Nagaraj Shetti, Technical Research Analyst, HDFC Securities:
The short term trend of Nifty continues to be positive with volatile movement. Some more upside is left in the market and Nifty is expected to reach the upper resistance area of 11350 by next week. Immediate support is placed at 11100. The stoploss for positional long trades needs to be placed at 10900 levels.
August 06, 2020 / 04:49 PM IST
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas:
The Nifty witnessed sharp swings in both the directions today. The pullback that started couple of days ago got stretched further on the upside. The index tapped at the 78.6% retracement of the previous fall, which is near 11240. The key Fibonacci level induced bears into the action to some extent. Structurally, the pullback seems to be in its terminal phase & is expected to be followed by the next leg down, which will push the Nifty below the swing low of 10882. On the other hand, any attempt to retest the 78.6% retracement mark is likely to attract fresh round of selling.
August 06, 2020 / 04:20 PM IST
Deepak Jasani, Head Retail Research, HDFC Securities:
Nifty is once again within striking distance of the near term high of 11341 and it will be interesting to watch as to how easily it manages to break that.
Banking stocks have reacted positively to the outcome despite no rate cut as the feared extension of moratorium has not happened and they will be spared of the requirement of high provisions if by Sept 30, the new committee’s recommendations are implemented. The overall market is also excited by the prudent measures implemented. However the markets lack triggers and/or flows to take it higher and hence may keep running into resistances.
August 06, 2020 / 04:15 PM IST
Vinod Nair, Head of Research at Geojit Financial Services:
Indian benchmark indices came off highs but still closed out a volatile day with gains, following RBI commentary regarding interest rate outlook. Although expectations of a rate cut were there, RBI kept rates on hold, following a rise in inflation. However, it has indicated that monetary policy will remain accommodative until growth revives. We believe that if inflation remains under control, there will be further policy easing from the central bank. With this event out of the way, markets expected to turn focus back on earnings visibility and quality.
The Monetary Policy Committee (MPC) has decided to leave the interest rates unchanged while maintaining an accommodative stance. According to the RBI Governor, economic activity has started to pick up post the lockdown caused due to the pandemic. Recovery in the rural economy is likely to be robust and aid the overall economic recovery. The MPC expects inflation to be at elevated levels in Q2FY21. The MPC is open to further monetary policy action but would like to use the dry powder judiciously keeping in mind the near term view on inflation.
More than the policy rates, it is the additional measures announced by the RBI Governor that are a welcome move and shall aid economic recovery. Some of these measures include permitting restructuring of MSME debt till 31st March 2021 and including lending to start ups under Priority Sector Lending. The RBI has also increased the loan to value ratio of gold loans to 90%. While this move is positive from a credit standpoint it is negative from the point of view of the lender since it increases the risk of the lender not being able to auction the security and recover the money due to lower margin of safety.
August 06, 2020 / 03:36 PM IST
Market Close: Benchmark indices closed higher on August 6 post Reserve Bank of India (RBI) kept the repo rate unchanged at 4 percent.
At close, the Sensex was up 362.12 points or 0.96% at 38025.45, and the Nifty was up 98.50 points or 0.89% at 11200.20. About 1567 shares have advanced, 1056 shares declined, and 167 shares are unchanged.
Infosys, Bajaj Finance, GAIL, HCL Tech and UPL were among major gainers on the Nifty, while losers were Shree Cements, Eicher Motors, Adani Ports, M&M and Bharti Airtel.
Among sectors, IT, metal, pharma and FMCG gained more than 1 percent. BSE Midcap and Smallcap indices rose 0.7 percent and 1 percent respectively.
August 06, 2020 / 03:30 PM IST
Amarjeet Maurya, AVP - Mid Caps, Angel Broking:
For 1QFY2020, Whirlpool of India's top-line declined by ~48% yoy to Rs 1,027 crore. Top-line was negatively impacted mainly due COVID-19 lockdown. On the operating front, the company reported contraction in margins, down 1,078 bps yoy at 4.5%. Operating margin down mainly due to negative impact of operating leverage. On the bottom-line front, WIL reported de-growth of ~92% yoy to Rs 16 crore due to lower sales and poor operating performance.
August 06, 2020 / 03:25 PM IST
Blue Star has reported consolidated net loss at Rs 20 crore against profit of Rs 77 crore and revenue was down 60% at Rs 626 crore versus Rs 1,575.4 crore, reported CNBC-TV18.
August 06, 2020 / 03:18 PM IST
Lupin gets USFDA nod:
Lupin in alliance with Concord Biotech announced that it has received approval from the United States Food and Drug Administration (USFDA) for Mycophenolate Mofetil Tablets USP, 500 mg, to market a generic version of CellCept Tablets of Roche Palo Alto LLC (Roche).
August 06, 2020 / 03:13 PM IST
Gujarat Pipavav Q1:
The company's consolidated net profit fell 12.5% YoY at R 9s 48.1 crore versus Rs 55 crore and revenue was down 10.5% at Rs 159 crore versus Rs 177.6 crore, reported CNBC-TV18.