Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
The Nifty had broken out on the upside recently following a brief consolidation. Despite of a negative start on August 16, the index managed to inch higher. However, the hourly momentum indicator is showing weakness. It has turned its trajectory down from the overbought zone. Thus the index can step into a minor consolidation before heading higher. The consolidation can take place near 16450-16600 post which the Nifty can head towards 16800 in the short term.
Ajit Mishra, VP - Research, Religare Broking:
Markets traded lacklustre and ended marginally higher, in absence of any major trigger. The tone was muted in the beginning however healthy buying in select heavyweights like Reliance combined with stocks from the metal and financials space aided the index to inch higher as the session progressed. The broader market indices continued their underperformance and ended lower in a range of 0.3-0.8%.
As the results season is largely behind us, domestic factors viz. updates on further unlocking and pace of vaccination will remain in focus. Meanwhile, performance of the global indices may induce further volatility. Since we’re seeing limited participation, traders should focus on sectors which are trading in sync with the benchmark and wisely choose the stocks.
Rahul Sharma, Co-Founder, Equity99:
Nifty has once more formed a bullish candle at closing, with gaining intraday 33.95 points it managed to close at new record high levels, now going ahead 15500 will act as a psychological level for immediate support followed by 15475 -16425-16375 levels. Similarly on the upper side 16600 will act as resistance followed by 16675 levels.
Nifty Bank which underperformed Nifty50 which lost 74.85 points and closed at 36094.50, has immediate support at 35900 & if it breaks this level then 35700-35550 will be the next support. On the upside 36300 will be the hurdle above which 36550-36700 will act as the resistance level.
S Ranganathan, Head of Research at LKP securities:
The Metal Index and Capex plans in Europe by Tata Steel helped Indices to close in the green today as Reliance together with the Bajaj Twins lent good support. However, the under-performance of PSU stocks continues to worry investors even as the Pharma names met with selling pressure yet again. Stellar listing of a QSR today which provided 55% returns cheered IPO investors.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities:
Despite weak global market conditions, Indian markets maintained the bullish momentum amid sharp intraday volatility. On daily charts, benchmark index Nifty has formed a breakout continuation formation. The texture of the chart suggests the 16,450-16,400 level would act as a key support level for the day traders. As long as the index is trading above the same, the uptrend texture is likely to continue up to 16,600-16,640 levels. In the near future, the market may consolidate near 16,600 resistance level.
Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers:
Indian markets started mixed following mixed Asian markets cues as China economic data disappoints with retail sales in China rose 8.5% in July as compared with a year ago, far lower than the 11.5% forecasted. Also, worries around geopolitical concerns in Afghanistan kept investors on bay. During the afternoon session, markets turned positive as buying in Energy, Oil & Gas and Metal sectors lifted the indices. Sentiments were upbeat as India's annual wholesale price inflation eased to 11.16% in July from the previous month's 12.07%, helped by lower increases in the cost of fuel and food items. Additional support also came with ICRA Ratings’ report stating that that most states are likely to be in better fiscal health this financial year as 20 of them are collectively carrying forward Rs 2.6 lakh crore borrowed in FY21 to this fiscal.
Vinod Nair, Head of Research at Geojit Financial Services:
The domestic market failed to maintain its momentum and traded on a flat note throughout the day as selling was witnessed in the key sectors amidst weakness in global markets. India’s WPI inflation eased for the second consecutive month to 11.16% in July against 12.07% in June as food and crude prices softened.
Metals outshined other indices backed by better quarterly earnings. Due to weaker-than-expected Chinese economic data and surge in virus outbreaks, global indices traded under pressure.
CARE Ratings on WPI Data:
The wholesale inflation in July’21 registered a year-on-year increase of 11.2%, lower than the rise of 12.1% in June’21. This was the fourth successive month of double digit growth and this high rate of inflation in large part is credited to the low base/ low inflation reading of the corresponding period of 2020. Although on a year-on-year basis, the growth in wholesale inflation softened in July, it continued to rise on a sequential basis. This raises concerns over the underlying price pressures in the economy. CARE Ratings' expect WPI Inflation to be around 10% for the next couple of months.
Market Close
: Benchmark indices ended on positive note supported by metal and oil & gas names.
At close, the Sensex was up 145.29 points or 0.26% at 55582.58, and the Nifty was up 33.90 points or 0.21% at 16563. About 1146 shares have advanced, 2068 shares declined, and 136 shares are unchanged.
On the sectoral front, Nifty metal added over 1 percent, while selling was seen in the auto, bank, pharma and IT names. BSE midcap and smallcap indices ended in the red.
Tata Steel, Bajaj Finance, M&M, IOC and Britannia Industries were the top Nifty gainers. Maruti Suzuki, Shree Cements, Power Grid Corp, Bajaj Auto and Eicher Motors were among the top losers.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed some lackluster movement and an attempt to hold the support level around the Nifty 50 Index level of 16500. The market shows that it is going to be crucial for the short-term market scenario to sustain above the 16500 level.
The deviation in Nifty 50, Nifty mid-cap and Nifty small-cap hence market advise the traders to refrain from building a new buying position until further improvement is seen in the market breadth.
Gold Updates:
Gold prices edged lower on Monday as the dollar held steady, although receding worries about early tapering by the Federal Reserve and concerns over the Delta coronavirus variant kept bullion near a one-week peak.
Nomura on Indraprastha Gas:
The research house Nomura has maintained buy rating on the stock with a target at Rs 650 per share.
The Q1 was in-line and the outlook is good. The volume was impacted by COVID-19 but should see a sharp recovery.
Its gross margin improves in Q1 and further expansion likely in Q2.
The volume recovery is underway and launch of new CNG variants to boost conversions. Also, over 100% domestic gas price hike is likely and expect CGDs to pass on price rise.
Indraprastha Gas was quoting at Rs 539.35, up Rs 4.50, or 0.84 percent on the BSE.
Nifty PSU Bank index slipped nearly 1 percent dragged by the Bank of Maharashtra, IOB, Central Bank of India:
Market at 3 PM
Benchmark indices are trading higher with Nifty holding above 16550.
The Sensex was up 194.73 points or 0.35% at 55,632.02, and the Nifty was up 48.20 points or 0.29% at 16,577.30. About 1058 shares have advanced, 1971 shares declined, and 109 shares are unchanged.
European Markets trade lower:
Tapan Patel- Senior Analyst (Commodities), HDFC Securities:
Crude oil prices traded lower with benchmark NYMEX WTI crude oil prices fell by 1.86% near $66.94 per barrel for the day. MCX Crude oil August futures plunged by 1.95% at Rs 4,982 per barrel by noon.
Crude oil prices are expected to trade down for the day with resistance at $69 and support at $65 per barrel. MCX Crude oil August has support at Rs 4910 and resistance at Rs 5060.
PE/VC investments touch all-time high of $9.5 billion in July: Report
Investments by private equity and venture capital funds doubled to a record high of $9.5 billion in July mainly driven by higher investor interest in the e-commerce sector, a report said on Monday. Private equity (PE) and venture capital (VC) investments stood at $4.1 billion in the year-ago period.
The activity was higher by 77 percent when compared to June's $5.4 billion, the report on monthly PE/VC investment activity by industry lobby IVCA and consultancy firm EY said.
The month recorded 19 large deals of over $100 million aggregating to $8.2 billion, compared to 10 large deals worth $3.1 billion in the year-ago period and 12 worth $3.6 billion in June 2021.
Olectra Greentech bags order for 50 electric buses worth Rs 70 crore:
Consortium of
Olcctra Greentech Limited and Evey Trans Private Limited receivcd Letter of Award from one of the State Transport Authorities for 50 electric buses under FAME-I1 scheme of Government of India at approximately Rs 70 crore. The stock was trading atRs 322.50, up Rs 9.65, or 3.08 percent.
Market update at 2 PM:
Sensex is up 180.33 points or 0.33% at 55617.62, and the Nifty added 39.90 points or 0.24% at 16569. Tata Steel, Mahindra & Mahindra and Bajaj Finance are the top gainers while Tata Steel, Reliance Industries and Apollo Hospitals are the most active stocks.
Gaurav Garg, Head of Research, CapitalVia Global Research:
Indian benchmark had a cautious start today with slight negativity in the market around the level of 16500 as there is no major changes in the market. Traders and investors remained cautious as according to a private report India is unlikely to become the 5 trillion economy by 2025 due to the slow down caused by the covid 19 pandemic.
Sentiments remain intact and poised towards positivity as the government focuses more on the infrastructure in the coming time which will help the economy reach new heights. Our research suggests that 16350 is an important support level in the short term, if the market sustains above this level, we can expect the market to remain positive and gain momentum, leading to an upside projection till 16700-16750 level.
D.R.E Reddy, CEO and Managing Partner, CRCL LLP on the WPI Data:
WPI inflation for the month of July has eased MoM to 11.16%. It is on expected lines as the supply side issues are getting addressed due to ease in lockdown. The ease in WPI is in tandem with the falling CPI. Falling inflation is in line with the guidance provided by the central bank and this complements RBI's monetary policy stand. High inflation is transient and expected to ease further as progress with a good monsoon year.
The rise in the number of total vaccination is expected to normalize the overall situation, unlocking for normal business activities. The WPI inflation is expected to ease to a single digit by the end of FY22 with CPI well within the RBI mandated 2-6% band.
BSE Metals index rose 1 percent supported by the Tata Steel Vedanta, Hindustan Zinc:
Gravita increases Chittoor unit capacity by 10,200 mtpa:
Gravita India has increased capacity of its existing recycling unit situated at Chittoor, Andhra Pradesh.
The existing capacity of said unit of lead recycling has been increased by 10,200 MTPA and as on date the total capacity of this unit for lead recycling is 38,200 MTPA, company said in the release.
Gravita India was quoting at Rs 198.10, up Rs 12.05, or 6.48 percent on the BSE.
Market at 1 PM
Benchmark indices were trading higher in the afternoon session with Nifty around 16,550.
The Sensex was up 148.91 points or 0.27% at 55586.20, and the Nifty was up 29.70 points or 0.18% at 16558.80. About 1031 shares have advanced, 1935 shares declined, and 102 shares are unchanged.
BSE Oil & Gas index added 1 percent led by the GSPL, Reliance Industries, BPCL:
Nifty Pharma index shed nearly 1 percent dragged by the Cadila Healthcare, Aurobindo Pharma, Lupin
Ruchi Soya has received SEBI approval to launch an FPO:
The Securities and Exchange Board of India (SEBI) has approved Ruchi Soya’s application for a Follow-on Public Offer (FPO).
The market regulator has approved the draft document of the company, owned by the Baba Ramdev-led Patanjali Ayurveda, for an FPO of up to Rs 4,300 crore, said a source close to the development.
JUST IN |
July WPI inflation stood at 11.16% versus 12.07% and Core inflation at 10.8% versus 10.4%, MoM.
Market at 12 PM
Benchmark indices were trading near the day's high with Nifty around 16,550.
The Sensex was up 173.23 points or 0.31% at 55,610.52, and the Nifty was up 36.60 points or 0.22% at 16,565.70. About 1042 shares have advanced, 1867 shares declined, and 123 shares are unchanged.
Buzzzing
SpiceJet share price fell more than 11 percent on August 16 after company's net losses widen in the quarter ended June 2021.
The company on August 13, posted a consolidated net loss of Rs 731.12 crore for Q1FY22 against a loss of Rs 600.52 crore in the same quarter last year.
Total revenue from operations more than doubled to Rs 1,125 crore for the quarter under review against Rs 521 crore in Q1FY21.The company reported EBIDTAR loss of Rs 104 crore.
Apollo Hospitals shares hit 52-week high
Apollo Hospitals Enterprises share price jumped more than 5 percent after the company reported consolidated profit after tax (PAT) at Rs 489 crore for the June quarter of the financial year 2021-22. The healthcare major had reported a net loss of Rs 208 crore in the April-June quarter of 2020-21.
Global research firm CLSA has upgraded the stock to outperform from sell and has raised the target to Rs 4,420 from Rs 2,900 a share.
Market update at 11 AM
Sensex is up 86.79 points or 0.16% at 55524.08, and the Nifty added 16.40 points or 0.10% at 16545.50. M&M, Tata Steel and Bajaj Finserv are the top gainers while Tata Steel, Apollo Hospitals and Vedanta are the most active stocks.
Nifty Auto index slipped 0.5 percent dragged by the TVS Motor, Bajaj Auto, Maruti Suzuki:
Ajit Mishra, VP Research. Religare Broking:
The coming week is a holiday-shortened one and participants will be first eyeing WPI inflation data which is scheduled on August 16. In absence of any major event, the news of further unlocking by the states and pace of vaccination drive would remain in focus. On the global front, the rising COVID cases due to the delta variant remain the key concern.
Markets are taking comfort from the upbeat global markets and supportive domestic cues amid the fear of a third COVID wave. However, we’re now seeing restricted participation and expect the same trend to continue, at least in the near future. We thus advise continuing with the “buy on dips” approach but focus largely on index majors and select midcaps for long trades.
Among the sectors, participants should focus on banking (mainly private), financials, energy, FMCG and metal for fresh positions while pharma, media and realty may continue to trade lackluster.
Goldman Sachs keeps buy on Aurobindo Pharma:
Goldman Sachs has maintained buy rating on Aurobindo Pharma and cut the target price to Rs 980 from Rs 1,140 per share.
The Q1 misses estimates, but earnings to show steady recovery. However, cut FY22-24 EPS estimates by up to 10%, said Goldman Sachs.
At current valuation, concerns around pricing pressure are in the price, it added.
Aurobindo Pharma was quoting at Rs 751.10, down Rs 10, or 1.31 percent on the BSE.
SBI to give interest concession of 75 bps on gold loan:
State Bank of India (SBI) to give interest concession of 75 bps on gold loan across all channels. It also waives-off processing fees on car, gold, personal & pension loans.
However, depositors to get additional interest up to 15 bps on term deposits, reported CNBC-TV18.
State Bank of India was quoting at Rs 429.60, down Rs 1.75, or 0.41 percent on the BSE.
Exxaro Tiles debuts at Rs 126
The initial public offering (IPO) of Exxaro Tiles, the firm that manufactures double charge vitrified tiles and glazed vitrified tiles, started off the first day trade on a strong note on August 16, as it listed at a over 10 percent premium on the bourses. The stock opened at Rs 126 on the BSE and on the National Stock Exchange.
Windlas Biotech debuts at Rs 439 per share over issue price:
The initial public offering (IPO) of Windlas Biotech, one the top five players in the domestic pharmaceutical formulations contract development and manufacturing organization industry in terms of revenue, started off the first day trade at Rs 439 per share on August 16.
The stock opened at Rs 439 on the BSE and Rs 437 on the National Stock Exchange.
Krsnaa Diagnostics IPO shares debut at a 7% premium over issue price:
Krsnaa Diagnostics, one of the largest differentiated diagnostic service providers in India, started off the first day of trade on a positive note on August 16, as it listed at a 7 percent premium on the bourses.
The stock opened at Rs 1,025 on the BSE and Rs 1,005.55 on the National Stock Exchange.
Devyani International IPO shares list at a 56% premium over issue price:
KFC, Pizza Hut and Costa Coffee operator Devyani International shares made a bumper debut on August 16 as the stock listed with a 56 percent premium on the bourses.
It opened at Rs 141 on the BSE and Rs 140.90 on the National Stock Exchange, against issue price of Rs 90 per share. Read More
Market at 10 AM
Benchmark indices were trading flat in the volatile session.
The Sensex was up 33.45 points or 0.06% at 55470.74, and the Nifty was up 1.30 points or 0.01% at 16530.40. About 1054 shares have advanced, 1652 shares declined, and 117 shares are unchanged.
Buzzing:
Tata Steel share price touched a 52-week high of Rs 1,498.45, up 2.5 percent on August 16 after the company reported its June quarter earnings.
On August 12, the company posted a consolidated net profit of Rs 9,768.34 crore for the quarter ended June 30, 2021.
It had posted net loss of Rs 4,648.13 crore in the year-ago period.
Total income zoomed to Rs 53,534.04 crore during the quarter under review from Rs 25,662.43 crore a year ago.
Latent View Analytics files draft papers for Rs 600 crore IPO:
Data analytics services provider Latent View Analytics has filed draft papers with the capital markets regulator SEBI for fundraising via an initial public offering (IPO).
The company intends to raise Rs 600 crore through the public issue that comprises a fresh issue of Rs 474 crore, and an offer for sale of Rs 126 crore by promoters and investors. The company has a total of 44 shareholders including two promoters. Read More
