Taking Stock | Bull Holds Tight Grip On D-St; Sensex Gains 533 Points, Nifty Above 18,200
Over 500 stocks, including Mercator, SRF, L&T and Deepak Fertilisers, hit a 52-week high on the BSE
Prashanth Tapse, Vice President (Research) at Mehta Equities
Wipro Ltd India’s third largest information technology outsourcing company reports quarterly earnings in-line with street expectation including future CC guidance.
Revenues wise Wipro missed street expectations and margins were in-line as expected while net profit was almost flat when compared with Rs 2,968 crore reported in the year-ago period.
As history, company continued to pay dividend and approved an interim of 1 rupee per share. On the revenue guidance and outlook for Q4, Wipro expects revenue from IT segment would sequentially grow of 2% to 4% as expected by street.
Order bookings continued to be robust by adding 7 new customers in the more than $100 mn revenue league, in the last 12 months.
Based on the results we expect stock would react marginally down from today closing of Rs 691 and give opportunity to accumulate in the range of Rs 660-675. We are overall optimistic on the stock with medium to long term horizon.
Ajit Mishra, VP – Research, Religare Broking:
Markets edged higher and gained nearly a percent, in continuation to the prevailing up move. Upbeat global cues led to a firm start however mixed trends across sectors capped the movement thereafter. Eventually, the Nifty index settled closer to the upper band of the range to close at 18,207 levels. The broader markets too ended higher and gained in the range of 0.7% – 1.2%.
It’s going to be a critical session on Thursday as participants will react to the results of IT majors like Infosys, TCS and Wipro and macroeconomic data (IIP and CPI Inflation) in early trade.
Besides, the scheduled weekly expiry would also keep the volatility high. Amid all, sustainability above 18,200 in Nifty would pave the way for 18350 levels. We’re still seeing opportunities across the board, so traders should maintain their focus on the selection part and align position accordingly.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
The Nifty has achieved its short term target of 18140, which is 78.6% retracement of the October – December decline. It got extended beyond that level however halted near the crucial November swing high, which is 18210. On January 12, the index has created a gap are of 18081 – 18128 on the daily chart.
The bulls need to hold on to this gap area in order to keep the upward trajectory intact. In that case, the index can test its weekly upper Bollinger Band near 18400. On the other hand, if the gap gets filled up then it can turn out to be an exhaustion gap & the short term implication will be bearish. Lower end of a rising channel on the hourly chart is also present in this gap area of 18081-18128 thus making it a crucial short term support zone.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Markets mirrored the gains seen in other global indices as investors lapped up shares of metals, telecom, auto and realty companies. Also, falling omicron cases also provided some support to the markets, which is gearing up for corporate earnings show.
The Nifty has maintained a breakout continuation formation but profit booking at higher levels is not ruled out due to the extended rally in recent sessions.
The 18100 level would be the key to watch out for and above the same the uptrend texture will continue up to 18275-18350. On the other hand, below 18100, the market may trigger short-term correction up to 18050-18000 levels.
Mohit Nigam Head PMS, Hem securities:
Benchmark indices showed directional bias and ended in green for the fourth consecutive day. Global markets showed strength as markets reacted positively to US Federal Reserve chairman Jerome Powell’s testimony.
Investor sentiments magnified as the world bank increased the growth forecast for India to 8.7% for FY23 from its earlier prediction of 7.5%. This can be attributed to resurgence in the private capex cycle. Now, all eyes are set on the industrial and retail inflation data that will be out later in the day.
On the technical front, the key resistance levels for Nifty50 are 18,400 and on the downside 18000 can act as strong support. Key resistance and support levels for Bank Nifty are 39,000 and 38,400 respectively.
Wipro Q3 earnings:
IT major Wipro Ltd on January 12 reported a net profit of Rs 2,970 crore in the fiscal third-quarter (Q3 2021-22), which is higher than Rs 2,931 crore reported in the quarter ending on September 30.
The company had reported a profit of Rs 2,968 crore in the year-ago period.
The revenue in Q3 FY22 came in at Rs Rs 20,432.3 crore, which is higher than Rs 19,667 crore reported in the previous quarter. The numbers also mark a 30 percent year-on-year growth, as Wipro had reported a revenue of Rs 15,670 crore in the same quarter last year.
The earnings before interest and taxes (EBIT) for Q3 FY22 came in at Rs 3,553.5 crore, as compared to Rs 3,560 crore estimated in the CNBC-TV18 poll.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
The market has successfully closed above 18200 and we should be looking forward to 18400-18500 as the next target zone.
If we get intraday slips or corrections, traders can look at these opportunities to buy into the index for higher targets.
Vinod Nair, Head of Research at Geojit Financial Services:
Led by realty, auto, energy and banking stocks, benchmark indices continued its winning streak for the 4th consecutive day despite fast spread of covid cases.
Globally, sentiments were positive ahead of the release of US inflation data as the Fed Chair’s testimony eased inflationary worries.
Realty stocks continued its upward rally on healthy business updates resulting in improved outlook. The initial result updates of major IT firms will determine the momentum of the week ahead.
Market Close: Benchmark indices ended on positive note for the fourth straight session on January 12 led by the auto, realty, metal and power stocks.
At close, the Sensex was up 533.15 points or 0.88% at 61,150.04, and the Nifty was up 156.50 points or 0.87% at 18,212.30. About 1694 shares have advanced, 1554 shares declined, and 54 shares are unchanged.
M&M, Bharti Airtel, Reliance Industries, IndusInd Bank and ONGC were the top Nifty gainers. Losers were Titan Company,
TCS, Shree Cements, Britannia Industries and Cipla.
Among sectors, Metal, Power, Auto, Oil & Gas and Realty up 1-2 percent, while IT and Pharma indices ended flat. BSE midcap and smallcap indices were up 0.7-1 percent.
BSE Oil & Gas index rose 1 percent led by the Reliance Industries, ONGC, Gail India
Shares of Paytm owner One97 Communications Ltd fell 50% from its issue price of Rs 2150. The stock listed in November 2021. On Wednesday, it hit a fresh low of Rs 1075 on BSE, down 3% from its previous close.
Recently, Macquarie Securities slashed its price target for the stock by 25 percent to Rs 900 from Rs 1,200 earlier, implying a further downside of 28 percent from the January 7 closing. Macquarie retained its ‘underperform’ rating on the stock. The brokerage firm suggested that the company’s future earnings growth may be worse than it had earlier forecast.
Vijay Sharma while speaking at the India Digital Summit said Paytm should be benchmarked against non-banking finance company Bajaj Finance, claiming that in less than three years of offering credit on its platform, Paytm now does more loans than Bajaj.