Closing Bell: Nifty manages to hold 15K amid weakness, Sensex falls 290 pts; pharma stocks gain

Taking Stock | Nifty Holds 15,000 Amid Volatility; Metals Drag, Realty Outshines

On the BSE, realty, power and healthcare indices rose 1-2 percent, while metal, bank and auto indices ended in the red.... Read More

The index is facing resistance at higher levels. In the last couple of instances, the Nifty has crossed 15000 with gusto and has turned back from there. If we can sustain above the 15150 level, we will break out on the upside and climb towards 15400. On the downside there is a good support at 14700 and as long as that is holding, the market trend remains positive. If we break 14700 on a closing basis, we will drift downward to 14400.

After many days of positive trend rupee changed hands 180 degrees and swung low on the back of short covering witnessed in the Dollar index, the dollar which fell below 90$ a few days back took support near 89.65$ and tries to move again back above 90$ which weaken rupee from 72.95 to 73.15. Going ahead 73.00-73.40 range will be seen in the rupee.

The recent sharp rally has triggered some caution for the near-term. The global market was tentative ahead of the announcement of Fed minutes, this was mirrored in the domestic market, though it is not expected to hawkish. Optimism gained from declining covid cases resisted a sharp correction in domestic market.

The Covid cases are moderating in India and Fed's music will remain the same, so chances of USDINR bouncing are very low. Still traders are awaiting tonight’s Fed minutes for the clues about the outlook.

The USDINR spot is hovering around 73 zone, the only fear is of RBI intervention in between 72.75-73 zone to curb any excess volatility. But in absence of RBI, the downtrend in USDINR spot may continue and USDINR spot may trade in between 72.75-73.30.

The market witnessed some lackluster movement and an attempt to hold the support level around the Nifty 50 index level of 15000. The trading above 15000 is positive from a short-term perspective. Sustaining above 15000 levels, the market to gain momentum, which could lead to an upside projection till 15370-15400 level. The momentum indicators like RSI, MACD to recover after staying neutral to bearish in recent time.

Indian rupee erased intraday gains and ended lower by 12 paise at 73.16 per dollar, amid selling saw in the domestic equity market.It opened flat at 73.02 per dollar against previous close of 73.04 and traded in the range of 72.93-73.18.

: Benchmark indices erased some of the previous session gains and ended 0.5 percent lower on May 19 dragged by the metal and financials.

At close, the Sensex was down 290.69 points or 0.58% at 49,902.64, and the Nifty was down 77.90 points or 0.52% at 15,030.20. About 1743 shares have advanced, 1249 shares declined, and 166 shares are unchanged.

Tata Motors, HDFC, JSW Steel, M&M and Bajaj Finserv were among the top losers on the Nifty. Gainers included Coal India, Cipla, Sun Pharma, UPL and IOC.

Among sectors, Nifty pharma index gained 1 percent, while metal index shed 1 percent and selling was also seen in the auto, bank and infra names. BSE Midcap and smallcap indices ended in the green.

R

Eicher Motors-owned Royal Enfield said on Wednesday it will recall 236,966 motorcycles across some models due to defects in the ignition coil that can cause misfiring and reduce the vehicle's performance.

Company has posted consolidated Q4 net profit at Rs 24.2 crore versus loss of Rs 209.2 crore and revenue was down 5.1% at Rs 619.3 crore versus Rs 652.6 crore, YoY.

Heritage Foods touched a 52-week high of Rs 390 and was quoting at Rs 345.00, down Rs 13.15, or 3.67 percent on the BSE.

The due diligence process for Air India, BPCL divestment delayed by a few months due to second COVID wave. Still hoping to receive Air India financial bids by September. SCI, BEML, divestments also likely impacted by second COVID wave, while Air India, BPCL transactions will conclude in FY22, quoting Sources, reported CNBC-TV18.

Indian rupee erased intraday gains and trading near the day's low at 73.14per dollar, amidweaktrade seen in the domestic equity market. It opened flat at 73.02 per dollar against previous close of 73.04.

Q4 operational performance was in line with I-direct estimates whereas bottomline was better amid higher-than-expected other income and lower interest cost. Overhang pertaining to two US focused plants notwithstanding, Torrent continues to impress thanks to its robust margin profile that can be attributed to global portfolio that comprises ~ 60% branded generics.

We expect a further improvement in this matrix, product rationalisation to further strengthen margins. The company’s portfolio is finely balanced between India, Brazil, Germany and the US with India being the leader.

With consistent FCF generation, moderation in core capex, we expect the leverage situation to improve substantially. With these key characteristics we believe the premium valuation is justified. We maintain buy with a target price of Rs 3290 (unchanged) based on 32x FY23E EPS of Rs 102.8.