Closing Bell: Nifty around 19,450, Sensex up 213 pts led by bank, metal, capital goods

Ajit Mishra, SVP - Technical Research, Religare Broking:

Markets traded volatile and ended marginally in the green, in the absence of any major trigger. The beginning was subdued but recovery in the middle helped the Nifty to retest hurdle at 20 EMA around 19,470. But, it couldn’t surpass that resistance and eventually closed at 19,444; up by 0.25%. On the sectoral front, a strong rebound in the banking and financial majors kept the tone positive while the majority traded flat to negative. Meanwhile, the broader indices extended their prevailing tone and edged higher.

Interestingly, both Nifty and the banking index, have reached their immediate hurdle of short term moving average i.e. 20 EMA together. Their alignment and a decisive breakout above the hurdle would help in extending the recovery else the tone may again turn dull. Amid all, we reiterate our view on maintaining focus on stock selection.

Deepak Jasani, Head of Retail Research, HDFC Securities:

Nifty overcame early volatility to end higher for the third session on August 23. At close, Nifty was up 0.25% or 47.6 points at 19444. Volumes on the NSE was higher than the previous two days. Broad market indices rose more than the Nifty even as the advance decline ratio remained firm at 1.47:1.

Global markets were trading mixed Wednesday ahead of Federal Reserve Chair Jerome Powell's highly anticipated speech later in the week at Jackson Hole. Investors also awaited results from tech darling Nvidia later to see if the sector's lofty valuations still look justified. Survey data showed German and euro area business activity slumped in August.

Nifty formed a high wave type candle and made a higher high compared to the previous session. It could now stay in the 19320-19483 band for the near term and a breach on the upside could take the Nifty to 19558.

Prashanth Tapse, Senior VP Research Analyst at Mehta Equities

After wobbling in the morning session, markets turned upwards and ended higher in line with the trend in other global indices. Cautious optimism was the preferred theme as Nifty held steady amidst improving market mood in global stock markets. Technically, Nifty could see extended recovery only it clears the 19537 mark. On the downside, bears will become active only if Nifty slips below the 19251 mark.

One 97 Communications hits 52-week high

One 97 Communications shares rallied 5.5 percent to Rs 904.75, the highest closing level since February 11 last year, on the NSE, continuing uptrend for second consecutive session.

The stock almost filled up the gap created with the sharp fall on February 14 last year, and formed strong bullish candlestick pattern on the daily charts with healthy volumes. Also, it surpassed the high of June month, from where we have seen correction up to Rs 752 on July 28, which experts said can be a critical support levels for the stock going ahead. Since then, the stock continued its gradual upmove along with intermittent correction and consolidation till today.

Today, the stock has seen a breakout after several weeks of consolidation. Also, there was a breakout of downward sloping resistance trendline adjoining highs of June 19 and August 17.

Further, the stock traded above all key moving averages (20, 50, 100 and 100-day exponential moving averages), which is a positive sign.

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas:

The Nifty opened on a positive note and witnessed a volatile day of trade today. It closed in the green up ~48 points. On the daily charts, we can observe that the Nifty is trading exactly around the falling resistance trend line. Considering the number of touchpoints on this trend line increases the importance of this trend line and should be closely watched out for. On the upside, there is multiple resistance in the form of the 20-day moving average (19,529) which shall restrict the up move. The daily momentum indicator has a negative crossover, and this rise could fizzle out. Overall, we shall continue to maintain our negative outlook on the index though a pullback is likely over the next few trading sessions. Crucial support is placed at 19,370 – 19,350 while Immediate hurdle is placed at 19,520 – 19,550.

Bank Nifty has witnessed a sharp pullback. On account of the rise it is now very close to the 44,600 – 44,700 where resistance in the form of the 20 and 40-day moving averages are placed which are likely to restrict a further sharp up-move. Bank Nifty is in a pullback mode which is also supported by the positive crossover on the daily momentum indicator.

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

While market undertone remains cautious, investors are cherry picking stocks that were beaten down in recent sessions or have the potential to gain further in the medium term because of sound business fundamentals. In an extremely volatile session, buying in banking, power and metal stocks fuelled a recovery in markets, while concerns over dismal global macroeconomy and fluctuation in US bond markets have made investors adopt a risk averse stance.

Technically, the Nifty took support near 19350 and recouped lost ground thereafter. However, it failed to breach the key resistance level of 19500. Currently, the index is witnessing a positive consolidation.

For day traders, 19400 would act as a trend decider level and above which, the index could rally till 19535. On the flip side, below 19400 the index could retest the level of 19350-19315.

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

The Bank Nifty index exhibited a powerful bullish resurgence, effectively overpowering the bearish sentiment. Notably, buying activity was observed in both private and public sector banks, showcasing strong confidence. The critical resistance at 44200 was convincingly breached, supported by substantial trading volumes, leading to an extension of the upward movement towards 44500.

The overall market sentiment remains bullish, with the index poised for further gains. As long as the index sustains above the level of 44200, the trajectory is likely to continue upwards, potentially targeting the 45000 level. On the downside, a crucial support is situated at 44000, where significant put writing was evident on both the weekly and monthly expiries. This support level could act as a buffer against downward movements.

Vinod Nair, Head of Research at Geojit Financial Services:

Global markets have restrained from making significant moves as they await the outcome of the central bankers' gathering at Jackson Hole scheduled for Friday. With the earnings season nearing its end, the heightened possibility of another rate hike in the US, along with the resultant increase in bond yields, are expected to keep the global market’s volatility high. On the domestic front, sentiments remained positive, backed by strong demand in the banking sector, though IT and pharma limited the gains.

Aditya Gaggar Director of Progressive Shares

D-street started the day on a positive note by following its global counterparts and in the opening trade itself, the index retested its strong support of 19,370 followed by a firm follow-up buying; however, in the last hour of trade, the index pared off some of its gains to settle at 19,444.00 with gains of 47.55 points.
The index rally was mainly driven by financial stocks, especially banking while FMCG and Energy segments witnessed a round of correction. Mid and Smallcap indices extended their streak of outperformance by settling with gains of 0.39% and 0.91% respectively.

On the daily time-frame, Nifty50 has made a DOJI candlestick pattern at the higher end of the congestion which indicates a reversal to retest its support zone.

Rupak De, Senior Technical analyst at LKP Securities:

The Nifty continues to trade within the broader range of 19,300 and 19,500. On the daily timeframe, the headline Nifty index has been fluctuating between the boundaries set by the 21-day Exponential Moving Average (EMA) at 19,471 and the 50-day EMA at 19,281.

Looking ahead, the Nifty is likely to maintain this range bound movement as long as it remains within these established thresholds. A significant breakthrough above the 19,500 mark could potentially trigger a rally towards higher levels.

Rupee Close:

Indian rupee ended 25 paise higher at 82.68 per dollar versus Tuesday's close of 82.93.

Market Close

: Benchmark indices ended higher on August 23 with Nifty around 19,450 led by metal, bank, capital goods and realty stocks.

At close, the Sensex was up 213.27 points or 0.33 percent at 65,433.30, and the Nifty was up 47.50 points or 0.24 percent at 19,444. About 2016 shares advanced, 1487 shares declined, and 156 shares unchanged.

Hindalco Industries, Axis Bank, ICICI Bank, SBI and L&T were among the top gainers on the Nifty, while losers were Adani Enterprises, Adani Ports, Sun Pharma, Bharti Airtel and Tata Motors.

Mixed trends seen on the sectoral front, with bank, metal, capital goods and realty up 0.4-1 percent each, while power, FMCG, and oil & gas down 0.3-1 percent.

BSE midcap index rose 0.4 percent and smallcap index added 0.6 percent each.

Stock market LIVE Updates | Investec View On Colgate Palmolive

-Hold rating, target at Rs 2,030 per share
-Management reiterated its intent to grow ahead of oral care through the core
-Management to drive premiumisation through innovation and science
-Management reiterated its intent to build non-oral care with focus on palmolive
-Category growth is recovering, strong Q1 performance can be attributed to a weak base
-Believe FY24 will be a strong earnings growth year on weaker base of volume & margin
-Valuations at 40x June 25 EPS estimate capture medium-term upsides

Stock Market LIVE Updates | Goldman Sachs View On Tech Mahindra 

-Sell rating, target at Rs 1,010 per share
-Challenged growth outlook due to high exposure to telecom & weak margin
-Challenged growth outlook not reflected in valuations

BSE Power index fell 1 percent as government has extended Section 11 to imported coal-based power generators till October 31, 2023

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

WTI front month crude flirt around support of $79, we expect prices to decline further as rising interest rates in west would slowdown the economic activities in the east. WTI prices have corrected 3.25% in August and is down 1.1% this week as the global economy faces the risk of Chinese property market default, as many of the cities are witnessing 10-15% home prices corrections from 2021 highs.

Efforts by OPEC+ leaders- Saudi Arabia and Russia to curb production have tightened the market. However, the demand outlook in China is clouded, and there are signs US interest rates will need to stay higher for longer to rein in inflation.

American Petroleum institute reported another weekly drop of 2.4 million barrels of commercial oil reserves, if EIA inventories decline across product, we may see some spurt in oil prices.

Expect oil prices to consolidate further as market remain abundantly supplied, while supply is taking backseat. In short term run WTI could test the support of $76.50 and resistance stays around $82. Advise traders to short the rallies.

Stock Market LIVE Updates | CLSA View On Reliance Industries

-Buy rating, target at Rs 3,060 per share
-FCF negative primarily due to a jump in capex during FY23 driven by telecom
-Consolidated OPCF flat to a rise in working capital, was offset by higher OPCF from Jio & retail
-This drove a 2x YoY rise in leverage to 2.0x EBITDA, consolidated RoE up on jump in CWIP

Sensex Today | Santosh Meena, Head of Research at Swastika Investmart:

A successful landing of Chandrayaan-3 is likely to generate positive sentiment for these companies, potentially boosting their stock prices. Despite the short-term gains, the overall long-term outlook for these counters remains bullish. Investors would be wise to maintain their positions, viewing any profit booking as a chance for long-term entry. However, for traders, chasing these stocks immediately after the event might not be advisable. Waiting for potential profit booking could offer more favorable entry points, aligning with a strategic long-term investment approach. HAL, L&T and MTAR technologies are our preferred bet.

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

-Neutral rating, target at Rs 338 per share
-Expect initiatives by management & industry consumption recovery to drive 10 percent revenue CAGR over FY23-26
-Stock currently trades at 28.5x FY25 P/E, which is in the fair value zone

Stock Market LIVE Updates | JPMorgan View On Tata Motors 

-Neutral rating, target at Rs 635 per share
-JPMorgan’s monthly sales tracker of JLR indicates that July 2023 retails grew 16 percent YoY
-Track mthly retail sales releases of various end markets that account for 85-90 percent of JLR’s volume
-JLR retails in July outperformed luxury peers’ in the US & China, weaker in Europe
-Incentives across OEMs have continued to rise in both China and the US
-JLR is faring better at the moment in the US
-July witnessed a sharp rise in land rover incentives

Sensex Today | Market at 3 PM

The Sensex was up 258.87 points or 0.40 percent at 65,478.90, and the Nifty was up 59.80 points or 0.31 percent at 19,456.30. About 1897 shares advanced, 1254 shares declined, and 97 shares unchanged.

Stock Market LIVE Updates | Goldman Sachs View On TCS:

-Buy rating, target at Rs 3,930 per share
-See company as a defensive play in a tough demand environment
-Expect TCS to be a beneficiary of vendor consolidation, given in-depth vertical expertise

Sensex Today | Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas:

Indian Rupee strengthened for the second consecutive session on IPO driven inflows and positive tone in the domestic markets. Softening of crude oil prices also supported the domestic unit. However, FII outflows and a strong US Dollar capped sharp gains. Economic data from US was mixed with existing home sales falling by 2.2% to 4.07 million in July 2023 as compared to 4.16 million in June 2023. On the other hand, Richmond manufacturing index improved to -7 in August 2023 as compared to -9 in July 2023. European equities traded in the green despite PMI data from France, Germany, Eurozone and UK slipping deeper into contraction.

We do not see any sharp appreciation in the Rupee as dismal economic data from Europe may lead to a risk averse market which may weigh on riskier currencies. In that case, US Dollar would gain. Any further inflows due to the upcoming IPOs may also support Rupee. However, a strong Dollar and hawkish comments from US Federal officials may support the greenback which may put downside pressure on Rupee. Trades may watch out for PMI numbers from US while investors may remain cautious ahead of Fed Chair, Jerome Powell’s speech as Jackson Hole Symposium on Friday. The USDINR spot price is expected to trade in a range of Rs 82.40 to Rs 83.20.

Stock Market LIVE Updates | Goldman Sachs View On Infosys

-Buy rating, target at Rs 1,600 per share
-Expect two more quarters of subdued revenue growth
-Strong orderbook indicates sharp CY24 revenue recovery
-Current valuations do not reflect strong orderbook

Stock Market LIVE Updates | Motherson Sumi Wiring gains 0.8% after huge block deal

Shares of Motherson Sumi Wiring India gained 0.8 percent after a huge block deal. Around 0.2 percent or 9.64 million shares of the company changed hands in three bunches, according to Bloomberg. However, details of the buyers and sellers were not known.

Stock Market LIVE Updates | NDTV is planning channels in Gujarati and Marathi launches in December or January.

Stock Market LIVE Updates | Aeroflex IPO subscribed 14 times, day 2 of bidding still on; strong demand from NIIs, retail bidders

Aeroflex Industries' IPO was subscribed 14 times on August 23, as non-institutional investors and retail bidders showed strong interest in the public issue, with day 2 of the bidding still underway. Investors seem to be bullish on the flexible flow solution products maker Aeroflex -- cumulatively applying for 32.34 crore equity shares against the offer size of 2.32 crore shares.

High networth individuals have so far bid for 31 times the allocated quota; retail investors have applied for 13.4 times their portion; and Qualified Institutional Buyers have subscribed twice their quota.

Shareholders of the promoter Sat Industries have bid 6.9 times the reserved portion which is 5 lakh shares of the total offer size.

Stock Market LIVE Updates | Goldman Sachs View On LTIMindtree 

-Buy rating, target at Rs 6,310 per share
-Fastest growth within coverage driven by cross-selling to existing accounts
-Highest margin expansion potential due to merger synergies

LTIMindtree was quoting at Rs 5,199.20, up Rs 62.10, or 1.21 percent.

UK Data Watch | August Services PMI at 48.7 and Manufacturing PMI falls to 42.5

Stock Market LIVE Updates | HSBC View on Tata Power

HSBC is constructive on Tata Power (TPWR) over the medium term as – (a) Incremental capital allocation is clean and green – either RE or T&D; (b) Tata Group is among the biggest conglomerates in India and group companies like Tata Steel and Tata Motors will require hybrid green power (even RE-RTC over time) which promises group captive opportunities for TPWR; (c) Strong capabilities/ management bandwidth across the power sector value chain.

It is a play on PSH given existing rain-fed reservoirs in Maharashtra (eyeing 2.8 GW PSH). Maintain add, but really see no rush to buy.

The Tata Power Company was quoting at Rs 247.50, up Rs 4.05, or 1.66 percent on the BSE.

Sensex Today | Market at 2 PM

The Sensex was up 267.58 points or 0.41 percent at 65,487.61, and the Nifty was up 69.50 points or 0.36 percent at 19,466. About 1942 shares advanced, 1180 shares declined, and 109 shares unchanged.

Sensex Today | Oil dips as markets await PMI releases, Jackson Hole meet

Oil prices dropped on Wednesday, as traders were cautious ahead of potentially gloomy manufacturing data and an annual meeting at Jackson Hole, where heavy-hitter central bankers including from the United States will talk interest rates.

Brent crude was down 51 cents to $83.52 a barrel at 0738 GMT, while U.S. West Texas Intermediate crude was at $79.15 a barrel, down 49 cents.

Markets await hints on the outlook for interest rates when Federal Reserve officials and policy makers from the European Central Bank, the Bank of England and the Bank of Japan head to Jackson Hole, Wyoming, for an annual meeting later this week.

Sensex Today | Aeroflex Industries IPO subscribe 12.68 times on second day of bidding

Investors seem to be bullish on flexible flow solution products maker Aeroflex Industries as they have made an application for 29.44 crore equity shares against offer size of 2.32 crore shares, resulting into the IPO subscribing 12.68 times on August 23, the second day of bidding.

All categories of investors showed great interest in the IPO, with high networth individuals buying 27.09 times the allocated quota, and retail investors 12.57 times the portion set aside for them.

Shareholders of the promoter Sat Industries have bid 6.57 times the reserved portion which is 5 lakh shares of the total offer size, while the part set aside for qualified institutional buyers, which is 50 percent of IPO size, was subscribed 2.05 times.

The Mumbai-based company has reserved 15 percent issue portion for high networth individuals and the remaining 35 percent for retail investors.

Stock Market LIVE Updates | UBS View On Apollo Tyres

-Downgrade to neutral rating, target at Rs 430 per share
-Believe risk-reward is now balanced as deleveraging continues
-India demand and profitability remain robust, demand in Europe & exports have slowed
-Do not foresee any commodities related headwinds in Q2 & Q3 of FY24
-Expect stable margin performance
-Current valuations at 6.7x FY25 EV/EBITDA is broadly in line

Apollo Tyres was quoting at Rs 392.35, down Rs 1.70, or 0.43 percent on the BSE.

Stock Market LIVE Updates | Polycab India issues comfort letter to HDFC Bank for enhanced borrowing facility for its subsidiary TRPL

Polycab India has issued a comfort letter to HDFC Bank for the enhanced borrowing facility from Rs 52 crore to Rs 89.97 crore to be availed by subsidiary Tirupati Reels. Subsidiary will use funds for working capital and capex expenditure to meet its business requirement for manufacturing business.

Polycab India touched a 52-week high of Rs 5,153.80 and quoting at Rs 5,131.00, up Rs 132.65, or 2.65 percent.

Stock Market LIVE Updates | JB Chemicals gets US FDA nod for Doxepin Hydrochloride Capsules USP

JB Chemicals informed that USFDA has approved company’s Abbreviated New Drug Application (ANDA) for Doxepin Hydrochloride Capsules USP, 10 mg, 25 mg, 50 mg, 75 mg, and 100 mg, the generic version of Sinequan (Pfizer), which is indicated for the treatment of anxiety, depression, and other target symptoms of psychoneurosis.

The drug will be manufactured at JB Pharma’s formulation manufacturing facility in Panoli, Gujarat.

JB Chemicals and Pharmaceuticals was quoting at Rs 2,744.15, up Rs 91.70, or 3.46 percent on the BSE.

Stock Market LIVE Updates | NBCC sells 1.98 lakh sqft for Rs 821.02 crore   

NBCC has conducted 20" auction for sale of commercial space in the World Trade Centre, Nauroji Nagar, New Delhi.

The company has sold a total area of 1.98 lakh sq.ft. (approx.) having sale value of Rs 821.02 crore, out of which 1.23 lakh sq.ft. area having sale value of Rs 518.08 crore has been sold to private entities.

Further, as on date, the company has sold a total area of 17.79 lakh sq.ft. through open e-auction having sale value of Rs 7194.10 crore.

NBCC (India) touched a 52-week high of Rs 52.05 and quoting at Rs 51.07, up Rs 0.01, or 0.02 percent.

Validity period for guarantee provided by Bharat Forge to subsidiary Bharat Forge Aluminum USA revised

The validity period for the guarantee provided by Bharat Forge to its wholly owned step-down subsidiary, Bharat Forge Aluminum USA, Inc, has been revised. The amount of $15.5 million issued in favour of JP Morgan Bank was earlier valid till November 27, 2023. The said guarantee is amended and the revised validity period is till July 31, 2026.

Bharat Forge touched a 52-week high of Rs 1,041.20 and quoting at Rs 1,036.65, up Rs 29.95, or 2.98 percent.

Stock market LIVE Updates | Jefferies View On Colgate Palmolive

-Buy rating, target at Rs 2,180 per share
-Management took serious efforts to highlight initiatives to drive growth & premiumisation
-Meet format reminded of CEO’s earlier company, HUL, which hosts best-in-class events
-Continue to believe there is a case to accelerate growth through aggressive investments
-Explains 4 percent stock correction yesterday along with expectation build-up ahead of event