Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty continued its northward journey & nearly tested the trendline drawn from the October 2021 high. It witnessed minor profit booking near the trendline. Going ahead, 17750-17800 will be the key area to watch out for. It is crucial to observe how the structure develops near this make or break zone.
Thus recommendation for Nifty traders will be to book partial profit at current level & hold rest of the position with reversal trailed to 17500.
Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities:
USDINR spot closed 11 paise higher at 79.63, thanks to demand for dollars from oil marketing companies and importers. There may have been some RBI intervention at lower levels to build reserves. Overall bias remains of a range between 79.00 and 80.00 levels on spot.”
Rupak De, Senior Technical Analyst at LKP Securities:
The Nifty continued to remain above the consolidation on the daily chart, suggesting a continuation of the up trend in the market. On the higher end, however, Nifty had faced a bit of selling pressure that led to a close around the day’s low.
The current rally may extend towards 17750-17800, where crucial trendline resistance is placed. On the lower end, support is there at 17450-17500.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Investors cheered the US inflation data for July, which came in below the estimate and raised hopes that the Federal Reserve may not be that aggressive in hiking interest rates in its next meeting. Hence, the optimism spread across Asian markets, including India where investors lapped up banking, IT & realty stocks.
Traders have also been drawing comfort from the falling crude oil prices and FII inflows into the local shares in the last few sessions. Technically, the Nifty is trading near its important resistance level and has also formed a small bearish candle.
For traders, 17600 would be the key level to watch out for, while the overall chart structure suggests that if the market sustains above the same then breakout continuation formation could continue till 17700-17750. On the flip side, a sharp intraday correction is possible if the index trades below 17600. Below which, the index could slip till 17540-17450.
Kunal Shah, Senior Technical Analyst at LKP Securities:
The Bank Nifty index continued its strong up move on the back of positive global cues. The index surpassed the immediate hurdle of 38400 which will now act as support on the downside.
The upside resistance is placed at 39000 and if breached on a closing basis will see further upside towards the 40000 level. The index is trading in overbought territory and a profit booking scenario cannot be ruled out from the current levels.
Market Close: Indian benchmark indices ended on strong note with Nifty closing above 17600 led by IT, realty, banking names.
At Close, the Sensex was up 515.31 points or 0.88% at 59,332.60, and the Nifty was up 124.20 points or 0.71% at 17,659.00. About 1772 shares have advanced, 1530 shares declined, and 138 shares are unchanged.
Axis Bank, Bajaj Finance, HDFC, Tech Mahindra and TCS were among the major Nifty gainers. The losers included Tata Consumer Products, Apollo Hospitals, ITC, Hindalco Industries and NTPC.
Except FMCG, all other sectoral indices ended in the green with bank, capital goods, Information Technology, PSU Bank and realty up 1-2 percent.
BSE midcap and smallcap indices rose 0.5 percent each.
Rupee Close:
Indian rupee ended lower by 12 paise at 79.63 per dollar against previous close of 79.51
Sunil Damania, Chief Investment Officer, MarketsMojo:
US CPI figures eased to 8.5% in July-22, compared to the consensus estimate of 8.7% and 9.1% of June 2022.
While the CPI continues to hover near a four-decade high, easing CPI figures reduced the probability of a 75-bps rate hike in the upcoming US FOMC meeting. Before this number came in, there was a 68% probability that the Fed would hike another 75 bps in the next FOMC meeting.
While we do understand these numbers are higher than the US Fed’s comfort level of 2%, the fact of the matter is that inflation has started inching downwards, giving great comfort to investors. That being said, with the way crude prices are declining, it could further ease by the time US inflation data comes in next month.
PB Fintech Q1 loss widens to Rs 204.33 crore in Q1FY23The Policybazaar operator PB Fintech recorded consolidated loss at Rs 204.33 crore for the quarter ended June FY23, widening from loss of Rs 110.84 crore in corresponding period last fiscal due to weak operating performance. The company has reported a significant increase in employee expenses, and advertising & promotion expenses for the quarter. EBITDA loss more than doubled to Rs 234.3 crore for the June FY23 quarter, against loss of Rs 118.35 crore in corresponding period last fiscal, and revenue from operations came in at Rs 505.2 crore, increasing 112.5% over Rs 238 crore reported in year-ago period.
Dollar slides further after US inflation surprise
The dollar lost further ground versus other major currencies on Thursday, after traders reined in bets on an aggressive interest rate hike by the Federal Reserve after softer-than-expected U.S. inflation data the previous day.
The dollar index remained on the back foot in early European trading hours, slipping 0.2% to 105.010, after recording its biggest daily fall in five months, of 1%, the previous day.
Geojit View on Exide Industries
Exide has a stronger balance sheet after the divestment of its life insurance business to HDFC Life. The company will be able to maintain its cash position and fund the capex through internal accruals.
We remain positive on a medium to long term basis owing to its concentration on the development of EV batteries and respite in the market price. On a 1 year forward basis, EIL is currently trading at 13.5x (25% lower to its 3yr avg.) near to its all-time low at 12x. We value EIL’s at 15x (I yr. avg.) FY24E EPS and recommend Buy rating with a target price of Rs 191 per share.
Buzzing:
Radico Khaitan reported a 1.8% year-on-year growth in consolidated profit at Rs 62 crore for the quarter ended June FY23. Revenue grew by 10.6% to Rs 3,183.8 crore compared to year-ago period.
Radico Khaitan was quoting at Rs 942.60, up Rs 28.00, or 3.06 percent.
