Manish Shah, Independent Technical Analyst
Nifty gapped higher for the day but it closed at the low of the day giving us a red candle. There was little vertical movement in Nifty during the day. Nifty has now moved above the previous swing low. A breakout below the previous swing low has failed. What we can now expect is a very volatile sideways movement between 18000-17000 for some more time.
Major support in Nifty is at 17200-17100, any short-term decline to 17200-17100 is a buying level for Nifty. On the upside, Nifty has major resistance at 17550-17600. There should be selling pressure at this level. Expect Nifty to be very volatile in the next couple of days.
Bank Nifty saw a bit of a decline from the highs and the price action shows a bearish shooting star pattern BNF shows selling pressure from the resistance at the Gap area between 39200-39400. Index could get vulnerable to selling pressure intensifying if it starts to trade below 39100. Below 39100 it has support at 38750. A drop to 38750 will be a safe buying area. On the upside, a break above 39600 will mean a rally to 40100-40500.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
Continuing with the positive momentum from the last session, the Nifty opened gap up on October 06. It attempted to stretch higher, however faced resistance near the 50% retracement of the entire September decline. The index stumbled near 17400-17500 & ended near the low point of the day. 20 DMA is also present in this zone, which is adding to the downside pressure.
Thus, the index looks set to move down to test its key hourly moving averages near 17200. Overall structure shows that the Nifty is poised to form a consolidation in the range of 17000-17500.
Rupak De, Senior Technical Analyst at LKP Securities
The Nifty started to gap up and remained volatile during the day. On the daily chart, a bullish island reversal pattern has been formed.
The trend is likely to remain positive over the short term. On the lower end, 17,250 may act as crucial support. On the higher end, the index may extend its rally till 17,600-17,700.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Weakness in European indices and SGX Nifty slipping into the red prompted investors to cut their bullish bets. But key domestic benchmarks still ended in the green thanks to traders betting big on IT, metals & realty stocks. However, the inflationary concerns worldwide and central banks hiking interest rates persistently has spooked markets and kept investors on tenterhooks on worries of a global slowdown.
On daily charts, the Nifty has formed a small bearish candle, which is indicating temporary weakness. However, the medium term sentiment is still bullish.
A fresh uptrend is possible only after the breakout of 17,425 level and above the same, the index could hit 17,500-17,550 levels. On the flip side, below 17,425 the index could slip till 17,200-17,150.
Vinod Nair, Head of Research at Geojit Financial Services
The Indian market is maintaining its resilience despite mixed cues from global equities and surging oil prices. Both domestic and foreign investors are supporting the rally.
The market was also bolstered by expectations on Q2 results session, with improvement in sectors like Metal, IT, and Realty. However, the decision of OPEC to significantly reduce output has increased oil prices, which is slightly unfavourable for importers like India.
S Ranganathan, Head of Research at LKP securities
Markets exhibited resilience amidst optimism and continued its upward momentum from where it left off in the previous session. In a VUCA world, India stands out as a growth market given the incremental momentum witnessed amidst festivities even as we come to an end of Durga Puja. Metals, Media & IT lent good support even as we saw a bout of profit booking in the late afternoon session.
Rupee Close:
Indian rupee closed 37 paise lower at 81.89 per dollar against Tuesday's close of 81.52.
Market Close:
Indian benchmark indices ended on positive note in the volatile session with Nifty above 17,300.
At Close, the Sensex was up 156.63 points or 0.27% at 58,222.10, and the Nifty was up 57.50 points or 0.33% at 17,331.80. About 2302 shares have advanced, 1054 shares declined, and 126 shares are unchanged.
JSW Steel, Hindalco Industries, Coal India, Tata Steel and Larsen and Toubro were among the top Nifty gainers. Bharti Airtel, HUL, HDFC, IndusInd Bank and Britannia Industries were the top losers.
Among sectors, FMCG and pharma ended marginally lower, while metal, realty, capital goods up 2-3 percent.
BSE midcap and smallcap indices up 1% each.
Morgan Stanly View On Bajaj Finance
Morgan Stanly has kept overweight rating on Bajaj Finance with a target at Rs 8,500 per share.
The company is back to 30% loan growth and customer franchise up 19% YoY. It has achieved significant ground in deposits, up 15% QoQ, reported CNBC-TV18.
Bajaj Finance was quoting at Rs 7,406.90, down Rs 82.35, or 1.10 percent on the BSE.
Manali Petrochemicals gets environmental nod for Propylene Glycol plant
Environmental Clearance has been granted by the Ministry of Environment, Forest, and Climate Change, Government of India for the project for augmentation of Propylene Glycol capacity in Plant 2 of Manali Petrochemicals.
The project would be implemented in two phases and the first phase would be completed within 18-21 months of receipt of the other regulatory approvals, such as Consent To Establish from the State Pollution Control Board.
Nifty Pharma index in the red, with Gland Pharma, Biocon, Lupin and Granules India down 2 percent each
BSE Smallcap index added 1.3 percent supported by the Xelpmoc Design and Tech, Everest Industries, Greenlam Industries
Prabhudas Lilladher View on Praj Industries
We reiterate our positive stance on PRAJ given, 1) its strong leadership in domestic ethanol plants (~60-65% market share), 2) prominent global presence in more than 100 countries and 3) significant focus on future-ready technologies like 2G ethanol (orders for three 2G based ethanol plants), Compressed Bio Gas (CBG) (opportunity of 5,000 CBG plants) & Sustainable Aviation Fuel (SAF) and 4) diversification in Wastewater Treatment (ZLD), Critical Process Equipment’s & System (CPES) & HiPurity business.
At stock is currently trading at PE of 33.6x/24.6x/23.5x FY23/24E/25E. We have Buy rating on stock with Target Price of Rs 507 valuing it at PE of 30x FY24E.
Market at 3 PM
Indian becnhmark indices were trading higher with Nifty above 17300.
The Sensex was up 266.87 points or 0.46% at 58332.34, and the Nifty was up 86.50 points or 0.50% at 17360.80. About 2230 shares have advanced, 954 shares declined, and 124 shares are unchanged.
Canara Bank to hike lending rates by 15 bps across Tenures from Oct 7 and to hike Repo-linked Lending Rate by 50 bps to 8.80%
Airtel 5G Plus launches is 8 cities
Customers in Delhi, Mumbai, Chennai, Bengaluru, Hyderabad, Siliguri, Nagpur and Varanasi will start enjoying the cutting edge Airtel 5G Plus services in a phased manner as the company continues to construct its network and complete the roll out. Customers who have 5G smart phones will enjoy the high speed Airtel 5G Plus on their existing data plans until the roll out is more widespread, Bharti Airtel said in its release.
BSE Midcap index rose 1 percent supported by the Bharat Forge, JSW Energy, Persistent Systems
Can Fin Homes mulls raising up to Rs 4,000 crore debt capital
Canara Bank promoted housing loan provider Can Fin Homes is planning to raise debt capital of up to Rs 4,000 crore and will seek board of directors' approval on this proposal later this month.
The board of directors of the company is scheduled to meet on October 17, 2022 to approve financial results for the company's second quarter and first half ended September 2022-23.
Can Fin Homes was quoting at Rs 499.35, up Rs 3.80, or 0.77 percent on the BSE.
Jubilant FoodWorks arm acquires additional stake in Netherlands-based DP Eurasia N.V.
Jubilant FoodWorks' subsidiary Jubilant Foodworks Netherlands B.V. acquired additional stake in Netherlands-based DP Eurasia N.V.
As on October 3, subsidiary is holding 49.04% stake in DP Eurasia, the exclusive master franchisee of the Domino’s Pizza brand in Turkey, Russia, Azerbaijan and Georgia.
Jubilant Foodworks was quoting at Rs 638.75, up Rs 5.00, or 0.79 percent.
Ashiana Housing Q2 update: Company sold 323 units worth Rs 226.78 crore
European Markets Updates
Electronics Mart India IPO updates
The Initial Public Offering (IPO) of Electronics Mart India continued to see good response from investors on the second day of the bidding. The issue was subscribed 4.48 times on October 6, as the participants bought 28.01 crore equity shares against the offer size of 6.25 crore shares.
Retail investors subscribed the issue 5.47 times the allotted quota, while non-institutional investors bought shares 5.30 times the portion set aside for them. Qualified institutional buyers also remained active from day one, buying shares 2.14 times the reserved portion.
Market update at 2 PM: Sensex is up 320.54 points or 0.55% at 58386.01, and the Nifty added 103.50 points or 0.60% at 17377.80.
Jefferies View On Bajaj Finance
Jefferies has kept buy rating on Bajaj Finance with a target at Rs 8,000 per share.
The Q2 update highlighted strong 31% YoY/ 7% QoQ growth in AUM and customer franchise grew 19% YoY but new loan bookings slip 8% QoQ.
The capital consumption is higher at 110 bps during Q2, reported CNBC-TV18.
Bajaj Finance was quoting at Rs 7,401.50, down Rs 87.75, or 1.17 percent on the BSE.
HFCL collaborates with Qualcomm
HFCL has entered into an agreement with Qualcomm Technologies Inc., for HFCL’s design and development of 5G Outdoor Small Cell
products.
In continuation with its 5G strategy, HFCL’s investment in 5G Outdoor Small Cell products will enable faster rollout of 5G networks, improved 5G user experience and more efficient utilization of 5G spectrum, company said in its release.
Electronics Mart India IPO Updates:
The Initial Public Offering (IPO) of Electronics Mart India continued to see good response from investors on the second day of the bidding. The issue was subscribed 4.27 times on October 6, as the participants bought 26.67 crore equity shares against the offer size of 6.25 crore shares.
Retail investors subscribed the issue 5.27 times the allotted quota, while non-institutional investors bought shares 4.76 times the portion set aside for them.
Qualified institutional buyers also remained active from day one, buying shares 2.14 times the reserved portion.
The issue, on its first day of bidding, was subscribed 1.69 times.
LIC likely to pare stake to below 20% in IDBI Bank divestment offer: Sources
LIC likely to pare stake to below 20% in IDBI Bank divestment offer. Both governemnt, LIC together may offload approximately 60% in the sale offer, quoting Sources, reported CNBC-TV18.
Sharekhan View on HDFC Bank
We believe HDFC Bank is on an accelerated growth path with strong advances growth, led by retail, MSME, and corporate segments along with healthy low-cost deposit mobilisation. The bank’s continuous building up of its digital capabilities and franchise network is likely to bode well for growth going ahead.
The stock has underperformed its peers in the past 12 months. The bank is well capitalised and has the ability to manage its asset quality across cycles and deliver superior return ratios irrespective of economic cycles and reap opportunities from any revival
in the economy going ahead. The stock is currently trading at 2.7x and 2.3x its FY2023E and FY2024E core ABV, respectively.
Rupee Updates:
Indian rupee is trading 20 paise lower at 81.72 per dollar against 81.52 per dollar.
Goldman Sachs View On Godrej Consumer Products
Goldman Sachs has kept buy rating on Godrej Consumer Products with a target at Rs 1,100 per share.
India home care growth improves, while Indonesia showing initial signs of recovery.
Goldman Sachs see company as a strong turnaround candidate.
The sustained double-digit growth in Africa is due to distribution initiatives, while overall margin expansion is from lower input costs, reported CNBC-TV18.
Market at 1 PM
Indian benchmark indices were trading near the day's high with Nifty around 17400.
The Sensex was up 447.05 points or 0.77% at 58512.52, and the Nifty was up 134.40 points or 0.78% at 17408.70. About 2274 shares have advanced, 871 shares declined, and 113 shares are unchanged.
Electronics Mart India IPO subscription updates
Dolly Khanna up her stake in Talbros Automotive to 1.22 percent in Sept quarter
Investor Dolly Khanna has raised her the stake in Talbros Automotive Components from 1.10 percent in June 2022 to 1.22 percent in the quarter ended September 2022.
The holdings have been increased from 1,35,215 shares to 1,50,215 shares.
Talbros Automotive Components was quoting at Rs 471.70, up Rs 1.85, or 0.39 percent on the BSE.
Gainers and Losers on the BSE Sensex
Nifty Auto index gained 1 percent supported by the Bharat Forge, TVS Motor, Sona BLW Precision Forgings
Credit Suisse View On Interglobe Aviation
Credit Suisse has kept outperform rating on Interglobe Aviation with a target at Rs 2,350 per share.
Peaking of crude and currency risks may let other merits to surface.
The positive takeaway on consumer price sensitivity, as traffic sustained in face of higher prices, reported CNBC-TV18.
Interglobe Aviation was quoting at Rs 1,836.50, down Rs 14.75, or 0.80 percent.
BSE Power index added 1 percent led by the JSW Energy, ABB, Adani Power
CLSA View On Zee Entertainment Enterprises
CLSA has maintained buy rating on Zee Entertainment Enterprises with a target at Rs 316 per share.
The Sony merger will be a stock re-rating catalyst and valuation is compelling at current levels, reported CNBC-TV18.
Zee Entertainment Enterprises was quoting at Rs 281.00, up Rs 13.50, or 5.05 percent.
Ujjivan Small Finance Bank Q2 Business Update
Ujjivan Small Finance Bank crossed the Rs 20,000 crore milestone with both advances and deposit showing robust growth.
Advances are up 44%/8% YoY/ QoQ to Rs 20,938 crore on the back of sustained growth in disbursement which grew 56%/12% YoY/ QoQ to Rs 4,867 crore.
Deposits moved up by 45%/ 11% YoY/ QoQ to Rs 20,389 crore driven by strong momentum in retail deposits - up 71%/ 15%YoY/ QoQ.
Market at 12 PM
Benchmark indices erased some of the intraday gains but still trading higher with Nifty around 17350.
The Sensex was up 290.69 points or 0.50% at 58356.16, and the Nifty was up 91 points or 0.53% at 17365.30. About 2283 shares have advanced, 836 shares declined, and 107 shares are unchanged.
Today’s Stock Market Action
WTO cuts global trade forecast for 2023 to 1%
The growth in world trade is expected to slow down to one per cent in 2023, due to global uncertainties, according to a WTO forecast. The World Trade Organization (WTO) has also projected a growth of 3.5 per cent in global trade this year, as against the April estimate of 3 per cent.
World trade is expected to lose momentum in the second half of 2022 and remain subdued in 2023, as multiple shocks weigh on the global economy, the multi-lateral body has said in a statement.
Electronics Mart India IPO subscribed 3.11 times
The Initial Public Offering (IPO) of Electronics Mart India continued to see good response from investors on the second day of the bidding. The issue was subscribed 3.11 times on October 6, as the participants bought 19.41 crore equity shares against the offer size of 6.25 crore shares.
Retail investors subscribed the issue 4.07 times the allotted quota, while non-institutional investors bought shares 2.76 times the portion set aside for them.
Qualified institutional buyers also remained active from day one, buying shares 1.68 times the reserved portion.
Mafia Trends becomes 394th company to get listed on BSE SME Platform
Mafia Trends Limited became the 394th company to get listed on the BSE SME Platform on October 06th, 2022.
Mafia Trends Limited came out with an initial public offering of 12,84,000 equity shares of Rs 10 each for cash at a price of Rs 28 per equity share, aggregating to Rs 3.60 crore.
The company has successfully completed its public issue on September 27, 2022.
