Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities
The positive takeaway from today’s trading session was Nifty bulls clawed their way out of the hole especially after SGX Nifty indicated morning drubbing. Markets advance sharply during intra-day trades, as Nifty ended well above the psychological 17500 mark.
The biggest positive catalyst is that oil hovers around 6-month low at $88.35 a barrel. The technical landscape for Nifty is likely to be positive as long as the benchmark trades above its biggest support at 17121 mark with targets at 17757 mark and then all bullish eyes on Nifty’s psychological 18,000 mark.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
For the last couple of sessions, the Nifty was hovering around the 78.6% retracement of the Apr – June decline, which is near 17500. On August 08, the Nifty has crossed that key Fibonacci level on a closing basis. This shows that the index is extending its up move further.
It is heading towards a falling trendline drawn from the previous crucial swing highs. Thus 17750-17800 will be the short term target area on the upside. On the flip side, the near term support zone also shifts northward & now stands at 17360-17300
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Despite a small blip in early trades, bulls quickly rejuvenated and maintained their stranglehold even as other Asian peers ended mixed. FIIs, which were missing from the action over the past few months, have once again started taking exposure to local equities, thus providing a major impetus to the markets.
Technically, after a muted opening, the market successfully cleared the short term resistance of 17500 which is broadly positive.
Bullish candle on daily charts and intraday breakout formation is indicating a further uptrend from the current levels. For benchmark Nifty, the key support level is 17400 and above which, the breakout formation is likely to continue till 17650-17700. On the other hand, below 17400, the index could slip till 17325-17300.
Vinod Nair, Head of Research at Geojit Financial Services.
Sustained FII buying and falling oil prices are the major drivers for the ongoing market rally. Heavyweights played a significant role in today’s rise, while PSU banks remained under pressure following weak results of the PSB major.
Western markets continued to gain after strong US job numbers allayed worries of a recession. The week ahead is busy in terms of economic data with the domestic investors gearing up for the release of the inflation numbers along with the manufacturing production data to gauge the strength of the economy.
Rupak De, Senior Technical Analyst at LKP Securities:
The Nifty has moved above its recent consolidation as the bullish momentum continues. The index has closed above the previous congestion levels on the daily chart, which suggests rising strength.
The trend is likely to remain bullish over the short term as long as it remains above the 200DMA, which is placed at 17000. On the higher end, the index may move towards 17750-17800.
Benchmark indices ended higher on August 8 with Nifty finishing above 17500.
At Close, the Sensex was up 465.14 points or 0.80% at 58,853.07, and the Nifty was up 127.60 points or 0.73% at 17,525.10. About 1864 shares have advanced, 1535 shares declined, and 173 shares are unchanged.
M&M, Coal India, Bajaj Finserv, Hindalco Industries and HDFC Bank were among the major gainers on the Nifty. The losers included BPCL, SBI, UltraTech Cement, Britannia Industries and Nestle India.
Among sectors, Auto, Capital Goods, Metal and Power indices gained 1-2 percent.
BSE midcap and smallcap indices ended marginally higher.
Indian rupee ended lower by 19 paise at 79.65 per dollar against Friday’s close of 79.24.
Shipping Corporation of India Q1 profit declines 28% YoY to Rs 114.2 croreShipping Corporation of India has reported a 28% year-on-year decline in consolidated profit at Rs 114.2 crore for the quarter ended June FY23, impacted by lower operating performance. Revenue grew by 42.5% YoY to Rs 1,465 crore in Q1FY23.
Rossari Biotech: The company recorded a 17% YoY growth in consolidated profit at Rs 28.68 crore during the quarter ended June FY23 on strong revenue growth & operating performance, but impacted by higher input cost and employee cost. Revenue grew by 88% YoY to Rs 434.71 crore in Q1FY23.
Rossari Biotech was quoting at Rs 935, down Rs 17.15, or 1.80 percent on the BSE
Macquarie View on SBI
We keep an outperform call on the stock with a target of Rs 665, said Macquarie.
The MTM losses of Rs 6,550 crore are a drag on the bottomline while strong 19 percent year on year retail loan growth drives credit growth.
Sharekhan View on Titan
Titan is aiming to grow its revenue at CAGR of over 20% over FY2022-27 on back of its ambitious growth plan in the medium term. This along with consistent improvement in margins will help cash flows improve strongly in the coming years.
FY2023 will be a strong year for the company on back of low base in the core businesses.
The company’s strong growth outlook, industry tailwinds in the medium term and strong balance sheet makes it a best play in the retail space. Hence we maintain our Buy recommendation on the stock with an unchanged price target of Rs 2900.
Engineers India reported a consolidated profit at Rs 64.81 crore for the quarter ended June FY23, rising 2,318% compared to Rs 2.68 crore profit in year-ago period, aided by low base.
The Q1FY22 profit was impacted by loss in joint venture entities or associates. Revenue grew by 9.2% YoY to Rs 814.8 crore in June FY23 quarter.
Engineers India was quoting at Rs 66.35, down Rs 2.50, or 3.63 percent.