Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty has been trading near the 78.6 percentretracement of the entire September decline throughout the last week. The key Fibonacci level is near 17800. On October 28, the index attempted to stretch beyond this level on an intraday basis however couldn’t sustain in the higher territory. The hourly chart shows that the index is in process of forming a distribution near this key hurdle. The hourly momentum indicator has developed a negative divergence, which is a sign of exhaustion. The overall structure shows that the next move down could be around the corner. The immediate support zone is at 17,720-17,700. Once that is breached then the index can tumble towards 17,500 in the short term.
Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas
We expect Rupee to trade with a negative bias amid weak global markets and strong Dollar. Expectations of a 75 bps rate hike by Federal Reserve in its November FOMC meeting may also weigh on Rupee. However, FII inflows may support Rupee at lower levels. Investors may remain cautious ahead of core PCE price index which is expected to increase but at a slower pace than the previous month. We expect USDINR spot price to trade in the range of 81.80 and 83.30 in next couple of sessions.
Vinod Nair, Head of Research, Geojit Financial Services
Gains in index heavyweights helped the domestic market to withstand its gains despite negative trends in its global peers. US tech stocks had a significant sell-off following disappointing quarterly results and a bleak forecast. The ECB raised its interest rate by 75 basis points, also signalling that it is making progress in combating record inflation, though the plausibility for a recession grew. However, the strengthening rupee along with a softening treasury yield and decent Q2 earnings results are supporting the domestic market in the near term.
Rupee Close: Rupee ends at 82.47/$ against Thursday’s close of 82.49/$
Bandhan Bank Q2FY23
- Net profit at Rs 209.3 crore vs loss of Rs 3,008.6 crore YoY
- Net interest income up 13.3 percentat Rs 2,193 crore vs Rs 1,935.4 crore YoY
-Gross NPAat 7.19 percent vs 7.25 percentQoQ
-Net NPAat 1.86 percentvs 1.92 percentQoQ
-Net interest margin at 7 percent vs 8 percentQoQ
Markets at close
Sensex ended higher by203.01 points or 0.34 percentat 59,959.85. Nifty ended higher by 49.80 points or 0.28 percentat 17,786.80. About 1470 shares have advanced, 1868 shares declined, and 114 shares are unchanged.
Satin Creditcare Q2FY23 (YoY)
-Net profit at Rs 57.2 crore vs Rs 10.9 crore
-NII up 3.2 percentat Rs 155 crore vs Rs 150 crore
-Impairment at Rs 12 crore vs Rs 325.5 cr (QoQ) & vs Rs 34 cr (YoY)
Maruti Suzuki zooms after Q2FY23. Should you buy the stock?
Santo’s take:
-Q2 numbers ahead of analyst estimates
-Easing of raw material prices, weak yen helping
-Pending orders at 4.12 lakh units, 1.3 lakh of those pre-booking for new launches
CJ’s take:
-Benefits from appreciation in rupee against yen may not last long
-Sustainability of demand beyond festive period still questionable
-Impact of cost cuts on margins likely to be limited going ahead
Watch thefull videoto know more
Markets at 3 PM
Sensex is up 129.46 points or 0.22 percentat 59,886.30. Nifty is up 26.90 points or 0.15 percentat 17,763.90. About 1314 shares have advanced, 1873 shares declined, and 98 shares are unchanged.
Mansi Lall – Research Associate, Prabhudas Lilladher
Maruti Suzuki Q2 performance was better-than-street estimates. Its new models – New Brezza, New Baleno, and Vitara have been gaining good traction. The company has addressed white spaces in its portfolio through the launch of Brezza and Grand Vitara. However, higher competition in the SUV space and slow revival in the entry segment still remains a concern. Production levels for the company are almost back to normal levels as the chip issue is largely addressed. However, market share gains remain key for Maruti, due to the competitive intensity in the UV space.
RBI approves reappointment of S Gangadharan as Part Time Non-Executive Chairman of South Indian Bank for one year
Maruti Suzuki management on Q2FY23 earnings
-Shortage of components hurt output by 35,000 units in the Septquarter
-Pendingcustomer orders at 4.12 lakh vehicles at the end of Septquarter
-Makingefforts to procure electronic components, reduce cost, improverealization
-Highad expenses, power and fuel expenses were the negative factors in Q2FY23
Dwarikesh Sugar Q2FY23 (YoY)
- Net profit down 80.2 percent at Rs 7.8 crore vs Rs 39.6 crore
-Revenue up 6.8 percentat Rs 540.1 crore vs Rs 505.8 crore
-EBITDA down 62.1 percent at Rs 28.3 crore vs Rs 74.7 crore
-EBITDA margin at 5.2 percent vs 14.8 percent
The stock was trading at Rs 91.95, down Rs 3.40, or 3.57 percent on BSE. It has touched an intraday high of Rs 96.40 and an intraday low of Rs 90.40. It was trading with volumes of 328,943 shares, compared to its five day average of 80,780 shares, an increase of 307.21 percent.
Maruti Suzuki Q2FY23 (Standalone YoY)
- Net profit up 334 percent at Rs 2,061.5 crore vs Rs 475.3 crore
-Revenue up 45.7 percent at Rs 29,931 crore vs Rs 20,538 crore
-EBITDA at Rs 2,769 cr vs Rs 855 crore
-Margin at 9.25 percent vs 4.2 percent
Market update at 2 PM
Sensex is up 35.85 points or 0.06 percentat 59,792.69. Nifty added 2.30 points or 0.01 percentat 17,739.30.
At 2 PM, about 1299 shares have advanced, 1862 shares declined, and 103 shares are unchanged
GMR Infra: GMR Goa International Airport Limited is in advance stage of project completion
Germany data watch
| Germany preliminary Q3 GDP up 1.2% YoY against estimate of 0.7% rise
NIIT Q2FY23 (YoY)
- Net profit down 24.6 percentat Rs 39.5 crore vs Rs 52.4 crore
-Revenue up 24.3 percent at Rs 392.2 crore vs Rs 315.5 crore
-EBITDA down 23.2 percentat Rs 56.1 crore vs Rs 73 crore
-Margin at 14.3 percent vs 23.1 percent
TTK Healthcare Q2FY23 (YoY)
- Net Profit down 22.6 percent at Rs 10 crore vs Rs 12.8 crore
- Revenue up 12.8 percentat Rs 169.8 crore vs Rs 150.5 crore
-EBITDA up 44.4 percentat Rs 3.9 crore vs Rs 2.7 crore
-Margin at 2.3 percentvs 1.8 percent
Ramco Industries Q2FY23 (YoY)
-Net Profit down 7.9 percentat Rs 31 crore vs Rs 33.6 crore
-Revenue down 2.4 percentat Rs 303.7 crore vs Rs 311.2 crore
-EBITDA down 45.1 percentat Rs 30.5 crore vs Rs 55.6 crore
-Margin at 10 percent vs 17.8 percent
European markets open lower
European markets opened lower on Friday as investors continued to digest the European Central Bank’s decision to raise its interest rate by 75 basis points.The Stoxx 600 was down 0.4 percentat the start of trading.
Infibeam Avenues hits upper circuit
On October 27, fintech firm Infibeam Avenues received the Reserve Bank of India’s (RBI) nod to operate as a Payment Aggregator. “Under this provision, the fintech major will get a substantial boost to further expand its reach in multiple business segments for both online and recently launched offline digital transactions,” the firm said in the filing.
SBI Cards slips below 200-DMA to trade below all key DMA levels
Santo’s Take:
-Loss of market share, pressure on NIM negatives, says CLSA
-Revolver book share down; EPS estimates cut by 3-5 percent
CJ’s Take:
- Good set of Q2 numbers, but longer term concerns may weigh
- Growth outlook remains firm led by strong spending: Credit Suisse
Watch the full videoto know more
Nifty Pharma down 1.22 percent, dragged by Lupin, Pfizer, Granules
Kotak Institutional Equitiesexpects 10 percentYoY sales growth in Q2FY23 for its pharma coverage. On the operating front though, its analysts expect 2 percentYoY growth in EBITDA due to input cost pressures.
Punjab Alkali & Chemicals Q2FY23 (YoY)
- Net profit at Rs 40.5 crore vs loss of Rs 37.3 crore
-Revenue at Rs 185.7 crore vs Rs 87 crore
-EBITDA at Rs 52.5 crore vs loss of Rs 39.8 crore
-Margin at 28.3 percent
Vardhman Textiles Q2FY23 (YoY)
- Net Profit down 57.4 percentat Rs 205 crore vs Rs 481.5 crore
-Revenue up 3.5 percentat Rs 2,470 crore vs Rs 2,385 crore
-EBITDA down 47.1 percent at Rs 358 crore vs Rs 676 crore
-EBITDA margin at 14.5 percent vs 28.4 percent
Nifty Energy gains 1.09 percent led by Reliance Industries, ONGC, NTPC
Tata Chemicals stock down 3 percent after Q2FY23 results
The company reported a nearly three-fold jump in consolidated net profit to Rs 628 crore for the September 2022 quarter on higher income.The company's profit stood at Rs 221 crore in the same quarter a year ago. In the earnings concall, the management said:
-Soda ash volumes were impacted due to maintenance shutdowns by some clients
-Q2 & Q3 seasonally see lower volumes
-There is favourabledemand-supply dynamic
-Recession impact not seen on clients
Markets At 12 PM
Sensex is up 125.28 points or 0.21 percentat 59882. Nifty is up 28.70 points or 0.16 percetat 17,765.70. About 1451 shares have advanced, 1630 shares declined, and 115 shares are unchanged.
SEBI Chairperson Madhabi Puri Buch says:
- We have got exchanges to mitigate against software risk. Mitigation system against cyber attacks to kick in from March next year
-Reality is that regulators will always be one step behind but hopefully not too many steps behind
Bank of India in focus
In an exchange filing, the bank said, "We wish to inform that the Board of Directors of the Bank would be considering at their meeting scheduled on 04th November, 2022, the proposal of capital raising by issue of Additional Tier-I (AT-I) bonds upto Rs 2,500 crore in one or more tranches."
Nykaa out from top 100 most valued firms in India
Share price ofFSN E-Commerce Ventures (Nykaa)slipped below Rs 1,000 level for the first time ever on October 28, as the lock-in period for pre-IPO investorsis about to expire soon. The company is now out from top 100 most valued firms in India, according to Bloomberg data.
The stock hasbeen reeling under heavy selling pressure, especially from foreign investors, in recent weeks. The lock-in period for Nykaa'spre-IPO investorsends on November 10.Read more
RBI will not withdraw its official from RBL Bank's board: Sources
The reports suggesting that the Reserve Bank of India (RBI) will withdraw its official from the RBL Bank are inaccurate, sources have told CNBC-TV18.
In December 2021, the central bank's chief general manager Yogesh Dayal was appointed as an additional director on RBL Bank's board for two years or until further orders.
Prashant Khemka of White Oak Capital Shares His Market Outlook
Speaking to CNBC-TV18, he said:
- Market has seen a confluenceof global factors
- Global issues haven’taffected India as acutely
- Impact of inflation is much higherin other countries than India
-Private sector banks have done better over the long-term vs PSU banks
- Will look at platform companies only after lock-ins expire
Hang Seng Tech index down over 5 percent after key results on Wall Street
Shares of Hong Kong-listed tech companies fell sharply in its afternoon session.Tencent fell 5.8 percent and Meituan fell more than 7 percent, while Xiaomi and Alibaba both lost more than 5 percent.
Overnight in Wall Street, Amazon reported a miss on Q3 numbers and gave disappointing sales forecast for Q4. Apple posted record revenue but reported a miss on iPhone sales.
ITC in focus
ITC acquires 1,000 convertible debentures in MotherSparsh, stake holding now at 22 percent. Convertible debenture isa type of long-term debt issued by a company that can be converted into shares of equity stock after a specified period.
Nifty Realty sheds 0.69 percent in trade, dragged by Phoenix Mills, Sunteck Realty and Lodha
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) will hold an additional meeting on November 3.As per Section 45ZN of the RBI Act, the central bank must submit a report to the Centre following the failure to achieve the inflation target.
Analysts opine that if there's suprise rate hike decision then home loans will go up further, which can affect real estate demand.
Parag Agrawal's 11-month tenure as Twitter CEO ends as Elon Musk takes control
Less than a year into his job as CEO, India-born Parag Agrawal was ousted from the company by its new owner billionaire Elon Musk who on Thursday closed the 44 billion dollar deal to acquire the social media behemoth. Read More
Markets At 11 AM
Sensex is up 206.29 points or 0.35 percentat 59,963. Nifty up 57.60 points or 0.32 percentat 17,794.60. About 1539 shares have advanced, 1442 shares declined, and 130 shares are unchanged.
Dhanuka Agritech to consider share buyback proposal on November 1
Dhanuka Agritech will consider the proposal for buyback of equity shares of the company through tender offer route, on November 1. The board will also consider un-audited standalone and consolidated financial results for the quarter and half year ended September 2022, on the same day.
C. E. Info Systems reports Q2 profit flat at Rs 25.37 crore
C. E. Info Systems (MapmyIndia) recorded flat profit at Rs 25.37 crore for the quarter ended September FY23 against Rs 25.39 crore in same period last year, impacted by lower other income and weak operating performance.
Revenue jumped to an all-time high of Rs 76.31 crore for the quarter, growing 35% YoY.
C. E. Info Systems (MapmyIndia) was quoting at Rs 1,322.70, down Rs 32.90, or 2.43 percent.
Sharekhan View on Gland Pharma:
Gland reported yet another weak quarter with revenue and PAT down by 3% and 20%, respectively. Unfavourable geographical and product mix, supply-side constraints, cost inflation and overall weak macro-economic sentiments dragged performance.
However, the challenges are expected to be transient in nature and medium-term prospects are intact led by a strong product pipeline and entry into newer markets.
Stock price has corrected by ~41% in last six months due to said challenges which the management expects to ease out gradually and could support growth in the medium.
At the CMP, the stock trades at 29.8x/23.6x its FY2023E/FY2024E EPS. With a favourable risk-reward after sharp correction in the recent past and expected good growth in the medium term we retain our Buy recommendation on the stock with a revised Price Target of Rs 2,260.
Nifty Information Technology index fell 0.5 percent dragged by the Persistent Systems, L&T Infotech, Coforge
Buzzing
Marathon Edge India Fund I acquired additional 20 lakh equity shares in Newgen Software Technologies via open market transactions at an average price of Rs 345 per share.
The fund already held 18.52 lakh shares or 2.65% stake in the company as of September 2022. However, India Acorn Icav sold 9.83 lakh equityshares at an average price of Rs 345.03 per share, and AL Mehwar Commercial Investments LLC offloaded 5.01 lakh shares at an average price of Rs 345.01 per share.
Newgen Software Technologies was quoting at Rs 338.00, down Rs 5.55, or 1.62 percent on the BSE.
Jefferies On Anupam Rasayan
Research house Jefferies has kept buy call on Anupam Rasayan with a target at Rs 1,030 per share.
While revenue was a tad lower, GM & EBITDA margin were in-line with the estimates. Higher interest expenses & FX loss weighed on PAT.
The inventory days have declined in H1FY23 and management guided for further reduction in H2.
QIP proceeds will fund growth over next 4 years at 2x asset turns, reported CNBC-TV18.
Anupam Rasayan India was quoting at Rs 793.05, up Rs 12.60, or 1.61 percent.
Nifty Auto index added 1 percent supported by the Bajaj Auto, MRF, Maruti Suzuki
Morgan Stanley View On SBI Cards
Overweight call on SBI Cards, target Rs 1,100 per share
PAT was a miss, driven by higher costs due to higher gross card acquisition
Higher stage-1 provisions on higher transactor balances
Absolute growth in receivables (Including Revolver) is healthy
Revolver mix & higher funding costs could weigh on NIM
Trim forecasts for FY23-25 by 1-2%
Tirthankar Das, Technical & Derivative Analyst, Retail, Ashika Stock Broking:
On the technical front, Nifty formed a small bearish candle resembling closer to Hanging Man pattern on daily time frame, generally formed in an upward trend however further confirmation in the form of volume and time is required before earmarking it as a reversal pattern.
A brief breather in price action can be seen as Nifty is presently near strong resistances which coincide with a downward sloping trend line that has held down the highs of 2021 and 2022. Hence Index need to decisively close above it for the uptrend to continue, breach of which would lead the Index further higher towards the Sept’22 high of 18096.
Immediate support for the market is seen at 17400 as slower pace of retracement over the past few sessions indicates of inherent strength in Nifty. To add further, on numerous occasions index witnessed buying demand in the vicinity of 200 days EMA. The momentum indicator RSI (relative strength index) is sustaining above 50 levels and has started to form Higher High, Higher Low which is in sync with the trend. This reflects the rising momentum in the prices. Eventually, one can expect the index to accelerate upward momentum.
However, such a move would be in a non-linear fashion amid global volatility. As long as Index trades above 17350, momentum is likely to remain positive and buy on dip strategy would be the ideal approach going forward.
Market at 10 AM
Benchmark indices were trading firm with Nifty around 17800.
The Sensex was up 228.25 points or 0.38% at 59,985.09, and the Nifty was up 61.50 points or 0.35% at 17,798.50. About 1499 shares have advanced, 1314 shares declined, and 128 shares are unchanged.
Supreme Petrochem Q2 profit tanks 53%
Supreme Petrochem has reported a 53% year-on-year decline in standalone profit at Rs 59.64 crore for the quarter ended September FY23, impacted by weak operating performance. Revenue from operations grew by 3.7% YoY to Rs 1,234.6 crore during the same quarter.
The company has received board approval for sub-division of shares from one equity share (face value Rs 4 each), into two shares (face value of Rs 2 each), subject to approval of shareholders.
Supreme Petrochem was quoting at Rs 696.05, down Rs 15.85, or 2.23 percent on the BSE.
