Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
After the short term bounce in the last week, the Nifty had reached the junction of its daily upper Bollinger Band, upper end of a falling channel on the daily chart as well as upper end of a rising channel on the hourly chart. Thereon it stepped into a brief consolidation mode.
In terms of the Fibonacci retracement, the index attempted to stretch beyond the 61.8% of the June fall however couldn’t sustain in the higher territory.
The tight consolidation range has been 16000-16275. The index is now approaching towards the lower end of the consolidation range i.e. 16000, which needs to be monitored closely on a closing basis. Breach of 16000 on a closing basis will drag the index into a short term correction mode
Ajit Mishra, VP - Research, Religare Broking
Markets traded under pressure and lost nearly a percent, in continuation to the prevailing consolidation phase. After the weak start, the benchmark drifted further lower and settled around the day’s low. Consequently, the Nifty index settled at 16,058.30; down by 1%.
The profit taking was widespread and mostly sectoral indices ended lower. The broader indices also lost nearly half a percent each.
Markets would react to the inflation data of India and the US in early trades. Besides, the earnings announcement from some of the IT majors would also be in focus. We recommend maintaining a focus on identifying stock-specific opportunities with a bias on the positive side.
Rupak De, Senior Technical Analyst at LKP Securities:
Nifty has slipped below the previous session's low as bears remained at the helm. It has formed a small-bodied candle just below an important moving average, indicating a bearish day of mild significance.
On the lower end, however, 16000 is likely to act as crucial support. On the higher end, resistance is visible at 16200, where meaningful call writing has happened.
Vinod Nair, Head of Research at Geojit Financial Services:
Rate hike fears are back in focus in the global markets ahead of the release of CPI numbers. Inflationary pressures along with strong US jobs data would keep the Fed on the path of aggressive rate hikes.
On the domestic inflation front, retail inflation for the month of June is expected to be at 7.03%, maintaining the previous month’s levels. Demand concerns amid the rebound of virus cases in China compelled crude to trade lower.
Kunal Shah, Senior Technical Analyst at LKP Securities:
The Bank Nifty index formed an inside bar candle on the daily chart which indicates the market is stuck between the range of 35,000-35,600. The undertone remains bullish as long as the mentioned support of 35,000 is held on a closing basis.
The upside resistance if taken out will see a quick move towards the level of 36000 where the highest open interest is built up on the call side.
Rupee Close:
Indian rupee ended lower by 17 paise at 79.60 per dollar against previous close of 79.43.
Market Close
Benchmark indices ended lower for the second consecutive day on July 12 with Nifty below 16,100.
At close, the Sensex was down 508.62 points or 0.94% at 53,886.61, and the Nifty was down 157.70 points or 0.97% at 16,058.30. About 1436 shares have advanced, 1784 shares declined, and 157 shares are unchanged.
Eicher Motors, Hindalco Industries, Infosys, BPCL and Nestle were among the top Nifty losers. Shree Cements, NTPC, Coal India, Adani Ports and Bharti Airtel were among the biggest gainers.
Except power, all other sectoral indices ended in the red. BSE midcap and smallcap indices shed 0.5 percent each.
Credit Suisse On Star Health & Allied Insurance Company
Foreign research house Credit Suisse has maintained outperform rating on Star Health & Allied Insurance Company with a target at Rs 600 per share.
The large & growing agent base with pricing arrangements provide a partial moat and company is better placed to withstand competitive pressures, reported CNBC-TV18.
CLSA View On Apollo Hospitals
Brokerage firm CLSA has kept outperform rating on Apollo Hospitals Enterprises with a target at Rs 4,470 per share.
It reiterated its mid-teen revenue growth guidance for hospitals, while offline pharmacy has potential to grow revenue by 20% YoY.
Its cash flows will help it to invest in its digital business and company expects to sustain Rs 400 crore cash burn for digital business in FY24, reported CNBC-TV18.
Syngene International to acquire 26% stake in Ampyr Renewable Energy Resources Eleven
Syngene International has entered into an agreement for the purpose of acquisition of renewable power by acquiring equity stake up to 26% in Ampyr Renewable Energy Resources Eleven Private Limited, Special Purpose Vehicle formed by Ampyr India Asset Holdings Private
Limited, for generation and supply of solar power.
Syngene International was quoting at Rs 570.20, down Rs 2.90, or 0.51 percent on the BSE.
Rail Vikas Nigam bags order of Rs 1844.77 crore from NHAI
Rail Vikas Nigam Limited (RVNL) in named RVNL - SP Singla Constructions Pvt. Ltd. (Consortium) has been awarded Letter of Acceptance (LoA) by National Highways Authority of India (NHAI) regarding Construction of 4 laning of NH-5 from Kaithlighat to Shakral Village in Himachal Pradesh on Hybrid Annuity Mode.
The total estimated cost of the project is Rs 1844.77 crore.
Purvi Shah DVP (Fundamental Research) Kotak Securities
We expect a subdued 1QFY23 for pharma companies, owing to continued US generic price erosion, high Covid-led domestic base for most companies, RM inflation and higher freight costs. To compensate for the above factors, INR depreciation will provide some relief.
In the US, there have not been any meaningful new launches this quarter. Ex-Covid, we expect domestic growth for the sector to be 10-12% yoy.
Health care services: We expect a sequentially improved performance of India hospitals business, led by higher domestic and international footfalls, post a slightly subdued 4QFY22 due to Omicron impact. However, we note that IP and OP volumes are yet to completely revert to pre-Covid levels.
We note that Q1FY23 performance is unlikely to be as strong as Q3FY22, which benefitted from a superior case mix, as well as higher footfalls, due to pent-up demand. For the diagnostic companies, we expect sequential recovery of non-Covid volumes, given Covid sales will slip qoq.
We expect non-Covid realizations per patient to be largely flattish qoq. For Dr Lal PathLabs and Metropolis Healthcare, we expect partial benefit of accrual of synergies from the Suburban and Hitech acquisitions, respectively.
Market at 3 PM
Benchmark indices extended the losses and trading at day's low point with Nifty below 16100.
The Sensex was down 458.94 points or 0.84% at 53936.29, and the Nifty was down 143.80 points or 0.89% at 16072.20. About 1393 shares have advanced, 1705 shares declined, and 126 shares are unchanged.
Euro on the brink of breaching parity, stocks slide again
The euro sank to within a whisker of parity with the dollar on Tuesday and stock markets fell as the prospect of further central bank tightening and worries about the health of economies worldwide unnerved investors.
The dollar's role as the safe-haven go-to currency for investors worried about the economic outlook has been burnished in recent weeks, with the U.S. currency roaring to two-decade highs against multiple currencies.
The euro has been particularly vulnerable given the impact of an ongoing spike in natural gas prices on the regional economy and the war in neighbouring Ukraine, and with the European Central Bank behind rivals in raising interest rates.
By 0725 GMT, the euro was down 0.3% at a low of $1.0004 , its weakest in more than 20 years.
The dollar index gained 0.3% to 108.48 , while sterling hit another two-year low and the yen was not far off its weakest in more than two decades .
Eveready Industries India approves appointment of non-executive director
Eveready Industries India has approved the appointment of Dr. Anand Chand Burman, Mr. Mohit Burman and Mr. Arjun Lamba as Non-Executive Director(s) (Additional Director(s)) of the company, with effect from July 12, 2022, subject to the approval of the shareholders of the Company.
Satin Creditcare board approves raising up to Rs 5,000 crore via NCDs
The Board of Directors of Satin Creditcare considered and approved the proposal for raising of funds by way of issuance of Non-Convertible Debentures (“NCDs”) upto Rs 5,000 crore on private placement basis, in one or more tranches, within a period of 1 (one) year from the date of shareholders’ approval, to any category of investors eligible to invest in the NCDs, subject to approval of shareholders in the ensuing annual general meeting.
Satin Creditcare Network was quoting at Rs 98.20, down Rs 0.85, or 0.86 percent on the BSE.
Debt mutual funds see Rs 92,248 crore outflow in June on uncertain macro environment
Mutual funds focused on investing in fixed-income securities witnessed a heavy outflow of Rs 92,248 crore in June on uncertain macro environment, driven by expectations around an increasing rate cycle, higher commodity prices and slowdown in growth.This comes following a net outflow of Rs 32,722 crore in May and an inflow of Rs 54,756 crore in April, data available with Association of Mutual Funds in India (Amfi) showed.Out of the 16 fixed-income or debt fund categories, 14 witnessed net outflows during the month under review. The only categories that witnessed inflows were the 10-year gilt funds and the long duration funds
Nifty PSU Bank index, gains 0.81 percent aided by Indian Bank and Canara Bank. Other sectoral indices are under pressure
Source: NSE
Market at 2.00 PM
Indices trade lower amid volatility, Nifty around 16,000
The Sensex was trading lower by 359.5 points or 0.66% at 54,035.17 and the Nifty was lower by 121.6 points or 0.75% at 16,094.25 About 1,490 shares have advanced, 1,721 shares declined, and 167 shares are unchanged.
Source: BSE
Nifty Information Technology index shed 0.7 percent dragged by the Infosys, Tech Mahindra, Mphasis
Dhruv Consultancy Services bags contract
Dhruv Consultancy Services has received Letter of Acceptance (LOA) for the independent engineering services during development and operation of road project - Sikar - Bikaner section of NH-11, in Rajasthan through Public Private Partnership on design, build, finance, operate and transfer (DBFOT).
Dhruv Consultancy Services received this contract in association with G-Square Infra Projects. Independent engineering services fees for the said project will be Rs 4.14 crore and the contract period will be of 36 months
Chandan Taparia, Vice President, Equity Derivatives and Technical, Broking & Distribution, Motilal Oswal Financial Services:
Nifty opened gap down and is facing resistance at higher levels. The index is making lower lows since the last 3 trading sessions which is providing some discomfort at higher zones. Any rise towards 16161 can be utilised as a selling opportunity in the index.
India VIX is flat near 19 zones. However it needs to cool down below 18 for stability and a directional move in the market. Now till it holds below 16161, it can move down to 16061 and 15950 zones whereas bounce can be seen towards 16250. Market breadth is positive which indicates that there is buying interest in the market but pressure at higher zones.
Nifty is showing signs of weakness while Bank Nifty is holding at higher levels. In Nifty we can utilize any rise for selling opportunity while in Bank Nifty any dip should be utilised as a buying opportunity for higher levels. At current juncture, we are advising to be with selective stocks and one can look for buying opportunity in M&M Fin, Eicher Motors and Pidilite.
BSE Fast Moving Consumer Goods index fell 1 percent Associated Alcohols & Breweries, AVT Natural Products, Britannia Industries
Market at 1 PM
Benchmark indices extended the losses and trading at day's low with Nifty below 16100.
The Sensex was down 401.93 points or 0.74% at 53993.30, and the Nifty was down 135.00 points or 0.83% at 16081. About 1398 shares have advanced, 1604 shares declined, and 145 shares are unchanged.
NMDC revises prices of Lump Ore & Fines
The company fixed prices of Lump Ore (65.5%, 6-40mm) at Rs 3,900/- per ton and Fines (64%, - 10mm) at Rs 2,810/- per ton.
NMDC was quoting at Rs 102.95, down Rs 6.05, or 5.55 percent on the BSE.
Techno Electric & Engineering Company approves share buyback
The board of directors of Techno Electric & Engineering Company approved the proposal to buy back fully paid-up Equity Shares of the company of face value of Rs 2 each from the members of the company payable in cash, for an amount aggregating up to Rs 130 crores ata price not exceeding Rs 325 per equity share, through the open market route.
5paisa Capital clocks 2.6% growth in Q1 profit
5paisa Capital reported a 2.6 percent year-on-year growth in consolidated profit at Rs 7.39 crore in quarter ended June 2022. Revenue from operations grew by 40 percent YoY to Rs 84.03 crore during the quarter.
5paisa Capital was quoting at Rs 296.25, up Rs 3.65, or 1.25 percent on the BSE.
Suryoday Small Finance Bank Business Update:
BSE Realty index shed 0.5 percent dragged by the Phoenix Mills, Indiabulls Real Estate, Sobha
Results Today:
DoT releases list of applicants for upcoming spectrum auction:
Department of Telecom (DoT) released the list of applicants for the upcoming spectrum auction. The applicants for spectrum auction Adani Data Networks, Reliance Jio, Vodafone Idea & Bharti Airtel.
HCL Technologies to announce Q1 Results Today
The results season picks up steam with some big-ticket results lined up over the course of this week starting with HCL Technologies Ltd (HCL), which is scheduled to declare its results on July 12 for the quarter ended June 2022.
Ranked among the top four IT companies in the country, experts expect HCL Tech to report a soft revenue growth during the quarter because of seasonal weakness and moderation in demand. The prevailing cross-currency headwinds are also likely to play spoilsport in the dollar revenue growth for the company. Click To Read More
DCX Systems files draft papers to raise Rs 600 crore via IPO
DCX Systems has filed draft papers with Securities Exchange Board of India to raise around Rs 600 crore via an initial public offering.
The IPO will consist of a fresh issue of Rs 500 crore and an offer for sale (OFS) of up to Rs 100 crore by its existing shareholders and promoters.
NCBG Holdings Inc and VNG Technology Pvt Ltd will each sell shares worth Rs 50 crore. Currently, both these promoters hold 44.32 percent stake each in the firm.
The firm proposes to utilise Rs 120 crore towards funding of its debt. As of 28 February 2022, the total borrowings of the company was at Rs 451.51 crore.
MRPL board meeting on July 15
The meeting of the Board of Directors of Mangalore Refinery and Petrochemicals has been scheduled for Friday, 15th July, 2022 to discuss/decide way forward for complying with minimum public shareholding requirements by issue of further public offer, preferential issue, qualified institutions placement etc.
Nifty Auto index slipped 1 percent led by the Tube Investments Of India, Eicher Motors, Bharat Forge
Paint makers spared from demand slowdown as raw material prices rise: Indigo Paints CMD Hemant Jalan
Although packaged consumer goods companies have experienced a slowdown in consumption for a few quarters, the trend has not hurt demand in the paints industry, according to Hemant Jalan, Chairman and Managing Director of Indigo Paints.
“The consumers have taken it in their stride, at least as far as paint consumption is concerned,” Jalan said in an episode of Life After Listing, a Moneycontrol series that focuses on the key changes for a company’s management and founders after their company goes public. Read more
Exports likely to record reasonable level of growth in 2022-23: Piyush Goyal
The country's exports are likely to register a "reasonable level" of growth in the current financial year despite the global uncertainties on the trade front, Commerce and Industry Minister Piyush Goyal has said.
Clearly, there are signs of a global slowdown in international trade and India is keeping a "watchful" eye on the developments by talking to all the export promotion councils and large exporters, and engaging with the Indian missions abroad, he said.
In the current global situation, "our exports will stand on the basis of price competitiveness and qualityWe will calibrate the expectations of exports based on the ground reality," the minister told PTI.
Market update at 11 AM: Sensex is down 180.73 points or 0.33% at 54214.50, and the Nifty shed 63.40 points or 0.39% at 16152.60.
Air Asia Company goes live with Ramco Aviation
Global aviation software provider Ramco Systems announced that it has successfully gone live at Air Asia Company Limited (AACL), Taiwan’s first privately-owned aircraft maintenance company catering to aircraft maintenance of commercial aircraft, helicopters, military and a designated ‘Government owned contractor operated facility’ (GOCO), with its Aviation M&E MRO Suite V5.9, thereby automating and digitally transforming AACL’s business processes, company said in its release.
Ahluwalia Contracts bags new order worth Rs 150 crore
Ahluwalia Contracts (India) Limited has secured the new order for construction work of Amity Campus Bengaluru, aggregating to Rs 150 crore (Approx.) from Ritnand Salved Education Foundation, company said in its release.
The total order inflow during the FY 2022-23 stands at Rs 863 crore.
Eureka Forbes share price gain:
The share price of Eureka Forbes surged in the morning trade on July 12, a day after the company confirmed the appointment of former Jubilant Foodworks chief executive officer (CEO) Pratik Pota as its new executive head.
Pota, who has been appointed the CEO and managing director of the company for five years, will begin his term on August 16. Pota resigned as the chief executive of Jubilant Foodworks on March 11 ahead of a move to Eureka Forbes, best known for Aquaguard water purifiers and vacuum cleaners.
Today’s Stock Market Action
Buzzing
Shares of optical fibre cable manufacturer HFCL surged over 6 percent on July 12 after the company received a Rs 59.22-crore order from a telecom company in India.
“Purchase orders (have been) issued by a leading telecom operator in the country for their fibre-to-the-home (FTTH) network and long-distance fibre network in various telecom circles,” HFCL said in a regulatory filing.
KRChoksey View on Dr. Reddy’s Laboratories
We estimate a 9.9% CAGR growth in revenue and a 16.1% CAGR rise in Adjusted PAT over FY22-FY24E, driven by its strong product pipeline, and its ability to witness volume share in the base business and focus on branded markets of India and Russia.
At a CMP of Rs 4,501 per share, Dr. Reddy’s shares are trading at 22.5x/19.6x FY23E/FY24E EPS. Based on our FY24E estimates and applying a 22.9x PE multiple, we arrive at a target price of Rs 5,261 per share; a potential upside of 16.9%.
Accordingly, we reiterate our “BUY” rating on the shares of Dr. Reddy’s.
