14,700 crucial for strong uptrend
"We have crossed the 14,700 mark today. What needs to be seen is if the Nifty is able to sustain above this level for a day or two. If we are successful in doing so, the markets can scale up to 15,100-15,200. On the flip side, if this poses to be a resistance level, we could drop back to 14,400 and continue downwards to 14,000-14,100. We are in a "wait and watch" situation and have to tread this phase patiently," saidManish Hathiramani, proprietary index trader and technical analyst at Deen Dayal Investments.
Technical Outlook
"One more positive session with index given close at 14,733 with gains of nearly one percent and formed a bullish candle for the second consecutive day. Now index again reaching to its strong hurdle zone of 14,800-14,900 zone fresh breakouts will be only if Nifty sustains above 15,000 mark because we have witnessed profit booking from said levels in recent past, good support is formed at 14,670-14,600 zone managing above said level immediate structure positive," saidRohitSingre, Senior Technical Analyst atLKPSecurities.
Expert's Take
"Amidst rising COVID cases, hopes of recovery through vaccine drives and a positive global market is aiding the domestic market to ride a positive wave. Biden’s decision to waive intellectual property rights on vaccines pumped in global optimism. Metal stocks continued to outshine other sectors as it kick-started its earning season on a better-than-expected note. Auto and IT were the other sectoral leaders while mid and small-cap stocks mirrored the trend," saidVinodNair, Head of Research atGeojitFinancial Services.
Gainers and Losers
Market Closing Update
: The benchmark indices closed on a strong note on Thursday with the Nifty50 scaling above 14,700 levels.
The BSE Sensexrallied272.21 points to close at 48,949.76, and the Nifty50 was up 106.90 points at14,724.80. The broader markets also traded in line with frontliners as the Nifty Midcap 100 and Smallcap 100 indices gained 0.94 percent and 0.7 percent respectively.
Hikal March Quarter Earnings Performance
: Hikal doubled its consolidated profit to Rs 50.92 crore in March 2021 quarter, compared to Rs 24.47 crore in March 2020 quarter. Revenue jumped to Rs 532.46 crore from Rs 378.99 crore YoY.
Silver likely to remain in the bullish trend
"Dovish Fed comments on Wednesday are supportive for precious metals; silver prices have additional support from increasing global economic optimism due to vaccination drive and relaxation in COVID-19 lockdown in leading economies such as US and Eurozone. As per reports on Wednesday, the number of vaccinations administered against the coronavirus has reached more than 1.1 billion globally. Still rising coronavirus cases globally are a major cause of concern," saidAbhishekBansal, Founder Chairman at AbansGroup.The overall global COVID-19 caseload has topped 154.7 million, while the deaths have surged to more than 3.23 million, according to the Johns Hopkins University.
"Silver prices are likely to trade firm on supportive economic data globally and dovish comments from central banks. Silver may trade firm while above key support levels of 50-day EMA of $25.997 per troy ounce and 200-dayEMA of $24.930, it may find some resistance around $27.303," he said.
Solara Active Pharma Sciences March Quarter Scorecard
: The company reported sharply higher consolidated profit at Rs 56.61 crore in Q4FY21 against Rs 17.81 crore in Q4FY20. Revenue jumped to Rs444.21 crore from Rs 296.77 crore YoY.
Technical Outlook
"The market witnessed some decisive trends and an attempt to overcome the resistance level around the Nifty 50 Index level of 14,700. While sustaining above 14,500 is the key factor from a short-term perspective, staying above this level market to gain momentum and to open the gate for a movement till 14,900-15,000. The momentum indicators like RSI, MACD to recover after staying neutral to bearish in recent time," saidAshisBiswas, Head of Technical Research atCapitalViaGlobal Research.
Indian monsoon onset expected around June
:Monsoon rains that mark the start of the four-month rainy season are likely to enter India through the southern coast around June 1, in line with typical patterns, a top government official said on Thursday.
India's weather office will issue its official forecast for this year's monsoon onset on May 15, MadhavanRajeevan, secretary of the Ministry of Earth Sciences, said in a tweet.
Rakesh Jhunjhunwala cuts stake in 7 companies in March quarter
: Rakesh Jhunjhunwala, the Big Bull of D-Street, reduced stake in seven companies in the March quarter compared to the December quarter of FY21, data collated from AceEquity showed. Jhunjhunwala, who is widely followed by retail investors in India and is known for picking multibaggers, sequentially reduced in three companies and cut stake below 1 percent in four companies in Q4 FY21. Read more
European markets are trading flat with FTSE and DAX up marginally in the green
Hikal Q4
: Consolidated net profit at Rs 50.9 crore against Rs 24.5 crore (YoY). Consolidated revenue was up 40.5 percent at Rs 532.5 crore against Rs 379 crore (YoY). Consolidated EBITDA gained 54.7 percent at Rs 109.3 crore against Rs 70.6 crore (YoY).
Tapan Patel- Senior Analyst (Commodities), HDFC Securities
: Crude oil prices traded higher with benchmark NYMEX WTI crude oil prices were trading half a percent up to $65.94 per barrel for the day. MCX Crude oil May futures were trading nearly 1% up at Rs. 4872 by noon.
Crude oil prices are expected to trade sideways to up for the day with resistance at $67 and support at $64.50 per barrel. MCX Crude oil May has support at Rs 4830 and resistance at Rs 4950.
JB Chemicals enters Nephrology segment in India
JB Chemicals & Pharmaceuticals forayed into the area of Nephrology with a new dedicated division called “RENOVA” which will endeavour to serve patients who are under treatment for chronic kidney disease. The stock was trading atRs 1,470, up Rs 53.70, or 3.79 percent. It has touched a 52-week high of Rs 1,493.
Sundram Fasteners Q4
: Consolidated net profit came in at Rs 140.8 crore against Rs 54.6 crore (YoY). Consolidated revenue grew 53.2 percent at Rs 1,273.1 crore against Rs 830.9 crore (YoY). Consolidated EBITDA jumped 92.8 percent at Rs 236.8 crore against Rs 122.8 crore (YoY). Consolidated EBITDA margin stood at 18.6 percent against 14.8 percent (YoY).
Caplin Point Laboratories Q4:
Consolidated net profit was up 39 percent at Rs 67.9 crore against Rs 48.9 crore (YoY). Consolidated revenue was up 29.5 percent at Rs 278.7 crore against Rs 215.2 crore (YoY). Consolidated EBITDA gained 59.2 percent at Rs 85.7 crore against Rs 53.8 crore (YoY). Consolidated EBITDA margin was at 30.7 percent against 25 percent (YoY).
India’s 5G auctions may be pushed till end of Q1FY22 at least: Report
India is likely to push 5G auctions till the first quarter of financial year 2022. The delays are due to the second wave of the COVID-19 pandemic and because decisions on spectrum and pricing in India are still pending.
The Department of Telecommunications (DoT) is “currently preoccupied” with ensuring network stability amid the coronavirus pandemic and is awaiting decisions on spectrum availability and pricing, sources told The Economic Times.
Market Update: Sensex is up 251.90 points or 0.52% at 48929.45, and the Nifty up 92.40 points or 0.63% at 14710.30.
Gaurav Garg, Head of Research, CapitalVia Global Research:
Indian markets opened with positive cues from the world market which has helped the market to remain positive in the first half. Nifty has traded in a consolidated manner near the level of 14,650.If the market breaches the level of 14,700, we might see a small rally in the market.
Technical factors in the market are aligned to show that market will trade in a range of 14,500-14,900. The level of 14,500 will be an important support level in the short term. On the sector front, most of the sectors have been trading in green.
J&K Bank board to meet next week to consider raising of capital:
The Jammu & Kashmir government will infuse up to Rs 500 crore into Jammu and Kashmir Bank (J&K Bank) as its promoter shareholder. In a regulatory filing the public sector lender said its board will meet next week to consider the said proposal.
"The Board of Directors of the Bank will meet on Wednesday, May 12, 2021... to consider/discuss the proposal of capital infusion by the Government of Jammu & Kashmir as its promoter shareholder to the tune of Rs 500 crore in the bank," Jammu & Kashmir Bank said in a regulatory filing.
Cognizant Q1 net up 37.6% to $505 million; expects to log 7-9% revenue growth in FY2021
IT company Cognizant has reported a 37.6 per cent rise in its March quarter net income at USD 505 million, and said it expects its revenue to grow 7-9 per cent during the year.
"In the first quarter, we successfully executed our strategy of embracing digital, investing in international expansion and repositioning the Cognizant brand. Cloud migration and digital adoption create a significant opportunity for Cognizant in the coming years," Cognizant Chief Executive Officer Brian Humphries said.
Buzzing stock
Share price of Bajaj Healthcare jumped over 6 percent after the the company launched Ivermectin tablets for treatment of COVID-19. The stock was trading at Rs 623, up Rs 35.60, or 6.06 percent. It has touched a 52-week high of Rs 625.00.
Nifty Auto added over a percent led by Hrro MotoCorp, TVS Motor and Bajaj Auto
ICICIdirect on Automotive Axles:
With cyclical recovery envisaged in the CV space, we expect sales to grow at a CAGR of ~37 percent in FY21E-23E to ~Rs 1500 crore in FY23. PAT in the aforesaid period is expected to grow to ~Rs 95 crore in FY23E with capital efficiency reviving to ~20 percent levels (RoCE, RoIC). We are also enthused by the Vision 2025 statement at AAL, wherein the management’s intent is to grow profitably ahead of industry including exports. With favourable risk-reward at hand, we ascribe buy rating to the stock with a target price of Rs 1,260 i.e. 20 x P/E on FY23E numbers.
Hareesh V, Research Head Commodities at Geojit Financial Services:
A weak US dollar and concerns over the second wave of Covid -19 in many countries continue to offer lower level support to the yellow metal. Meanwhile, firm global equities and signs of economic recovery in many counties may limit major rallies in the commodity. Anyhow, investors may look forward to tomorrow’s US job report to get a clear direction on US economy and thus the price of precious metals.
As long as prices stay above $1760, we can expect positive bias to remain intact but it is required to close above $1800 to continue major rallies. A close below $1720 is a sign of immediate trend reversal.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
: The trend of positive news alternating with negative news continues. President Biden's decision to back waiving intellectual property rights on vaccines is a big positive. This will quicken the vaccination process enabling countries like India to come out of the pandemic faster. But data on daily infections indicate a rise, though mild, after 5 days of decline. Also, lockdowns and restrictions on mobility are increasing, impacting the economic recovery. Now there are two broad views regarding the peaking of the second wave: One, peaking by mid-May; two, peaking by July. If the first scenario plays out, the hit to economic growth will be a marginal, say, 1% decline from the estimates of 11% growth in FY22. In the second scenario, the hit will be worse. It remains to be seen which scenario will play out. Investors may wait and watch. IT, pharma, metals and telecom are likely to remain resilient even under difficult times.
Market update: Sensex is up 41.37 points or 0.08% at 48718.92, and the Nifty up 24.10 points or 0.16% at 14642.00.
Tata Motors on CCI order:
CCI has passed a prima facie order and has not made any binding observations. Company is reviewing copy of order, will consult legal counsels and take necessary steps.
Coforge Q4:
Net Profit was up 9 percent at Rs 133 crore against Rs 122 crore (QoQ). Rupee revenue was up 6 percent at Rs 1,261 crore against Rs 1,190.6 crore (QoQ). EBIT gained 6.1 percent at Rs 165 crore against Rs 155.4 crore (QoQ). EBIT margin at 13.1 percent against 13 percent (QoQ). FY22 constant currency revenue growth seen at atleast 17 percent. The company's board declared dividend of Rs 13 per share.
Kshitij Purohit, Lead International Products & Commodities at CapitalVia Global Research:
Technically, USD/INR gave a gap-down opening today by breaching the neckline of “Head & Shoulders” candlestick chart pattern and made a low of 74.175 on the 15-Minute chart, here we saw a Bullish pin bar after which prices tested resistance in 74.30-74.35 zone and again fell to lower levels, currently prices are re-testing resistance on the neckline of pattern discussed above.
A downfall from here can push prices down till 74.00-73.90 zone in upcoming sessions, and if we witness a bounce back from the support range of 74.20-74.15, resistance might get tested in the range of 74.30-74.40. Currently, prices have crossed 9-SMA and are sustaining below it, confirming a Bearish trend.
Nifty Auto Index rose 1 percent led by the Bajaj Auto, Hero MotoCorp, Eicher Motors
Rupee Opens:
Indian rupee opened marginally higher at 73.86 per dollar on Thursday against previous close of 73.91, amid buying seen in the domestic equity market.On May 5, the rupee ended marginally lower at 73.91 per dollar against previous close of 73.86.
IDBI Bank gets CCEA nod for disinvestment
IDBI Bank share price jumped over 9 percent on May 6 after the Cabinet Committee on Economic Affairs (CCEA) gave its in-principle approval for strategic disinvestment along with transfer of management control in IDBI Bank.
The (CCEA) on May 5 granted approval for the long-pending strategic disinvestment of IDBI Bank Ltd, an official statement said.
Tata Steel touches 52-week high post Q4 numbers:
Tata Steel on May 5 posted a consolidated profit of Rs 6,644.1 crore for the quarter ended March 2021 compared to a loss of Rs 1,481.3 crore in the year-ago quarter.
Consolidated revenue from operations stood at Rs 49,977.4 crore, up 38.8 percent YoY.
Tata Steel touched a 52-week high of Rs 1,128.80, and quoting at Rs 1,122.35, up Rs 53.40, or 5 percent.
Follow our LIVE blog for the latest updates on the novel coronavirus pandemic and its impact
Buzzing Stocks: Hero Moto, Cipla, Wipro and others that will be in focus today
ICICI Direct
As the Dollar index has managed to move to a two-week high, we feel the USDINR pair should move towards 74.5 levels as it is near its sizeable Put base.
The dollar-rupee April contract on the NSE was at Rs 74.20 in the last session. The open interest fell 4.3% for the May series.
BSE Metal index rose 2 percent supported by the Tata Steel, NALCO, JSW Steel
Dollar Updates:
The dollar hovered below a two-week high on Thursday, consolidating ahead of a key US jobs report that may provide clues on when the Federal Reserve will dial back monetary stimulus.
Gold Updates
Gold prices inched lower on Thursday due to a stronger dollar, while investors awaited the release of US non-farm payrolls data for April due later this week.
Coronavirus LIVE Updates | 11-day lockdown underway in COVID-rattled Bihar
An 11-day complete lockdown, imposed in the wake of a state-wideCOVID19 surge on an unprecedented scale, got underway on Wednesday in Bihar where the authorities had a tough time ensuring compliance from people. Police personnel had begun patrolling the streets since early in the morning, anticipating heavy rush and overcrowding between 7 A.M. and 11 A.M., the four-hour period during which shops selling vegetables, meat, fish, poultry, and grocery items have been allowed to do business.
Owners of many shops, not dealing in items deemed as essentials, faced a rude shock as they were made to down their shutters, besides being slapped with fines, by the men in uniform. The policemen were also seen striking their canes against the ground at many places to scare away and disperse people who had come out to make purchases and gathered at shops or around hand-pulled vegetable and fruit carts throwing physical distancing norms to the winds.
Many motorcycle-borne youths, loitering around to enjoy high-speed rides on the deserted streets, tried to brazen it out when stopped by police personnel whom they told with a sheepish grin that they had come out for "hawakhori" (breath of fresh air). Some of them ended up being fined and even their vehicles being impounded. The luckier ones were let off after being made to undergo, in public, the humiliation of doing squats with their hands grabbing their earlobes.
Dollar Updates
The dollar hovered below a two-week high on Thursday, consolidating ahead of a key US jobs report that may provide clues on when the Federal Reserve will dial back monetary stimulus.
Gainers and Losers on the BSE Sensex in the early trade:
Market Opens
: Indian indices opened on positive note on May 6 with Nifty above 14600.
At 09:16 IST, the Sensex was up 172.65 points or 0.35% at 48850.20, and the Nifty was up 54.40 points or 0.37% at 14672.30. About 1130 shares have advanced, 271 shares declined, and 74 shares are unchanged.
Petrol and diesel prices:
Fuel prices across metro cities was hiked for the third consecutive day on May 6. In the national capital Delhi, petrol prices were hiked by 25 paise and diesel prices by 30 paise.
People in New Delhi will now shell out Rs 90.99 per litre for petrol and Rs 81.42 per litre on diesel. In Mumbai, the prices increased to Rs 97.34 per litre and Rs 88.49 per litre for petrol and diesel, respectively.
ICICI Direct:
Indian markets are likely to open flat on the back of weak global cues even as Covid worries continue to persist and with the RBI Governor deciding to allow restructuring of retail and MSME loans as part of a calibrated strategy to tackle the second Covid-19 wave in the country. US markets ended mixed amid earnings season, optimism over economic recovery and losses in select tech stocks.
Market at pre-open:
Benchmark indices are trading higher in the pre-opening session with Nifty above 14600.
At 09:02 IST, the Sensex was up 488.99 points or 1% at 49166.54, and the Nifty was up 54 points or 0.37% at 14671.90.
