Ajit Mishra, VP - Research, Religare Broking
Markets remained under pressure for yet another session and lost nearly half a percent. After the initial uptick, the selling pressure resumed as the day progressed which led the Nifty to end lower by 0.3% at 18,117 levels. The broader markets also traded in sync with the benchmark and both mid cap and small cap ended lower by 1% each. A mixed trend was witnessed on the sectoral front wherein realty and banking ended marginally higher while healthcare, metal and IT settled in the red.
Markets will react to the Reliance and ICICI Bank results in early trade on Monday. Besides, global cues and movement in crude oil prices would be actively tracked. On the benchmark front, we expect Nifty to find support around 17,950 zone while 18,200-18,400 zone would act as a hurdle. While traders are complaining of excessive volatility across the board, the recent fall is helping investors to accumulate quality stocks which are available at a good bargain.
Mohit Nigam, Head - PMS, Hem Securities:
Indian Benchmark Indices fell for the fourth consecutive session. Strong selling is seen in Metal and IT stocks while buying is witnessed in Banking and Realty stocks.
Immediate support for Nifty 50 is 18,000. According to our analysis if the market is able to sustain the level of 18000 then we can see a reversal in the market.
We believe market direction in the near term will depend on Q2FY22 earnings and their management commentary, demand in festive seasons and commodity prices.
Vinod Nair, Head of Research at Geojit Financial Services:
Despite a strong opening owing to favourable global cues, domestic indices continued its losing streak succumbing to profit booking and barring banks and realty stocks, all major sectors bled.
The global market traded green as investors welcomed a surprise interest payment by China’s debt-ridden major property developer. However, the Indian market is impacted by muted Q2 results, which are weak than forecasted due to high input cost.
Emkay Global Financial Services:
The USDINR spot has been on a bearish note this week tracking the fall in dollar index and higher risk appetite. The consolidation may continue even next week as the focus will be on tonight’s US flash PMI data. Reuters expect flash PMI to be mixed.
But if next week’s US PCE data shows price growth being steady, then it will advocate that inflation is transitory, limiting any rally in DXY.
The USDINR ATM Volatility has been below 5% this week, and the option max pain is at 74.50 strike. So even next week we expect the spot to oscillate in between 74.50-75.25. A break of 74.50 may push the spot to 74.10-74 zone.
Rohit Singre, Senior Technical Analyst at LKP Securities:
Index closed a week at 18114 with loss of more than one percent on weekly basis and formed a dark cloud cover candle pattern on weekly chart which is bearish reversal candle pattern by nature, so if we slipped below 18k mark we may see short term reversal in index.
The index has formed consecutive bearish candles throughout this week which hints bears are trying to grip the market from higher levels & which will be possible if we drag below the 18k mark in the coming week.
Immediate supports for Nifty is coming near the 18k mark followed by 17950 zone and if index managed to hold above 18k mark, one can expect a swift pullback & resistance is coming near 18250-18350 zone.
Vijay Dhanotiya, Lead Technical Research at CapitalVia Global Research:
The market witnessed some negative movements and an attempt to hold above 18000. Our research suggests that 18000 will be an important support level for the market.
If the market is able to sustain the level of 18000, we can witness a reversal in the market. We have observed the momentum indicators like RSI and MACD indicating signs of reversal in the market.
Market Close
: Indian benchmark indices ended lower for the fourth straight session on October 22 amid volatility.
At Close, the Sensex was down 101.88 points or 0.17% at 60,821.62, and the Nifty was down 63.20 points or 0.35% at 18,114.90. About 1205 shares have advanced, 1865 shares declined, and 119 shares are unchanged.
Hindalco Industries, Coal India, Tata Motors, ITC and Tata Consumer Products were among the major Nifty losers. Gainers included HDFC, Bajaj Auto, Kotak Mahindra Bank, ONGC and Axis Bank.
On the sectoral front, IT, metal, pharma, FMCG fell 1-3 percent. BSE midcap and smallcap fell 1 percent each.
Prabhudas Lilladher on Mphasis
We continue to like Mphasis because of their 1) industry leading growth in Direct channel 2) market share gains against larger peers, 3) consistent improvement in client mining and cross-selling, 4) deep presence within sub-segments across verticals and 5) stable operating margin performance compared to peers.
Our EPS estimates decrease marginally by 1.4%/1.6%/1% for FY22/23/24 led by lower than expected EBIT margin in Q2FY22. We arrive at DCF based target price of Rs 3674 (implied target multiple of 34x on FY24 EPS). Mpahsis is currently trading at multiples of 37/31X on FY23/24 EPS of 92/108 respectively with Revenue/EPS CAGR of 16%/18% over FY22-24E. Maintain buy.
Bombay High Court to pass final order in ZEE-Invesco case on Oct 26
Bombay High Court reserves order in Zee Entertainment Enterprises-Invesco case and likely to pass final order in on October 26.
Zee Entertainment Enterprises was quoting at Rs 310.25, down Rs 11.15, or 3.47 percent.
Shibani Kurian, Senior EVP & Head- Equity Research, Kotak Mahindra Asset Management Company:
Equity market in India witnessed volatility during the week ended 22nd October 2021. The improvement in high frequency domestic economy indicators continued with the further opening up of the economy and the level of vaccinations crossing the 1Bn mark.
The overall COVID data is encouraging with daily new case additions touching a 7 month low even while we remain watchful during the festival season and also for any new variants of the virus.
Going forward, market direction would likely be determined among other factors by a) demand momentum in the festive season b) movement in commodity inflation and c) mobility trends. Commentary of companies that are yet to report results of Q2FY22 and institutional flows should be other factors to watch out for market participants.
Apollo Pipes Q2 earnings
The company has reported 47.9 percent jump in its Q2 net profit at Rs 14 crore versus Rs 9.5 crore and revenue was up 68.8% at Rs 208.2 crore versus Rs 123.3 crore, YoY.
Apollo Pipes was quoting at Rs 1,866.00, up Rs 1.10, or 0.06 percent on the BSE.
Nifty Auto index slipped 1 percent dragged by the Tata Motors, Maruti Suzuki, Tube Investments
Market at 3 PM
Benchmark indices were trading lower in the volatile session with selling seen in the IT, metal, FMCG and pharma names.
The Sensex was down 175.66 points or 0.29% at 60747.84, and the Nifty was down 83.70 points or 0.46% at 18094.40. About 1117 shares have advanced, 1936 shares declined, and 125 shares are unchanged.
Hemant Kanawala, Head – Equity, Kotak Mahindra Life Insurance Co:
Recent firming of commodity prices especially energy is concerning as it may harden inflation expectations causing additional worry to central bankers who are trying to exit surplus liquidity conditions in a calibrated way.
The firming of prices is beginning to impact the margins of companies in consumer sector even as it offers operating leverage tailwinds companies in the natural resources sector.
Amid normalisation of liquidity and rising concerns on inflation/margins, we anticipate near term volatility in the Indian markets, which could offer an opportunity to buy given that fundamentals of the economy remain strong.
PVR Q2 earnings:
The company's consolidated net loss was at Rs 153.1 crore in Q2FY22 against loss of Rs 184 crore and revenue was at Rs 120.3 crore against Rs 40.5 crore, YoY.
PVR was quoting at Rs 1,638.00, down Rs 23.75, or 1.43 percent.
European markets are trading in the green with CAC up over a percent
Tapan Patel- Senior Analyst (Commodities), HDFC Securities
: Crude oil prices traded up with benchmark NYMEX WTI crude oil prices rose by 0.13% to 82.61 per barrel for the day. MCX Crude oil November futures rallied by 0.85% near Rs. 6195 per barrel by noon.
Crude oil prices are expected to trade sideways to up with resistance at $85 and support at $81 per barrel. MCX Crude oil November has support at Rs 6,120 and resistance at Rs 6,280.
Polycab Q2
: Net profit was down 10.2% at Rs 198 crore against Rs 220.5 crore (YoY). Revenue jumped 48% at Rs 3,129 crore against Rs 2,144 crore (YoY).
EBITDA was down 3.1% at Rs 303 crore against Rs 312.5 crore (YoY). Margin at 9.7% against 15% (YoY).
HDFC Life Insurance Q2
Net profit was down 13.4% (QoQ) and reduced 16% (YoY) at Rs 276 crore. Total APE at Rs 2,551 crore against CNBC-TV18 Poll of Rs 2,547 crore. Value of new business (VNB) at Rs 678 crore against CNBC-TV18 poll of Rs 659 crore. VNB margin at 26.58% against CNBC-TV18 Poll of 26.2%. India embedded value grew 5% at Rs 28,703 crore against Rs 27,331 crore (QoQ).
Market update at 2 PM: Sensex is down 125.26 points or 0.21% at 60798.24, and the Nifty shed 64.40 points or 0.35% at 18113.70.
Supreme Industries Q2 results:
Supreme Industries has reported consolidated net profit was up 30.7% at Rs 228.7 crore against Rs 175 crore and revenue was up 40.3% at Rs 1,928.5 crore versus Rs 1,374.8 crore, YoY.
At 13:37 hrs Supreme Industries was quoting at Rs 2,308.70, down Rs 17.05, or 0.73 percent on the BSE.
INOX Leisure Q2 earnings:
INOX Leisure has reported net loss at Rs 87.6 crore in Q2FY22 against loss of Rs 67.8 crore and net revenue was at Rs 47.4 crore versus Rs 0.3 crore, YoY.
INOX Leisure touched a 52-week high of Rs 434 and INOX Leisure was quoting at Rs 417.70, down Rs 1.95, or 0.46 percent.
Yes Bank Q2 results:
Yes Bank has posted 74.3 percent rise in its Q2 net profit at Rs 225.5 crore versus Rs 129.4 crore and net interest income was down 23.3% at Rs 1,512.2 crore versus Rs 1.973.4 crore, YoY.
The Gross NPA was at Rs 28,714 crore and net NPA was at Rs 9,586 crore, QoQ.
Yes Bank was quoting at Rs 13.56, down Rs 0.76, or 5.31 percent on the BSE.
Federal Bank Q2 earnings
Federal Bank has reported 49.6 percent jump in its Q2 net profit at Rs 460.3 crore versus Rs 307.6 crore and net interest income was up 7.2% at Rs 1,479.4 crore versus Rs 1,379.8 crore, YoY.
Net NPA was at Rs 1,502 crore against Rs 1,593 crore, QoQ.
Federal Bank was quoting at Rs 96.15, down Rs 0.40, or 0.41 percent on the BSE.
BSE Information Technology index fell 2 percent dragged by the Persistent Systems, Sasken Technologies, Mphasis
Market at 1 PM
Benchmark indices were trading lower in the volatile session with Sensex below 61000.
The Sensex was down 103 points or 0.17% at 60820.50, and the Nifty was down 62.40 points or 0.34% at 18115.70. About 1191 shares have advanced, 1797 shares declined, and 127 shares are unchanged.
Steel Strips Wheels Q2 earnings:
Steel Strips Wheels has posted Q2 net profit at Rs 62.8 crore versus Rs 14 crore and revenue was at Rs 958 crore versus Rs 404.7 crore, YoY.
Steel Strips Wheels was quoting at Rs 1,850.00, up Rs 48.15, or 2.67 percent.
AnandRathi on Mastek
Mastek has started seeing growth in the US, which will help it diversify from current concentration risks. In FY22, it is likely to grow 27% (leaders’ quadrant) and is likely to generate an EPS CAGR of 18% over FY21-23. At the current price, the stock has turned attractive again. Raising to a Buy. The risks are M&A and integration-related.
Asia Updates:
Tech stocks climbed in Asia on Friday, following U.S. peers higher, while Chinese property stocks rallied following a surprise interest payment.
Meanwhile, energy stocks dragged following a pullback in oil prices overnight, and as coal futures extended losses after Beijing signalled it would intervene to cool surging prices that contributed to the country's electricity shortage.
More broadly, investors have become increasingly concerned that persistent inflation could force central bankers to tighten monetary policy at a point where global economic growth remains fragile.
Japan's Nikkei advanced 0.3%, led by technology shares, while energy and basic materials shares were the biggest drags. The broader Topix ended the day 0.1% higher, with a 0.4% jump in the Topix growth index mostly negated by a 0.2% drop for the value index.
Chinese blue chips gained 0.7%, with the CSI300 Real Estate Index rising 2.1%. Hong Kong's Hang Seng rose 0.1%, as an index tracking Hong Kong-listed mainland developers rallied 3.4%.
Nifty Pharma index declined 1 percent dragged by the Laurus Lab, Biocon, Natco Pharma
Market at 12 PM
Benchmark indices were trading higher in the afternoon session with Sensex holding above 61000.
The Sensex was up 110.45 points or 0.18% at 61033.95, and the Nifty was down 2.10 points or 0.01% at 18176. About 1411 shares have advanced, 1539 shares declined, and 120 shares are unchanged.
J Kumar Infraprojects gets letter of acceptance worth Rs 102 crore
J Kumar Infraprojects received letter of acceptance from M/s. City and Industrial Development Corporation of Maharashtra Limited for Design & Construction of connecting Road from Jalmarg, Sector-16, Kharghar to 'Sector- II in CBD & balance link between Sector-15 CBD to Water Transport Terminal in Nerul, Navi Mumbai worth of Rs 2,05,49,47,000 in the name of M/s. J. Kumar- J.M. Mhatre (Joint
Venture) where the share of M/s. J. Kumar lnfraprojects is 50% which comes to around Rs 1,02,74,73,500.
J Kumar Infraprojects was quoting at Rs 168.20, up Rs 1.30, or 0.78 percent on the BSE.
Nifty Metal index fell 2 percent dragged by the Vedanta, NALCO, Hindalco Industries
Zee Counsel to the Bombay High Court
Board can’t give nod to something that will turn out to be illegal. Believe that holding EGM is illegal, according to a CNBC-TV18 report. Zee Entertainment Enterprises share price was trading at Rs 325.00, up Rs 3.60, or 1.12 percent. It has touched an intraday high of Rs 329.20 and an intraday low of Rs 321.45.
Market update at 11 AM: Sensex is up 381.21 points or 0.63% at 61304.71, and the Nifty added 84.70 points or 0.47% at 18262.80.
Morgan Stanley sees 10% further downside in LIC Housing Finance
LIC Housing Finance share price was trading lower by 6 percent after the company declared its September quarter results. The mortgage lender on October 21 reported a 68.66 percent decline in its standalone profit after tax at Rs 247.86 crore in the September quarter on higher provisioning for non-performing loans. It had posted a profit after tax of Rs 790.90 crore in the corresponding quarter of the previous fiscal.
Global research firm Morgan Stanley has an underweight call on the stock with target at Rs 375 per share, a downside of 10 percent from current market price. It is of the view that the profit missed consensus forecasts by 60% adding that weak PPoP driven by lower NII and higher expenses were the key negatives.
BPCL board approves scheme of amalgamation of Bharat Oman Refineries with the company:
The Board of Directors of BPCL at its meeting held on October 21, 2021 has considered and approved the Scheme of Amalgamation of Bharat Oman Refineries Limited ("Transferor Company") with the company and their respective shareholders subject to receipt of necessary approvals from the Ministry of Corporate Affairs, other competent authorities and satisfaction of applicable regulatory requirements, as may be
required, the company said in an exchange filing. The stock was trading at Rs 447, down Rs 3.80, or 0.84 percent. It has touched an intraday high of Rs 454 and an intraday low of Rs 446.
Indian Hume Pipe gets letter of acceptance for project of Rs 156.3 crore
The company received Letter of Acceptance for a project of contract value of Rs 156.27 crore (excluding GST) from Maharashtra Krishna Valley Development Corporation for construction of Piped Distribution Network for Palashi Branch Canal, Vadjal Branch Canal, on Man Canal of Urmodi Irrigation Project for creation of 11280 Ha Irrigation Potential with 5 years operation and maintenance. The project is to be completed within 18 months, the company said. The stock was trading at Rs 201.10, up Rs 6.15, or 3.15 percent. It has touched an intraday high of Rs 205.15 and an intraday low of Rs 192.
Banks and financia stocks edged higher led by J&K Bank, Muthoot Finance, Bajaj Finserv and HDFC
Biocon expects recovery in generics business in FY23
The pharma company said that it expects recovery in generics business in FY23. Margin improvement in biosimilars aided by developed markets. Expect improvement in Semglee market share in CY22. Near-term focus is COVID-19 vaccines with serum. See the biosimilar business gaining momentum. No visibility on when the inspection for Bevacizumab will be done. Have asked US FDA to even consider a remote inspection for Bevacizumab.
Market update at 10 AM
Sensex is up 311.81 points or 0.51% at 61235.31, and the Nifty added 77.10 points or 0.42% at 18255.20. Bajaj Finserv, HDFC and Bajaj Finance are the top gainers while Tata Power, IRCTC and Zee Entertainment are the most active stocks.
Among the sectors, the realty index added over 2 percent while the midcap and smallcap indices are also trading in the green.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades marginally higher near $1788/oz after a 0.2% decline yesterday. Gold trades higher supported by mixed economic data from major economies, rising inflation concerns and renewed virus concerns and pause in recent rise in equities. However, weighing on price is continuing ETF outflows, higher bond yields and increased expectations of Fed’s monetary tightening. Gold continued to trade firm holding on to the gains noted earlier this week however price is yet to break past the $1800/oz level and with choppiness in larger financial market, mixed to positive trade is likely.
COVID-19 India update
India adds more than 15,000 cases for the second straight day, up 15,786. Active cases fall after rising yesterday, down 3,086 in the last 24 hours. Recoveries increase by 18,641 and deaths by 231. Positivity rate at 1.19%, recovery 98.16% and mortality 1.33%. Single-day testing at 13.24 lakh and vaccinations at 61.27 lakh. Total cases at 3.41 crore, active 1.76 lakh, recoveries 3.35 crore and deaths 4.53 lakh.
The realty index added over a percent led by Prestige Estates, Indiabulls Real Estate and Sobha
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
: Minor correction in the market during the last 3 sessions has taken the Nifty down by 1.6%. More importantly, some froth in the broader market is getting removed with many leveraged momentum plays getting corrected by above 10%. Mid and small-cap indices have corrected by more than 5% during the last 3 days. This is a healthy correction. But still, there is froth in the broader market.
The dominance of the retail investors is getting reinforced with the addition of new Demat accounts of 95.95 lakhs during the last 3 months. This has considerably weakened, at least for now, the market-influencing power of FIIs. The resurgence of fresh Covid cases in China and some other countries and the consequent fresh lockdowns are areas of concern.
