Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty continues to hover around 18000-18100 for yet another session. The bulls managed to defend the level of 18000 for the second consecutive session. On the higher side, 18200 is a key barrier for the short term. Unless that gets taken out, the index is likely to have a short term consolidation.
On the downside, breach of the level of 18000 will turn the structure in favor of the bears. In that case, the Nifty can test 17800 on the downside. Overall, 17800-18200 will be the short term consolidation range.
Cipla Q2 Earnings:
Pharma major Cipla on November 4 reported a 10.9 percent on-year growth in consolidated net profit of Rs 788.9 crore for the quarter ended September, which was above the street expectation of Rs 771.3 crore.
The drugmaker reported a 5.6 percent on-year rise in consolidated revenue from operations to Rs 5,828.4 crore, which was also above analysts’ expectations of Rs 5,723.9 crore.
Titan Q2 Results
Titan Company on November 4 reported a year-on-year growth of 33% in its standalone profit after tax at Rs 857 crore for the September quarter. Net profit stood at Rs 641 crore in the same quarter last fiscal.
This was much higher than analysts’ expectations of Rs 713 crore.
Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities
Recovery in European markets and gains in other Asian peers helped Indian markets rebound from its intra-day volatile session and end higher. While the Indian economy is not completely insulated from the global challenges, the recent strong economic readings like robust GST collections, uptick in IIP numbers are indicating that things could turn for the better in the near to medium term.
Globally, traders are hoping that the pace of rate hikes by the major economies would soften going ahead, which would fuel fresh optimism for equity markets.
A bullish candle on weekly charts and uptrend continuation formation on daily charts is indicating the continuation of an uptrend in the near future.
Technically, as long as Nifty is trading above the 10-day SMA (Simple Moving Average) or 17900 level, the uptrend wave is likely to continue. Above which the index could move up to 18300-18500. If the index closes below the 10-day SMA, it could slip till 17800-17700.
Vinod Nair, Head of Research at Geojit Financial Services
The Bank of England in its policy announcement, mirrored the Fed’s view, dashing hopes for a near-term policy softening. Though a late rebound was seen in the domestic market, it was largely in the red zone as the Pharma and IT sell-off continued due to concerns about the impending recession.
The dollar surged along with the US Treasury yield following the hawkish remarks from global central banks, while FIIs continued their domestic support.
Rupak De, Senior Technical Analyst at LKP Securities
Indian equities remained volatile before closing around the day’s high. The positive momentum continues as the index has closed above the previous swing high.
Besides, the index has maintained its position above 200DMA. The momentum indicator RSI is in a bullish crossover. The trend for the short term remains bullish, with an upside potential of 18300/18600. On the lower end, support is pegged at 17950.
Rupee Close:
Indian rupee close at 82.43 per dollar on Friday versus Thursday’s close of 82.88.
Market Close: Indian benchmark indices ended on positive note in the volatile session on November 4.
At Close, the Sensex was up 113.95 points or 0.19% at 60,950.36, and the Nifty was up 64.50 points or 0.36% at 18,117.20. About 1997 shares have advanced, 1356 shares declined, and 129 shares are unchanged.
Adani Enterprises, Hindalco Industries, Bajaj Finserv, Adani Ports and JSW Steel were among the top Nifty gainers. Losers included Hero MotoCorp, Dr Reddy’s Laboratories, BPCL, Cipla and HDFC Life.
Among sectors, Metal index up 4 percent and PSU Bank index up 1 percent, while Pharma index down 1 percent.
The BSE midcap index ended on flat note, and smallcap index up 0.4 percent.
Jefferies On Hero MotoCorp
-Maintain buy call, target at Rs 3,000 per share
-Q2 EBITDA fell 3% YoY, but is in-line
-Volumes fell 1% YoY, but ASP rose 5% QoQ
-Gross profit per vehicle & EBITDA per vehicle up 7-8% QoQ
Hero MotoCorp was quoting at Rs 2,591.95, down Rs 54.40, or 2.06 percent.
Gold jumps:
Gold prices jumped more than 1% on Friday and were headed for a weekly gain, as the dollar eased, while investors looked forward to US jobs report later in the day that could shed more light on Federal Reserve’s rate-hike path.
Spot gold rose 1.2% to $1,648.77 per ounce by 0906 GMT, and was up 0.4% for the week so far.
US gold futures gained 1.3% to $1,651.40.
The dollar index fell 0.3%, making gold more appealing for other currency holders.
SBI Q2 Preview
State Bank of India (SBI), India’s biggest lender, is expected to report a robust 39 percent increase in net profit, driven by strong loan growth and improved asset quality, when it announces the numbers for the July-September quarter on November 5.
The quarter-on-quarter growth for most operating metrics is likely to show a big jump, given that State Bank of India reported benign numbers in Q1FY23.
An average of the estimates of eight brokerages polled by Moneycontrol puts SBI’s net profit for Q2FY23 at Rs 10,616.2 crore. Read More
3 IPOs open next week to raise around Rs 4,280 crore as market stays buoyant
After the launch of four initial public offerings (IPOs) this week, the primary market is set for more action with a slew of issues lined up this month.
Three more initial public offerings (IPOs)—Archean Chemicals Industries Ltd, Five Star Business Finance Ltd and Kaynes Technology India)—will hit the markets next week to cumulatively raise around Rs 4,280 crore. Read More
