Tag: Nifty

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Nifty Midcap and Smallcap Indices Carry 25% Premium

Though the domestic growth outlook remains strong, the risk of El Nino is expected to keep the market under pressure, he added…reports Asian Lite News

The Nifty midcap and smallcap indices, with robust rallies of 42 per cent and 49 per cent on a YTD basis, respectively, now carry a 25 per cent premium to their long-term averages, signalling potential valuation concerns, Vinod Nair, Head of Research at Geojit Financial Services, said on Tuesday.

Following the recent impressive surge, the Nifty50 underwent a consolidation phase on Tuesday due to anticipated elevated November inflation in the country, driven by rising food prices, which may potentially delay RBI policy cuts. In contrast, the US inflation outlook remains stable, which could influence the upcoming US Fed policy, Nair said.

Though the domestic growth outlook remains strong, the risk of El Nino is expected to keep the market under pressure, he added.

Rupak De, Senior Technical Analyst at LKP Securities, said, “Nifty has formed a bearish engulfing pattern on the daily chart, suggesting a possibility of a bearish reversal. On the higher end, call writers have built a heavy position at 21,000. On the lower end, put writers are heavily present at 20,800 and 20,900.

“Therefore, Nifty is likely to remain mostly sideways to negative as long as it remains below 21,000. Only a decisive move above 21,000 might induce a resumption of the uptrend. Support is placed at 20,800, below which the index may consolidate further.”

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Business India News Investment

Indian Markets Rally Towards New All-Time Highs

The Indian Rupee was under some pressure and lost 22 paisa or 0.27 per cent to close at Rs 82.94 to the US Dollar. Dow Jones gained on two of the four trading sessions, losing on the remaining two. It lost 261.12 points or 0.75 per cent to close at 34,837.71 points…reports Arjun Kejriwal

Markets were in a very aggressive mood last week and gained on all five trading sessions. Something like this has not happened in a long time and they now seem set to make a new lifetime high and cross Mount 20K on NIFTY.

BSESENSEX gained 1,211.75 points or 1.85 per cent to close at 66,548.91 points while NIFTY gained 384.65 points or 1.985 to close at 19,819.95 points. The broader market saw BSE100, BSE200 and BSE500 gain 2.11 per cent, 2.37 per cent and 2.36 per cent respectively. BSEMIDCAP gained 3.93 per cent while BSESMALLCAP was up 2.26 per cent. The top performing sectoral index was the BSEPSU index which gained a massive 5.52 per cent. With less than 180 points to go for NIFTY to touch the magical mark of 20K its now or never.

The Indian Rupee was under some pressure and lost 22 paisa or 0.27 per cent to close at Rs 82.94 to the US Dollar. Dow Jones gained on two of the four trading sessions, losing on the remaining two. It lost 261.12 points or 0.75 per cent to close at 34,837.71 points.

In the markets, momentum is being built to cross the obstacle of 20K on NIFTY. We had strong sustained gains during the week and on expected lines, the rally saw HDFC Bank finally participating. It gained Rs 49 or 3.11 per cent to close at Rs 1,649. This helped the BSEBANKEX chip in with decent gains of 1.32 per cent. This leaves just Reliance as the non-participating heavyweight stock in the benchmark indices. Though it did gain 1.49 per cent or Rs 36 during the week, one expects much more from the heaviest of stocks. It may be expected that in the coming week markets have their best chance of making a new high with HDFC participating, Reliance close to a momentum setup and markets less than 1 per cent away from a new life-time high. Conversely God willing, if the move fails, we could see a sell-off. FPIs are sellers and the market is driven by Domestic institutions buying and individual investors participating in the Smallcap and midcap space.

In primary markets we saw the shares of Vishnu Prakash R Punglia Limited listed on the bourses. The company has issued shares at Rs 99 and was very well received. The share debuted at Rs 164.45 and closed under selling pressure at Rs 145.93, a gain of Rs 46.93 or 47.40 per cent. By the end of the week, the share recovered lost ground and closed at Rs 172.75, a gain of Rs 73.75 or 74.49 per cent.

SEBI has introduced new norms for listing in T+3 days which would be mandatory from December 1, 2023. Two recent issues would be doing the same voluntarily and would list on Monday the 11th of September. The first is the main board issue from Ratnaveer Precision Engineering Limited, which had tapped the markets and was open for subscription between Monday (September 4) and Wednesday (September 6). The price band was Rs 93-98. The issue was subscribed 93.94 times overall with the QIB portion subscribed 133.05 times, HNI portion subscribed 135.19 times and Retail portion subscribed 53.92 times. There were 20.77 lakh applications in all. The other issue is from the SME platform, Basilic Fly Studio Limited. This issue has garnered over Rs 15,000 crore subscription and would also list on Monday.

The issue from Jupiter Lifeline Hospital Limited was subscribed 65.42 times overall with the QIB portion subscribed 187.96 times, HNI portion subscribed 36 times and Retail portion subscribed 8.00 times. The issue was open from Wednesday (September 6) through September 8 and the price band was Rs 695-735. There were 14.6 lakh applications.

The issue from EMS Limited has opened on Friday (September 8). The price band is Rs 200-211 and the issue would close on Tuesday the 12th of September. The issue at the end of the first day was subscribed 3.71 times overall with QIB portion subscribed 0.09 times, HNI portion subscribed 5.97 times and Retail portion subscribed 4.72 times. There are 2.90 lakh applications so far.

In primary market news we have an issue opening on Wednesday (September 13) and closing on Friday (September 15). The issue is from R R Kabel Limited which is into the business of making cables and wires and a small but emerging ‘FMEG’ business which contributes around 9 per cent of the revenues currently. The price band is Rs 983-1,035 and consists of a fresh issue of Rs 180 crore and an offer for sale of 172.36 lakh shares. The issue size would be around Rs 1,950 crore.

There is plenty of action in the primary markets currently and until and unless we have a substantial correction in markets or a debacle in the primary markets, this action would continue.

Coming to the markets, it’s a week where history is likely to be made with markets getting into a mood which borders euphoria or is already there. Expect the inevitable to happen with a rider, that if it fails there would be a short-term disaster in the form of a correction or they would cross the new high. Once they do so, the next target would become 3 per cent higher or another 600 points on NIFTY and about 1,800 points on BSESENSEX. These levels would be after gaining or mounting 20K.

The strategy would be to ride the wave and bet on the heavyweight stocks in the benchmark indices to perform. Continue to book profits and sell those stocks from the midcap and Smallcap space which have outperformed. Keep your back covered and both eyes on the markets as corrections would also come without notice. Trade cautiously.

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Business Economy

Nifty’s downward trend continues with third weekly fall

Nifty fell for the second consecutive session on Aug 11, pulled down by weak global cues. …reports Asian Lite News

Deepak Jasani, Head of Retail Research, HDFC Securities said that Nifty fell for the third consecutive week, falling to 0.45 per cent.

He said that on Wednesday, Nifty built on the weakness from the previous session.

“As the Q1 results season has come to an end, we could see a broad based profit taking in the markets even as the global cues are also not helping currently. 19300 could be the next support for Nifty while 19645 could now prove to be a resistance. A breach of 19300 could take the Nifty to 18887 over the next few weeks,” he said.

Nifty fell for the second consecutive session on Aug 11, pulled down by weak global cues. At close, Nifty was down 0.59% or 114.9 points at 19428.3. Broad market indices fell less than the Nifty even as the advance decline ratio dipped to 0.65:1.

European and Asian stocks fell on Friday as traders closed out a week marred by geopolitical tensions between China and the US, and softer economic data that dented valuations in China. Hawkish language from a US central banker also put traders in a risk-off mood, he said.

Vinod Nair, Head of Research at Geojit Financial Services said the domestic market continued to experience selling pressure, with banking stocks extending their decline in reaction to the RBI’s liquidity absorption measures.

The escalating concerns about inflation further weighed down domestic market sentiments. Despite the US CPI coming in lower than expected and the UK GDP beating estimates, global sentiment remained unfavourable, he said.

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Business Economy India News

Nifty’s downward trend continues with third weekly fall

Nifty fell for the second consecutive session on Aug 11, pulled down by weak global cues…reports Asian Lite News

Deepak Jasani, Head of Retail Research, HDFC Securities said that Nifty fell for the third consecutive week, falling to 0.45 per cent.

He said that on Wednesday, Nifty built on the weakness from the previous session.

“As the Q1 results season has come to an end, we could see a broad based profit taking in the markets even as the global cues are also not helping currently. 19300 could be the next support for Nifty while 19645 could now prove to be a resistance. A breach of 19300 could take the Nifty to 18887 over the next few weeks,” he said.

Nifty fell for the second consecutive session on Aug 11, pulled down by weak global cues. At close, Nifty was down 0.59% or 114.9 points at 19428.3. Broad market indices fell less than the Nifty even as the advance decline ratio dipped to 0.65:1.

European and Asian stocks fell on Friday as traders closed out a week marred by geopolitical tensions between China and the US, and softer economic data that dented valuations in China. Hawkish language from a US central banker also put traders in a risk-off mood, he said.

Vinod Nair, Head of Research at Geojit Financial Services said the domestic market continued to experience selling pressure, with banking stocks extending their decline in reaction to the RBI’s liquidity absorption measures.

The escalating concerns about inflation further weighed down domestic market sentiments. Despite the US CPI coming in lower than expected and the UK GDP beating estimates, global sentiment remained unfavourable, he said.

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Categories
Business Economy India News

Nifty falls sharply as IT companies disappoint

stock market bull and bear. (Infographics : Pinaki Paul)

It fell at the fastest pace in about 18 weeks to close at 19,745 levels, down 1.17 per cent or 234.2 points from its previous close…reports Asian Lite News

Nifty fell sharply following disappointing results/guidance from IT companies, including Infosys, said Deepak Jasani, Head of Retail Research at HDFC Securities.

It fell at the fastest pace in about 18 weeks to close at 19,745 levels, down 1.17 per cent or 234.2 points from its previous close.

Volumes on the NSE continued to be higher than normal. Broad market indices did better than the Nifty with the small-cap index ending 0.13 per cent in the positive even as the advance-decline ratio came in lower at 0.82:1.

On a weekly basis, Nifty rose 0.92 per cent, losing some of the early week gains towards the end of the week, Jasani said.

Vinod Nair, Head of Research at Geojit Financial Services, said that weak guidance from Infosys cast a shadow over the outlook of the Indian IT sector, causing a delay in Nifty’s pursuit of the 20,000-mark.

While the heavyweights surrendered to the bears, the small caps demonstrated resilience. Global markets presented a mixed picture, with the US market struggling due to weak earnings, while the UK retail sales exceeded expectations with a 0.7 per cent MoM growth.

Nifty opened lower dragged by selling in IT heavyweights after Infosys lowered its FY24 growth guidance, said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.

Except for PSU bank and auto, all the sectors ended in red. IT, consumer durables, and FMCG were the major laggards, he said.

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