Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities:
Benchmark Nifty hit a fresh record high, but failed to close above the 16700 mark due to profit booking at higher levels. Technically, post the strong pullback rally, the index has formed a double top kind of reversal formation near the 16700 resistance level, which is broadly negative for the market.
However, the larger texture of the market is still bullish, but for day traders the 16700 level would act as a major hurdle. Above the same, the uptrend could continue up to 16750-16790 levels. On the flip side, a strong possibility of quick intraday correction up to 16580-16550 levels is not ruled out if the Nifty succeeds to trade below 16620.
Rahul Sharma, Head Technical and Derivatives Research, JM Financial Services:
The higher high and higher low setup in Nifty almost got distorted as Nifty tested 16,400 on Friday but sector rotation ensured that Nifty bounced back to retest 16,700 today. However, RSI has still not improved for Nifty as compared to 18th August high and we may see supply coming again at resistance zone of 16,700 to 16,800.
The good thing about yesterday’s move was improvement in market breadth which has helped Nifty record a close above 16,600 (a new ATH closing). The confirmation of correction will come if we break 16,400 decisively until then its best to stick to momentum counters for trading and investors are advised to take some profits off the table as we inch higher.
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities
Nifty trades at all-time high levels of 16600-16700 with very stock-specific movement. Broader market participation remains muted. For the month Nifty is up approximately 5 percent while the midcap space is down by 5 percent. The short-term resistance was seen at 16870 levels.
Expect consolidation in the range of 16300-16870 for the next few sessions; long aggression is advisable above 16870 only. Auto and metal stocks look attractive, while IT space has rallied significantly in the short term and can witness profit booking.
Anand James, Chief Market Strategist at Geojit Financial Services:
The rapid ascent from last week's lows was bereft of enough bullish continuation patterns, rendering it vulnerable for correction. Hence, despite the prospects of covering of shorts that have been accumulated in the last fortnight, the approach to the recent peak of 16701 gave the bears a vantage point to launch a counter-attack. This dip can stretch further in the early part of Thursday, as the financials have been found quite reluctant to support.
However, mid and small caps look to have found their voice, suggesting that overall sentiments may not turn outright negative and bulls could attempt a regroup once inside the 16585-520 region, for a dash towards 17000-200. Alternatively, direct fall below 16520 could call for 16200-15700, which though, is less expected for now.
Vinod Nair, Head of Research at Geojit Financial Services:
Market opened positively but main indices closed on a flattish note due to muted performance by large caps. The broad market was more positive, as midcaps bounced after the correction mode during the month, which lifted the morale of investors.
The global market traded positive on Covid vaccine approval and in anticipation of a dovish comment by the Fed chair in the upcoming meeting (Jackson Hole).
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed some lackluster movement and an attempt to hold around the Nifty 50 Index level of 16650. The market shows that it is going to be crucial for the short-term market scenario to sustain above the 16500 level. If the market is unable to sustain the level of 16500, it can witness lower levels of 16350. Technical indicator suggests, a volatile movement in the market in a small range between 16350-16700.
Market Close:
Benchmark indices ended on flat note after hitting fresh record high levels intraday.
At close, the Sensex was down 14.77 points or 0.03% at 55,944.21, and the Nifty was up 10.10 points or 0.06% at 16,634.70. About 1941 shares have advanced, 1180 shares declined, and 107 shares are unchanged.
Adani Ports, HDFC Life, Hindalco, Coal India and ONGC were the top Nifty gainers. Bajaj Finserv, Titan Company, Maruti Suzuki, Bharti Airtel and JSW Steel were among the top losers.
Among sectors, except pharma, realty, bank and auto, all other sectoral indices ended higher with the power and oil & gas indices up 1 percent each. BSE midcap and smallcap indices rose 0.5 percent each.
ICRA upgrades long-term rating of Minda Industries:
ICRA has upgraded the long term rating of Minda Industries at [ICRA] AA+ from [ICRA] AA. The outlook on the long term rating is stable. ICRA has also reaffirmed the short-term rating at [ICRA] A1+.
Minda Industries was quoting at Rs 728.90, up Rs 8.40, or 1.17 percent on the BSE.
Cipla form joint venture With Kemwell Biopharma:
Cipla and Kemwell Biopharma announced execution of a joint venture agreement to develop, manufacture and commercialise biosimilars for global markets. For this purpose, a joint venture company shall be incorporated with an aim to enter the respiratory biosimilars space, Cipla said in its release.
Cipla was quoting at Rs 912.35, down Rs 5.05, or 0.55 percent on the BSE.
India may announce overseas listing rules in next budget - govt official
India may announce rules allowing companies to list overseas in the next budget in February, as some issues are yet to be resolved and are under discussion, Revenue Secretary Tarun Bajaj said on Wednesday.
The comments confirm a Reuters report that said India would take around six months to announce rules allowing companies to list overseas - taking longer than some expected as the finance ministry irons out issues related to taxation
Oil prices hold above $70 after two-day rally:
Oil prices dropped on Wednesday but stayed above $70 a barrel, taking a breather after recent days' strong rally as Mexico was set to resume crude production following a major outage.
European Markets trade flat:
BSE Realty index slipped over 1 percent dragged by the DLF, Indiabulls Real Estate, Godrej Properties:
Market at 3 PM
Benchmark indices were trading flat in the final hour of trading amid selling seen in the realty, pharma, and banking names.
At 15:01 IST, the Sensex was down 4.30 points or 0.01% at 55954.68, and the Nifty was up 14.50 points or 0.09% at 16639.10. About 1850 shares have advanced, 1088 shares declined, and 86 shares are unchanged.
ECB could revise upwards economic projections:
The European Central Bank could revise up its macroeconomic projections for the eurozone again in September after recent solid activity indicators in the third quarter, ECB Vice President Luis de Guindos said on Wednesday.
Asian stocks hold gains as markets await Powell speech
Asian shares held onto their recent gains on Wednesday after last week's pummelling, as global equities rebounded, though the focus for most asset classes was the U.S. Federal Reserve's annual symposium on Friday.
Cabinet hikes sugarcane price by Rs 5 per quintal
The central government on August 25 said that it had decided to increase the minimum price sugar mills pay to sugarcane growers by Rs 5 to Rs 290 per quintal for the next marketing year starting October.
Also, the government has made a provision for reduction in FRP by Rs 2.90 per quintal for every 0.1 percentage point decrease in recovery, in respect of those mills whose recovery is below 10 percent but above 9.5 percent.
However, for mills having recovery of 9.5 percent or below, the FRP is fixed at Rs 275.50 per quintal.
FM Nirmala Sitharaman meets tax department, bankers in Mumbai
Finance Minister Nirmala Sitharaman on August 24 addressed a press conference after her two-day visit to Mumbai. She interacted with the Confederation of Indian Industry (CII) and launch the EASE 4.0 Index - a reform agenda for 2021-22 for public sector banks.
read moreTapan Patel- Senior Analyst (Commodities), HDFC Ssecurities:
Crude oil prices traded lower with benchmark NYMEX WTI crude oil prices were trading 0.34% down near $67.31 per barrel for the day. MCX Crude oil September futures were trading marginal down at Rs 5012 per barrel by noon.
Crude oil prices are expected to trade sideways to up for the day with resistance at $69 and support at $65 per barrel. MCX Crude oil September has support at Rs 4930 and resistance at Rs 5080.
Market update at 2 PM
: Sensex is up 114.78 points or 0.21% at 56073.76, and the Nifty added 52.10 points or 0.31% at 16676.70. Adani Ports, HDFC Life and TCS are the top gainers while Bajaj Finserv, Tata Steel and Adani Ports are the most active stocks.
Kaveri Seed Board approves share buyback worth Rs 120 crore at Rs 850 per share
The board of directors of Kaveri Seed Company approved the proposal for the buyback of fully-paid equity shares having a Iace value of Rs 2 each for an aggregate amount excluding any expenses inculrcd or to be incurred for the buyback. The stock was trading at Rs 606.50, up Rs 27.10, or 4.68 percent. It has touched an intraday high of Rs 618.70 and an intraday low of Rs 585.40.
Emkay on ICICI Bank:
Broking house Emkay expect the bank to reclaim its decade-best RoEs of ~ 15%/16% by FY23E/FY24E, led by better growth and strong core profitability. Mr. Bakhshi has brought in long-awaited management credibility/stability. Thus, we believe that his longer association with the bank will be essential for the stock’s rerating hereon.
It believe that consistent strong financial performance and management stability have been the key factors for HDFCB’s successful rein in the Indian banking industry, which has faded a bit in the recent past. On the other hand, ICICI has emerged as a growth leader and with better return ratios and credible management, it will be able to narrow down the valuation gap with peers like HDFC Bank.
Jayaswal Neco Industries to consider issuing equity shares to promoters:
A meeting of the board of directors of Jayaswal Neco Industries is scheduled on 28/08/2021, to consider and approve further issue of equity shares to the promoters and the ACRE Trusts on preferential basis, as per the company release.
Jayaswal Neco Industries was quoting at Rs 18.95, up Rs 0.90, or 4.99 percent on the BSE.
Gaurav Garg, Head of Research, CapitalVia Global Research:
Indian benchmark continues to trade positively, opened 30 points higher at 16,654 as positive comments made by World Health Organization (WHO) chief scientist on the COVID-19 situation in India may result in a relief rally on the bourses. The broader markets also opened higher with small-caps and mid-caps surging almost half a percent. Sentiments in the domestic and the global market remains positive, and metals and banking stocks have been trading with positivity. Our research suggests that if the market breaches the resistance zone of 16500-16550, we can expect the market to achieve the new level of 16700-16750.
Revenue of diagnostics companies to grow 17-20% this fiscal: CRISIL Ratings
Revenue of diagnostics companies are set to rise 17-20% this fiscal as a surge in revenue from regular tests1 will offset a moderation in revenue from Covid-192 tests because of the price caps progressively imposed since last fiscal. That compares with a 13% revenue growth last fiscal.
Market at 1 PM
Benchmark indices were trading with marginal gain in the afternoon session.
The Sensex was up 45.14 points or 0.08% at 56004.12, and the Nifty was up 29.60 points or 0.18% at 16654.20. About 1913 shares have advanced, 953 shares declined, and 101 shares are unchanged.
More than 100 stocks have touched their 52 week highs during the day; click for more:
Borosil Renewables board approves raising up to Rs 500 crore:
The company board approved resolution for raising of capital for a sum of up to Rs 500 crore, through either of public offer, rights issue, issuance of ADRs or GDRs, issuance of FCCBs, QIP, preferential issue or through a combination thereof.
Borosil Renewables was quoting at Rs 305.95, up Rs 12.25, or 4.17 percent on the BSE.
Allied Digital Services wins 6-year contract worth Rs 650 crore:
Allied Digital Services share price gained 10 percent on August 25 after company won a six-year contract for a global automotive giant.
"... has won a six year contract valued at USD 88 million (Rs 650 crore) pure services business to transform IT operating model and infrastructure landscape across workplace management, for a global automotive giant," company said in the release.
BSE Oil & Gas index rose 1 percent supported by the Adani Total Gas, HPCL, ONGC
Market at 12 PM
Benchmark indices erased most of the early gains and trading flat after hitting fresh record highs.
The Sensex was up 60.50 points or 0.11% at 56019.48, and the Nifty was up 37.40 points or 0.22% at 16662. About 1938 shares have advanced, 888 shares declined, and 100 shares are unchanged.
Crude Updates:
Oil prices fell on Wednesday, taking a breather after a strong rally this week spurred by the loss of a quarter of Mexico's production and signs that China, the world's biggest importer, has curbed a recent coronavirus outbreak.
Jyoti Roy - DVP- Equity Strategist, Angel Broking:
Aptus Value Housing Finance made a tepid listing on the bourses and closed below the issue price on the first day of trading largely due to negative market sentiments. However, the issue received good response and was subscribed by 17.2x due to strong demand from QIB and NIB investors. We had given a subscribe rating to the IPO from a long term perspective and expect the company to do well in the long run given consistent strong financial performance, industry leading return ratios and good asset quality.
Despite the tepid listing we would recommend investors to hold on the positions from a long term perspective as we believe that the company has got strong fundamentals and should do well once the volatility in the market subsides.
Gold Updates:
Gold prices fell on Wednesday as an uptick in the dollar and buoyant risk appetite dimmed the safe-haven metal's appeal, while investors awaited Federal Reserve Chairman Jerome Powell's speech this week for guidance on the central bank's taper plans.
Nifty hits fresh record high
Benchmark indices were trading higher with Nifty5o index hitting fresh record high.At 11:30 IST, the Sensex was up 208.06 points or 0.37% at 56167.04, and the Nifty was up 80.60 points or 0.48% at 16705.20.About 2003 shares have advanced, 801 shares declined, and 93 shares are unchanged.
Jyoti Roy - DVP- Equity Strategist, Angel Broking:
Chemplast Sanmar made a tepid listing on the bourses and closed below the issue price on the first day of trading. This was mostly in line with our expectations given the lukewarm response to the IPO which was subscribed by just 2.17x.
We had given a neutral rating to the IPO given our concerns due to high debt on books and negative net worth despite having a positive outlook on the chemicals. Given that the stock is trading below the issue price we would recommend investors who had been allotted shares in the IPO to exit the stock closer to the issue price.
Kshitij Purohit, Lead International & Commodities at CapitalVia Global Research
: USD-INR fell strongly to 74.10 at the open and plummeted 11 paisa / US dollar overnight due to decreasing uncertainty ahead of the Fed meeting in Jackson Hole last Friday. The trend remains bearish, and support in the range of 74.12-74.10 might be tested at any time.
If prices close below 74.10 on the 15-minute chart, we may see a drop to the 74.00-73.98 zone, which is the next immediate support zone, as there is a gap between 74.00 and 74.10, and prices move extremely quickly in these gaps. On the upside, 74.29-74.31, which had previously served as a support zone, may now serve as resistance in the coming sessions.
Market update at 11 AM
: Sensex is up 149.88 points or 0.27% at 56108.86, and the Nifty added 59.60 points or 0.36% at 16684.20. Tata Motors, TCS and Nestle are the top gainers while Bajaj Finserv and Titan Company are the top losers.
Among the sectors, IT and metal indices are up over a percent each while the midcap and smallcap indices are also trading in the green.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
The resilience in global equities continues with the Nasdaq and S&P 500 closing at fresh record highs. In India market momentum and sectoral rotation are taking the indices higher. When the market leader IT Index takes a breather, Bank Nifty surges taking the Nifty forward. An important development in the banking space is HDFC bank bouncing back smartly. HDFC bank has the potential to regain its leadership position.
Smart money (FIIs) continues to be on the sell mode. DIIs and retail investors continue to be exuberant about the rally regardless of valuations.
The Jackson Hole Symposium and the Fed chief's commentary expected on 27th August will be keenly watched by global markets. If the Fed commentary indicates an earlier-than-expected tapering, FIIs are likely to press further sales. Investors may wait and watch.
Meanwhile, the exuberance in the primary market is slowly waning as evidenced by some recent IPOs trading below the issue price. Investors should be careful while applying for IPOs because there are lots of unknowns about these new companies.
Semiconductor chip shortages could lower FY22 passenger vehicles sales growth: Ind-Ra
India Ratings and Research (Ind-Ra) believes that the domestic auto sector could continue to face supply chain headwinds, especially due to semiconductor chips shortages, over the remainder of FY22. This is likely to curtail the sales growth expected for the auto industry in FY22, particularly in the passenger vehicles (PV) segment, and also adversely impact profitability.
Ind-Ra expects the semiconductor chips shortage to continue until end-1H22, although the availability could gradually improve over this period. Ind-Ra further expects original equipment manufacturers (OEMs) to reassess their supply chains to diversify and/or partially localise their raw material requirements over the near to medium term.
Ind-Ra has revised down the expected sales volume growth in the PV segment to 15%-18% from 18%-22% for FY22.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The markets are trading well above the 16,600 level which is a positive sign. We should scale higher to levels closer to 16,800-16,850. Dips or intra-day corrections can be considered as buying opportunities. 16,400 is a good support for the index and as long as that holds, there is no threat to the current trend.
BSE Power index up 1 percent led by the Adani Transmission, Adani Power, KEC International:
ICICI Dierct
US dollar declined 0.11% amid rise in risk appetite in global markets. Market sentiments improved after USFDA granted full approval to Pfizer’s Covid-19 vaccine. Rupee future maturing on August 27 ended flat in yesterday’s trading session.
The rupee may gain strength in early trading session on weakness in dollar and rise in risk appetite in the global markets. Market sentiments improved as US House passed a measure approving USD 3.5 trillion budget blueprint and USFDA granted full approval to Covid-19 vaccine developed by Pfizer. However, in the later trading session, the rupee may give up its strength as market participants are worried that spread of highly infectious delta variant may derail the global economic recovery. Additionally, markets will remain vigilant ahead of the Jackson Hole Symposium.
Rupee Opens:
Indian rupee opened flat at 74.20 per dollar on Wednesday against Tuesday's close of 74.19, amid buying seen in the domestic equity market.
ReNew Power lists on Nasdaq via SPAC:
India's leading clean-energy player ReNew Power Private Ltd debuted on Nasdaq in the United States on August 24 as a special purpose acquisition company (SPAC) and achieved a market capitalisation of nearly $4.5 billion (about Rs 33,500 crore), making it the biggest listing for an Indian entity through SPAC.
A SPAC is an investment vehicle used by institutional investors to raise money for potential acquisitions. Investors who invest in such instruments are not aware of the eventual acquisition target. Until the time the SPAC makes an acquisition, the money raised is parked in an interest-bearing trust account.
SPAC is the only route through which an Indian company can list on foreign bourses.
