Closing Bell: Nifty above 19,450, Sensex gains 138 pts; power, realty shine, metals drag

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities:

The Bank Nifty index recently found support at a crucial level, the 100-day moving average (DMA), positioned at 43600.The index's potential to experience a pullback rally is contingent on maintaining this level above the 100DMA on a closing basis.The immediate obstacle for the index is situated around 44000. An upward breach beyond this level could validate a move towards 44300 or 44500 levels.

Rupak De, Senior Technical analyst at LKP Securities:

Nifty bounced back from the lowest point of the day. Nevertheless, the short-term outlook remains feeble, given that the index concluded the session below the vital short-term moving average (21EMA). The Relative Strength Index (RSI) shows a bearish crossover, further amplifying the pessimistic sentiment. The prevailing trend will continue to lack strength as long as it maintains levels below 19521, where the 21EMA is situated. Looking downward, the initial support level is positioned at 19250.

Prashanth Tapse, Senior VP Research Analyst at Mehta Equities

Bulls were in total control despite cautious mood in global stock markets amidst value buying and bargain hunting. After wobbling in the morning session, markets regrouped at lower levels as the benchmarks raced higher to end the session in green. Technically speaking, if today’s bullish action is any indication, then all eyes will be on Nifty’s all-time high at 19992 mark with an inter-month perspective.

Vinod Nair, Head of Research at Geojit Financial Services

The initial apprehension stemming from an above-expected surge in domestic CPI inflation, driven by higher food prices, induced volatility in the Indian market. However, the market found some relief as the likelihood of this inflation surge being transitory alleviated concerns, leading to a recovery in the latter part of the trading session. Moreover, as core inflation continued to moderate, the market did not anticipate a rate hike, although the possibility of an extended rate pause seemed more probable.

Stronger-than-anticipated retail sales data in the US and concerns about further rating downgrades of US banks contributed to choppiness in Western markets, while Asian markets reacted to the rate cut initiated by the Chinese central bank.

Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty ended minorly in the positive for the second consecutive session on Aug 16 after recovering sharply from the morning weakness. At close, Nifty was up 0.06% or 12.4 points at 19446.9. Volumes on the NSE continued to be on the lower side compared to recent average. Broad market indices rose more than the Nifty even as the advance decline ratio rose to 1.06:1.

Asia-Pacific markets declined on Wednesday, amid worries over discouraging data on China, as well as over the future of the US economy. European stocks were muted after their slump on Tuesday as investors awaited further clues on the path of interest rates from the US Federal Reserve and announcement of a meaningful stimulus from Beijing.

Nifty formed a higher top and higher bottom formation compared to the previous session. Intraday falls keep attracting buy-on-dips action. Nifty needs to cross 19558 to beget higher confidence in the upmove. 19296 could be a support in the near term.

Ajit Mishra, SVP - Technical Research, Religare Broking

Markets showed resilience amid weak global cues and ended marginally in the green. After the initial downtick, Nifty inched gradually higher as the day progressed and pared all the loss to close at 19465 level. Meanwhile, a mixed trend on the sectoral front kept the traders busy wherein realty, auto and pharma attracted buying interest while metal and banking remained subdued. The broader indices too witnessed a similar trend as the smallcap index managed to gain over half a percent while the midcap ended flat.

The recent move shows a tussle around 19,300 in Nifty and feeble global cues might deteriorate the sentiment ahead. In case of a rebound, the 19520-19650 zone would be hard to cross. We thus reiterate our view to keep a check on positions and maintain focus on risk management.

Shrikant Chouhan, Head of Research (Retail), Kotak Securities

While volatility continued to remain the ongoing theme, markets rebounded in late trades amid buying in IT, realty and power stocks, although metals came under hammering on worries slackening demand in China could hurt sentiment going ahead.

Despite the recovery, markets are likely to witness choppy trends in the near term on concerns that higher inflation in both domestic and global economies could delay the end of rate tightening cycle and may slowdown growth further.

Technically, the bullish candle on daily charts and higher bottom formation on intraday charts are indicating further uptrend from the current levels.

For the trend following traders, 19400 would be the key level to watch out for and above the same, the market could move up till 19550-19575. On the flip side, a fresh sell off could be seen after the dismissal of 19400. Below which, the index could retest the level of 19350-19300.

Market Close:

Benchmark indices ended on a positive note in a highly volatile session on August 16 with Nifty around 19,450.

At close, the Sensex was up 137.50 points or 0.21 percent at 65,539.42, and the Nifty was up 30.50 points or 0.16 percent at 19,465. About 1741 shares advanced, 1763 shares declined, and 132 shares unchanged.

Major gainers on the Nifty were UltraTech Cement, Apollo Hospitals, NTPC, Infosys and Tata Motors, while losers were Tata Steel, Adani Ports, Hindalco Industries, HDFC Life and Bharti Airtel.

Except bank and metal, all other sectoral indices ended in the green with auto, power, realty, IT, pharma and capital goods up 0.5-1 percent.

BSE midcap index rose 0.2 percent and smallcap index added 0.5 percent.

Stock Market LIVE Updates | Jefferies View On ITC 

-Buy rating, target at Rs 530 per share
-Key businesses reported strong momentum
-Cigarette volumes up 8% & FMCG revenue growth 16%
-Underlying margin expanded in both, other segments were generally mixed
-Think stock continues to offer value & provide high earnings visibility

Adani Power Large Deal | 72.7 million shares change hands in multiple deal: Bloomberg

Stock Market LIVE Updates | Nazara invests in Israeli based game developer Snax Games

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Sensex Today | Mohammed Imran, Research Analyst at Sharekhan by BNP Paribas:

Crude retreated under USD 81 on Wednesday ahead of the weekly inventory data owing to the sluggish state of China’s economy after retail sales, industrial output, and investment figures failed to match expectations, fueling concern over a deeper, longer-lasting slowdown in growth. Oil prices have recorded seven consecutive weekly gains and are up 10% in the last four weeks driven by the supply tightness due to planned production cuts from OPEC+ to keep the market balance in check, but we expect further condition in prices.

On the macro front US consumer spending is not showing any sign of slowing down with core retail sales rising 1% and headline sales up by 0.7% in July or yearly basis, raising concerns for a tighter policy stance from US Fed.

On the other hand, US Gasoline prices have surged 7% in a month as strong demand and a series of refinery outages have pushed the national average retail price to $3.86 per gallon earlier this week. The API forecasted a decline of 6.2 million barrels in commercial oil inventories.

Expect oil prices to dip to support of USD 79 due to risk aversion in the broader markets, for the day sell on rise strategy, while the long-term outlook stays bullish with prices expected to trade above USD 90 in Q4, while in medium term crude oil to face resistance of USD 85.

Stock Market LIVE Updates | Citi View On Crompton Greaves Consumer Electrical

-Buy rating, target at Rs 350 per share
-Reported soft Q1 with revenue & EBITDA at Rs 1,880 crore & Rs 190 crore, respectively
-Fans & small appliances saw revenue growth, lighting & residential pumps dragged
-EBITDA margin came in at 9.9%, down 191 bps YoY
-Lighting margin expands, overall margin impacted by increase in A&P spends
-Going forward, Crompton will prioritise revenue growth

Sensex Today | Market at 3 PM

The Sensex was up 82.74 points or 0.13 percent at 65,484.66, and the Nifty was up 16.80 points or 0.09 percent at 19,451.30. About 1626 shares advanced, 1532 shares declined, and 101 shares unchanged.

Sensex Today | Mohit Ralhan, Chief Executive Officer, TIW Capital

Wholesale prices declined 1.4% YoY in July. This was the fourth consecutive reading in negative territory. The decline was driven by a fall in fuel & power and manufacturing prices. However, the pace of decline moderated as primary articles registered an 8.1% MoM price increase. Vegetables, cereals and pulses contributed the most to upward price pressure. Vegetable prices jumped 81% MoM. WPI food index, as a result, increased 7.8% YoY, up from -1.2% YoY in June.

Textiles, chemicals and paper & paper products contributed to a decline in manufacturing product prices. These product categories have been in deflationary territory for the last five months. This shows that manufacturing activity continues to remain under pressure.

The RBI has taken into account the jump in vegetable prices in its revised inflation forecasts. However, it will continue to monitor food and fuel inflation going ahead.

Stock Market LIVE Updates | Lupin receives USFDA approval for Bromfenac Ophthalmic Solution

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Stock Market LIVE Updates | Morgan Stanley View On Indiabulls Housing Finance

-Underweight rating, target at Rs 103 per share
-PPoP miss of 21% on lower total income & higher operating costs
-PAT beat as lower PPoP was offset by recoveries led credit cost reversals
-Raise forecasts by 5-6%, however, RoE will likely take longer to recover

Stock Market LIVE Updates | Infosys sees a huge block deal with 1.1 million shares changed hands, Bloomberg reported. However, details of the buyers and sellers were not known.

Stock Market LIVE Updates | Uno Minda gains 7 percent on new EV supply factories, strong orders

Shares of Uno Minda rose over 7 percent after the company said it has commissioned two plants for manufacturing EV components. The company recently commissioned a plant at Farukhnagar in Haryana under its JV with FRIWO AG Germany which will make products catering to two and three wheeler EVs. Its unit Uno Minda Buehler also commenced production earlier this month. The firm also got new orders of more than Rs 600 crore for EV systems during the June quarter. It aims to achieveRs 1500 crore revenue from EV systems by 2026, according to an exchange filling.

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Indiabulls Housing Finance on August 14 reported a consolidated profit at Rs 296.2 crore for first quarter of FY24, rising 3.3 percent over corresponding period of previous fiscal. However, net interest income fell by 5.8 percent to Rs 546.5 crore during the same period.

Stock Market LIVE Updates | Citi View On SAIL 

-Buy rating, target at Rs 110 per share
-Adjusted EBITDA fell 9% YoY on lower realisations, offset in part by strong volume & lower costs
-Sequentially EBITDA fell 43% on lower volumes & higher costs
-Q1FY24 adjusted EBITDA/t at Rs 4,245 versus Rs 6,225 in Q4FY23 and Rs 5,745 in Q1FY23
-Excluding profit on sale of plant & machinery, company reported loss during the quarter
-Domestic steel prices softened, expect EBITDA/t to expand

Stock Market LIVE Updates | GPT Infraprojects bags order of Rs 32 crore

GPT Infraprojects has bagged order valued at Rs 32 crore from Principal Materials Manager, Eastern Railway, Kolkata.

The contract is for manufacture and supply of Mono-Block Pre-Stressed Concrete Sleeper.

Stock Market LIVE Updates | BofA Securities On Aurobindo Pharma

-Buy rating, target raised to Rs 965 from Rs 770 per share
-Strong quarter with both US & EU sales beat
-EBITDA margin in-line on moderation in gross margin
-US momentum to continue on stable pricing, launch pipeline

Stock Market LIVE Updates | CLSA View On ITC 

-Outperform rating, target at Rs 480 per share
-Cigarette & other FMCG make up for challenges in agriculture & paper
-Cigarettes continue to provide a spark & other FMCG margin on track
-Hotels demerger to sharpen capital allocation and improve return ratios
-Separation of hotel business would improve overall return ratios by 200-250 bps

Sensex Today | Nifty Bank index down 0.3 percent dragged by Bandhan Bank, IndusInd Bank, SU Small Finance Bank

Stock Market LIVE Updates | Jefferies View On Divis Laboratories

-Buy rating, target raised to Rs 4,300 per share
-Q1 missed estimates on both revenue & PAT
-Margin recovery continued as both gross & EBITDA margin improved
-Near-term growth driver will be ramp up of Sacubitril Valsartan project & base business products
-New contrast media projects will be online by end of FY25

Sensex Today | Gold wavers near recent lows as traders bet on more US rate hikes

Gold prices stalled on Wednesday, a day after breaching the key $1,900 support level for the first time in 1-1/2 months as U.S. Treasury yields were boosted on expectations the Federal Reserve is not yet finished with its rapid monetary tightening cycle.

Spot gold held its ground at $1,903.50 per ounce by 0546 GMT, while U.S. gold futures were flat at $1,935.60.

Sensex Today | European Markets Trade Flat

Stock Market LIVE Updates | Orient Green Power arm refinances existing term loan & working capital facilities of Rs 703.6 crore

Beta Wind Farm Private Limited (BETA), a subsidiary of Orient Green Power Company Limited, has refinanced the existing term loan and working capital facilities of Rs 703.63 crore and received an additional term loan facility of Rs 4.90 crore at the rate of interest of 9.40% from Indian Renewable Energy Development Agency Limited (IREDA).

Stock Market LIVE Updates | Uno Minda commissions two new plants for manufacturing of EV components and systems

Uno Minda has recently commissioned a new EV systems plant in Farukhnagar, Haryana under the joint venture with FRIWO AG Germany.

This new plant would manufacture On-Board Charger, Off-board charger, Motor Control Unit, DCDC converter, Battery Management System, and many more products catering to EV 2wheeler
and 3wheeler.

Supplies from this plant has already started and is expected to further rampup in coming quarters with start of production (SOP) of more orders received.

Sensex Today | Market at 1 PM

The Sensex was down 43.18 points or 0.07 percent at 65,358.74, and the Nifty was down 25.30 points or 0.13 percent at 19,409.20. About 1608 shares advanced, 1511 shares declined, and 92 shares unchanged.

Stock Market LIVE Updates | Investors dump Balaji Amines after delay in Q1 results; stock falls

Balaji Amines Limited share price tumbled over 3 percent in early trade on August 16 after the company declared a delay in its June quarter results amid the mass resignation of five independent directors in May, causing panic among investors.

"In accordance with the Sebi master circular, we would like to submit that there has been a delay in the preparation of the consolidated financial results on account of the unavailability of the management," said Balaji Amines in an exchange filing on August 14.Read More

Stock Market LIVe Updates | BofA Securities View On Divis Laboratories

-Underperform rating, target at Rs 3,150 per share
-Revenue in-line reflecting weak export print, margin higher that estimate on GM beat
-Estimate double-digit revenue growth & 31-35% margin over FY24-26 building base momentum
-Medium-term momentum leave little margin for error

Stock Market LIVE Updates | Eugia Pharma receives USFDA Approval for Icatibant Injection

Aurobindo Pharma's wholly owned subsidiary company Eugia Pharma Specialities Limited has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Icatibant Injection, 30 mg/3 mL (10 mg/mL), Single-Dose Prefilled Syringe, which is bioequivalent and therapeutically equivalent to the reference listed drug (RLD) FIRAZYR (Icatibant Injection)
by Takeda Pharmaceuticals USA Inc.

The product is being launched in September 2023.