Vinod Nair, Head of Research at Geojit Financial Services
Mirroring robust global peers, the domestic market extended previous gains driven by auto stocks. However, due to selling pressure in banking shares, the indices anchored close to the flatline.
Auto stocks were in focus prior to the earnings results of the sector major. Hopes of a soft landing of the US economy along with the anticipation of a lesser rate hike boosted global bourses.
Rupak De, Senior Technical Analyst at LKP Securities
The Nifty bears were active around the 18,200 level, and the index remained under pressure throughout the day. The index is stuck in a broad range between 17,900 and 18,200, and a break on either side will lead to trending moves.
The options data shows aggressive writing at the 18200CE strike, and the lower end support is visible at 18000PE, where the put side has the most open interest.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty had a gap up opening on January 24 & crossed the swing high of 18,184 however couldn’t sustain in the higher territory. The hourly upper Bollinger Band has become flat & is keeping pressure on the higher side. As a result, the Nifty stayed back into the brief consolidation mode.
It is forming a base near the key hourly & the daily moving averages. On the daily chart, the index is forming higher top higher bottom & is expected to see upward trajectory.
In the short term, the Nifty is expected to surpass the key hurdle zone of 18,260-18,300 & head towards 18,500. On the other hand, the level of 18,000 will provide cushion on the downside.
Kunal Shah, Senior Technical Analyst at LKP Securities
The Bank Nifty index failed to surpass the hurdle of 43000, where the highest open interest is built up on the call side. The index immediate downside support is visible at 42,500, which if breached will result in additional selling pressure.
The index remains in the range-bound territory between 42500 and 43000, and a break on either side will lead to trending moves.
Indian rupee closed 33 paise lower at 81.72 per dollar against previous close of 81.39.
Market Close: Indian benchmark indices ended on flat note in the volatile session on January 24.
At Close, the Sensex was up 37.08 points or 0.06% at 60,978.75, and the Nifty was down 0.20 points or 0.00% at 18,118.30. About 1485 shares have advanced, 1930 shares declined, and 132 shares are unchanged.
Tata Motors, Maruti Suzuki, Bajaj Auto, HCL Technologies and HDFC Bank were among the biggest gainers on the Nifty. The losers were Axis Bank, Dr Reddy’s Laboratories, Hindalco Industries, Grasim Industries and Power Grid.
On the sectoral front, auto index up 1 percent, while pharma, PSU Bank, metal and realty down 1 percent each.
The BSE midcap and smallcap index shed 0.3-0.4 percent.
Piyush Parag- DVP Fundamental Research, Sharekhan by BNP Paribas:
Maruti Suzuki India Limited (MSIL) reported strong set of numbers in Q3FY23, led by strong operating performance. While revenue was 6.5% above estimates, the EBIDTA was 6.0% above estimates.
The EBIDTA margin came at 9.8% – in line with estimates.
Net revenue increased by 24.9% y-o-y, led by 36.3% growth in volumes and 6.9% growth in average realization. EBITDA margin expanded by 50 bps q-o-q, supported by gross margin expansion and operating leverage, despite higher marketing and promotion expenses. New launches are expected to generate volume growth in the medium term. We maintain Buy rating on the stock.
Sona BLW Precision Q3 Earnings:
Sona BLW Precision has recorded 24 percent jump in its Q3 net profit at Rs 107.1 crore versus Rs 86.4 crore and revenue was up 39% at Rs 675.2 crore versus Rs 485.9 crore, YoY.
Sona BLW Precision Forgings was quoting at Rs 434.30, up Rs 16.50, or 3.95 percent.
Elecon Engineering Q3 results:Elecon Engineering has reported profit of Rs 62.7 crore in the quarter ended December 2022 versus Rs 31.5 crore and revenue was up 43.4% at Rs 388.8 crore versus Rs 271.2 crore, YoY.
BSE Healthcare index fell 1 percent dragged by Indoco Remedies, Strides Pharma Science, Syngene International
Bernstein View on Axis Bank
The research firm has kept the ‘outperform’ rating with a target at Rs 1,000 per share as the Q3 is checking all right boxes, strengthening the case for a re-rating.
The strong growth in EPS led by healthy margin expansion and healthy CASA led deposit growth, sizable margin expansion. Healthy fee growth would be main positive while tad slower loan growth a negative, reported CNBC-TV18.
Axis Bank was quoting at Rs 909.75, down Rs 23.60, or 2.53 percent on the BSE.
ALERT | Euro Zone January Manufacturing PMI at 48.8 verssus 48.5