Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One
The Indian equity markets have witnessed a splendid day of trade amid the follow-up buying in the benchmark index. The across-board buying participation provided the much needed impetus to levitate the market sentiments. Amidst the action-packed day, Nifty surged consecutively for the second time in the week and concluded the session a tad above 18,150, procuring 0.62 percent.
On the technical aspect, the index has soared over all the major exponential moving averages on the daily chart, construing a positive development. However, the current placement at the sloping trendline could be seen as the last hurdle to overcome, and any breakout above 18,200 could trigger a fresh round of longs in the system.
As far as levels are concerned, 18,050-18,100 is likely to cushion any fall in the index, followed by the sacrosanct support of the 18,000 mark. On the flip side, an authoritative move beyond 18,200-18,250 is needed to affirm the bullish trend, and then we may expect 18,400-18,500 in a comparable period.
There have been contributions across the board, wherein the significant benefactors that boosted the bullish sentiments were from the Metal space. Looking at the recent developments, the undertone is likely to remain bullish, wherein any dip could be seen as a buying opportunity.
Meanwhile, we advocate to keep identifying apt themes and potential movers within the same that are likely to provide better trading opportunities and stay abreast with global developments.
Dharni Capital Services IPO opens on January 18 for subscription
Dharni Capital Services is coming up with its IPO for 53,70,000 shares to raise Rs 1074 lakhs on BSE SME platform.
The face value per equity share is Re 1 and the issue price per share will be Rs 20, including a share premium of RS 19 per equity share.
The lot size is of 6,000 equity shares. Out of the 53,70,000 shares being offered, 25,50,000 shares are reserved for the Non-Retail Investor, 25,50,000 shares are reserved for the retail investors and 2,70,000 shares have been reserved under the market maker quota.
The issue opens on the January 18, 2023 and will close on the January 20, 2023. It will subsequently be listed on the BSE SME platform.
Indian rupee closed 52 paise higher at 81.24 per dollar against previous close of 81.76.
Market Close: Benchmark indices gained for the second consecutive session on January 18 with Nifty closing around 18,150.
At Close, the Sensex was up 390.02 points or 0.64% at 61,045.74, and the Nifty was up 112 points or 0.62% at 18,165.30. About 1882 shares have advanced, 1546 shares declined, and 126 shares are unchanged.
Hindalco Industries, Tata Steel, Larsen and Toubro, UPL and HDFC were among the top gainers on the Nifty, while losers included Tata Motors, HDFC Life, UltraTech Cement, Adani Enterprises and BPCL.
On the sectoral front, metal index added 2 percent and capital goods index rose 1 percent, while bank and pharma indices added 0.5 percent each.
The BSE midcap and smallcap indices ended with marginal gains.
S Hariharan, Head Institutional Equity Sales, Emkay Global Financial Services
The earnings season thus far has met or beat expectations – however, individual stocks reporting results have not reacted favourably to good results. This reflects a consensus state of positioning and points to a period of digesting gains at the headline index level.
The other notable feature of market action over the first half of Jan has been muted market volumes, despite elevated institutional activity – FIIs have been net sellers worth $2.5 bn in Jan so far, which has been set off by DII net buying. Retail segment is conspicuous by their absence in market action and is a slightly concerning factor for overall market conditions.
A reopening of Chinese economy is understandably attracting most institutional attention and as a result, expensive valuations in India have acted as a major factor in the propensity for FIIs to be net sellers – this is expected to continue in the near-term, and would be an overhang for Financials sector.
Morgan Stanley View On Bank Of India-Overweight rating, target at Rs 125 per share
-Q3 saw one-off interest income on IT refund
-One-off interest income was used to up-front provisions scheduled for Q4
-Expect sharp uptick in PAT run-rate starting next quarter
-Preferred pick in SoE banks
Macquarie View On Siemens
-Outperform rating, target at Rs 3,330 per share
-Strong ordering momentum
-Siemens, RVNL L-1 bidder for Gujarat metro orders
-Implies an order inflow worth Rs 688 cr with an execution timeline of 19 months
-Locomotive key driver for Siemens order inflow in near term
Siemens was quoting at Rs 3,049.40, up Rs 105.30, or 3.58 percent.
Surya Roshni Q3 earningsSurya Roshni has recorded net profit of Rs 89.7 crore in the quarter ended December 2022 against Rs 40.5 crore in the same quarter last year.Revenue of the company was down at Rs 2,022 crore versus Rs 2,030 crore, YoY.
Market at 3 PMBenchmark indices were trading higher with Nifty above 18100.The Sensex was up 437.31 points or 0.72% at 61093.03, and the Nifty was up 121.40 points or 0.67% at 18174.70. About 1739 shares have advanced, 1515 shares declined, and 127 shares are unchanged.
Stylam Industries Q3 results:
Stylam Industries has posted 53.8 percent jump in its Q3 net profit at Rs 24 crore against Rs 15.6 crore and revenue was up 34.7% at Rs 234 crore versus Rs 173.3 crore, YoY.
Stylam Industries was quoting at Rs 1,096.65, down Rs 38.95, or 3.43 percent on the BSE.
Wendt (India) Q3 Earnings:
Wendt has posted 81 percent jump in its Q3 net profit at Rs 10.1 crore versus Rs 5.6 crore and revenue was up 24% at Rs 51.1 crore versus Rs 41.2 crore, YoY.
Wendt (India) was quoting at Rs 8,078.15, up Rs 446.15, or 5.85 percent on the BSE.