Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty opened gap up on September 20 & extended the pullback that started on September 19. In terms of the Fibonacci retracement, it went for the deep retracement of the recent decline. It reached closer to 78.6% retracement, where it attracted fresh round of selling.
Contracting hourly upper Bollinger Band also acted as a barrier near the key Fibonacci level. Structurally, the Nifty looks poised to form the next leg down. On the downside, the index is set to retest the support zone of 17400-17500 with potential to breach that & tumble towards 17200 subsequently. On the higher side, near term resistance zone is placed at 17920-17950.
Alchemy Capital launches new scheme under Category III Alternative Investment Fund
Alchemy Emerging Leaders of Tomorrow, with a tenure of 4 years, is targeting a corpus of Rs 500 crore (or more) to deliver long-term capital appreciation. With a portfolio of 20-25 stocks that will be sector agnostic, the fund will focus largely on small and midcap companies with a minimum of 65 percent allocation. The portfolio will also include investments in large caps and about 10 percent in IPO opportunities or any other instruments permitted by applicable laws.
Hiren Ved, a market veteran, co-founder and CIO at Alchemy Capital Management will manage this fund with co-fund manager, Mythili Balakrishnan.
Commenting on the launch of this new fund, Hiren Ved said “India is on the cusp of a solid economic recovery. Our endeavour for Alchemy Emerging Leaders of Tomorrow is to bet on new entrepreneurs with much more agile and innovative business models and a hunger for quality growth.”
“Picking winners from the small and mid-cap space is both challenging and exciting, and we want to give investors and family offices the platform to bet on the next set of leaders across a wide range of sectors,” he added.
Ajit Mishra, VP – Research, Religare Broking:
Markets gained for the second consecutive day amid supportive global cues. The benchmark witnessed a gap up start and continued to trade with positive bias throughout the day. The rally was largely led by healthy buying across sectoral indices wherein pharma, realty, auto and metals were the top gainers.
We believe all eyes will be on the FOMC meeting scheduled tomorrow wherein there are high expectations of the Fed increasing the rates by 75bps. So, the FED rate decision will dictate the market trend going ahead. Meanwhile, investors will continue to monitor global cues, crude and currency movement.
Vinod Nair, Head of Research at Geojit Financial Services:
The weakness of western markets did not affect the buoyant domestic market. The Indian market is not seemingly apprehensive of Fed policy. Buying on dips is the strategy being reinforced here. Even the lagging IT & Pharma stocks joined the rally, slowly emerging as a value pick for long-term investors.
However, to sustain the trend, the global market needs to stabilise. It makes sense to be stocks & sector specific in this unfavourable global economic scenario & highly premium valuation of India compared to the rest of the world.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Relief rally continued for the second straight session, which is indicative that investors are finding local stocks attractive after every short-term correction. Even as there are talks of global recession at some point, the Indian economy is holding up really well in times of uncertainty, which is prompting investors to bet on our growth story.
However, Nifty, near the 20-day SMA (Simple Moving Average), has formed Hammer candlestick formation which is broadly negative for the market. We are of the view that the short term support has shifted to 17700 from 17500.
If the index slips below 17700, accelerated selling pressure will drag it down to 17600-17500 levels. On the flip side, above 17700, the index could retest the level of 17950-17800.
Kunal Shah, Senior Technical Analyst at LKP Securities
The Bank Nifty index continued its volatile move ahead of the US FED policy but remains in a buy mode as long as it holds the support of 40,500 on the downside. The index immediate upside hurdle is placed at 42,000 and once taken out on a closing basis it opens up the room for 43,000-43,600 on the upside.
The index is likely to consolidate between 40,500-42,000 for one more day before starting a trending move on either side.
Rupee Close:
Indian rupee closed flat at 79.75 per dollar on Tuesday against previous close of 79.77.
Market Close: Indian benchmark indices extended the gains in the second consecutive session on September 20 with Nifty closing around 17,800.
At Close, the Sensex was up 578.51 points or 0.98% at 59,719.74, and the Nifty was up 194 points or 1.10% at 17,816.30. About 2038 shares have advanced, 1334 shares declined, and 123 shares are unchanged.
Apollo Hospitals, Cipla, Sun Pharma, Eicher Motors and IndusInd Bank were among major gainers on the Nifty, while losers included Nestle India, Shree Cements, Grasim Industries, Power Grid Corp and Infosys.
All the sectoral indices ended in the green with pharma index up 3 percent. BSE Midcap and Smallcap indices rose 1-1.6 percent
Infosys collaborates with Telenor Norway
Infosys announced its collaboration with Telenor Norway, Telenor’s wholly owned Norwegian telecommunications operator, in its business transformation program to become a digital telecommunications company.
Through this engagement, Infosys will accelerate Telenor Norway’s modernization journey while supporting its ‘Beyond Connectivity’ strategy. This collaboration will drive Telenor Norway’s business growth and make the company future ready,
Citi View On Infosys
Research firm Citi has maintained buy rating on Infosys with a target at Rs 1,725 per share.
Research firm confident on delivering FY23 revenue guidance of 14-16%, while margin will likely be at lower end of guidance band.
The demand is still decent in Europe despite the macro challenges, while attrition has moderated a bit but remains high, reported CNBC-TV18.
Infosys was quoting at Rs 1,386.95, down Rs 3.35, or 0.24 percent on the BSE.
Annapurna Swadisht NSE Emerge IPO oversubscribed by 190.49 times
Annapurna Swadisht, a Kolkata-based FMCG company, announced that its initial public offering had been oversubscribed 190.49 times. The issue opened on September 15, 2022, and closed on September 19, 2022.
At the upper price band, the company has received bids of Rs 3,835.02 crore. It had offered43.22 lakh Equity Shares through the book-building issue and had set a price band of Rs 68-70 per share for the initial public offering. The company’s shares will be listed and traded on NSE Emerge.
