Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty witnessed volatile action on September 01. The index had seen a swift up move in the previous session; however there was no follow through buying today. Throughout the day, the index oscillated around the key hourly moving averages & the 20 DMA. Ultimately, the Nifty has formed an Inside bar pattern on the daily chart.
The overall structure shows that the index is in short term consolidation since the last couple of weeks & that is likely to continue going ahead. 17200-18000 is the broad range for the short term consolidation.
Rupak De, Senior Technical Analyst at LKP Securities:
Nifty remained sideways during the day before ending 1% lower. After starting to gap down on the back of a weak global cues, the Nifty failed to recover fully and traded within a range for the day.
The momentum indicator is in a bearish crossover indicating a bearishness. On the lower end, 17400 may continue to act as crucial support, below which the index may become weak again. On the higher end, resistance is visible at 17700.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Markets remained volatile during the week as benchmarks simply followed weak global cues and tanked over 1%. The dismal manufacturing data in Europe and Asia worsened the sentiment and reignited fears of slackening global demand.
Markets failed to cheer the strong GST collections for August, as the hawkish Fed stance and the prospects of further rate hikes impacting growth going ahead continued to make investors nervous.
Technically, 17450 would be the important support level while 17700 could be the immediate hurdle for the market. Below 17450, the Nifty could slip till 17350-17300. On the flip side, a fresh uptrend is possible only after the 17700 range breakout. Above the same, the index could move up to 17820-17850.
Vinod Nair, Head of Research at Geojit Financial Services:
Domestic indices moved in line with peers while prospects of higher rate hikes, elevated inflation and a slowing economy put pressure on stock markets around the world. Although India’s Q1 GDP was reported below the RBI’s estimate of 16.2%, the strong growth seen in manufacturing activity during Q2 so far indicates a strong recovery in the domestic market.
Additionally, ongoing support from FIIs will obscure the weakness, helping domestic indices to stay resilient.
Ajit Mishra, VP – Research, Religare Broking
Markets traded volatile and lost over one and a half percent, pressurized by weak global markets. After the gap down start, the Nifty oscillated in the range and finally settled at 17,542.8 levels. Mostly sectoral indices traded in tandem however buoyancy on the broader front kept the participants busy.
Markets are showing tremendous resilience amid weak global cues and the recent consolidation should be seen as a breather, to digest the gains.
We thus recommend continuing with the “buy on dips” approach. Banking, financials and auto top our list of preferred sectors while the underperformance from the IT pack may continue to hurt. Participants should align their positions accordingly.
Indian rupee close 10 paise lower at 79.55 per dollar against previous close of 79.45.
Market Close: Benchmark indices ended lower with Nifty below 17600 mainly dragged by IT, metal, power and oil & gas stocks.
At Close, the Sensex was down 770.48 points or 1.29% at 58,766.59, and the Nifty was down 216.50 points or 1.22% at 17,542.80. About 1904 shares have advanced, 1446 shares declined, and 142 shares are unchanged.
Hindalco Industries, Reliance Industries, ONGC, TCS and SBI Life Insurance were among top losers on the Nifty, while gainers were Tata Consumer Products, Bajaj Finserv, Asian Paints, Eicher Motors and Hero MotoCorp.
Except realty, capital goods, PSU bank and auto, all other sectoral indices ended lower.
BSE midcap and smallcap indices rose 0.5% each.
NMDC August production down 19% at 2.48 mt against 3.06 mt and August sales down 2.7% at 2.83 mt against 2.91 mt, YoY
TVS Motor Company sales grows 15% in August 2022
TVS Motor Company registered a growth of 15% in August 2022 with sales of 333,787 units as against 290,694 units in the month of August 2021.
TVS Motor Company has touched a 52-week high of Rs 1,028.75 and was quoting at Rs 1,015.70, up Rs 30.00, or 3.04 percent.
Mohit Ralhan, CEO at TIW Capital Group
The growth of 13.5% in India’s GDP for the June quarter is quite remarkable given that most of the major economies are staring at looming threat of recession. Although, the growth came to be a bit lower than RBI’s forecast of 16.2%, it still indicates that India has done significantly better in reviving its economy and the fiscal year target of achieving a growth of 7.2% is within reach.
The growth has been driven by increase in private consumption expenditure and of gross fixed capital formation.
The share of both these critical components have increased in comparison to the June quarter of previous year and this augurs quite well for the future quarters. The expected increase in private capex in the second half of year will likely make the recovery stronger and complete.
Geojit View on Thermax
Thermax is currently trading at a P/E of 56x on a 1 year forward basis which is well above its 1 year average P/E of 46x, implying limited room for further upside in the near term. Therefore, we revise our rating to reduce and value TMX at a P/E of 43x on FY24E EPS with a target price of Rs 2,178.
Rajani Sinha, Chief Economist of CARE Ratings:
Normalisation of the base effect has resulted in softening of core sector growth to 4.5% in July from the double-digit growth recorded in the previous two months. It is important to note that the core sector output has expanded by 6.1% when compared with July 2019, reflective of continued improvement over the pre-pandemic level.
The overall growth in the last few months has been steered by the cement and electricity sectors. A sequential improvement in steel output (by 3.4% m-o-m) in July is encouraging after the previous month’s contraction. Going ahead, correction in coking coal prices and steel prices, will help in spurring demand for the sector.
Capital expenditure by the Central government and New Investment projects announced data in the current fiscal have been encouraging. The improving investment scenario in the economy bodes well for the core sector performance in the coming months.