Dilip Parmar, Research Analyst, HDFC Securities
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.
Ajit Mishra, VP - Technical Research, Religare Broking
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.
Deepak Jasani, Head of Retail Research, HDFC Securities
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.
Vinod Nair, Head of Research at Geojit Financial
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.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
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.
Rupee Close:
Indian rupee closed flat at 82.86 per dollar on Wednesday versus Tuesday's close of 82.86.
Market Close:
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.
Nirmal Bang maintains 'buy' on Jubilant Pharmova, target Rs 432
-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.
Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas
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.
PhillipCap initiates 'Buy' call on Chalet Hotels, target at Rs 455 per share
-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.
Mohit Ralhan – CEO TIW Capital
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.
Market at 3 PM
Benchmark indices were trading flat in the highly volatile session.
The Sensex was down 53.19 points or 0.09% at 60874.24, and the Nifty was down 18 points or 0.10% at 18114.30. About 1899 shares have advanced, 1337 shares declined, and 112 shares are unchanged.
Global shares muted as investors fret over China reopening
Global equities traded sideways on Wednesday after China took further steps towards reopening its COVID-battered economy, with hopes for an economic rebound tempered by near-term worries over rising cases.
European stocks, which are strongly influenced by developments in China, were steady, with the broad STOXX 600 now on course for its worst year since 2018.
Chinese stocks were mixed, with the mainland's SSE Composite ending the session 0.4% lower while the Hong Kong stock market rose 1.6%. China's government announced on Monday it would stop requiring inbound travellers to go into quarantine starting from Jan. 8.
Nifty trades near 5-day moving average and Bank Nifty trade around 10-day moving average
BSE Metal index shed 0.4 percent dragged by Hindalco Industries, Vedanta, Tata Steel
Motilal Oswal maintains 'Buy' rating on Axis Bank, target Rs 1,130
-Buy call, target at Rs 1,130 per share
-Opex ratios to moderate; improving granularity to drive RoE
-It has multiple levers in place to offset rise in funding cost
-Bank achieved its target of a consolidated RoE of 18 percent in Q2
-On track to deliver a sustainable RoE of 18 percent in medium term
-Company is top pick for 2023
Axis Bank was quoting at Rs 932.90, up Rs 0.35, or 0.04 percent on the BSE.
European markets nudge higher on Wednesday
The pan-European Stoxx 600 index was up 0.3% in early trade, with basic resources adding 1.4% to lead gains as most sectors and major bourses traded in positive territory.
Motilal Oswal's key themes to focus on in 2023
Credit Growth
Credit growth at decadal high of more than 15% for past few months. While Retail and MSME has so far driven the credit growth, corporate credit too is bouncing from decadal bottom and is expected to gather pace with pick up in private capex.
Capex/Housing
Central Government to boost capex ahead of general elections 2024. Cyclical upturn in many sectors (Real estate, Auto, Banking, Telecom etc.) is expected to fuel fresh private capex. The Residential Real Estate sector is poised for an upcycle, primarily buoyed by the improved affordability.
Manufacturing
Industry consolidation has led capacity utilization to recover to long term average of 75% which would push private investment. Rising scope of outsourcing on account of China+1 and Europe+1. Government initiatives like Aatmanirbhar Bharat, Make in India, PLI will propel manufacturing contribution to GDP higher from current 15%.
Markets At 2 PM
Sensex is up 105.60 points or 0.17 percentat 61,033. Nifty is up 27.60 points or 0.15 percent at 18,159. About 1991 shares have advanced, 1232 shares declined, and 97 shares are unchanged.
These stocks are witnessing long build-up in today's session
A long build-up is a bullish sign that happens when open interest and volume increase with the rise in share price.
Five scenarios that threaten more strife for global markets
While optimists are betting on central banks pivoting to interest rate cuts, along with China fully emerging from its Covid isolation and conflict in Europe abating, others are on the lookout for risks that may throw markets back into turmoil.... Read More
Here is the list of stocks that have touched their 52-week highs during the day; Click To View More
Short build-up seen in the following stocks:
Short build-up is a bearish sign that takes place when the price of a stock falls, along with high open interest and volume
Kotak Institutional Equities keeps 'Buy' on Interglobe Aviation
-Buy call, target at Rs 2,400 per share
-Recommend a buy on near-term improvement in profitability
-We note the scope of market share loss for market leader over time
-Market share risk will impact its financials to a lesser extent
Interglobe Aviation was quoting at Rs 2,020, down Rs 8.10, or 0.40 percent on the BSE.
Oil prices slide
Oil prices fell on Wednesday on concerns that rising COVID-19 cases in China, the world's top oil importer, will disrupt its economic recovery as it unwinds its pandemic restrictions, limiting fuel demand growth.
Brent futures for February delivery fell 68 cents, or 0.8%, to $83.65 a barrel, by 0710 GMT. U.S. crude fell 46 cents, or 0.6%, to $79.07 per barrel.
BSE Oil & Gas index rose nearly 1 percent supported by Adani Total Gas, Gail India, Gujarat Gas
Stelis Biopharma’s CDMO partner gets USFDA nod for an ANDA
Stelis Biopharma Limited, the biologics arm of Strides Pharma Science announced that its CDMO partner has received approval for a key ANDA from the United States Food & Drug Administration (USFDA). The filing for the product was done from Stelis Biopharma’s flagship facility in Bangalore.
Market at 1 PM
Indian benchmark indices were trading flat in the volatile session.
The Sensex was up 45.13 points or 0.07% at 60972.56, and the Nifty was up 10.40 points or 0.06% at 18142.70. About 1985 shares have advanced, 1191 shares declined, and 112 shares are unchanged.
Suryoday Small Finance Bank gains on RBI approval for reappointment of MD & CEO
The Reserve Bank of India has approved the reappointment of Baskar Babu Ramachandran as the MD & CEO of Suryoday Small Finance Bank. He will be MD & CEO for another three years, with effect from January 23, 2023.
Here are the stocks that locked on the upper circuit or have only buyers; click to view more
UCO Bank will consider proposal for raising funds on Jan 3
The board of directors of UCO Bank will consider the proposal for raising of Tier I capital in the form of Additional Tier I Bonds in one or more tranches aggregating to Rs 1000 crore from market at its meeting scheduled to be held on 03.01.2023.
Prabhudas Lilladher's Technical View on Infosys
Infosys after the short correction has consolidated and taken support near the Rs 1500 levels which is almost the 50% retracement of the recent rally. The RSI has indicated signs of reversal with upside potential visible.
With a decisive move past the significant 50EMA and 200DMA levels of Rs 1550, the stock would further strengthen the trend to anticipate for further upward targets.
With the chart looking good, we recommend a positional buy in this stock for an upside target of Rs 1660 keeping a stop loss of Rs 1440.
Infosys was quoting at Rs 1,512.90, down Rs 2.60, or 0.17 percent.
Indowind Energy’s rights issue to open on January 27
Indowind Energy has decided to open its rights issue on January 27, till February 10, 2023.
The rights entitlement ratio is in the proportion 2 shares for every five shares held by eligible equity shares. The rights issue price has been fixed at Rs 12 per share.
Shriram Finance to consider fundraising
Company will consider raising of funds by way of issue of redeemable non-convertible debt securities including bonds in onshore/offshore market on private placement basis, subject to market conditions and in this regard, the meeting(s) of the concerned committees viz. the Banking and Finance Committee, Debt Issuance Committee and Allotment Committee- NCDs will be held to consider and approve the issue and allotment of redeemable non-convertible debt securities / bonds during the month ending January 31, 2023 as per their respective terms of reference, subject to such terms and conditions including the issue price of debt securities/ bonds, as the said committees may deem fit.
Indostar Capital Finance appoints Vinod Kumar Panicker as CFO
Indostar Capital Finance said its board of directors approved an appointment of Vinod Kumar Panicker as the Chief Financial Officer with effect from December 26, 2022.
Market at 12 PM
Benchmark indices are trading flat amid volatility.
The Sensex was up 72.77 points or 0.12% at 61000.20, and the Nifty was up 16.20 points or 0.09% at 18148.50. About 2016 shares have advanced, 1105 shares declined, and 119 shares are unchanged.
Kotak sees lower GMV for Zomato in short term, cuts target price to Rs 85
Predicting a subdued gross merchandise value (GMV) in the near term amid weaker demand, brokerage firm Kotak Institutional Equities has cut the target price on the shares of Zomato Ltd.
Kotak has cut its target price to Rs 85 a share from Rs 100 earlier targeted. The target still suggests a 45 percent potential upside from Wednesday's trading price of Rs 59.20 apiece. Read More
Adani Transmission incorporates wholly owned subsidiary
Adani Transmission has incorporated a wholly owned subsidiary company in the name of “BEST Smart Metering Limited” on 27th December, 2022.
Adani Transmission was quoting at Rs 2,544.15, up Rs 43.05, or 1.72 percent.
Nifty Pharma index fell 0.5 percent dragged by Lupin, Natco Pharma, Aurobindo Pharma
Bharti Airtel launches 5G in Jammu and Srinagar
Bharti Airtel announced the launch of its cutting edge 5G services in Jammu and Srinagar.
Adani Enterprises acquires SIBIA Analytics for Rs 14.8 crore
Adani Enterprises has acquired 100% stake of SIBIA Analytics and Consulting Services Private Limited for Rs 14.80 crore.
Hester Biosciences in agreemnet with ICAR to develop vaccine for poultry
Hester Biosciences has signed an agreement towards receiving indigenously developed technology from Indian Council of Agricultural Research - National Institute of High Security Animal Diseases (ICAR-NIHSAD), for the development and commercialization of the Low Pathogenic Avian Influenza (H9N2 strain) Inactivated Vaccine for poultry.
Motilal Oswal on Axis Bank
-Buy call, target at Rs 1,130 per share
-Opexratios to Moderate; improving granularity to drive RoE
-It has multiple levers in place to offset rise in funding cost
-Bank achieved its target of aconsolidated RoEof 18% in Q2
-Top pick for 2023
DLF says it has not received any notice from Noida Authority till now
DLFhas issued a statement clarifying that the real estate firm has not received any notice from Noida Authority thus far and will be able to respond only once the notice is received. This comes after news reports stated the Noida Authority has slapped Rs 235-crore payment notice on DLF in Mall of India land case.
Markets at 11 AM
Sensex is up 3.96 points or 0.01 percentat 60,931. Nifty down 0.50 points at 18,131. About 1979 shares have advanced, 1044 shares declined, and 133 shares are unchanged.
UPL sees block deal of 243,970 shares at Rs 720.30 per share worth Rs 17.57 crore
Adani Wilmar Large Trade | 13.8 lakh shares (0.1 percent equity) worth Rs 80 cr change hands
Morgan Stanley View On Real Estate
-Property upcycle is now well entrenched
-Listed developers well prepared with deep new launch pipelines
-Valuations are above mean levels
-Overweight on DLF, Prestige Estate & Sobha
-Equal-weight on Oberoi Realty, Macrotech Developers and underweight on Godrej Properties
