Ajit Mishra, VP – Research, Religare Broking:
Markets consolidated in a narrow range and ended marginally higher, taking a breather after the recent surge. After the flat start, the tone was positive for most of the session however profit taking in the last two hours trimmed the gains. Consequently, Nifty closed at 17,698; up by 0.2%. The sectoral pack traded mixed Oil & Gas, Metal and Power ended with gains whereas Healthcare and IT were the top losers.
Markets will react to the macroeconomic data viz. IIP and CPI and other global cues in early trade on Tuesday. The recent buoyancy on the global front combined with rotational buying across sectors are pointing towards the prevailing up move to extend further with intermediate pause participants should align their positions accordingly.
Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities
Ahead of India’s retail inflation data, benchmark indices settled higher for the fourth straight week. In an extremely volatile trading session on Friday, Metal and Private Banks indices outperformed. The metal index rallied over 4.5 percent and Private Banks rallied over 3.5 percent. While despite strong momentum profit booking was seen in FMCG and selective Media stocks.
Technically, Nifty is consistently forming higher high and higher low formation which is broadly positive. In addition, on weekly charts, it has formed a bullish candle that also supports a further uptrend from the current levels. However, 17900-18000/(BSE on 60000-60300) could act as the strong resistance level. Further, momentum indicators like Stochastic and RSI indicate a strong possibility of some profit booking at higher levels.
We believe that, due to the temporary overbought situation, we could see range-bound activity in the near future. On the higher side, the immediate hurdle would be 17900-18000/(60000-60300 on the BSE). On the downside, 17400-17300/(58500-58200 on BSE) could be the key supports level for the positional traders. For traders, buying on dips and sell on rallies could be the ideal strategy.
Vinod Nair, Head of Research at Geojit Financial Services
Return of FIIs and declining dollar index aided the market rally. While Metals and Oil & Gas garnered buying interest, IT and pharma weighed on sentiments.
Oil and gas stocks were in focus as the government diverted some natural gas from industries to city gas operators in an effort to moderate the prices of CNG and piped cooking gas.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
The Nifty has posted fourth consecutive positive weekly close. On the way up, it crossed several short term hurdles & has reached a crucial trendline drawn from the October 2021 high. For the last couple of sessions the index is hovering near this trendline.
In terms of the levels, 17750-17800 is the crucial zone that will determine whether the Nifty continues with its northward journey. Thus staggered profit booking is recommended for the Nifty short term traders; while the positional traders can continue to ride the trend, they need to tighten the reversal level to 17500.
Kunal Shah, Senior Technical Analyst at LKP Securities:
The Bank Nifty index continued its strong up move throughout the week and surpassed the level of 39,000 on a closing basis. The index next resistance is placed at 39,500 where fresh call writing has been witnessed and if breached will see a further up move towards the 40000 level. The immediate support on the downside stands at 38,000 and one should keep a buy-on-dip approach.
Market Close: Benchmark indices ended near the day’s high in the highly volatile session with Nifty around 17,700.
At Close, the Sensex was up 130.18 points or 0.22% at 59,462.78, and the Nifty was up 39.20 points or 0.22% at 17,698.20. About 1771 shares have advanced, 1531 shares declined, and 142 shares are unchanged.
ONGC, Tata Steel, NTPC, UPL and Power Grid Corp were among the major Nifty gainers. The losers included Divis Lab, Apollo Hospitals, Infosys, Maruti Suzuki and Tata Consumer Products.
Oil & Gas indices rose 2.5 percent and Metal and Power added 1.5 percent each. On the other hand, Pharma index shed 1 percent and Information Technology index was down 0.76 percent.
BSE midcap and smallcap indices ended marginally higher.
Indian rupee ended flat at 79.65 per dollar against Thursday’s close of 79.63.
Hindustan Aeronautics Q1
Hindustan Aeronautics as recorded a net profit of Rs 606.6 crore in the quarter ended June 2022 against profit of Rs 198.8 crore, YoY.
Revenue of the company was at Rs 3,622.5 crore against Rs 1,616 crore, YoY.
Hindustan Aeronautics Ltd. was quoting at Rs 2,282.75, up Rs 18.65, or 0.82 percent on the BSE.
HEM Securities View on Syrma SGS Technology IPO
Syrma SGS Technology is bringing the issue at price band of Rs 209-220 per share at p/e multiple of 68x on post issue FY22 PAT basis.
Company being one of the leading design and electronic manufacturing services companies has consistent track record of financial performance.
Company is diversified and continuously evolving and expanding product portfolio and service offerings catering to customers across various industries, backed by strong R&D capabilities.
Also company has established relationships with marquee customers across various countries & state-of-the art manufacturing capabilities supported by a global supplier network, with a focus on vertical integration.
Hence, looking after all above, we recommend “Subscribe” on issue.
Jefferies View On ABB India
Foreign broking firm Jefferies has maintained buy rating on ABB India and raised the target price to Rs 3,400 from Rs 2,640 per share.
The operating leverage should continue to help margin, while electronics, data centre, logistics are high growth areas.
We raise our CY23-24 EPS estimates by 15-16% and our earnings CAGR remains robust at 38% in CY22-24, said Jefferies, reported CNBC-TV18.
ABB India was quoting at Rs 2,796.35, down Rs 2.05, or 0.07 percent on the BSE.
Buzzing:Hero MotoCorp is likely to report that standalone profit after tax in the first quarter doubled from a year earlier and grew 20 percent from the previous quarter, according to a poll of brokerages.Standalone revenue is expected to jump 58 percent year-on-year and increase 16 percent from the previous quarter.The world’s largest two-wheeler manufacturer in terms of units manufactured is expected to report standalone PAT of Rs 748 crore on revenue of Rs 8,645 crore, according to the average of estimates of six brokerages polled by Moneycontrol.
Credit Suisse View On Power Grid Corporation
Credit Suisse has maintained neutral rating on Power Grid Corporation on limited growth visibility. It has raised the target price to Rs 210 from Rs 182 per share.
The combination of valuation and growth may still be relatively weak.
Credit Suisse revises earnings by -1/0% for FY23/24. The downside could be from potential regulated return cut, effective FY25, reported CNBC-TV18.
Power Grid Corporation of India was quoting at Rs 228.05, up Rs 5.25, or 2.36 percent.