Palak Kothari, Senior Technical Analyst at Choice Broking:
On a monthly expiry day, the Nifty opened on a green note and made an intraday high at 17,726.50 level but in the dying hour of the session witnessed profit booking from a higher level and closed at 17,522.45 level with a loss of 82.50 points.
On the technical front, the Nifty has faced resistance from the 17700 zone and showed supply which led to a bearish candle on the daily time frame suggesting weakness in the counter. Furthermore, Nifty has given a breakdown of the rising trend line which adds weakness to the price.
On the Open Interest (OI) Data, on the call side, the highest was witnessed at 17700 level while on the put side was at 17400 level followed by 17200. The momentum indicator stochastic was traded with a negative crossover on an Hourly time frame which suggests weakness in the counter.
The support for Nifty has shifted around 17300 levels while on the upside 17750 may act as an immediate hurdle. On the other hand, Bank Nifty has support at 38500 levels while resistance at 39500 levels.
Overall, sector specific momentum can be seen as the PSU Bank & Realty stocks are looking good for the upcoming session.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Amid heightened volatility, investors pruned their long positions on the F&O expiry day due to the uncertain global economic scenario. There are concerns that the Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium on Friday would focus on more rate hikes to rein in inflation.
Also, benchmark indices had come close to slipping into negative zones in the last two sessions, and hence correction was on expected lines.
Technically, lower top formation on intraday charts and bearish trend reversal candle on daily charts is indicating further correction from the current levels. In the short term, 17700 would be the key resistance zone and below which, the Nifty could slip till 17400-17300. On the flip side, a fresh uptrend is possible only after 17700. Above the same, the index would move up to 17800-17850.
Vinod Nair, Head of Research at Geojit Financial Services:
Ahead of the Jackson Hole symposium, investors across the world are eagerly expecting the Fed chair's speech to evaluate the outlook for monetary policy and determine whether the central bank can achieve a soft landing for the economy.
Crude prices rose as Saudi Arabia suggested that OPEC+ supply may be reduced to address market instability. Although Indian equities are trading at a premium over other emerging markets, the consistent support from FIIs is guiding the domestic market.
Rupak De, Senior Technical Analyst at LKP Securities:
Nifty formed an engulfing pattern after two days of positive move, setting a stage for a bearish reversal. The momentum indicator RSI is also pointing toward a negative momentum in the near term.
On the lower end, 17480 is likely to act as initial support; a fall below 17480 may take the index towards 17350. Below 17350 the Nifty may drift down towards 17000-16950. On the higher end, resistance is visible at 17700.
Kunal Shah, Senior Technical Analyst at LKP Securities:
The Bank index witnessed selling pressure from higher levels and failed to surpass the hurdle of 39,500 on the upside. The immediate downside support stands at the 38,500-38,400 zone and if breached will lead to further selling pressure on the downside.
The index needs to break the range of 38,500-39,500 for decisive trending moves on either side.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
Continuing with the minor degree pullback that was seen in the last couple of sessions, the Nifty opened gap up on August 25. It traded with a positive bias in the first half of the session.
In terms of the Fibonacci retracement, it nearly tested the 61.8% retracement of the recent fall. Fresh selling pressure was seen near this key Fibonacci level.
The zone of 17700-17750 indeed proved to be a strong hurdle. From there the index has started the next leg down. The Nifty is set to test the swing low of 17345 below which 17000 will be the short term target to watch out for.
Market Close
Benchmark indices ended lower in the highly volatile session with Nifty around 17500.
At Close, the Sensex was down 310.71 points or 0.53% at 58,774.72, and the Nifty was down 82.50 points or 0.47% at 17,522.50. About 1865 shares have advanced, 1462 shares declined, and 132 shares are unchanged.
Adani Ports, Bajaj Finance, Infosys, Power Grid Corporation and NTPC were among the major Nifty losers.
The gainers included Shree Cements, Hindalco Industries, Divis Laboratories, Eicher Motors and Grasim Industries.
Realty and PSU Bank rose 1-2 percent, while selling was seen in the IT, auto, bank, oil & gas, pharma and FMCG names.
BSE midcap and smallcap indices ended on flat note.
Rupee Close:
Indian rupee ended lower at 79.88 per dollar versus previous close of 79.81.
Nifty Pharma index fell 0.5 percent dragged by the Lupin, Abbott India, Zydus Lifesciences
BSE Fast Moving Consumer Goods index shed 0.5 percent dragged by the Vadilal Industries, Emami, Kokuyo Camlin
Dreamfolks Services IPO Subscription Update
Buzzing
Shares of PB Fintech (PolicyBazaar) rose over five percent intraday on August 25 after the company made a slew of investments in subsidiaries and incorporated a new subsidiary in Abu Dhabi.
The company in an exchange notification on August 24 said its board has considered and approved the incorporation of a stepdown wholly owned subsidiary called PB Fintech FZ-LLC in Abu Dhabi.
The new subsidiary aims to extend group technology hubs in the UAE and provide end to end solutions. “Through this technology hub, we will make it easier for insurers to integrate with our policibaazar.ae business, bringing in direct benefit to our core business,” PB Fintech said.
PB Fintech will also acquire a Dubai-based marketing management company YKNP Marketing Management through PB Fintech FZ-LLC. It will buy 45 to 51 percent in the target firm for $4 million.
Nifty Information Technology index shed 0.7 percent dragged by the Infosys, TCS, Mphasis
Buzzing
Shares of RBL Bank spiked over 5 percent intraday on August 25 after a US-based fund acquired Rs 50 crore worth of company’s shares via a block deal disclosed a day prior.
As per the available data, College Retirement Equity Fund (CREF) bought 4,584,678 shares of RBL Bank on NSE at an average price of Rs 108.86 per share. As of June 2022 shareholding data, the fund already holds 69,34,488 shares in the company or 1.16 percent.
According to information available with Bloomberg, CREF operates as a non-profit organization. The organization offers investment options such as investment, insurance, and annuity products. CREF serves communities in the United States.
Market at 3 PM
Benchmark indices erased all the intraday gains and trading lower with Nifty below 17600.
The Sensex was down 131.63 points or 0.22% at 58953.80, and the Nifty was down 28.40 points or 0.16% at 17576.60. About 1895 shares have advanced, 1297 shares declined, and 104 shares are unchanged.
BSE Metal index added 0.5 percent led by NMDC, JIndal Steel, HIndalco Industries
Geojit on Bata India
We believe, Bata India has capability to revive its revenue growth trajectory as the economy is back to normal. The demand outlook is positive given normalisation of markets and the strong thrust of the GoI to revive the economy.
Bata India has a strong brand recall & distribution reach and strong balance sheet. We upgrade to Buy rating with a revised target of Rs. 2,151 by valuing at 53x on FY24E EPS, factoring strong sales recovery in the quarter.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities
:
Crude oil prices traded steady with benchmark NYMEX WTI crude oil prices were trading near $94.90 per barrel on Thursday. Crude oil prices rallied on mounting supply tightness concerns amid disruptions to Russian exports, the potential for major producers to cut output, and the partial shutdown of a US refinery. Oil inventories fell by 3.3 million barrels in the week to August 19 at 421.7 million barrels, steeper from analysts' expectations in a Reuters poll for a 933,000-barrel drop.
We expect crude oil prices to trade sideways to up with resistance at $98 per barrel with support at $92 per barrel. MCX Crude oil September contract has important support at Rs 7450 and resistance at Rs 7690 per barrel.
Market update at 2 PM: Sensex is up 273.34 points or 0.46% at 59358.77, and the Nifty added 83.30 points or 0.47% at 17688.30.
BSE Midcap index added nearly 1 percent led by the BHEL, L&T Finance Holdings, IDBI Bank
Fox Consulting Services offloads stake in Indian Metals & Ferro Alloys
Investor Fox Consulting Services Pte Ltd offloaded 0.02% stake in Indian Metals & Ferro Alloys via open market transactions on August 19. With this, its shareholding in the company reduced to 6.35%, from 6.37% earlier.
Indian Metals & Ferro Alloys was quoting at Rs 271.35, up Rs 1.55, or 0.57 percent on the BSE.
Ajcon Global Neutral on Dreamfolks Services IPO
At the upper end of the price band of Rs 326, the company's IPO is valued at P/E of 109.39x at FY22 EPS (FY22 was affected by COVID‐19 variant Delta and Omicron) and valued at a P/E of 53.79x on FY20 EPS (Pre COVID‐19 era) which is at premium.
We have not considered FY21 performance as it was severely affected by the COVID‐19 pandemic. We are "Neutral" the issue.
BSE Bank index rose 1 percent supported by the Bank of Baroda, Au Small Finance Bank, Kotak Mahindra Bank
Market at 1 PM
Benchmark indices were trading at day's high with Nifty above 17700.
The Sensex was up 376.28 points or 0.64% at 59461.71, and the Nifty was up 112.70 points or 0.64% at 17717.70. About 2135 shares have advanced, 971 shares declined, and 125 shares are unchanged.
Sun Pharmaceutical Industries large trade | 24.4 lakh shares (0.1% equity) worth Rs 216.3 crore change hands at Rs 885 per share.
Sun Pharmaceutical Industries was quoting at Rs 885.30, up Rs 3.75, or 0.43 percent on the BSE.
NHPC arm and Government of Rajasthan sign Memorandum of Understanding
The company said its subsidiary NHPC Renewable Energy (NHPC REL), and Government of Rajasthan has signed Memorandum of Understanding (MoU) for development of ultra mega renewable energy power park in Rajasthan. The main objective is to set up 10 GW ultra mega renewable energy power parks and renewable energy projects will be developed either on EPC or developer mode by NHPC REL.
NHPC was quoting at Rs 34.80, up Rs 0.80, or 2.35 percent.
Wipro appoints Wagner Jesus as Country Head for Brazil
Wipro has appointed Wagner Jesus as the Country Head and Managing Director for operations in Brazil. Wagner joined Wipro three years prior, taking the lead of the non-financial business cluster.
Wipro was quoting at Rs 418.75, up Rs 2.55, or 0.61 percent.
Samvardhana Motherson signs MoU with Kingdom of Saudi Arabia
Samvardhana Motherson International and Ministry of Investment, Kingdom of Saudi Arabia (MISA), have signed a Memorandum of Understanding which aims to identify investment development opportunities for industrial and service activities in the Kingdom of Saudi Arabia (KSA).
PVR Large Trade | 8.71 lakh shares (1.4% equity) worth Rs 160 crore change hands at Rs 1,842 per share.
PVR was quoting at Rs 1,851.00, up Rs 21.55, or 1.18 percent.
Dow Futures jumps more than 200 points
Market at 12 PM
The Sensex was up 274.78 points or 0.47% at 59360.21, and the Nifty was up 81.50 points or 0.46% at 17686.50. About 2119 shares have advanced, 958 shares declined, and 113 shares are unchanged.
Lupin and I’rom enter into an exclusive licensing agreement
Lupin has entered into an exclusive licensing agreement with I’rom Group Co. Ltd (I’rom), a leading pharmaceutical company in Japan.
Under the terms of the agreement, I’rom will conduct clinical trials along with Lupin, register, distribute and market biosimilar Denosumab in Japan on an exclusive basis.
Dreamfolks Services IPO Subscription Updates
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities:
NYMEX crude trades modestly higher near $95.5/bbl supported by weekly inventory report which noted a bigger than expected decline in US crude oil stocks while crude and product exports jumped to all-time high. Also supporting crude price is expectations of fuel switching amid rising gas prices in global market and Saudi’s willingness to consider production cuts to keep market well balanced.
Crude oil has witnessed a sharp recovery from recent lows and the momentum looks positive however with growth worries and shaky risk sentiment, a sharp upside is difficult.
Nifty Realty added over a percent led by Indiabulls Real Estate, Phoenix Mills and DLF
Mid-caps appear to be expensive: Head-equity, HDFC AMC
Nifty 50 valuations are 19 times one-year forward price-to-earnings, compared to 17 times historical averages. This is a premium of roughly 10 percent. These are still reasonable valuations. We are constructive on equities in the medium term.
However, mid-caps are pretty expensive, trading at one-year forward price-to-earnings (P/E) multiple of 22 times, which is a 15 percent premium to the historical averages.
Small-cap valuations, like those of large-caps, are close to historical valuations, trading at a P/E multiple of 16 times, closer to the historical average of 14 times. Normally, small-caps trade at a discount of 15-16 percent to large-caps. It is more or less in line with the average discounts.
Market update at 11 AM: Sensex is up 283.26 points or 0.48% at 59368.69, and the Nifty added 84.50 points or 0.48% at 17689.50.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities:
COMEX gold trades modestly higher near $1770/oz supported by weakness in the US dollar and pause in US bond yields as market players position for Fed Chairman’s comments at the Jackson Hole Symposium.
With mixed US economic data showing signs of stress in the economy, market players are assessing if Fed may take a less hawkish stance.
Gold is also supported by global growth worries, inflation concerns and geopolitical issues. Gold has stalled near $1750/oz level after recent sell-off and edged up however sharp gains are unlikely as Fed is largely likely to maintain a hawkish stance.
Crude Prices Update:
Oil prices rose on Thursday on mounting supply tightness concerns amid disruptions to Russian exports, the potential for major producers to cut output, and the partial shutdown of a U.S. refinery.
Brent crude rose 59 cents, or 0.6%, to $101.81 a barrel by 0400 GMT, while U.S. West Texas Intermediate crude was up 42 cents, or 0.4%, at $95.31 a barrel.
Bond Yields Update:
Nifty PSU Bank index added 2 percent supported by the Union Bank, Bank of India, Indian Bank
Aban Offshore enters into a settlement agreement with Central Bank of India
Aban Offshore has entered into a settlement agreement with Central Bank of India, one of the Financial Creditors of the company.
As per the terms of the settlement agreement, the company has agree to pay and the Bank has agreed to accept the outstanding principal of Rs 121,78,41,258 within 30 days from the date of this agreement being the full and final settlement of all the credit facilities.
Upon full payment of the settlement amount in accordance with the agreement, the Bank will release the security, claim, charges, pledge or similar nature in relation to the Credit facilities.
