Closing Bell: Sensex, Nifty end flat amid high volatility; oil & gas, power stocks gain

Taking Stock | Market ends flat amid high volatility; metals drag, oil & gas stocks gain

On the BSE, oil & gas and power indices gained 1 percent each while realty and auto indices added 0.5 percent each.... Read More

Indian rupee erased opening losses as domestic equities strengthen ahead of the year-end adjustment. Today’s gain was followed by the year-end fixing and lower crude oil prices.

Spot USDINR is still in the range of 82.40 to 83 backed by thin volumes and muted December months expiry.

We expect spot USDINR to trade within the range of 82.40 to 83 for the next few days. The directional move can be seen either above 83 or below 82.40.

The benchmark indices traded dull and ended almost flat amid mixed cues. After the initial downtick, the Nifty spent the entire day in a narrow band however the tone was on the positive side, thanks to buying select index majors. And, it finally settled at 18,122.50 levels.

Among the sectoral pack, auto, energy and select PSU banks were in the limelight while defensive viz. pharma and FMCG traded subdued.

Indications are pointing towards a range-bound trend to continue in Nifty and we expect stock-specific moves to keep the participants occupied, thanks to the scheduled expiry of December month derivatives contracts. Besides, the broader indices are also showing some stability, so participants can selectively look for buying opportunities.

Nifty ended almost flat on Dec 28 after remaining in a narrow 94 point band through the day. At close, Nifty was down 0.05% or 9.8 points at 18122.5. Broad market indices ended in the positive but advance decline ratio fell to 1.34:1 from the high levels over the past two days. Volumes on the NSE continued to be on the lower side.

Global equities traded sideways on Wednesday after China took further steps towards reopening its COVID-battered economy; however hopes for an economic rebound were moderated by near-term worries over rising cases.

Nifty seems to have run into a road block after a two day rise. However a small intra day range does not give enough signals for the future trend. Nifty could now face resistance in the 18173-18203 band and take support from 17967-17977 band in the near term.

Market wavered between gains and losses with investors taking their position around the flatline as mixed global cues troubled them to take a firm one-sided move.

US stocks were weak as the trade deficit data suggested strength in the economy, raising concerns about the Fed's tightening stance.

However, steps toward reopening the Chinese economy increased the prospect of demand recovery.

Continuing with the bounce that was seen in the last couple of sessions, the Nifty attempted to inch higher on December 28. The daily chart shows that the index has moved up to retest a trendline, which was broken on the downside on Friday last week.

18150-18200 is the key resistance zone, which indeed proved to be a crucial barrier for the day. As long as the index stays below this resistance zone on a closing basis, it is likely to witness consolidation in the short term. 18000-18200 can be the tight range for the Nifty with crucial support placed at 17800.

Indian rupee closed flat at 82.86 per dollar on Wednesday versus Tuesday's close of 82.86.

Indian benchmark indices ended on flat note in the highly volatile session on December 28.

At Close, the Sensex was down 17.15 points or 0.03% at 60,910.28, and the Nifty was down 9.80 points or 0.05% at 18,122.50. About 2006 shares have advanced, 1372 shares declined, and 134 shares are unchanged.

Titan Company, M&M, Power Grid Corporation, Maruti Suzuki and UPL were among the biggest Nifty gainers. However, losers included Bharti Airtel, Apollo Hospitals, Hindalco Industries, Tata Steel and Bajaj Finserv.

On the sectoral front, oil & gas and power indices gained 1 percent each, while selling was seen in the pharma, metal and PSU banks.

The BSE midcap index was up 0.2 percent and smallcap index rose 0.4 percent.

-Buy rating, target at Rs 432 per share
-Radiopharma business is back to pre-covid level
-Radiopharma business is expected to grow in double digits from FY24
-Allergy business seeing double-digit growth with healthy margin
-Generic business continues to face headwinds on steep pricing pressure
-In CDMO Sterile Injectables business, company sees double-digit growth from FY24

Jubilant Pharmova was quoting at Rs 375.10, down Rs 0.80, or 0.21 percent on the BSE.

Indian Rupee depreciated by 0.04% on Wednesday as strong US Dollar index and sustained selling by foreign investors put downside pressure on Rupee. FIIs have remained net sellers in 7 out of the past 9 session with outflows of ~ Rs 5,030 crores. However, positive tone in domestic equities and softness in crude oil cushioned the downside. US Dollar gained on risk aversion in global markets.

We expect Rupee to trade with a slight negative bias on expectations of a strong Dollar and risk aversion in global markets. Concerns over a surge in COVID-19 cases in China and parts of South Asia may also put downside pressure on Rupee.

Traders may look out for pending homes sales and Richmond manufacturing PMI data from US. USDINR spot price is expected to trade in a range of Rs 82.50 to Rs 83.30.

-Initiate with a buy call, target at Rs 455 per share
-Best placed to ride industry upcycle
-Company has strategically located metro centric hotel portfolio
-Have requisite pricing power amid affiliation with marquee global brands
-Expect revenue/profit CAGR of 19 percent/68 percent over FY23-FY25

Chalet Hotels was quoting at Rs 343.40, up Rs 7.35, or 2.19 percent on the BSE.

Nifty did significantly better in the second half, after touching a low of 15,183 in June. It is likely to close the year at above 18,000, giving a thump up to the efforts of RBI and the government in fighting inflation along with keeping economic growth on track.

Banks did significantly well in comparison to other sectors and especially the PSU banks in the second half of the year. The performance of banks reflects the strength of the broader economy, and it augurs well for 2023.

FMCG, Metal and Auto were other sectors that created wealth for investors. While FMCG and metal provide a good defence in an inflationary environment, the auto sector in India can be a good long-term bet, with an impending transition to electric vehicles.

Indian IT sector lagged the market, and it may remain under stress given the uncertainties in the US market. It also indicates that domestic market-driven companies are likely to continue doing better in 2023, especially in the first half of 2023.

In the first half of 2023, investors may look to ride the momentum of banks, auto and FMCG sectors. Then, as global economy and especially USA start showing signs of stable recovery, investors may look at Indian IT and pharmaceutical stocks. The chemicals sector in India also appears to be a good long-term investment.

Overall, Indian stocks are likely to continue performing better in comparison to other major economies and expected to give 10%-15% return in 2023.

Stocks on Nifty indices to be recapped tomorrow: A look at expected inflows and outflows

Bajaj Finserv, SBI and Bajaj Auto will see highest outflows of $34 million, $32 million and $19 million due to the rejig in weightage, according to Nuvama Alternative & Quantitative Research... Read More