Closing Bell: Nifty around 19,900, Sensex up 204 pts; oil & gas, power rally

The Bank Nifty index has displayed a positive trend over the last three days, marked by higher highs and higher lows on the daily chart. Currently approaching a critical resistance level at 44000, a successful breakout above this level on a closing basis is anticipated to trigger significant short-covering rallies toward 44300 and 44500 levels. Meanwhile, the lower end finds support at 43600, serving as a cushion for bullish positions, with potential upside targets identified at 44300 and 44500.

The Nifty has risen above the recent consolidation high, indicating increased optimism among market participants. Furthermore, it has held steady above the critical near-term support level of 19,700. The sentiment is expected to stay positive, potentially leading to a new lifetime high in the short term. At the lower end, 19,700 could remain a crucial short-term support level.

After last week's range-bound trend, markets registered gains led by uptick in power, metal and auto stocks as hopes of strong growth momentum going ahead and receding worries of rate hikes in the US strengthened the mood.

FIIs turning net buyers of local equities in the last few sessions too has brought some cheers to the market, even as caution could prevail in next few sessions ahead of monthly F&O expiry and exit poll results of five state elections later this week.

Technically, Nifty could find support in the 19797-19689 range and resistance at 20000-20551.

The Nifty opened on a flat note and as the day progressed the Nifty continued to inch higher and closed around the highs of the day. The broad range of 19650 – 19850 has been decisively broken on the upside which puts the bulls in a position of strength. We expect the positive momentum to continue over the next few trading sessions and the next psychological level stands at 20000 with a potential to stretch higher till 20200. On the downside, 19770 – 19750 shall act as crucial support and should not be breached on the downside for the positive momentum to continue.

Bank Nifty witnessed a continuation of the positive momentum from the previous week. It continued to inch higher and has closed above the 40-day moving average (43834) which is a sign of strength. On the upside, we expect the Bank Nifty to target levels of 44500 from a short-term perspective.

Markets started the holiday-shortened week on a firm note and gained nearly half a percent. The tone was subdued for most of the session however a sharp surge in the final hour helped the Nifty to close around the day’s high at 19894 levels. Mostly sectors, barring defensive viz. FMCG and pharma, participated in the move wherein energy, metal and auto were among the top gainers. The broader indices also edged higher and gained nearly half a percent each.

Nifty has finally surpassed the hurdle at 19850 and now we expect the index to inch toward a new high. Needless to say, the quantum of rise would depend upon the performance of the banking, which has also reached closer to its immediate hurdle. We reiterate our view to continue with the “buy on dips” approach and prefer stocks with relatively higher strength for fresh buying.

The gradual return of FIIs in the month of November post the global sell-off during the three months of (Aug to Oct) is having a steady positivity in India. However, currently the Indian market is facing resistance above to edge 19,800 levels. Oil prices are stable ahead of the OPEC meeting and OMCs stand to benefit from the ease.

Metal sector gained in line with expectations of Chinese stimulus, and PSU banks are doing well due to better peer performance. The market may await state exit polls for further cues, in the short-term.

Today, rupee closed on a positive note by 4 paisa at 83.33 amid weakness in the dollar index, decline in crude oil prices and recovery in the domestic equity markets. Rupee remained in range as India's economy has shown resilience in the face of the global downturn, owing to its dependence on local demand. We expect the rupee to remain volatile this week amid volatility in the dollar index and the pair could trade in the range of 83.10 – 83.55.

The markets began the week on a firm note but in the absence of a follow-through, it remained rangebound for most of the time. A sudden rise in the last session pushed the Index higher to settle at 19,889.70 with gains of 95 points. Among the sectors, Energy, Metal, and PSU Banking participated the most in the rally while Pharma and FMCG encountered a corrective move.

A mixed trend was witnessed in the broader markets where Midcaps outperformed the Frontline Index while the Smallcaps underperformed.

On a daily chart, the Index has not only made a strong bullish candle but has also given the much-awaited range breakout in the form of an Ascending Triangle Formation, and as per the pattern, the target stands at 20,170. Now the next immediate hurdle is at 20,045 while the downside seems to be protected at 19,800.

Indian rupee ended higher at 83.34 per dollar on Tuesday versus Friday's close of 83.37.

: Benchmark indices ended higher in the volatile session on November 28 with Nifty around 19,900.

At close, the Sensex was up 204.16 points or 0.31 percent at 66,174.20, and the Nifty was up 95.00 points or 0.48 percent at 19,889.70. About 1872 shares advanced, 1750 shares declined, and 159 shares unchanged.

Biggest gainers on the Nifty were Adani Enterprises, Adani Ports, Tata Motors, BPCL and Coal India, while losers were Eicher Motors, Apollo Hospitals, ICICI Bank, ITC and Cipla.

On the sectoral front, power and oil & gas indices added 3 percent each, while metal, auto and PSU Bank indices rose 1 percent each. On the other hand, some selling is seen in the capital goods, FMCG and pharma names.

BSE midcap index up 0.3 percent and smallcap index ended on a flat note.

-Hold call, target raised to Rs 175 per share from Rs 165 per share
-Reports suggest that KG basin oil is set to start by November end & gas likely by April/May’24
-Oil and gas prices have been effectively capped
-See limited upside with risk of future cash diversion to carbon neutrality

-Neutral call, target Rs 3,640 per share
-Royal Enfield launches new Himalayan
-Introductory price of new Himalayan at Rs 2,69,000 (ex-showroom), which is valid till Dec 31, 2023
-New Himalayan is a significant upgrade, with attractive design
-New Himalayan has improved performance and tech features
-With 25% higher pricing than old Himalayan, focus seems to be to retain exclusivity
-With 25% higher pricing than old Himalayan focus is not on sell in large numbers
-Believe >250cc motorcycle market has space for 2-3 players where RE occupies 90% share
-Expect a further drop in market share as competition ramps up

Oil prices rose on Tuesday, supported by a weak dollar and expectations that the OPEC+ producer group would deepen and extend output cuts due to concerns over subdued demand.

Brent crude futures were up 57 cents, or 0.7%, to 80.55 a barrel at 0845 GMT, on track to snap a four-day losing streak. U.S. West Texas Intermediate (WTI) crude futures were 54 cents higher, also up 0.7%, at $75.40 a barrel, after falling for three straight sessions.

OPEC+, which combines the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, will hold an online ministerial meeting on Nov. 30 to discuss production targets for 2024.

The meeting comes amid a sharp decline in oil prices, due to concerns that the market was oversupplied despite OPEC+ output cuts. Brent has fallen by more than 18% and WTI by over 21% since end-September highs. Strong production by non-OPEC members such as the United States have added to price pressure.

Indian Rupee gained by 4 paise on Tuesday on positive domestic markets and FII inflows over the past two sessions. However, a slight recovery in the US Dollar index and crude oil prices capped sharp gains. The US Dollar declined for the third consecutive day on Monday on housing data from the US and waning safe haven demand as Israel-Hamas extended the truce by two days till Thursday morning.

We expect Rupee to trade with a slight negative bias on month-end Dollar demand from OMCs and importers. Weak global markets may also weigh on risk currencies.

However, fresh foreign inflows and a weak tone in crude oil prices may support Rupee at lower levels. Traders may take cues from CB consumer confidence data from the US. Investors may take cues from India’s GDP and fiscal deficit data towards the end of the month. USDINR spot price is expected to trade in a range of Rs 83 to Rs 83.70.

UPL has received an intimation on November 28, 2023, about issuance of certificate of incorporation with regards to new step-down subsidiary viz. UPL Speciality Mauritius Limited effective 27th November 2023.

UPL Speciality Mauritius Limited is a subsidiary of UPL Speciality Chemicals Limited, India in which the Company holds 100% shareholding. It is a stepdown subsidiary of UPL Limited, and it becomes a related party upon incorporation.

The Company is incorporated to carry out and undertake speciality chemicals and related business, upon infusion of share capital in due course.

Sensex Today | Market at 3 PM

The Sensex was up 111.63 points or 0.17 percent at 66,081.67, and the Nifty was up 74.80 points or 0.38 percent at 19,869.50. About 1732 shares advanced, 1563 shares declined, and 138 shares unchanged.

HDFC Bank said the board has appointed Harsh Kumar Bhanwala as an Additional Independent Director of the bank for three years during January 25, 2024 to January 24, 2027. Further, the board has appointed V Srinivasa Rangan as Executive Director (Whole-time Director) of the bank for three years with effect from November 23.

Sensex Today | BSE Bank index up 0.3 percent supported by AU Small Finance Bank, Bank of Baroda, Federal Bank:

Wipro has helped Stockholm Exergi AB, Stockholm's energy company, to build a new information technology (IT) infrastructure, helping it take a significant step toward achieving its, and Stockholm City’s, overall climate transformation targets.

Tata Power's stock climbs as the company plans Rs 60,000 crore capex till FY27, with nearly half allocated to renewable energy. Anticipates doubled revenue by FY27 from core businesses. 45% of the projected capex to be directed to renewables, as per the Tuesday investor presentation.

IREDA, a PSU miniratna, leads the debut of five mainboard IPOs — Tata Technologies, Flair Writing, Fedbank Financial Services, and Gandhar Oil Refinery India. Its strong IPO response sees shares listed on November 29th, commanding a Rs11 premium in the grey market, signaling a 34% gain at debut.

Adani Total Gas announced the initiation of a pioneering ‘Green Hydrogen Production and Blending Pilot Project’.

As part of the project, ATGL will employ the latest technologies to blend Green Hydrogen (GH2) with natural gas for over 4,000 residential and commercial customers at Ahmedabad, Gujarat.

Dynamatic Technologies has completed the first delivery of the Airbus A220 escape hatch door to Airbus Atlantic. Escape hatch door is integrated into the Airbus Atlantic's A220 Nose Fuselage produced in Mirabel, Canada.

MosChip Technologies board has approved the issue of 52,70,100 equity shares, amounting to Rs 50.34 crore, on preferential basis, to Citrus Global Arbitrage Fund. The shares will be issued at a price of Rs 95.52 per share. This is subject to approval of members of the company.

Prism Johnson board members have appointed Arun Kumar Agarwal, as Chief Financial Officer and key managerial personnel of the company with effect from November 26. However, Manish Bhatia has resigned as Chief Financial Officer of the company, due to personal reasons.

Tata Steel has appointed Akshay Khullar as Vice President – Engineering & Projects with effect from February 1, 2024, after superannuation of Avneesh Gupta as Vice President – TQM and Engineering & Projects of the company.

Peeyush Gupta will be re-designated as the Vice President – TQM, Group Strategic Procurement and Supply Chain, with effect from February 1, 2024. Peeyush is currently serving as the Vice President – Group Strategic Procurement and Supply Chain.

Integra Essentia said the board of directors has given approval for bonus issue of equity shares in the ratio of 1:1 (one equity share of Re 1 each for every one equity share of Re 1 each). The board also approved the fund raising up to Rs 100 crore via preferential allotment, QIP’s, ADR, GDR, and FCCB. Pankaj Sardan is appointed as Chief Financial Officer of the company with effect from November 27.

Sensex Today | Market at 2 PM

The Sensex was down 44.20 points or 0.07 percent at 65,925.84, and the Nifty was up 24.90 points or 0.13 percent at 19,819.60. About 1721 shares advanced, 1563 shares declined, and 126 shares unchanged.

The Income Tax Department concluded search operations at some of the premises and manufacturing plants of Stove Kraft. The I-T Department started the said search operations on November 22. The operations at the manufacturing plants of the company were disrupted during November 22-26 at Bengaluru and during November 21-23 at Baddi. Manufacturing operations at Bengaluru plant have fully resumed from November 27, and for the Baddi plant from November 24.

Jubilant FoodWorks Netherlands B.V., wholly owned subsidiary of Jubilant FoodWorks proposes to acquire, through any permissible mode including open offer, market purchase, the entire issued and outstanding ordinary share capital of DP Eurasia N.V. not already held by JFN at a price of upto 85 pence per share from existing shareholders of DP Eurasia.

JFN currently holds 48.84% ordinary shares of DP Eurasia.

-Overweight call, target Rs 364 per share
-Company’s target by 2027, nearly equals current market capotal & is more than doubling the 2021 level
-As USD 9 billion of investments mature, path to doubling EBITDA is highly under-recognised
-‘The New HPCL’ thesis keeps us overweight

After witnessing a remarkable subscription demand of nearly 70 times to the issue, Tata Technologies garnered significant attention in the stock market among the 5 IPOs. Considering overwhelming investors demand along with investors friendly pricing indicating Tata Group legacy to reward shareholders, a strong listing gain over and above 75%+ can be assumed against the issue price of Rs 500/- per share. There is a high possibility as per street assumption that Tata Technologies can be a doubler candidate post listing.

We believe the supper listing premium is justified mainly on the back of TATA parentage tag which enjoys first preference among investors community and its unique well established global business model which is fundamentally strong generating healthy margins in the sector it serves. Given the growth potential in outsourcing, the business model would be in great demand going forward.

Hence considering all factors, we recommend allotted investors to book 50% profits over and above our expectations and retain rest of the holding for long term considering healthy long term returns post listing and for those investors who failed to get allotments in the public offer can accumulate Tata Technologies on every dips post listing for long term.

Sensex Today | BSE Capital Goods index down 0.3 percent dragged by V-Guard Industries, BHEL, Praj Industries:

CE Info Systems has received board approval for raising of funds via issuance of equity shares worth up to Rs 500 crore by way of qualified institutional placement (QIP).

Tata Consultancy Services has launched its AWS generative AI practice, to help customers harness the full potential of AI and AWS generative AI services to transform different parts of their value chain and achieve superior business outcomes.

-Hold call, target Rs 1,230 per share
-Warning letter from US FDA for company’s Indore plant suggest potential data integrity issues
-Warning letter raises concern amongst investors about a potential import alert
-Estimate the Indore plant contributes approximately 30% to Cipla's US sales
-Estimate Indore plant contributes 8% to overall sales with Albuterol being the largest contributor
-Assign a low probability of an import alert
-The remedial work could be prolonged, which may put FY26 EPS at risk

While opening of a Natures Basket store at Phoenix Palladium, Mumbai, Spencer’s Retail said its subsidiary Natures Basket is expected to reduce its debt in due course by Rs 100 crore approximately through a mix of loan restructuring and repayment of loans. "The sale of a certain part of company's minority stake is under consideration, and Spencer’s business will take some more time to generate net profit. It is expected to have positive EBITDA during the current year.

The Reserve Bank of India has approved the appointment of Rajat Kumar Jain, Independent Director, as Part-time Chairman of Fino Payments Bank, with effect from November 24, till November 01, 2025.

Vascon Engineers said the board of directors will be meeting on November 30 to consider the raising of funds via issue of equity shares.

Tata Motors' subsidiary Tata Technologies in consultation with book running lead managers to the IPO, has finalised the offer price (including the anchor investor offer price) at Rs 500 per share. Accordingly, the size of IPO aggregated to Rs 3,042.51 crore.

Techknowgreen Solutions is now accredited as Category-A organisation under the QCI-NABET Scheme for Accreditation of Environmental Impact Assessment (EIA) Consultant Organization, Version 3. The company will prepare Environmental Impact Assessment - Environmental Management Plan (EIA-EMP) reports in 13 sectors.

Sensex Today | Market at 1 PM

The Sensex was down 3.16 points or 0.00 percent at 65,966.88, and the Nifty was up 31.10 points or 0.16 percent at 19,825.80. About 1738 shares advanced, 1518 shares declined, and 127 shares unchanged.

JK Cement's unit JK Cement Works, Ujjain has successfully commenced cement grinding unit capacity of 1.5 million tonne per annum at its newly set up cement manufacturing facility situated at Ujjain, Madhya Pradesh.

Khadim India is going to raise funds about Rs 15 crore. It has received approval from the board for raising of funds via preferential issue of fully convertible equity share warrants on private placement basis to one of the Promoters and few other identified non-promoter entities. The company will issue 4,08,768 fully convertible equity share warrants of Rs 10 each which will be converted into equity shares of Rs 10 each. The warrants will be issued at a price of Rs 365 per share. The company will utilise the fund largely for the nationwide retail expansion and revamping of existing stores.

Balkrishna Industries said the board has approved the re-appointment of Rajiv Poddar as Joint Managing Director of the company for five years with effect from January 22, 2024. The board also reappointed Shruti Shah as Independent Director, and appointed Laxmidas Merchant as Additional Director (Independent Director), and Rahul Dutt as Additional Director (Independent Director) of the company for five years. The appointments are subject to approval of shareholders of the company.

-Buy call, target Rs 3,400 per share
-Management continues its proactive discussions with ESG agencies on defence exposure
-Over 6-12 months, believe capex cycle traction should drive upside
-Believe completion of legacy low margin projects should drive upside
-Muted H2FY24 guidance is a near-term dampener
-Any ESG rating upgrade is an added sweetener

Cipla's subsidiary Cipla EU has completed acquisition of additional 15.10% in Cipla Maroc SA, Morocco, (the joint venture company) from The Pharmaceutical Institute (PHI) for MAD 81.1 million. Accordingly, Cipla EU will now hold 75.10% stake in the joint venture company and balance 24.90% stake will be held by Societe Marocaine De Cooperation Pharmaceutique (Cooper Pharma).

The Reserve Bank of India has approved the appointment of Harun Rasid Khan as Part Time Chairman of AU Small Finance Bank, with effect from January 30, 2024 till completion of his 1st tenure as Independent Director of the bank i.e. December 27, 2024. H R Khan is associated with the bank as an independent director since December 28, 2021 and he will assume the position of part time chairman upon completion of tenure of current part time chairman - Raj Vikash Verma on January 29, 2024.

Arvind SmartSpaces has successfully given exit to HDFC Capital Affordable Real Estate Fund -3 (HCARE-3) on the project - Arvind Fruits of Life. This is a premium plotting development at Bavlu, Gandhinagar and the first project added under the HDFC Platform 2 in Q2 FY23. The funds invested by HCARE-3 have been repaid in full from the project cash flows driven by strong sales momentum and collections from the project.

Cello World has recorded a 4.5% sequential growth in consolidated net profit at Rs 86.6 crore for quarter ended September FY24 despite weak operating margin, supported by other income. Consolidated revenue from operations during the quarter increased by 3.6% to Rs 489 crore compared to previous quarter. EBITDA for the quarter rose by 0.9% QoQ to Rs 120.3 crore, but margin fell by 70 bps to 24.6% with jump in input cost.

Avenue Supermarts has opened a new store at Nizampet, Telangana. The total number of stores as on date stands at 339.

-Underperform call, target Rs 910 per share
-Stock is up 20% from its lows despite a 16-39% cut to FY24/25 cons EPS estimate
-Believe consensus estimates carry significant risk
-Revenue growth (7% CAGR) & 530 bps margin expansion by FY26 seem optimistic
-Likely to drive a de-rating from current rich valuation of 23x
-Makes risk-reward unfavourable

Salzer Electronics has received a patent for the heavy duty energy efficient Automatic Source Changeover (ACCL). The patent is valid for a period of 20 years. This patented innovation, introduced in 2016, has generated revenues of approximately Rs 10 crore, primarily within the building segment business division.

KPI Green Energy's subsidiary Sun Drops Energia has bagged new order of 4.66 MW for executing solar power projects under captive power producer (CPP) segment. With addition of the new order, its cumulative orders of solar power projects, till date have crossed 143+ MW under CPP segment.

Sensex Today | BSE Metal index up 0.5 percent led by Hindalco Industries, Coal India, NMDC:

PB Fintech made further investment of Rs 350 crore in its wholly owned subsidiary Policybazaar Insurance Brokers. This will strengthen the financial health of the said wholly-owned subsidiary to meet its general operating expenses and enhancing brand awareness, office presence and strategic initiatives.

Embassy Office Parks REIT together with ANZ Bengaluru, are pleased to announce the construction of a third government school in Thanisandra, Bengaluru.

The new school building will benefit 1,240 students from grade 1 to 8 and comprises 20 classrooms, a staff room, 24 toilets, a handwash, clean drinking water, and a playground. Additional planned projects include rooftop solar installation and a multipurpose lunch hall, as part of a comprehensive approach to school infrastructure and sustainability.

We believe one positive aspect is their earnest efforts to achieve profitability. When they were initially listed, just a year or two ago, they were grappling with significant losses. However, some companies, like Zomato, have shown remarkable progress, particularly from an operational leverage standpoint. Now, they are finally turning a profit, with positive operating margins. This development seems to resonate well with the market, especially given the current low Foreign Institutional Investor (FII) flows. When these investments pick up in the future, we might witness substantial capital flowing into select companies from this group. Take Paytm, for instance; they've diversified into the lending business. However, the lending sector is becoming increasingly competitive due to the entry of new players. Observing how this landscape evolves will be crucial moving forward.

The exchange has invited applications for the position of MD & CEO, set to commence on May 10, 2024 as the current incumbent's tenure comes to an end

With several imponderables on the horizon over the next 12 months, the market will see a rise in volatility, Ridham Desai, managing director, Morgan Stanley, has said in an exclusive interview to Moneycontrol. The fact that the market is currently witnessing very low volatility sets the stage for rising volatility in the months to come, he said. READ MORE

Satin Creditcare Network has raised Rs 35 crore via NCDs. Its Working Committee has allotted 3,500 NCDs (non-convertible debentures) of face value of Rs 1 lakh each.

Bharat Forge informed that an application made to the Registrar of Companies, Pune (ROC) for strike-off of BF Premier Energy Systems Private Limited, a joint venture
between the Company’s wholly owned subsidiary - Kalyani Strategic Systems Limited, and Premier Explosives Limited, has been duly approved by the ROC vide
letter dated November 25, 2023.

Due to prolonged inoperativeness and the inability to achieve its intended objective, the joint venture partners - KSSL and PEL had initiated the strike-off process as per statutory regulations and in compliance with the applicable laws. This strike-off action has no material impact on the financials or operations of the Company or its subsidiary, KSSL.

-Political parties are promising health insurance for all in respective states
-If that happens business will flow to PSUs rather than private players
-Large chunk of new business could flow to PSUs - this was the trigger for rally in NIA & GIC
-No particular trigger for LIC - was a ruboff effect
-Sector rotation underway – from NBFCs to PSU insurers amid negative news around banks and financial companies
-Annual numbers for Life insurers may not be very good
-New India & ICICI Lombard look good
-Government divestment target – will be an overhang for LIC

IREDA, a state-run Mini Ratna NBFC, is poised to make history with its upcoming mainboard IPO, drawing significant attention despite being fully priced. The QIB segment's oversubscription by 104 times indicates strong market anticipation for its debut on November 29.

Mehta Equities predicts a promising 25% or more listing gain against the Rs 32/- issue price, citing IREDA's leading role in renewable energy financing and potential Navratna company upgrade.

The NBFC's financial autonomy is expected to boost its competitive edge. Positioned as India's largest green financing NBFC, IREDA aligns with the nation's ambitious renewable energy goals.

Short-term investors are advised to consider booking profits above the expected gain, while long-term investors are encouraged to hold for future potential. Mehta Equities suggests accumulating IREDA post-listing dips for promising long-term returns, extending an opportunity for those who missed the public offer.

Satin Creditcare Network has raised Rs 35 crore via NCDs. Its Working Committee has allotted 3,500 NCDs (non-convertible debentures) of face value of Rs 1 lakh each.

Sensex Today | Market at 11 AM

The Sensex was up 2.01 points or 0.00 percent at 65,972.05, and the Nifty was up 26.10 points or 0.13 percent at 19,820.80. About 1894 shares advanced, 1269 shares declined, and 120 shares unchanged.

-Buy call, target Rs 400 per share
-Announces divestment of Malar hospital for Rs 128 crore
-Divestment marks company’s exit from Chennai market
-Divestment is a significant step in company’s ongoing portfolio rationalisation strategy
-Company still has 4-5 facilities operating inefficiently, could potentially divest some
-Fortis plans to add 1,400 beds (ex-acquisitions like Manesar) over next 3-4 years
-Plans to add beds largely in Delhi NCR & Punjab regions

-Will continue to see marquee investors exit this counter
-Business hasn’t done as well as expected
-They have turned EBITDA positive, but still level of profitability that market is expecting won’t be delivered in the next 5-6 years
-Investors may look at exiting at every opportunity; that would keep stock in check
-Don’t see any sharp upmove from current levels