Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities:
Profit booking seemed to be the order of the day, especially in the 2nd half of day's session as both Sensex and Nifty ended lower after a positive start.
Investors seemed nervous ahead of US CPI inflation numbers that are slated to release on Thursday. Technically speaking, the line in the sand is at Nifty’s support at 17907 mark, with the immediate goal post seen at its all-time-high at 18605 mark.
Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One:
The positive developments among the global peers have led to a sturdy start to our market post the mid-week holiday. The benchmark index started with a small gap-up opening, but the follow-up buying was certainly lacking, resulting in a gradual fall throughout the session. Meanwhile, the banking index hastened to register a new high of 41,948.90. With such an action-packed day, Nifty snapped its two days of winning streak and settled a tad above 18150 with a mere loss of 0.25 percent.
We remain sanguine about the technical setup of the Nifty, as the index is in a cycle of higher highs – higher lows and is currently hovering well above the moving averages on a daily time frame. At the same time, we would advocate not being complacent, as tentativeness could be sensed at higher levels, post the recent rally. However, the undertone is in favor of bulls till Nifty sustains above the 18000 mark, but the next couple of trading sessions would be crucial to watch for the near-term trend.
On the technical front, the sacrosanct support lies at the 18000 mark, and till the time it is firmly defended, there should not be any sign of worrying. While on the flip side, the 18250-18350 zone is likely to be seen as stiff resistance for the index.
Amidst the volatility, the undertone is likely to remain upbeat, and we reiterate to keep a close tab on the mentioned levels. Also, one should continue with the stock-specific approach, as even though the indices may be doing little, the individual stocks are not at all short of action. Hence one should continue to identify such potential movers and trade accordingly.
Mohit Nigam, Fund Manager & Head - PMS, Hem Securities:
Indian benchmark indices made a gap up opening and closed in red in highly volatile session. Nifty50 closed at 18157 (-0.25%) and Sensex closed at 61033 (-0.25%). Among sectors Selling was visible in IT, Pharma, reality, Capital goods whereas Nifty PSU Banks & FMCG closed in green.
Indian markets are following the trend of global sentiments which are waiting for the outcome of US elections.
On the technical front, the key resistance levels for Nifty50 are 18250 and on the downside 17900 can act as strong support. Key resistance and support levels for Bank Nifty are 41950 and 41200 respectively
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
For the last couple of sessions, the Nifty is attempting to cross the level of 18200, however it is unable to sustain in the higher territory. The recent higher high in the index on daily chart is not accompanied by higher high in the daily & the hourly momentum indicators. This is a sign of exhaustion in momentum on the upside.
The Nifty is currently trading near the key hourly moving averages, which are near 18100. If that is breached then the index can slide towards 18000, which will be the make or break level for the index from short term perspective.
Rupak De, Senior Technical Analyst at LKP Securities:
Indian Nifty remained volatile with a predominant bearishness on Wednesday's trading. On the higher end, the headline index has found resistance around 18300. The overall trend is expected to remain volatile as long as it remains below 18300.
A decisive move above 18300 may induce a rally towards 18600. However, failure to move beyond 18300 may trigger further profit taking. On the lower end, support is pegged at 18000; below which the index may extend its loss towards 17700.
Ajit Mishra, VP - Research, Religare Broking
Markets remained volatile and ended marginally lower, in absence of any major trigger. After the initial uptick, the Nifty index inched gradually lower as the session progressed and finally settled at 18,157 levels.
The majority of sectors traded in line with the benchmark and ended flat to marginally lower. Meanwhile, the broader indices underperformed and lost over half a percent each.
The recent market move indicates caution among the participants amid mixed signals from the global front. However, rotational buying across sectors is helping the index to maintain a positive tone. Amid all, we feel the prudent approach is to look for stock-specific opportunities for trading until Nifty regains momentum.
Vinod Nair, Head of Research at Geojit Financial Services.
Continued FII inflows, combined with a consolidation in the dollar index, boosted market sentiment. A major next trigger could be the US CPI inflation, to be announced tomorrow, consensus indicate a moderation to 7.9% in October compared to 8.2% in Sept. A fast slowdown in inflation would provide the fuel for the market to edge higher, the key problem of 2022.
S Ranganathan, Head of Research at LKP securities:
Despite a 4.5% rise in the PSU Bank Index last session, there was no let up as today the index led from the front with another stellar performance of almost 4% rise as the street gave a thumbs up to the second quarter earnings of PSU Banks.
All eyes are now on the Inflation data expected this week as supply side issues coupled with domestic demand would play a part given the way retail fuel prices have been behaving.
Ajit Kabi, Banking Analyst at LKP Securities:
PSU banks were trading at an inexpensive valuation for a long time. The lower growth capital and legacy NPAs were the reason for underperformance.
However, the concern of asset quality and growth are way behind. The large public banks have delivered strong growth and improvement in credit quality. Therefore, PSU banks are likely to perform well in mid-run. Bank of Baroda, Canara Bank are top picks in PSU space.
Rupee Close:
Indian rupee closed 46 paise higher at 81.45 per dollar on Wednesday against Monday's close of 81.91.
Market Close:
In the highly volatile session the Indian benchmark indices ended lower with Nifty below 18200.
At Close, the Sensex was down 151.60 points or 0.25% at 61,033.55, and the Nifty was down 45.80 points or 0.25% at 18,157. About 1669 shares have advanced, 1745 shares declined, and 108 shares are unchanged.
Hindalco Industries, Power Grid Corp, Divis Labs, Tech Mahindra and Grasim Industries were among the top Nifty losers, while gainers were Adani Ports, Coal India, ITC, Dr Reddy’s Labs and Hero MotoCorp.
Among sectors, except PSU Bank and FMCG, all other indices ended in the red.
The BSE midcap index shed 0.5 percent and smallcap index down 0.3 percent.
APL Apollo Tubes Q2 Results:
APL Apollo Tubes has posted 2.8 percent jump in its Q2FY23 net profit at Rs 150.2 crore versus Rs 146.1 crore and revenue was up 28.7% at Rs 3,969.2 crore versus Rs 3,084 crore, YoY.
APL Apollo Tubes was quoting at Rs 1,044.95, down Rs 51.10, or 4.66 percent.
Morgan Stanley View On Godrej Consumer Products
-Overweight call, target at Rs 1,101 per share
-Q2 weak, but in-line with expectations
-See early signs of improvement in performance
-Expect gains in growth to be visible in FY24
-Guidance for FY23 maintained, reported CNBC-TV18.
Godrej Consumer Products was quoting at Rs 815.95, down Rs 10.20, or 1.23 percent.
Geojit View on Amara Raja Batteries
We believe, moderation in the lead price and improving volume will drive margin growth. In addition, the auto sector is likely to show a pick-up in H2FY23 owing to a strong rebound in sales numbers.
We expand the margin outlook by 135bps to factor in lower lead price. However, on a 1 year fwd. basis, the stock is trading below its historical average and shown good attraction in the last one month.
We maintain our valuation at 14x FY24E EPS with a target price of Rs 670/share and recommend Accumulate rating at CMP.
Amara Raja Batteries was quoting at Rs 615.25, up Rs 13.95, or 2.32 percent.
Nomura View On Dr Lal PathLabs
-Reduce call, target at Rs 1,819 per share
-Valuations still rich, but risk of slower growth & lower margin remain
-Ex-suburban, margin at 27.7% versus 27-30% margin recorded prior to pandemic, reported CNBC-TV18.
Nifty Information Technology index fell 1 percent dragged by the Mphasis, Coforge, L&T Infotech
Rolex Rings Q2 Earnings::
Rolex Rings has posted 50 percent jump in its Q2Fy23 net profit at Rs 49.2 crore versus Rs 32.7 crore and revenue was up 12.1% at Rs 289.7 crore versus Rs 258.5 crore, YoY.
Rolex Rings was quoting at Rs 1,994.20, up Rs 21.30, or 1.08 percent on the BSE.
Market at 3 PM
The Sensex was down 200.44 points or 0.33% at 60984.71, and the Nifty was down 53.80 points or 0.30% at 18149. About 1567 shares have advanced, 1691 shares declined, and 96 shares are unchanged.
Jefferies View On Divis Labs
-Kept underperform call and cut target to Rs 3,017 per share
-Q2 misses estimates as custom synthesis sales continued to decline
-Growth levers will kick in only from FY24 & near-term outlook is uncertain, reported CNBC-TV18.
Gateway Distriparks Q2 Earnings:
Gateway Distriparks has posted 27 percent jump in its Q2FY22 net profit at Rs 59.52 crore versus Rs 46.9 crore and revenue was up 7 percent at Rs 359.1 crore versus Rs 335.7 crore, YoY.
Gateway Distriparks was quoting at Rs 73.20, down Rs 0.30, or 0.41 percent.
BSE Metal index shed 1 percent supported by the Hindalco Industries, Jindal Steel, NALCO
Siemens sets up state-of-the-art production facility for bogies in Aurangabad
Siemens has set up a state-of-the-art factory in Aurangabad to address the increasing demand in India and across the world. The factory will deliver over 200 bogies towards an export order. The bogies are based on the proven global design concept from Siemens – SF30 Combino Plus that offers best-in-class passenger experience and easy maintenance
Siemens was quoting at Rs 2,913.15, down Rs 24.60, or 0.84 percent.
Sheela Foam amends earlier proposed merger of Sleepwell Enterprises & International Comfort with the company
:
The Board of Directors of the company discussed the Old Scheme and after deliberation, decided to amend the Old Scheme by excluding SEPL from the proposed amalgamation with the Company. Accordingly, Board of Directors of the Company has approved Scheme of Amalgamation of ICTPL with SFL and their respective shareholders and creditors under sections 230 to 232 and other applicable provisions of the Companies Act, 2013 on November 8, 2022. The stock was trading at Rs 2,825, down Rs 68.40, or 2.36 percent on BSE. It has touched an intraday high of Rs 2,993.90 and an intraday low of Rs 2,810.
Astra Microwave Products Q2
Net profit at Rs 20.5 crore against Rs 3.4 crore (YoY). Revenue slipped 2.8% at Rs 174.7 crore against Rs 179.8 crore (YoY). EBITDA was up 8.2% at Rs 6.2 crore against Rs 5.7 crore (YoY). EBITDA margin at 3.6% against 3.2% (YoY). The stock was trading at Rs 329, up Rs 4.15, or 1.28 percent on BSE. It has touched an intraday high of Rs 346.45 and an intraday low of Rs 318.90.
3M India Q2
Net profit was up 65.4% at Rs 106.2 crore against Rs 64.2 crore (YoY). Revenue rose 16.3% at Rs 976.7 crore against Rs 840.1 crore (YoY). EBITDA was up 6.9% at Rs 15 crore against Rs 14 crore (YoY). EBITDA margin at 1.53% against 1.67% (YoY). The stock was trading at Rs 23,673.35, up Rs 1,227.40, or 5.47 percent on BSE. It has touched an intraday high of Rs 24,181.75 and an intraday low of Rs 22,165.15.
Siemens sets production facility for bogies in Aurangabad
European Markets Updates
Barbeque Nation Q2
Net profit at Rs 7.1 crore against Rs 2.9 crore (YoY). Revenue was up 30.6% at Rs 310.5 crore against Rs 220.9 crore (YoY). EBITDA was up 41.2% at Rs 58.3 crore against Rs 41.3 crore (YoY). Margin at 18.8% against 18.7% (YoY). The stock was trading at Rs 1,137.25, down Rs 11.65, or 1.01 percent on BSE. It has touched an intraday high of Rs 1,171 and an intraday low of Rs 1,097.65.
Hikal Q2
Net profit declined 43.6% at Rs 24.8 crore against Rs 44 crore (YoY). Revenue was up 19.1% at Rs 558.7 crore against Rs 469 crore (YoY). EBITDA slipped 23.2% at Rs 70 crore against Rs 90.8 crore (YoY). Margin at 12.5% against 19.4% (YoY).
Market at 2 PM
The Sensex was down 35.94 points or 0.06% at 61149.21, and the Nifty was down 8.60 points or 0.05% at 18194.20. About 1719 shares have advanced, 1507 shares declined, and 107 shares are unchanged.
Divis Laboratories Large Trade | 5.11 lakh shares (0.2 equity) worth Rs 167.82 crore change hands at an average price of Rs 3285.5 per share
It has touched a 52-week low of Rs 3,275 and was quoting at Rs 3,293.40, down Rs 120.30, or 3.52 percent on the BSE.
Finolex Cables Q2 Results:
Finolex Cables has recorded 61.8 percent net profit at Rs 55.3 crore versus Rs 144.7 crore and revenue was up 16.9% at Rs 1,090.8 crore versus Rs 933 crore, YoY.
Finolex Cables was quoting at Rs 530.40, down Rs 0.60, or 0.11 percent on the BSE.
Bajaj Consumer Care Q2 results:
Bajaj Consumer Care has posted 32 percent fall in Q2 net profit at Rs 31.6 crore versus Rs 46.5 crore and revenue was up 7.5 percent at Rs 232.4 crore versus Rs 216.2 crore, YoY.
Bajaj Consumer Care was quoting at Rs 160.00, down Rs 4.10, or 2.50 percent.
Five Star Business Finance IPO subscribed 1% on first day of bidding
The public issue of non-banking finance company Five Star Business Finance has mopped up bids for 2.36 lakh equity shares against an offer size of 3.04 crore shares subscribing 1 percent on November 9, the first day of bidding.
Retail investors and high networth individuals started off putting in bids for the issue, while qualified institutional buyers have not bought any shares yet.
Retail bought 1 percent shares of the allotted quota, while high net worth individuals have bids for 13,423 shares against 65.33 lakh shares reserved for them.
Archean Chemical Industries IPO sees 10% buying on debut
The public offer of marine specialty chemical manufacturer Archean Chemical Industries was subscribed 10 percent, getting in bids for 20.6 lakh equity shares against an issue size of 1.99 crore shares on November 9, the first day of bidding.
Retail investors bought 46 percent shares of the allotted quota, and non-institutional investors have bid for 6 percent shares of portion set aside for them, while qualified institutional buyers have bought 504 shares against issue size of 1.07 crore shares.
Archean has reserved 75 percent of its offer size for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 10 percent for retail.
BEML Q2 Earnings:
BEML has posted 20.5 percent fall in its Q2FY23 revenue at Rs 805 crore versus Rs 1,012 crore and EBITDA was up 8.6% at Rs 42 crore versus Rs 38 crore, YoY.
BEML was quoting at Rs 1,550.30, up Rs 16.90, or 1.10 percent on the BSE.
Angel One’s client base grows 71.5% YoY to 11.88 million in October’22
Fintech company Angel One Limited (formerly known as Angel Broking Limited) registered a 71.5% YoY increase in its client base to 11.88 million, with a gross client acquisition of 0.34 million in October’22.
The company reported a solid business performance with 69.42 million orders, a 19.0% YoY rise. Angel One’s Average Daily Turnover jumped to Rs 13.88 trillion, a 110.7% YoY increase.
Coal India hits three-year high after strong earnings, dividend declaration
Shares of Coal India Ltd on Wednesday hit over a three-year high as many brokerages upgraded its target price after the government-run miner reported stronger-than-expected earnings and interim dividend.
The stock hit a high of Rs 263.30 on the BSE - a level last seen on June 27, 2019 - up over 5.7 percent intraday. At 12pm, the stock was trading at Rs 258 on the BSE - up 3.5 percent from its previous close. So far this year, the stock has surged over 77 percent.
The stock has reported an interim dividend of Rs 15 a share for the second quarter. According to the ICICI Direct report, the firm expected to give Rs 20 per share dividend for the current year of which Rs 15 was already announced. The brokerage firm also expects Rs 22 and Rs 25 annual dividend from the firm in the subsequent years. Read More
Snowman Logistics Q2 Results:
Snowman Logistics has posted net profit at Rs 5.2 crore in the quarter ended September 2022 versus Rs 2 crore in the same quarter last fiscal.
Revenue was up 55.1% at Rs 108.6 crore versus Rs 70 crore, YoY
Snowman Logistics was quoting at Rs 39.70, up Rs 1.15, or 2.98 percent.
Ramco Cements Q2 earnings
Ramco Cements has posted 97.8 percent fall in its Q2FY23 Standalone net profit at Rs 11.5 crore versus Rs 517 crore and revenue was up 19.4% at Rs 1,783 crore verssu Rs 1,493 crore, YoY.
The Ramco Cements was quoting at Rs 716.60, down Rs 22.05, or 2.99 percent on the BSE.
Tirthankar Das, Technical & Derivative Analyst, Retail, Ashika Stock Broking
Positive aspect in the market being that the support base for the market is now at an elevated level of 17900 with a new higher bottom sequence. Positive outlook in the Index is based on the observation that recent Nifty has provided a breakout from the one year falling trend line along with broader participation and relative outperformance against global peers.
Elevated support base for the market is at 17500 as it happens to be the 50 days EMA. The momentum indicator RSI (relative strength index) is above the 60 level mark, which further reaffirms that positive momentum of the index for the short to medium term is likely to remain.
During the day, buying on dip around the levels of 18150-18165 should be the ideal approach going forward for an upside target of 18600.
Dhanlaxmi Bank Q2:
Dhanlaxmi Bank has posted net profit of Rs 16 crore in the quarter ended September 2022 versus Rs 3.6 crore, YoY.
Sun Pharma and SPARC enter into a license agreement
A wholly-owned subsidiary of Sun Pharmaceutical Industries Limited and Sun Pharma Advanced Research Company Ltd. today announced the signing of a licensing agreement for commercialization of benzyl alcohol and propylene glycol-free phenobarbital sodium powder for injection in the United States.
Sun Pharma Advanced Research Company was quoting at Rs 253.40, down Rs 1.60, or 0.63 percent and Sun Pharmaceutical Industries was quoting at Rs 1,015.55, down Rs 12.25, or 1.19 percent.
Market at 1 PM
The Sensex was down 80.75 points or 0.13% at 61104.40, and the Nifty was down 21.50 points or 0.12% at 18181.30. About 1798 shares have advanced, 1408 shares declined, and 111 shares are unchanged.
National Aluminium Company Q2 earnings:
National Aluminium Company (Nalco) has recorded 77 percent fall in its Q2FY23 at Rs 170 crore versus Rs 748 crore and revenue was down 2.8% at Rs 3,490 crore versus Rs 3,592 crore, YoY.
National Aluminium Company was quoting at Rs 74.25, down Rs 1.70, or 2.24 percent on the BSE.
Asia stocks subdued as investors eye US midterm, inflation data
Asian shares inched higher on Wednesday as investors braced for US inflation data due this week and awaited the results of the midterm elections that could signify a power shift in Washington.
MSCI's broadest index of Asia-Pacific shares outside Japan was 0.33% higher, while Japan's Nikkei slipped 0.16% and Australian stocks gained 0.58%.
European stock futures indicated stocks were set to decline, with the Eurostoxx 50 futures down 0.37%, German DAX futures 0.33% lower and FTSE futures down 0.34%.
BSE Capital Goods index shed 0.5 percent dragged by the ABB India, AIA Engineering, Carborundum Universal
Gold eases off 1-month peak as US dollar, yields climb
Gold retreated on Wednesday from a one-month peak scaled in the previous session, although prices flitted in a relatively tight range as cautious investors positioned ahead of US inflation data due later this week.
Spot gold was down 0.2% at $1,709.60 per ounce, as of 0644 GMT. US gold futures fell 0.2% to $1,712.30.
Bullion prices rose more than 2% to breach the key $1,700 level on Tuesday, following a fall in the dollar and bond yields as well as some technical buying.
Venkys Q2 Earnings:
Venkys has posted net loss at Rs 20.56 crore in the quarter ended September 2022 versus profit of Rs 30.7 crore and revenue was down 3 percen at Rs 959 crore versus Rs 987.8 crore, YoY.
