Rupak De, Senior Technical Analyst at LKP Securities:
Nifty remained volatile during the day, it found resistance around 17300; however, the index failed to fall below 17000. The trend is likely to remain sideways in the near term.
Over the near term, the Nifty may move within the range of 17000-17300. A decisive fall below 17000 may trigger a selling pressure in the market. On the higher end, a decisive move above 17300 may induce a rally towards 17600.
Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC
Healthy growth in net equity inflows after two months of below average trend augurs well for the markets. Indian investors have reposed faith in the domestic economy and markets despite market volatility and negative trends globally.
Investors have noticed that India has managed its affairs well relative to global peers and domestic buying support for equity has also helped mitigate FPI outflows. We expect this healthy trend in net equity inflows to sustain going forward.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty, in the week gone by, had faced resistance near the key daily moving averages as well as near the 50% retracement of the entire September decline. Thereon the index nose dived on October 10 & attempted to extend below the hourly lower Bollinger Band.
On the downside, however, the index attracted buying support as it inched towards 17000. Thereon the index witnessed sharp recovery & bounced towards the 20 hour moving average.
On the higher side, short term upside is capped near 17400-17500. The overall structure shows that the Nifty can consolidate near 17000-17500 in the short term.
Ajit Mishra, VP - Research, Religare Broking
Markets started the week with nearly half a percent cut, pressurised by weak global cues. After the sharp gap down in early trades, the Nifty index gradually pared losses, thanks to the rebound in heavyweights from across sectors.
However, profit taking around the 17,300 zone capped the upside and it finally settled at the 17,241 level. While most of the sectoral indices traded mixed, a rebound in the IT pack ahead of the TCS numbers was the major highlight.
Markets are showing tremendous resilience amid the weak global environment however traders are facing tough times due to intermediate volatility. And, now with the beginning of the earnings season, we expect the choppiness to remain high.
On the index front, Nifty can extend the rebound if it manages to reclaim 17,400 else consolidation will continue. Meanwhile, we feel participants should maintain their focus more on risk management and limit the leveraged positions.
Vinod Nair, Head of Research at Geojit Financial Services:
Fear of an aggressive rate hike by the Fed on the back of strong employment data in the US, disrupted the global equity trend. Inflation in the US is forecasted to stay high given low supply and high demand scenarios.
To bring some parity in the economy, the Fed will have to target to lower demand by increasing the unemployment rate, which is not factored by the market. In addition, rising crude prices and depreciating rupee is increasing the risk of imported inflation in India, affecting the domestic market.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Due to lack of positive strength in global markets and persisting worries about more rate hikes by the key central banks going ahead, investors are not taking any chances and steadily trimming their holdings.
Caution along with weak market sentiment will prevail as all eyes will be on the US FOMC minutes to be released on Wednesday, which will give some hint about the future rate setting decision by the Fed.
Technically, the Nifty found support near 17050 and bounced back sharply. On daily charts, the index has formed a bullish candle and also formed a reversal formation which is broadly positive.
For traders the support has shifted to 17,150 from 17,050. Above the 17,150, the index could retest the level of 17,400-17,450. On the flip side, a fresh round of selling is possible only after the dismissal of 17,150. Below which, the index could slip till 17,050-17,000.
Rupee Close:
Indian rupee closed flat at 82.32 per dollar against previous close of 82.32.
Tata Motors Q2 Global wholesales Data
Tata Motors' Q2 Global wholesales including JLR was up 33% YoY at 3.35 lakh units and Global PV wholesales up 43% at 2.32 lakh units, YoY.
Its Q2 Jaguar wholesales were at 16,631 units and Land Rover wholesales were at 73,268 units, reported CNBC-TV18.
Market Close:
Benchmark indices ended on negative note in the highly volatile session on October 10.
At Close, the Sensex was down 200.18 points or 0.34% at 57,991.11, and the Nifty was down 73.70 points or 0.43% at 17,241. About 1406 shares have advanced, 2056 shares declined, and 161 shares are unchanged.
Tata Motors, Tata Consumer Products, Hero MotoCorp, Asian Paints and ITC were among the top Nifty losers. Axis Bank, TCS, HDFC Life, Eicher Motors and Maruti Suzuki were the top gainers.
Except Information Technology, all other sectoral indices ended lower with PSU bank, realty, FMCG, capital goods and power indices down 1 percent each.
BSE midcap and smallcap indices fell 0.5 percent each.
Citi View On Hero MotoCorp
Research firm Citi has kept buy rating on Hero MotoCorp given healthy momentum in premium motorcycles and kept a target at Rs 3,100 per share.
Vida V1 launch marks entry into the electric vehicle race. The EV launch has been delayed but good specifications are an advantage, while await customer response to a relatively higher priced product, said Citi.
The valuations are attractive at current levels, reported CNBC-TV18.
BSE Information Technology index added 0.7 percent supported by the Brightcom Group, Black Box, 63 Moons Technologies
Tata Consultancy Services (TCS) in focus ahead of September quarter numbers
Nifty PSU Bank index fell 1 percent dragged by the Bank of India, Bank of Baroda, Indian Bank
Market at 3 PM
Benchmark indices were trading lower with Nifty around 17250.
The Sensex was down 232.38 points or 0.40% at 57958.91, and the Nifty was down 86.50 points or 0.50% at 17228.20. About 1229 shares have advanced, 2093 shares declined, and 134 shares are unchanged.
Rupee Updates:
Indian rupee erased all the intraday losses and trading flat at 82.33 per dollar against previous close of 82.33.
BSE Midcap index shed 1 percent dragged by the Varun Beverages, Delhivery, Ashok Leyland:
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More than 150 stocks touched 52-week high on the BSE.
FADA on Navratri sales
: Total vehicle sales jumped 57.5% at 5.39 lakh units against 3.42 lakh units YoY. 2-wheeler sales rose 52.3% at 3.69 lakh units against 2.42 lakh units YoY. Passenger vehicle sales jumped 70.4% at 1.10 lakh units against 64,850 units YoY.
Nykaa partners with California-based fashion retailer Revolve
Most active stocks on NSE in terms of volumes
European markets updates
Market update at 2 PM: Sensex is down 474.96 points or 0.82% at 57716.33, and the Nifty shed 156.90 points or 0.91% at 17157.80.
BSE Power index fell 1 percent dragged by the Adani Green, ABB, Adani Transmission
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CLSA On Bandhan Bank
Broking firm CLSA has kept outperform rating on Bandhan Bank with a target at Rs 325 per share.
The Q2 pre-quarterly release indicates 3% QoQ growth in its loan book and the loan book size is now back to its March 2022 level.
The collection efficiency for September slightly better but significantly behind March 2022 level.
CLSA expect NPAs to increase and it will be a key item to watch this quarter, reported CNBC-TV18.
Bandhan Bank was quoting at Rs 267.00, down Rs 8.05, or 2.93 percent on the BSE.
Buzzing:
Jaguar Land Rover sold 88,121 vehicles in quarter ended September FY23, up 11.8% over previous quarter but fell 4.9% compared to year-ago period.
Compared to the first quarter, retail sales were higher in China (up 38%), North America (up 27%) and Overseas (up 14%) but were lower in UK (down 7%) and Europe (down 10%).
In the first half of FY23, the company clocked 23.2% decline in sales volume at 1.66 lakh vehicles YoY. Its total order book in Q2FY23 has grown by 5,000 vehicles to 2.05 lakh vehicles compared to previous quarter.
Suryoday Small Finance Bank Q2 Business Update
Suryoday Small Finance Bank has reported 21% YoY jump in its Q2 Gross Advances at Rs 5,409 crore.
Computer Age Management to consider raising equity investment In CAMS Financial
A meeting of the board of directors of Computer Age Management Services is scheduled to be held on October 17, 2022 for considering of enhancing its equity investment in CAMS Financial Information Services, a wholly owned subsidiary of the Company.
Computer Age Management Services was quoting at Rs 2,517.80, up Rs 50.95, or 2.07 percent on the BSE.
BSE Realty index fell 0.7 percent dragged by the Prestige Estate, Indiabulls Real Estate, Brigade Enterprises
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Market at 1 PM
Benchmark indices recovered from the day's low and trading flat.
The Sensex was down 96.14 points or 0.17% at 58095.15, and the Nifty was down 44.20 points or 0.26% at 17270.50. About 1271 shares have advanced, 1973 shares declined, and 138 shares are unchanged.
Sundaram-Clayton offloads 9.5% stake in TVS Training and Services
Sundaram-Clayton has sold 8.56 lakh shares in TVS Training and Services, an associate company. With this, its shareholding in associate company reduced from 30.53% to 21.07%. These shares were sold for Rs 1.24 crore. It was a related party transaction as Dr Malini Srinivasan is a relative of a director.
Sundaram-Clayton was quoting at Rs 4,473.60, down Rs 2.30, or 0.05 percent.
PNC Infratech submits financing documents for two hybrid annuity projects to NHAI
PNC Infratech has submitted duly executed financing documents for two hybrid annuity mode projects (Kanpur- Lucknow Expressway package I & II), to NHAI.
Both projects or special purpose vehicles are owned by its subsidiaries Kanpur Lucknow Expressway, and Awadh Expressway. The company has requested NHAI for confirmation of the financial closures for both projects.
PNC Infratech was quoting at Rs 270.15, up Rs 1.05, or 0.39 percent on the BSE.
Navkar Corporation sells movable assets worth Rs 174 crore to Adani Logistics
Navkar Corporation has approved the transfer of movable assets including trailers and Dwarf Containers, to Adani Logistics. The transaction cost is Rs 173.97 crore. The company will utilised the said amount for further expansion of business and purchase of new trailers for its new project inland container depot at Morbi.
BSE Capital Goods index down 1 percent dragged by the Elgi Equipments, ABB, Lakshmi Machine Works
CLSA View On Hero MotoCorp
CLSA has kept outperform rating on Hero MotoCorp with a target at Rs 2,962 per share.
The electric scooter’s pricing is significantly higher than the competition.
The company must launch vehicles at cheaper price to challenge existing players in EV segment, reported CNBC-TV18.
Nifty Auto index slipped 1 percent dragged by the Bharat Forge, Maruti Suzuki, Tube Investments
Market at 12 PM
Benchmark indices erased some of the intraday losses but still trading lower with Nifty around 17200.
The Sensex was down 379.11 points or 0.65% at 57812.18, and the Nifty was down 123.90 points or 0.72% at 17190.80. About 1192 shares have advanced, 2006 shares declined, and 140 shares are unchanged.
Star Health reports 12% YoY growth in gross direct premium for Q2FY23
Star Health and Allied Insurance Company clocked (provisional) gross direct premium of Rs 5,655.1 crore for the quarter ended September FY23, a 12% growth over a year-ago period, with health-retail segment registering 21% YoY growth to Rs 4,306.4 crore.
Star Health & Allied Insurance Company was quoting at Rs 735.20, up Rs 14.90, or 2.07 percent on the BSE.
NMDC fixes Lump Ore and Fines prices
NMDC has been fixed Lump Ore (65.5%, 6-40mm) price at Rs 4, 100/- per ton and Fines (64%, -l0mm) price at Rs 2,910 per ton.
NMDC was quoting at Rs 133.95, down Rs 1.05, or 0.78 percent on the BSE.
Buzzing
Gravita India's step down subsidiary situated in Senegal, West Africa has started commercial production of Aluminium from a new recycling plant having an annual capacity of around 4,000 MTPA.
The Company is expecting an additional revenue of approximately Rs 60 crore per annum with a gross margins of ~ 20% from the new capacity.
Buzzing
Gravita India's step down subsidiary situated in Senegal, West Africa has started commercial production of Aluminium from a new recycling plant having an annual capacity of around 4,000 MTPA.
The Company is expecting an additional revenue of approximately Rs 60 crore per annum with a gross margins of ~ 20% from the new capacity.
JSW Ispat's Q2 crude steel production down 77% at 0.03 mt versus 0.13 mt, YoY.
Motilal Oswal View on Hero MotoCorp
Hero MotoCorp has positioned its Vida V1 e-Scooter as a premium offering, with product specifications comparable with the best in the business. It also offers several enablers like a buyback program, test ride of 72-hours, and lower interest rates. Product pricing could have been aggressive, but like other traditional OEMs (and Ather) it is priced rationally and is not based on pricing alone.
Given the management's focus on serving all e-2W segments, launching a premium product would make it easier to expand down the price curve (rather than going up, if starting at the lower end of the pyramid), though it competes directly with its investee company: Ather. HMCL seems to be creating a much wider presence across segments (including B2B), with a dedicated team and several products under development.
The current valuations (at 14.3x FY24E EPS) largely factor in all negatives: weak demand, market share loss, and low expectations from EVs. Any demand recovery (on very low base) and/or reasonable success to the EV launch can be a near-term stock price catalyst.
HMCL is our preferred 2W play as it offers a pure play on a demand recovery in domestic 2Ws. We maintain our Buy rating with a Target Price of Rs 3,100 (15x Sep'24E EPS and INR163 for its NBFC after employing a holding company discount of 20%)
AurionPro Solutions bags order in data center segment
: Aurionpro is proud to associate with a prestigious project as the Data Center Consultant for a leading financial Institution in India. The design focus will be on finer aspects of compartmentalisation of critical services, fault tolerance, and automation, thereby increasing the reliability of the DC, innovations on energy savings, and Uptime tier IV and IGBC Platinum certifications. The stock was trading at Rs 432.80, down Rs 0.05, or 0.01 percent on BSE. It has touched an intraday high of Rs 439.65 and an intraday low of Rs 418.
Tracxn Technologies IPO updates
The initial public offering of Tracxn Technologies, a global market intelligence provider, has garnered bids for 4 percent or 8.95 lakh shares against IPO size of 2.12 crore shares on October 10, the first day of bidding.
Retail investors bought 23 percent of the allotted quota, while non-institutional investors have bit for 22,385 number of shares. Qualified institutional buyers have not started bidding yet.
