Taking Stock: Nifty back above 11,700; small & midcaps underperform
Top Nifty gainers included like Maruti Suzuki, Hero MotoCorp, and Titan.... Read More
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 80,364.94 | -61.52 | -0.08% |
| Nifty 50 | 24,634.90 | -19.80 | -0.08% |
| Nifty Bank | 54,461.00 | 71.65 | +0.13% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Interglobe Avi | 5,707.00 | 146.00 | +2.63% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Axis Bank | 1,132.20 | -21.80 | -1.89% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty PSU Bank | 7390.75 | 129.30 | +1.78% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Auto | 26436.55 | -47.95 | -0.18% |
Observation is that main indices have almost reached the last high, in context with a bounce in global and domestic economy. Going ahead the market may turn a bit volatile, in the short-term, as it will be difficult to maintain the momentum given important upcoming events of the US election and Q2 result season. Secondary indices of mid and small caps are under some resistance, as investors are risk averse at these levels. Stock wise positive or negative performance is expected to continue as per the expectation & actual performance of Q2FY21 result.
Index closed a day at 11739 with gains of 76 points and formed a bullish candle on daily chart. Index closed on positive note for fifth consecutive day, now index has immediate hurdle around 11800 zone if managed to hold above 11800 zone then we may see quick move towards 12k mark and good supports are still placed around 11660-11600 zone. Nifty Bank closed a day at 22965 with gains of half a percent, supports are coming near 22700-22400 zone and resistance is coming near 23150-23400 zone.
We were a tad shy of achieving the 11800 level today but that target is still open and we should be able to get there. If we sustain that level for a few sessions, our next expected target would be 12000. The Nifty might face some resistance around the 11750-11800 level. Overall the trend is bullish and any dip or correction can be utilised to accumulate for higher targets. The important support level is 11300.
Mr. Dinesh Kumar Khara is one of the most experienced amongst the current MDs at SBI. He was overseeing the international banking, corporate banking & treasury operations of SBI and additionally also supervised the businesses of the subsidiaries which have all been doing remarkably well.
Earlier, he has also been the MD and CEO of the SBI Funds Management which demonstrated robust performance and steadily gained market share in a highly competitive industry. Mr. Khara’s appointment augurs well for the overall functioning and continuation of the business strategy that SBI has been pursuing over past few years.
While Mr. Khara takes charge amidst significant macro uncertainty induced by COVID we expect SBI to perform relatively well and deliver strong earnings traction under his leadership. This will be enabled by banks approach in promptly dealing with stressed accounts and alongside sharply improving the provisioning coverage over past few years.
Markets recovered quickly in morning trade and traded in the Green throughout the day led by autos ahead of the RBI policy. Although the broader market was a bit lacklustre, we did see sustained buying in cement and select pharma counters during the day.
The upward journey of the benchmark indices continued on the fifth consecutive day on October 7 helped Nifty to close comfortably above 11,700.
At close, the Sensex was up 304.38 points or 0.77% at 39,878.95, and the Nifty was up 76.50 points or 0.66% at 11,738.90. About 1040 shares have advanced, 1584 shares declined, and 200 shares are unchanged.
Titan Company, Bajaj Auto, Hero MotoCorp, Maruti Suzuki and ONGC were among major gainers on the Nifty, while losers were Bajaj Finance, BPCL, Hindalco Industries, Tata Motors and Power Grid Corp.
On the sectoral front, auto, infra, IT and FMCG indices ended in the green, while selling witnessed in the metal, pharma and energy sectors. BSE Midcap and Smallcap indices ended lower.
Cabinet Committee on Economic Affairs (CCEA) approved the guidelines for natural gas marketing, which will be applicable on natural gas producers.
Thrust is to provide better price discovery of natural gas via competitive method. The guidelines for natural gas marketing will lead to uniform gas pricing, Sources to CNBC-Awaaz, reported by CNBC-TV18.
Given the encouraging demand recovery trends, we revise our revenue and earnings estimates upwards for FY21E by 10% and 15%, respectively. Titan remains a quality franchise with strong brand patronage. Over the years, the company has consistently exhibited its ability to gain market share amid a tough industry scenario.
We continue to remain structurally positive on the company and its long term growth prospects. We roll our estimates to FY23E and build in revenue CAGR of 13% in FY20-23E, mainly driven by growth in jewellery segment (15% CAGR). RoCE is expected to revert back to 30%+ levels by FY23E. We upgrade the stock from hold to buy with a revised target price of Rs 1450.
Infosys has been selected by Mobile Health AG, a Switzerland-based Health Tech startup, to enhance the go-to-market (GTM) strategy for its electronically patient-reported outcomes (ePRO) platform, Consilium Care.
Consilium Care helps in improving the outcome for patients undergoing cancer treatment through remote monitoring. Through this engagement, Infosys will set up and manage cloud and infrastructure services and support, security and monitoring, and platform management services for Mobile Health AG across multiple geographies.
Residential unit sales have recovered to 50% of the pre-Covid levels in Q3CY20. This is primarily driven by historically low financing rates, upfront discounts and regulatory reliefs on stamp duty charges.
Investment demand is yet to recover and city-centric sales are being driven largely by younger customers in the age bracket of 32-38 years.
India services PMI for the month of September has improved to 49.8 in September from 41.8 in August thus signaling further improvement in the services sector. While the services sector has been recovering from post pandemic lows, the recovery is still weak as compared to the manufacturing sector which has been posting a smart recovery as signaled by the manufacturing PMI and auto sales numbers.
Indian manufacturing PMI for September improved sharply to 56.8 in September from 52.0 in August and is the highest reading for the indicator since January 2012. The composite PMI reported an expansion for the first time in six months rising from 46.0 in August to 54.6 and signaled a marked improvement across the private sector economy. We expect the services sector to improve gradually from here as more parts of the economy are gradually opened up.
