Ajit Mishra, VP - Research, Religare Broking:
Markets started the week on a positive note in continuation to the prevailing uptrend and ended marginally higher. The benchmark opened gap-up following supportive global cues however mixed trends across heavyweights capped the move. Healthy buying interest in IT pack and Reliance kept the tone positive however subdued performance of banking majors capped the upside as the day progressed. Finally, Nifty settled at 13,777.8; up by 0.3%. The broader markets outperformed the benchmark as Midcap and Smallcap ended higher by 0.4% and 1% respectively.
Markets are steadily inching higher, tracking favourable global markets and supportive domestic sentiment. We may see some consolidation ahead and it would be healthy however there’ll be no shortage of trading opportunities on the stock-specific front. Considering the recent momentum, it’s prudent to look for strong counters to accumulate on dips.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities:
The market continued its positive momentum and mirrored the upmove in other global markets. The Nifty is still maintaining a higher bottom formation which is broadly positive. However, the markets being in an overbought situation could trigger a quick intraday correction if it trades below 17330 support level.
As long as the index is trading above 17330, the uptrend texture is likely to continue up to 17450-17500 levels. On the flip side, if Nifty trades below 17330, it could trigger an intraday correction up to 17250-17210 levels.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
The Nifty had a gap up opening on September 06 however couldn’t build upon the early gains. In fact, the index traded in a narrow range throughout the day & consolidated its gains. The sideways action is allowing the overbought momentum indicator on the hourly chart to cool off.
On the downside, the junction of 20 hour moving average & lower end of a rising channel on the hourly chart, which is near 17300, is a crucial near term support. As long as the index trades above 17300, the short term trajectory is expected to remain positive & the index can head towards 17500 & 17630 in the short term.
Rohit Singre, Senior Technical Analyst at LKP Securities:
Index opened a day with a good gap but showed a range-bound session and closed a day at 17,378 with gains of half a percent. Index again shifted its support to 17,300-17,200 zone and any dip around mentioned level will be fresh buying opportunity.
If it managed to hold above-said levels we may see the extension in the current up move towards 17,500 zone, where traders can lock their gains as 17,500 will act as strong hurdle and also if sustain above 17,500 zone, then fresh doors will open for 18k mark.
Milind Muchhala, Executive Director, Julius Baer:
The Indian markets continue to clock new highs, aided by contributions from a few index heavy weights. However, the broader markets seem to be witnessing some signs of exhaustion, after the healthy rally seen in the past month where India was the best performing markets with gains of around 9%. In fact, a small correction would be welcome at this juncture and help the markets to become healthier, although the trigger for that currently seems elusive and it could just be a part of broader global correction.
The underlying sentiment, however, remains quite constructive, well supported by steadily improving economic data, positive earnings expectation and a healthy pick up in daily inoculations, and investors would be on the look-out for intermittent corrections to add positions.
The retail consumer demand will be closely monitored as we enter the festive season and as the restrictions continue to ease, albeit the concerns on the third wave of the pandemic. While the US job data over the past weekend disappointed, it could be supportive for equity markets as it might prompt US Fed to go slow in their tapering plans. We expect sector rotations to play out in the market, with some of the recently underperforming sectors such as financials, auto and healthcare to see better market interest.
Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers:
Indian markets started on a positive note following positive Asian markets cues as US Fed's tightening fears cool off following disappointing jobs data and Fed Chairman comments emphasizing the need for stronger jobs data before the central bank would start to unwind its massive bond-buying program.
During the afternoon session, markets continued to trade in positive zone as traders continue to get encouragement with regular foreign capital inflows on the back of strong global cues and domestic economic activity. Buying in realty and energy counters too helped markets to edge higher, though some selling was witnessed in oil & gas and power stocks.
Adding to the positive sentiments, a private report stated that Union government's net (post-refunds) direct tax collections rose 95% on-year to Rs 3.7 lakh crore till September of the current financial year, thanks to a low base, a pick-up in economic activities, higher corporate earnings and better compliance. The robust collections are despite a surge in refunds.
Vinod Nair, Head of Research at Geojit Financial Services:
Positive global markets and strong support from IT and realty stocks, aided domestic markets to trade modestly higher. Hopes of continued economic support by the Fed Reserve due to weak US job data and talks of more stimulus in Japan and China boosted global markets. Economic normalisation attracted buyers in realty stocks, while safe haven IT stocks continued to lead the upbeat market.
Market Close:
Benchmark indices ended on positive note led by the IT and Realty stocks.
The Sensex was up 166.96 points or 0.29% at 58,296.91, and the Nifty was up 54.20 points or 0.31% at 17,377.80. About 1657 shares have advanced, 1589 shares declined, and 165 shares are unchanged.
Wipro, HCL Technologies, Infosys, Reliance Industries and Hindalco Industries were the top Nifty gainers. IOC, IndusInd Bank, ONGC, Britannia Industries and Kotak Mahindra Bank were among the top losers.
Among sectors, IT and Realty indices rose 1-3 percent, while selling was seen in the bank, power and oil & gas stocks. BSE Midcap and Smallcap indices ended in the green.
Fitch affirms Bharat Petroleum at 'BBB-'; outlook negative
Fitch Ratings has affirmed India-based Bharat Petroleum Corporation Limited's (BPCL) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-'. The outlook is negative.
The agency has also affirmed BPCL's senior unsecured rating and the ratings on its outstanding senior unsecured debt at 'BBB-'. Fitch has also affirmed the rating on subsidiary BPRL International Singapore Pte. Ltd.'s US dollar guaranteed notes at 'BBB-'.
Bharat Petroleum Corporation touched a 52-week high of Rs 496.80 and was quoting at Rs 490.20, down Rs 1.20, or 0.24 percent.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed some lackluster movement and an attempt to hold the level around the Nifty 50 Index level of 17400. The market shows that it is going to be crucial for the short-term scenario to sustain above the 17250 level. If the market is able to sustain the level of 17250, market to witness higher levels of 17450-17500. The momentum indicators like RSI, MACD indicating a positive outlook to continue.
Fitch rates Power Finance Corporation's proposed EUR green bond BBB-:
Fitch Ratings has assigned India-based Power Finance Corporation Limited's (PFC, BBB-/Negative) proposed Regulation S senior unsecured euro green bond a rating of 'BBB-'.
The proposed bond will be issued from PFC's existing global medium-term note programme. The net proceeds of the bond will be lent to eligible green projects in accordance with the company's green bond framework.
Welspun India becomes first Indian company to receive USFDA 510(k) for its 3 Ply Surgical Masks
Welspun India has now become the first Indian company to receive one of the stringent and most recognized quality approval i.e. US Food and Drug Administration (FDA) 510 (k) clearance for its 3 Ply Surgical Masks.
Welspun India was quoting at Rs 137.95, up Rs 11.65, or 9.22 percent on the BSE.
Nifty IT index rose 1 percent led by the Wipro, Mphasis, Mindtree
Yash Sawant, Research Associate, Angel Broking:
China’s private survey stated that their Service sector slipped into contraction in August’21 as renewed restrictions following the widespread of Covid-19 Delta variant hampered economic activities.
In August’21, Caixin services Purchasing Managers' Index (PMI) came down to 46.7 from 54.9 in July’21, slipping below the 50 level which is believed to separates development from contraction.That, coupled with slowdown in China’s industrial sector further hinted towards slowdown in the largest metal consuming economy.
The private sector survey focuses on the smaller and medium sized firms in China. While China has successfully contained the virus outbreak, an evident slowdown in their economy might continue to remain a considerable headwind for the industrial metal prices.
Market at 3 PM
Benchmark indices were trading higher in the final hour of trading with Nifty around 17400.
The Sensex was up 184.27 points or 0.32% at 58314.22, and the Nifty was up 59.40 points or 0.34% at 17383. About 1542 shares have advanced, 1520 shares declined, and 136 shares are unchanged.
ICICI Lombard gets final approval from IRDAI for Scheme of Arrangement:
ICICI Lombard has received final approval from Insurance Regulatory and Development Authority of India (IRDAI) for the proposed Scheme of Arrangement amongst the company and Bharti AXA General Insurance Company, company said in the release.
ICICI Lombard General Insurance Company was quoting at Rs 1,570, down Rs 58.65, or 3.60 percent on the BSE.
Gaurav Garg, Head of Research, CapitalVia Global Research:
Indian benchmark hits an all-time high of 17429 and continues to trade in a range of 17300-17500. In the broader Asian market, shares edged higher as a disappointing U.S payrolls report.
Our research suggests that if the market is able to sustain the level of 17300, we can witness higher levels of 17700 as the momentum indicators like RSI and MACD to stay positive and market breadth to improve, further strengthening a short-term bullish outlook.
Gold firms near 2-1/2-month high as early Fed taper fears ebb
Gold prices inched up on Monday, hovering close to a 2-1/2-month peak after disappointing USjobs data raised hopes the Federal Reserve could wait a bit longer to pare its stimulus measures.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities
: Crude oil prices traded lower with benchmark NYMEX WTI crude oil prices were trading 1.02% down to $68.58 per barrel for the day. MCX Crude oil September futures fell by 0.89% to Rs 5,017 per barrel by noon.
Crude oil prices are expected to trade sideways to down for the day with resistance at $70 and support at $67 per barrel. MCX Crude oil September has support at Rs 4,960 and resistance at Rs 5,080.
IRCTC shares cross Rs 3,000 mark, experts see another 10% upside in near term:
Indian Railway Catering and Tourism Corporation (IRCTC) shares rallied 6 percent intraday to cross the Rs 3,000 mark and hit a record high of Rs 3,041.20 on September 6. The rally can be attributed to the reopening of the economy, its monopoly in the internet ticketing & catering business, and railways' asset monetisation plan.
"IRCTC is in strong bullish momentum where it has gained more than 100 percent in 2021 and crossed the psychological level of Rs 3,000. The correction due to Covid-19 was a great opportunity for portfolio investors to latch onto it as everyone wanted to buy it before Covid-19 at any price because of its monopoly and future growth outlook," said Santosh Meena, Head of Research at Swastika Investmart.
European markets are trading in the green with FTSE, CAC and DAX adding half a percent each
Buzzing stock
Mahindra & Mahindra Financial Services share price added over 2 percent in the afternoon session on September 6 after the company reported rise in disbursement for the month of August. M&M Financial reported disbursement of over Rs 2,000 crore for the second month in a row in August 2021. The total disbursement stood at about Rs 2,150 crore, recording a 57 percent YoY growthh, albeit on a lower base of August 2020, which was impacted by the first wave of COVID-19, the company said in an exchange filing.
Market update at 2 PM
: Sensex is up 126.90 points or 0.22% at 58256.85, and the Nifty added 38.90 points or 0.22% at 17362.50. Reliance Industries, Eicher Motors and Wipro are the top gainers while IndusInd Bank and Sun Pharma dragged the most.
Among the sectors, the realty index added over a percent while the smallcap index gained half a percent.
Tata Motors JLR August auto sales:
The JLR UK sales were down 39.6% at 1,871 units versus 3,101 units, YoY.
Tata Motors was quoting at Rs 297.90, up Rs 2.40, or 0.81 percent on the BSE.
Rahul Bajoria, Chief India Economist:
We expect CPI inflation to remain steady at 5.6% y/y in August, unchanged from July. We forecast core CPI will ease to 5.9%. The government’s supply-side measures are starting to take effect, and the plateauing of global commodity prices should help producers boost their margins.
NMDC fixes prices of Lump Ore, Fines:
NMDC has fixed the prices of Iron Ore w.e.f. 04-09-2021. It has fixed Lump Ore (65.5%, 6-40mm) at Rs 6,150 per ton and Fines prices (64%-10 mm) at Rs 5,160/- per ton.
NMDC was quoting at Rs 153.45, down Rs 1.45, or 0.94 percent on the BSE.
Ashoka Buildcon gets LoA from Adani Road Transport for EPC contract of Rs 1,567.45 crore:
Ashoka Buildcon has received Letter of Award from Adani Road Transport for execution of civil & associated works on engineering, procurement & construction (EPC) basis of six laning of national corridor NH-19 from Pangarh to Palsit in the state of West Bengal. The accepted EPC contract price is Rs 1,567.45 crore.
Ashoka Buildcon was quoting at Rs 102.40, up Rs 1.95, or 1.94 percent on the BSE.
HealthCare Global acquires oncology hospital labs from Strand Lifesciences:
HealthCare Global Enterprises announced the acquisition of oncology hospital labs and clinical trials business from Strand Lifesciences as well as simultaneous divestment of its ~ 38.5% stake (on paid-up capital basis and 34.5% on fully diluted basis) in Strand to Reliance Industries group company.
Healthcare Global Enterprises was quoting at Rs 243.15, up Rs 6.65, or 2.81 percent on the BSE.
Rahul Sharma, Co-Founder, Equity99:
Markets are touching new highs daily driven by a rally in blue-chips. Post such rally, markets need some cool down as they cannot keep on going up. Investors can book their gains partially at current levels. In long term, we are still bullish however we expect some consolidation for some time. We advise traders & short term investors to keep strict stop loss to their position and keep booking profits at certain levels.
Nifty at this current position has strong support at 17300 levels, if breached then the next support is placed at 17225 and 17100 levels. On the upside 17500 is a hurdle and if we get closing above 17500 then 17800 will act as resistance.
Bank Nifty on the other side which is underperforming Nifty, has strong support at 36500 - 36200. Similarly on the upside 37200 will act as a hurdle, once we get closing above 37200 then another stretch is expected to take Nifty Bank at all-time high levels of 38000.
TARC successfully complete sale of its warehousing asset:
TARC today announced the successful completion of the sale of its warehousing asset in North Delhi to BREP Asia II EIP Holding (NQ) Pte. Limited, an affiliate of funds controlled, managed and/or advised by Blackstone lnc, (BREP) for a total consideration of Rs 295 crore.
TARC was quoting at Rs 40.90, up Rs 1.20, or 3.02 percent on the BSE.
Market at 1 PM:
Benchmark indices were trading higher in the afternoon session with around 17,400 level.
The Sensex was up 226.33 points or 0.39% at 58,356.28, and the Nifty was up 65.70 points or 0.38% at 17,389.30. About 1594 shares have advanced, 1418 shares declined, and 135 shares are unchanged.
Exide Industries shares jump 21% in 7 days:
Exide Industries share price edged higher intraday on September 6 continuing with the momentum as the stock price rallied over 21 percent in the last seven days.
The stock has been in focus after HDFC Life on September 3 said it would acquire Exide Life Insurance for Rs 6,687 crore. Exide Life will be subsequently merged into HDFC Life.
"HDFC Life will acquire 100 percent stake in Exide Life Insurance from Exide Industries via issuance of 8,70,22,222 shares at an issue price of Rs 685 per share and a cash payout of Rs 726 crore aggregating to Rs 6,687 crore," the company said in a statement. Click to Read More
Ahluwalia Contracts secures new order aggregating to Rs 890 crore
Ahluwalia Contracts (India) secured new order aggregating to Rs 890 crore approximately for construction of Animal Science University at Patna (Bihar) awarded from The Executive Engineer Construction Division -1, Building Construction Department, BCD-1, Patna (Bihar)," company said in its release.
The total order inflow during the FY 2021-22 stands at Rs 1,119 crore.
Ahluwalia Contracts India was quoting at Rs 393.60, up Rs 9.70, or 2.53 percent on the BSE.
Investec maintains buy on Exide Industries:
Investec maintained buy on Exide Industries with a target at Rs 220. The divestment of Exide Life is done at a good valuation. The investment in non-related life insurance business was a sticking point.
The issue seems to be now resolved & should lead to significant re-rating, while implied valuation of Exide’s core battery business is 9x versus Amara Raja’s at 15x.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities:
Reliance Industries has broken its all-time after a period of 12 months. Last year, exactly in the month of September, Reliance has made a high of Rs 2,369. After consolidating between Rs 2,250 and Rs 1,900 for the majority of the time, now the stock has comfortably cross the level of Rs 2,369.
Based on the broader formation of the stock, technically, we feel that the stock is gradually heading for the levels of Rs 2,550/2,600 in next 2 to 3 months, which is approximately 10% that stock surges after crossing the all-time highest levels after of long period of consolidation.
The earlier resistance would act as support for the stock and in the worst case scenario the levels of Rs 2,300 would be the support. The strategy should be to buy on dips with a medium term view (3 months).
Alembic Pharma’s JV Aleor Derma gets USFDA nod for Metronidazole Gel USP:
Alembic Pharmaceuticals today announced that its joint venture Aleor Dermaceuticals has received final approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Metronidazole Gel USP, 1%, company said in its release.
Alembic Pharmaceuticals was quoting at Rs 785.25, up Rs 10.75, or 1.39 percent on the BSE.
Market at 12 PM
Benchmark indices erased some of the early gains but still trading higher with Nifty above 17,350.
The Sensex was up 181.57 points or 0.31% at 58,311.52, and the Nifty was up 49.90 points or 0.29% at 17,373.50. About 1589 shares have advanced, 1363 shares declined, and 140 shares are unchanged.
Over 200 stocks touched their 52 week highs during the day on the BSE including Titan, Reliance Industries, Havells, Dabur; Click for more
Oil extends losses after deep Saudi price cuts signal demand concerns
Oil prices extended losses on Monday, falling more than 1%, after the world's top exporter Saudi Arabia slashed crude prices for Asia over the weekend, signalling demand concerns and that global markets are well supplied.
Asia shares edge higher on hopes for more stimulus:
Asian shares edged higher on Monday as a disappointing US payrolls report promised to keep policy there super-loose for longer, but also clouded the outlook for global growth and inflation.
A holiday in the United States made for thin conditions and kept MSCI's broadest index of Asia-Pacific shares outside Japan to a small gain of 0.2%, though that was the highest since late July.
Japan's Nikkei added 1.7%, extending a rally on hopes a new prime minister there would bring added fiscal stimulus.
Manoj Kumar Jain of Prithvifinmart Commodity Research
Gold and silver gained last week after disappointing USnon-farm data and weakness in the dollar index. Trend volatile.
On Friday, gold and silver prices were settled on a positive note in the international markets. Continuation of soft monetary policy of the US Federal Reserve, weakness in the dollar and geo-political tensions could support precious metal prices.
Gold is expected to test $ 1850 per troy ounce in the upcoming session. Gold has support at $ 1818-1800, while resistance at $ 1844-1852 per troy ounce. Silver has support at $ 24.44-24.00, while resistance is at $ 25.20-25.55 per troy ounce.
At MCX, gold is having support at Rs 47330-47155 and resistance at Rs 47770-47920; silver is having support at Rs 64600-64100 and resistance at Rs 65800-66200 levels. We suggest buying gold around Rs 47330 with a stop loss of Rs 47150 for the target of Rs 47770.
Zydus Cadila’s Type 2 diabetes drug-Sitagliptin Base tablets gets tentative US FDA nod
Zydus Cadila announced that its subsidiary has received tentative approval from the United States Food and Drug Administration (FDA) for its new drug application for Sitagliptin base 25, 50 and 100 mg tablets. Cadila Healthcare was trading at Rs 555.15, down Rs 0.55, or 0.10 percent. It has touched an intraday high of Rs 557.85 and an intraday low of Rs 551.45.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research
: Reliance industries has surged and made a life-time high. The stock price has been soaring on the back of fast progress made in the Saudi Aramco deal. The other reasons that are responsible for soaring price is the increase in Reliance Jio and its digital footprint. The expansion of Reliance industries in solar power business has also positively impacted the prices. We expect Reliance Industries to go till the level of Rs 2700-2750 by the end of the year.
Market update at 11 AM
: Sensex is up 137.49 points or 0.24% at 58267.44, and the Nifty added 38.90 points or 0.22% at 17362.50. Reliance Industries, Grasim Industries and Shree Cements are the top gainers while Reliance Industries, IRCTC and Tata Steel are the most active stocks.
Among the sectors, the realty index added over a percent while the midcap and smallcap indices are also trading in the green.
ICICI Direct:
US dollar declined 0.21% on Friday after a weaker-than-expected non-farm payrolls data. US employers created fewer jobs in August as delta variant impacted the leisure and hospitality sector. Disappointing data led to fading of expectations of an imminent tapering of the stimulus.
Rupee future maturing on September 28 appreciated by 0.04% on Friday’s trading session on weakness in the dollar, positive domestic markets and FII inflows into local stocks.
The rupee is expected to gain strength on a weak dollar, rise in risk appetite in the domestic markets and persistent FII inflows. Further, disappointing non-farm payrolls data from the US calmed fears of an imminent tapering of stimulus package by Fed. However, sharp gains may be prevented on concerns over uptick in daily Covid-19 cases in India.
Santosh Meena, Head of Research, Swastika Investmart:
Reliance Industries (RIL) took leadership to take Nifty towards 17500 levels where it has witnessed a breakout of 1 year of consolidation that may lead to a fresh leg of the bull-run in this counter after a period of underperformance where Rs 2,500 is an immediate psychological hurdle but Rs 2,850 is an imminent target. On the downside, Rs 2,375-2,275 has become a strong demand zone.
Unison Metals approves issue of bonus share
Unison Metals' board in its meeting held on September 4 approved to issue of bonus equity shares in the proportion of 4:1, that is 4fully paid-up equity share for every 1 fully paid-up equity shares held by them on the record date subject to the approval of the members of the company, as per the company's press release.
Unison Metals was quoting at Rs 85.35, up Rs 4.05, or 4.98 percent on the BSE.
Lupin gets non-exclusive licence to manufacture anti-TB drug pretomanid:
Non-profit drug developer, TB Alliance has granted global pharma major Lupin, a non-exclusive license to manufacture the anti-TB drug pretomanid as part of the three-drug “BPaL” regimen, Lupin said in its press release.
Lupin was quoting at Rs 972.90, up Rs 3.45, or 0.36 percent on the BSE.
Vishal Wagh, Research head, Bonanza:
Reliance Industries in the focus after the rest of ten months. One can invest in the stock with a stop loss below Rs 2,180 for the target of Rs 2,600-2,720 plus in the next couple of quarters. Those who are already holding it can continue to hold it. Even averaging at this level is possible with said stop loss.
Rupee Opens:
Indian rupee opened flat at 73.03 per dollar on Monday against Friday's close of 73.01 amid bying seen in the domestic equity market.
