Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Markets witnessed heightened volatility as Sensex gyrated more than 1,000 pts intra-day before late buying in banking, auto, metal & realty stocks aided recovery.
Markets may witness bouts of volatility in coming days as global factors will continue to keep investors on tenterhooks. Technically, after a gap down opening the Nifty took support near the 20-day SMA (Simple Moving Average) and bounced back sharply.
It has also formed a bullish candle on daily charts which is broadly positive. However, the short term formation is still in the negative side.
The intraday set up suggests that the pullback rally is likely to continue if the index trades above 17500. Above the same, it could hit the level of 17700-17750. On the flip side, below 17500 a fresh round of selling is possible and below the same, the index could slip till 17350-17300.
Vinod Nair, Head of Research at Geojit Financial Services.
Fear of uncertainty is visible in the market as they move with high volatility, led by weak signals from global peers, while a stronger domestic economy is providing some comfort.
Global markets were under pressure with a spike in European energy prices and rate hike fears ahead of the Jackson Hole gathering.
On the domestic front, gains in banks, autos and metals were countered by selling in IT stocks as majors are scaling down variable pay due to margin pressure.
Kunal Shah, Senior Technical Analyst at LKP Securities:
The Bank Nifty index witnessed a sharp recovery from the lower level and formed a strong bullish reversal candle. The index downside support stands at the 37,700-38,000 zone and as long as this support is held the index remains in a buy on dip mode.
The immediate upside hurdle stands at 39000 where call writers are active and once surpassed will see further short covering.
Rupak De, Senior Technical Analyst at LKP Securities:
Nifty ended the day with a significant green candle that pierced through the body of the previous bear candle on the daily chart. On the lower end, the Nifty found support at a near-term moving average.
Going ahead, the trend may remain positive as long as the index holds above 17400 on a sustained basis. On the higher end, 17700 may act as immediate resistance; a decisive move above 17700 may induce a rally towards the recent high of 18000.
Market Close: Benchmark indices ended higher on August 23 amid high volatility.
At Close, the Sensex was up 257.43 points or 0.44% at 59031.30, and the Nifty was up 86.80 points or 0.50% at 17577.50. About 2077 shares have advanced, 1235 shares declined, and 146 shares are unchanged.
M&M, Eicher Motors, Bajaj Finserv, Titan Company and Tata Steel were among the major Nifty gainers.
The losers were Infosys, TCS, Divis Labs, HUL and HCL Technologies.
Buying was seen in the auto, bank, metal, pharma, oil & gas and realty names. However, Information Technology stocks remained under pressure.
BSE midcap and smallcap indices added 0.5-1 percent.
Indian rupee ended flat at 79.86 per dollar on Tuesday against previous close of 79.86.
CLSA View On Eicher Motors Broking firm CLSA has kept buy rating on Eicher Motors and raised the target price to Rs 4,154 per share.Royal Enfield volumes grew at a 33% CAGR in FY12-19. Most customers will look to replace their bikes over 7-8 years and volumes will growth at significant pace if RE can capture 80-85% of this demand.The customers have limited choice to upgrade to in ultra-premium motorcycle. Howver, the exports likely to be a key growth area and RE’s EBITDA per vehicle poised to climb, reported CNBC-TV18.
Genus Power incorporates subsidiary for smart metering:
This is to inform that a company in the name of ‘Hi-Print Metering Solutions Private Limited’ has been incorporated in India on August 22, 2022 as a 100% Wholly Owned Subsidiary of Genus Power Infrastructures with the object to carry on the business of installing/operating all types of smart metering (including Energy metering, Gas metering, and Water metering) on turn-key basis or under CAPEX-OPEX-TOTEX base BOOT Model.
The company has subscribed initial capital of 1,00,000 equity shares of Re 1 each aggregating to Rs 1,00,000 in the wholly owned subsidiary.
Genus Power Infrastructures was quoting at Rs 79.45, up Rs 1.80, or 2.32 percent.
Hindustan Organic Chemicals’ plant to remain temporarily shut:
Hindustan Organic Chemicals has informed that its Phenol and Cumene plant located at Kochi will be temporarily shutdown from 24th August, 2022 onwards due to unviable market conditions. However, the Hydrogen Peroxide Plant will continue to run.
Re-opening of Phenol and Cumene Plant shall be intimated separately to the stock exchange, it added.
Hindustan Organic Chemicals was quoting at Rs 31.20, up Rs 0.60, or 1.96 percent on the BSE.
Godrej Agrovet signs MoUs with Assam, Manipur & Tripura for oil palm cultivation: Report
Agribusiness company Godrej Agrovet has signed a memorandum of understanding (MoU) with Assam, Manipur and Tripura governments for the development and promotion of oil palm cultivation, The Hindu BusinessLine has reported.
Godrej Agrovet would be allotted land across the three states for the promotion and development of sustainable palm oil plantations in the region under the National Mission on Edible Oils-Oil Palm (NMEO-OP) scheme, the report said.
Godrej Agrovet was quoting at Rs 520.60, up Rs 7.25, or 1.41 percent on the BSE.
Shares of Sterling and Wilson Renewable Energy traded with gains of about 3 percent on August 23 after the company said it bagged a big order from National Thermal Power Company (NTPC).
“We are pleased to inform that the company has emerged as the L-1 bidder for the BOS package comprising four blocks of the proposed solar photovoltaic (PV) plant of NTPC Renewable Energy Limited,” the company said in a regulatory filing on August 22.
The plant will come up in Khavda RE Power Park, Rann of Kutch, Gujarat and have an aggregate capacity of 1,570 megawatts.