY23E EV/EBITDA and EV/capacity of $112 per tonne. We reiterate buy, with a target of Rs 1,905 per share (at 10x FY23E EV/EBITDA).
Market Watch: Sunil Subramaniam, MD & CEO, Sundaram Mutual Fund
Today the one year forward P/E of smallcap index is equal to the Nifty whereas midcap is trading at a 30 percent discount. So midcap fund manager is very happy to receive money into midcap because he sees lots of opportunities to buy especially as the Indian economic cycle looks to recover. But the smallcap is a little bit wary because the index run-up has been driven by these Robin Hood kind of investors using low liquid stocks. The fund managers are a little more cautious in the smallcap space. But in midcaps, we feel that more the money, the better because there is enough liquidity and scope for the Indian economic upcycle to be reflected in the midcap valuations.
My large and midcap funds are more of safety plays plus a little bit of consumer discretionary and industrials but the midcap and smallcap funds are more towards consumer discretionary, industrials and cycles. So at the top end of the curve, we are playing safety and at the bottom and the middle-end of the curve, we are playing the growth story.
E-sports space set to grow; Nazara Tech to benefit from media rights & licencing: CEO Manish Agarwal
CLSA put out a report last week, where they said that there will be increased competition, especially in the e-Sports business. Manish Agarwal, CEO of Nazara Technologies, said, “For us, e-Sports is a very small segment. The way we see this segment is that it’s going to disrupt the sports entertainment industry in the next 7-10 years, and after cricket, this is going to be the most watched sport. That is what I see, this space is going to grow. This space has really grown in the US, China and other markets, where it has been around for 7-8 years.” Read here.