Stocks to watch out for in today’s trade: ONGC, Infibeam Avenues, GAIL India, and others in the news today
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One:
The Indian equity market started the session on a promising note tracking the positive global cues. The optimism across the global bourses and favorable domestic macro data has spread buoyancy to our market, resulting in broad-based buying interest. The benchmark index Nifty50 surged upwards for the seventh consecutive session to reclaim the 17900 level and continued its positive stature by procuring over six-tenth of a percent gain.
The bulls have taken complete control of the market and are being very rigid in letting any correction happen. The broad-based buying has also bolstered positive sentiments across the participants, which are evident on the technical chart. The unilateral movement of the index has placed it toward the psychological mark of 18000, which might hinder the ongoing up move, followed by the weekly swing high of 18100-18150 odd levels that might act as a sturdy wall for the bulls. On the contrary, 17830-17765 is likely to act as the immediate support zone, whereas the sacrosanct support lies around the 17500 mark.
There have been contributions across the board, wherein the significant benefactors that boosted the bullish sentiments were from the IT and Banking space. Looking at the recent developments, the undertone is likely to remain in favor of the bulls, with significant traction seen outside the indices. Hence it is advisable to keep Identifying apt themes and potential movers within the same, which are likely to provide better trading opportunities. Meanwhile, it is also advisable to keep a close tab on global developments.
Market update at 10 AM: Sensex is down 14.04 points or 0.02% at 60246.09, and the Nifty shed 2 points or 0.01% at 17942.30.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
The Fed minutes suggest continuation of the hawkish stance and this may slightly impact sentiments in the mother market, US. But this is unlikely to impact the bullish sentiments in India since the return of the FIIs has completely altered the market mood and the bulls are calling the shots now. Dips are likely to get bought in the near-term.
From the fundamental perspective, there are no triggers to take the market much higher from the present levels since there is no valuation comfort. Nifty is now trading at around 21 times FY23 earnings. The market, it appears, is banking on continuation of good GDP and earnings growth this year and the next. If the growth momentum sustains capital goods and automobiles will attract more buying.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities on gold prices:
COMEX gold trades marginally higher near $1780/oz amid choppiness in US dollar index and bond yields as FOMC minutes failed to give much clarity about Fed’s monetary tightening stance. FOMC minutes showed that the central bank wants to continue with rate hikes to control inflation but is also wary about overtightening and its impact on economic growth. Fed’s indecisiveness means that market players may look at economic numbers and central bank comments to determine Fed’s next move. Gold may remain volatile as support from global growth worries, geopolitical issues and inflation concerns is countered by weaker investor interest and concerns about consumer demand. However, with Fed expected to continue with rate hikes, US dollar may remain supported and this may pressurize gold.
#OnCNBCTV18 | Staffing issues persist in various western countries like the US. Fed could have to do a lot more to bring down inflation. Rally in IT stocks could be stalled as there are headwinds, says Andrew Holland of Avendus Alternate Strategies pic.twitter.com/AfxoMitdEo— CNBC-TV18 (@CNBCTV18Live) August 18, 2022
Power Mech bags FGD Projects worth Rs 6,163 crore from Adani Group:
Power Mech Projects Limited has bagged a record order for 5 Flue Gas Desulphurization [FGD] projects with an aggregating value of Rs 6,163.20 crore. The orders are for a quantum of 15 FGD retrofits to coal based units, whose sizes ranging between 330 MW and 660 MW. These Engineering, Procurement and Construction (EPC) projects are projected to be implemented over the course of next 30 months are prestigious to PMPL. These 5 projects would be implemented at Adani Group’s coal based power plants in Mundra, Tiroda, Kawai and Udupi, the company said in an exchange filing. The stock was trading at Rs 1,207.85, up Rs 51.55, or 4.46 percent on BSE. It has touched a 52-week high of Rs 1,239.45. It has touched an intraday high of Rs 1,239.45 and an intraday low of Rs 1,174.60.
Sona BLW large trade: 10.2 crore shares (17.2% Equity) worth Rs 5,200 crore change hands at Rs 510 per share:
Cabinet okays expansion of Emergency Credit Line Guarantee Scheme to aid travel, tourism sectors:
The Union Cabinet has approved the expansion of Emergency Credit Line Guarantee Scheme (ECLGS) by Rs 50,000 crore to Rs 5 lakh crore, Information & Broadcasting Minister Anurag Thakur said on August 17.
The additional funds will be made available exclusively for the travel, tourism and hospitality sectors, the minister said. The ECLGS scheme was launched in the wake of the pandemic to help small enterprises struggling amid the unprecedented hit to economic activities. The scheme has since been expanded to include more sectors.
Anand James – Chief Market Strategist at Geojit Financial Services:
As we re approach the psychological mark of 18k, the evolution of VIX would be crucial. Favoured view continues to expect Nifty to head into the 18100-18200 before any major attempt to reverse. Downside markers may be pushed higher towards 17835/45 for intraday trades, but just as we maintained yesterday, there are not enough signs of topping out, for which reason, we will continue to maintain the 17660 region as the main reversal point.