Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities:
The positive takeaway from today’s trading session was that Nifty showed resilience to sellers as bulls’ stepped-in after morning wobble taking the winning streak to three. Most importantly, bulls held to the reins – keeping weak Asian cues, inflation and recession fears at bay.
The technical landscape for Nifty is likely to be positive as long as the benchmark trades above its biggest support at 17121 mark with target at 17889.
Ajit Mishra, VP - Research, Religare Broking
Markets traded lackluster and ended almost unchanged amid muted global cues. After the minor swings in early trades, the benchmark traded in a narrow range for most of the day and closed flat.
Consequently, the Nifty index settled at 17,544 levels. Meanwhile, sectoral indices traded mixed wherein the metal and capital goods showed traction while IT, realty and consumer durables traded under pressure.
We reiterate our bullish view on markets and suggest continuing with the “buy on dips” approach until the Nifty holds 17,300. Meanwhile, global cues, earnings and upcoming macro data would keep the volatility high. Participants should align their positions accordingly and avoid contrarian bets.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services:
Global as well as domestic markets were lackluster after China’s CPI inflation accelerated 2.7% in July, its highest level in two years and ahead of release of US inflation data. Nifty opened higher and consolidated in a narrow range to finally close with marginal gains at 17,535 levels.
After rising more than 2000 points from June lows, Nifty is currently trading at 20x FY23 PE, which is above its 10-year average, thus offering limited upside in the near term. Market seems to be taking a pause before resuming its fresh rally.
Despite mixed global cues, increasing geopolitical tensions and higher volatility, Indian equities are holding out well with strong buying emerging at lower levels.
Going ahead, a tug-of-war between global and domestic factors would determine the market direction. Release of U.S. inflation data today (Wednesday) and domestic inflation data on Friday could provide direction to the market. While large caps have already moved up, we expect outperformance from midcaps to continue from hereon.
Mohit Nigam, Head - PMS, Hem Securities:
Benchmark Indices closed flat amid volatility. Strong buying is witnessed in Capital Good and Metal stocks while some selling is witnessed in IT stocks today.
On the technical front, Nifty 50 is showing bullish momentum after the recent consolidation and this momentum may continue to 17800 levels in the short term. On the downside 17200 may remain immediate support in Nifty 50. Immediate support and resistance for Bank Nifty are 37,700 and 38,750 respectively.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Markets traded in a narrow range with a negative bias for most part of the trading session, as traders followed global direction and exhibited caution ahead of the key US inflation data. If inflation inches higher, markets worldwide fear that the US Fed would maintain its hawkish stance and hike rates further. Also US bond yields witnessing a steep curve has been a cause of concern as markets fear it could be a sign of recession going ahead.
Technically, the support has shifted to 17450 from 17350. As long as the Nifty is trading above 17450, the uptrend formation is likely to continue and above which, the index could move up to 17600-17650. However, below 17450 the uptrend would be vulnerable and could retest the level of 17350-17300.
Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities:
USDINR spot closed 14 paise lower at 79.52, in a day of lackluster trading. Some exporter flows and oil demand kept the pair steady.
Speculators were on sidelines ahead of the US inflation report, later in the evening. Over the near term, we expect USDINR to remain rangebound between 79.00 and 80.00 levels on spot.
Eicher Motors Q1 Results
Eicher Motors has posted profit of Rs 610.6 crore in the quarter ended June 2022 against Rs 237.1 crore and revenue was up 72.1% at Rs 3,397.5 crore against Rs 1,974.3 crore, YoY.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
The Nifty recently surpassed the 78.6% retracement of the Apr – June decline, which is near 17500. On August 10, the Nifty started on a positive note however there was no follow through buying. Consequently, the index consolidated its recent gains near 17500 throughout the day.
Although there is weakness in the short term momentum indicators, the price action is maintaining the upward trajectory. Minor degree dips are getting support near the 20 hour moving average.
As long as the index trades above the near term support zone of 17360-17300 it is expected to hold the short term positive stance. Thus, going ahead, the Nifty can test 17750-17800 in the short term.
Rupak De, Senior Technical Analyst at LKP Securities:
Nifty has confirmed the resilience of the up trend by closing above the previous congestion high on the daily chart. The important moving averages are lying comfortably below the current index value confirming the uptrend again.
The trend may remain bullish over the short term as long as it remains above 17350. However, the rally towards 17750-17800 is likely to attract selling pressure.
Vinod Nair, Head of Research at Geojit Financial Services.
Investors were in a cautious mode in anticipation of the release of US inflation statistics, which will set the tone for the next FED policy meeting.
The US CPI inflation during July is projected to remain high, in line with June inflation levels. This, along with strong job data, will compel the FED to keep taking a tough approach to rein in high inflation levels.
Indiabulls Housing Finance Q1 Earnings:
Indiabulls Housing Finance has posted consolidated net profit at Rs 286.6 crore against Rs 281.7 crore and revenue was down 10.6% at Rs 2,075 crore versus Rs 2,321 crore, YoY.
Market Close
: In the volatile session, the Indian benchmark indices ended on flat note on August 10.
At Close, the Sensex was down 35.78 points or 0.06% at 58,817.29, and the Nifty was up 9.70 points or 0.06% at 17,534.80. About 1501 shares have advanced, 1817 shares declined, and 119 shares are unchanged.
Hindalco Industries, UPL, Apollo Hospitals, Coal India and Tata Steel were among the major Nifty gainers. The losers included Bajaj Finance, NTPC, ONGC, HCL Technologies and Adani Ports.
Among sectors, Capital Good index rose 1 percent and Metal index added nearly 2 percent, while Information Technology index shed 1 percent.
BSE midcap and smallcap indices ended on flat note.
Rupee Close:
Indian rupee ended higher by 14 paise at 79.51 per dollar versus Monday's close of 79.65.
Buzzing
Narayana Hrudayalaya clocked a 45% YoY growth in consolidated PAT at Rs 110.6 crore for the quarter ended June FY23. Revenue for the quarter grew by 20.2% YoY to Rs 1,033.4 crore and EBITDA increased 42.5% to Rs 200 crore compared to corresponding period last fiscal.
Vedant Fashions Q1 profit jumps 123%
Vedant Fashions registered a 123% YoY growth in profit at Rs 100.87 crore for the quarter ended June FY23 on a low base. The Q1FY22 earnings were affected by second Covid wave. Revenue grew by 103% to Rs 325 crore compared to corresponding period last fiscal.
Dilip Buildcon bags project in Madhya Pradesh
Dilip Buildcon through joint venture Dilip Buildcon-Skyway Infraprojects has received letter of acceptance (LOA) for new project 'Gandhisagar-2 multi-village water supply scheme' in Madhya Pradesh. The order is worth Rs 1,400.04 crore.
Dilip Buildcon was quoting at Rs 247.00, up Rs 2.05, or 0.84 percent.
JUST IN | Bank of Baroda hiked lending rates by 5-20 bps, reported CNBC-TV18.
CLSA View On Adani Ports
The traffic recovering fast, led by coal imports.
The company is on track to meet its muted guidance of 12-15% traffic growth in FY23.
CLSA has unhedged USD 4 bullion FX debt led to a MTM hit of Rs 1,200 crore, reported CNBC-TV18.
Adani Ports and Special Economic Zone was quoting at Rs 791.50, down Rs 9.75, or 1.22 percent.
Market at 3 PM
Benchmark indices were trading flat in the volatile session with Nifty holding above 17500.
The Sensex was down 36.24 points or 0.06% at 58816.83, and the Nifty was up 6 points or 0.03% at 17531.10. About 1443 shares have advanced, 1738 shares declined, and 97 shares are unchanged.
Hindalco Q1 Results
Hindalco Industries reported a 47.8 percent rise in its consolidated net profit to Rs 4,119 crore for the first quarter ended June 2022 as against Rs 2,787 crore recorded a year ago.
Consolidated revenue rose 40.3 percent on-year to Rs 58,018 crore, as compared to a revenue of Rs 41,358 crore registered in the year-ago quarter.
The EBITDA for the quarter at Rs 8,640 crore jumped 27 percent on-year and was its highest ever EBITDA achieved in any quarter. Read More
Jefferies View On Indraprastha Gas
Jefferies has maintained buy rating on Indraprastha Gas and cut target to Rs 450 from Rs 590 per share.
The company has reported a 9 percent EBITDA beat led by better margin and benefitted from the lower priced pooled gas from GAIL.
The margin should be under pressure in Q2 and have enough room to raise price; expect it to defend margin.
Jefferies has cut FY23/24 EPS estimates by 10 percent/9 percent, reported CNBC-TV18.
Dhanlaxmi Bank posts Q1 loss at Rs 26.43 crore
Dhanlaxmi Bank: The bank posted loss of Rs 26.43 crore for the quarter ended June FY23 on higher provisions for bad loans, negative other income and operating profit, against profit of Rs 6.79 crore in corresponding period last fiscal. Net interest income grew by 47.5% to Rs 117.30 crore during the same period.
Dhanlaxmi Bank was quoting at Rs 12.06, down Rs 0.24, or 1.95 percent on the BSE.
City Union Bank Q1 Results:
City Union Bank reported a 30% year-on-year increase in profit at Rs 225.14 crore for the quarter ended June FY23, supported by lower provisions, and higher operating profit & other income. Net interest income grew by 17.3% to Rs 524.91 crore compared to corresponding period last fiscal.
Tata Power to set up EV charging points across JP Infra's residential projects
In alignment with the Maharashtra Government’s EV Policy, Tata Power and JP Infra Mumbai Private Limited have joined hands to install 60+ electric vehicle charging points across all JP Infra's projects viz. JP North Garden City (North Euphoria, North Alexa, North Aviva, Codename Dream Home), North Barcelona, and North Imperia, thus providing endto-end EV charging solutions to residents for making sustainable mobility achievable. Tata Power was trading at Rs 228.05, down Rs 0.25, or 0.11 percent on BSE. It has touched an intraday high of Rs 230.30 and an intraday low of Rs 227.20.
Avanti Feeds Q1
Net profit went down 9.1% at Rs 66.3 crore against Rs 72.9 crore (YoY). Revenue was up 11.4% at Rs 1,569.3 crore against Rs 1,409 crore (YoY). EBITDA was up 9.7% at Rs 104 crore against Rs 95 Cr (YoY).
Munjal Auto Industries Q1
Net profit at Rs 45.5 crore against Rs 4.5 crore (YoY). Revenue was up 10.3% at Rs 481 crore against Rs 436 crore (YoY). EBITDA gained 37.5% at Rs 25.1 crore against Rs 18.3 crore (YoY). Margin at 5.2% against 4.2% (YoY). The stock was trading at Rs 50.55, up Rs 5.60, or 12.46 percent. It has touched an intraday high of Rs 53.50 and an intraday low of Rs 44.30. It was trading with volumes of 246,405 shares, compared to its five day average of 6,888 shares, an increase of 3,477.31 percent.
European Markets Updates
MM Forgings Q1
Net profit was up 22.7% at Rs 28.3 crore against Rs 23.1 crore (YoY). Revenue rose 37.2% at Rs 343.6 crore against Rs 250.4 crore (YoY). EBITDA was up 27.7% at Rs 62.8 crore against Rs 49.2 crore (YoY). Margin at 18.3% against 19.6% (YoY).
Tapan Patel, Senior Analyst (Commodities), HDFC Securities
:
Crude oil prices traded lower with benchmark NYMEX WTI crude oil prices fell by 0.38% to $90.15 per barrel on Wednesday. Crude oil prices extended losses after industry data showed US crude stockpiles grew more than expected in the past week. Data from the American Petroleum Institute showed that US oil inventories grew more than expected in the prior week. Stocks of crude oil, gasoline and distillates stood at 2.16 million barrels, compared with a forecast of less than 100,000 barrels.
We expect crude oil prices to trade sideways to down with resistance at $92 per barrel with support at $87 per barrel. MCX crude oil August contract has important support at Rs 7010 and resistance at Rs 7350 per barrel.
NHPC Q1: Net profit was up 15% at Rs 1,049.6 crore against Rs 912.3 crore (YoY). Revenue was up 19.5% at Rs 2,594.4 crore against Rs 2,170.2 crore (YoY). EBITDA rose 10% at Rs 1,407 crore against Rs 1,279 crore (YoY).
VRL Logistics Q1
Net profit at Rs 49.4 crore against loss of Rs 6 crore (YoY). Revenue jumped 73.3% at Rs 717.1 crore against Rs 413.8 crore (YoY). EBITDA at Rs 114.4 crore against Rs 36.1 crore (YoY). Margin at 15.9% against 8.75% (YoY). The stock was trading at Rs 615.45, up Rs 1.05, or 0.17 percent on BSE. It has touched an intraday high of Rs 636.60 and an intraday low of Rs 598.
Market update at 2 PM: Sensex is down 83.44 points or 0.14% at 58769.63, and the Nifty shed 13.30 points or 0.08% at 17511.80.
Pidilite Industries Q1 Results:
Pidilite Industries has posted 64 percent rise in its consolidated net profit at Rs 357.5 crore against Rs 217.6 crore and revenue was up 60.1% at Rs 3,101 crore against Rs 1,936.8 crore, YoY.
Pidilite Industries was quoting at Rs 2,631.45, down Rs 18.55, or 0.70 percent on the BSE.
Ipca Laboratories Q1:
Ipca Laboratories has posted consolidated net profit at Rs 143 crore versus Rs 306 crore and revenue was up 1.3% at Rs 1,585.7 crore versus Rs 1,565.8 crore, YoY
Zydus Lifesciences Q1 earnings:
Zydus Lifesciences has posted consolidated net profit at Rs 518.3 crore versus Rs 587.2 crore and revenue was up at Rs 4,072.7 crore versus Rs 4001.8 crore, YoY
ydus Lifesciences was quoting at Rs 364.25, up Rs 3.65, or 1.01 percent.
Precision Wires Q1 Results:
Precision Wires Q1 standalone net profit rose 44.8% at Rs 16.8 crore versus Rs 11.6 crore and revenue was up 55.5% at Rs 826.2 crore versus Rs 531.4 crore, YoY
BSE Metal index rose 0.5 percent led by the APL Apollo Tubes, NMDC, Coal India
Nomura View On ABB India
The research house Nomura has kept maintained neutral rating on ABB with a target at Rs 2,268 per share.
The strong sales growth beats our as well as consensus estimates and we prefer Siemens India in the segment, said Nomura.
The sluggish industrial capex and commodity price rises are downside risks, reported CNBC-TV18.
ABB India touched a 52-week high of Rs 2,851.35 and was quoting at Rs 2,774.75, up Rs 56.60, or 2.08 percent on the BSE.
IDFC Q1:
IDFC has posted standalone net profit at Rs 167.5 crore versus loss of Rs 4 crore and revenue was at Rs 174.7 versus Rs 1 crore, YoY.
Market at 1 PM
Benchmark indices were trading lower with Nifty around 17500.
The Sensex was down 92.59 points or 0.16% at 58760.48, and the Nifty was down 20.60 points or 0.12% at 17504.50. About 1448 shares have advanced, 1675 shares declined, and 106 shares are unchanged.
PSP Projects Q1:
PSP Projects has posted 16.5 percent jump in its Q1 net profit at Rs 29 crore versus Rs 25 crore and revenue was up 9.7% at Rs 348 crore versus Rs 317.4 crore, YoY.
Mawana Sugars Q1:
Mawana Sugars has reported net loss of Rs 11.8 crore in the quarter ended June 2022 versus loss of Rs 2 crore and revenue was down 14.5% at Rs 308.1 crore versus Rs 360.3 crore, YoY.
Mawana Sugars was quoting at Rs 88.25, down Rs 3.10, or 3.39 percent on the BSE.
BLS International signs contract with Royal Thai Consulate-General
BLS International has been authorized by the Royal Thai Consulate-General, Chennai recently. BLS will be accepting and processing visa applications on behalf of the Royal Thai Consulate-General, Chennai from 5th August onwards.
BLS International Services was quoting at Rs 233.20, down Rs 1.85, or 0.79 percent.
Torrent Power Q1 results:
Torrent Power recorded a 142% year-on-year increase in consolidated profit at Rs 502 crore in the quarter ended June FY23, led by healthy top line, operating income and other income. Revenue grew by 110% to Rs 6,510 crore compared to corresponding quarter of previous fiscal.
Profitability was supported by increase in contribution from renewable generation, gain from trading of LNG, improved performance of licensed distribution businesses, and increase in contribution from franchised distribution business.
Torrent Power was quoting at Rs 544.25, down Rs 4.50, or 0.82 percent on the BSE.
Buzzing
Whirlpool of India registered a 232% year-on-year increase in consolidated profit at Rs 84.6 crore for the June FY23 quarter partly supported by low base. The Q1FY22 profit was affected by second Covid wave.
Revenue grew by 55% to Rs 2,081 crore compared to same period last year.
Whirlpool of India was quoting at Rs 1,815.60, up Rs 14.60, or 0.81 percent on the BSE.
Hester Biosciences Q1:
Hester Biosciences has reported 67.6% fall in its net profit at Rs 3.6 crore versus Rs 11 crore and revenue was down 15.8% at Rs 50.7 crore versus Rs 60.2 crore, YoY.
Cummins India Q1:
Cummins India has reported 19.8 percent fall in its Q1 net profit at Rs 198 crore versus Rs 247 crore and revenue was up 41.9% at Rs 1,696 crore versus Rs 1,195 crore, YoY
Cummins India was quoting at Rs 1,207.50, up Rs 18.50, or 1.56 percent.
