Closing Bell: Nifty around 19,400, Sensex up 267 pts; all sectors in the green

Prashanth Tapse, Senior Vice President (Research), Mehta Equities

Market snapped its 2-day losing streak as the risk sentiment improved despite persistent Chinese economic concerns and hawkish Fed backdrop. Technically, Nifty could extend major recovery once it clears the 19537 mark. On the downside, bears will become active if Nifty slips below the 19251 mark.

Deepak Jasani, Head of Retail Research, HDFC Securities:

Nifty ended higher on August 21 aided by buying across Metals, Power and IT stocks. At close, Nifty was up 0.43% or 83.5 points at 19393.6. Volumes on the NSE fell sharply compared to the recent average. Broad market indices rose more than the Nifty even as the advance decline ratio rose to 1.51:1.

Asian stocks stumbled on Monday after China delivered a smaller cut to lending rates than markets had counted on, continuing Beijing's run of disappointingly frugal stimulus steps.

European stocks rebounded from a one-month low as higher energy prices buoyed oil producers.

Nifty bounced up as expected post the doji formed in the previous session. 19483 is the resistance for the Nifty in the near term while 19253-19310 band could provide support.

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities:

Nifty opened with a gap up and continued to move up steadily throughout the day to close at 19,394, up 83 points.

The Foreign Portfolio Investors (FPIs) were seen covering their short positions on last Friday, (18th August) because of which the FPIs’ Long-Short Ratio moved up from 39.46% on 17th August to 42.04%

The Index has formed a morning star candlestick pattern on the daily chart. This bullish reversal pattern formation around the 50-Day Exponential Moving Average (DEMA) of 19,270 and the 50% Fibonacci retracement of 19,323 drawn from the low of 18,647 made on 26th June to the high of 19,992 made on 20th July can give a ray of hope to bulls in the coming days. The level of 19,300 on the downside will act as a strong support for Nifty while a close above today’s high of 19,426 can lead to initiation of fresh longs.

Bank Nifty broke the key resistance level of 43,950 on Intraday basis and closed at 44,002, up 151 points. Short covering was observed at 43,800 and 43,900 Strikes, which led to a strong up move in the index today. Bank Nifty has been consolidating in the 43,700-44,100 in the last five trading sessions. A decisive breakout on either side of the range can provide cues about Bank Nifty’s future direction.

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

Positive European market cues triggered a relief rally in domestic benchmark indices as investors resorted to short covering after taking a hit last week on the back of sharp FII selling and weak global cues. However, the market may continue to stay wobbly due to weak macroeconomic scenarios and volatility in global currency markets due to uptick in US bond yields. Technically, after a muted opening, the Nifty took support near the 50 day SMA (Simple Moving Average) or 19320 and reversed the trend thereafter. On daily charts, the index has formed a bullish candle and on intraday charts, and has also formed a double bottom formation. As long as the index is holding the 19320 level, the bullish sentiment is likely to continue. Above which, the index could rally till 19475-19500. On the flip side, below 19320, the uptrend would be vulnerable and could slip till 19250-19225.

Deven Mehata, Equity Research Analyst at Choice Broking:

Nifty remained turbulent all day after today's flat beginning, but it eventually stabilised and ended the day in the green. Investors and traders can keep their long bets open until the Nifty closes below 19300 because the markets are following the levels.

The market has traded positive with the Sensex gaining 0.41 percent and closed at 65216.09 and Nifty was up by 0.43 percent intraday and closed at 19393.60 levels whereas Bank Nifty was up by 0.34 percent and settled at 44002.00.

Among sectors Nifty pharma, Nifty IT and Nifty metal ended in green while Nifty PSU BANK, Nifty media and Nifty Oil & Gas ended on the lower side. In Nifty stocks, Bajaj Finance, Adani Ports and Adani Enterprise were the top gainers while Reliance, M&M and Britannia were the prime laggards.

India VIX was negative by 1.48 percent intraday and settled at 11.96.

Volume profile indicates Index has a strong support around 19250-19300 zone. Coming to the OI Data, on the call side, the highest OI observed at 19500 followed by 19600 strike prices while on the put side, the highest OI is at 19300 strike price. On the other hand, Bank Nifty has support at 43450-43600 while resistance is placed at 44600-44800 levels which are also close to 50 and 20 Day EMA levels respectively.

Ajit Mishra, SVP - Technical Research, Religare Broking:

Markets started the week with an uptick and gained nearly half a percent. After the initial choppiness, Nifty maintained a positive tone for most of the session however profit taking in the end trimmed some gains. Eventually, it settled at 19383.60 levels; up by 0.43%. Meanwhile, the tone was mixed on the sectoral front wherein the metal and IT posted decent gains while auto and banking traded dull. The broader indices also participated in the move as both midcap and smallcap rose in the range of 0.6%-0.9%.

Participants shouldn’t read much into intermediate rebound or a pause until Nifty decisively reclaims 19650 levels or forms a reversal pattern. And, we recommend continuing with stock-specific trading approach and maintaining a focus on risk management.

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas:

The Nifty witnessed yet another range-bound day of trade. It snapped the two-day losing streak and closed in the positive up ~83 points. On the daily charts, we can observe that the Nifty has been hovering around the 40-day moving average (19360) for the past five trading sessions. Considering that the Nifty has been falling for the last four weeks a pullback is likely.

On the hourly charts, we can observe positive divergence indicating that momentum is weakening on the downside. However, we shall await further confirmations on the price front to change our short-term outlook. Until the Nifty trades below 19480 – 19500, we can expect the weakness to continue, and we shall continue to maintain our negative outlook on the index. On the downside, we expect the Nifty to target levels of 19100. Crucial support is placed at 19280 – 19240 while immediate hurdle is placed at 19480 – 19500.

Bank Nifty has also witnessed a pullback and snapped the seven-day losing streak. It has closed in the green and more importantly, holding on to the support of the 20-week moving average (44000) which indicates that a pullback is likely in the short term. The pullback can last till the 44400 – 44500 zone

Vinod Nair, Head of Research at Geojit Financial Services:

A rebound in the global market after a significant correction prompted buying in domestic equities, particularly within the IT sector. However, the potential for volatility to linger in the near term remains due to the increasing dollar index and elevated US bond yields, fuelled by concerns about rate hikes. Investors are keenly observing the commentary from the Fed chair during its forthcoming summer conference for interest rate insights. Meanwhile, Asian markets displayed a mixed performance, reacting to the smaller-than-anticipated rate cut initiated by the Chinese central bank.

Sensex Today | Aditya Gaggar Director of Progressive Shares

Indian equities started the week on a steady note at 19,350 and in the presence of a strong follow-through, Nifty50 kept compounding its gains throughout the day to end the session at 19,393.60 with gains of 83.45 points. Among the sectors, Metal and IT were the outperformers by ending the day with gains of over 1% while PSU Banks and Media were the laggards.

On the daily chart, Nifty50 has made a Morning Star DOJI candlestick which is a bullish trend reversal pattern. The area of 19,260-19,320 will continue to act as a crucial support zone while on the higher side, the Index needs to breach the immediate hurdle of 19,470 for continuing its uptrend.

Rupee Close:

Indian rupee ended flat at 83.11 per dollar against Friday's close of 83.10.

Sensex Today | V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:

The resilience of the US economy and tightness of the labour market have come as a surprise. The main reason for this strength of the economy is the $5 trillion of fiscal stimulus provided by the US Govt during Covid lockdown. The fiscal stimulus didn’t result in spending since there were no avenues for spending during the lockdown.

It is possible that monetary tightening might slow down after a lag. Inflation is down to around 3% and slowdown can cause further decline in inflation, allowing the Fed to cut rates by 2nd quarter of 2024.

The present high yield on US bonds is a headwind for equity markets. But high yields are unlikely to last long.

Market Close:

Benchmark indices ended on a positive note on August 21 supported by buying across the sectors.

At close, the Sensex was up 267.43 points or 0.41 percent at 65,216.09, and the Nifty was up 83.40 points or 0.43 percent at 19,393.60. About 2060 shares advanced, 1558 shares declined, and 167 shares unchanged.

Top gainers on the Nifty were Bajaj Finance, Adani Ports, Power Grid Corp, Adani Enterprises and Hindalco Industries, while losers included Reliance Industries, M&M, Britannia Industries, SBI Life Insurance and BPCL.

All the sectoral indices are trading in the green with Information Technology, realty, metal, power and capital goods up 1-2 percent.

The BSE midcap and smallcap indices added nearly a percent each.

Stock Market LIVE Updates | Goldman Sachs View On NTPC 

-Buy rating, target at Rs 275 per share
-India reported peak power demand recording highest-ever annual growth of 18 GW
-Potentially 2.5 high-demand months still to go in FY24,
-Reported peak demand has already bettered versus estimate of 229 GW
-During month, country witnessed a peak shortage of 9 GW, worst since FY14
-This is a reinforcement of thesis that India already entered a phase of peak power shortages
-Foresee a revival in thermal capex as legacy coal business re rates

Sensex Today | Pyramid Technoplast IPO records 4.27 times booking on Day 2 of bidding

Gujarat-based Pyramid Technoplast continued to receive strong response from investors as the maiden public issue was subscribed 4.27 times with bids for 3.22 crore equity shares against an offer size of 75.6 lakhs, on August 21, the second day of bidding.

Retail investors and high net-worth individuals remained ahead in terms of bidding, as they have bought 5.02 times and 4.16 times the portions set aside for them which is 50 percent and 20 percent of total IPO size.

Qualified institutional buyers have bid 1.31 times the allotted quota which is 30 percent of the offer size. Read More

Stock Market LIVE Updates | CLSA View On Titan Company

-Outperform rating, target at Rs 3,270 per share
-Company would acquire 27.18 percent of CaratLane for a total consideration of Rs 4,620 crore
-Move highlights focus of co on building CaratLane as an integral component of jewellery business
-The acquisition is not likely to have a material impact on earnings
-Current deal values CaratLane at Rs 17,000 crore & implies a valuation of 7.8x FY23 revenue
-As of June 2023 CaratLane had 233 stores across 93 cities in India

Stock Market LIVE Updates | L&T secures order for Perdaman’s Urea Plant in Australia

The Saipem & Clough JV (SCJV), Australia has awarded a contract for fabrication and supply of process and piperack modules for a 2.3 MMTPA urea plant for Perdaman Chemicals and Fertilisers Pty Ltd to L&T Energy Hydrocarbon.

The plant will be constructed on the Burrup Peninsula, approximately 20 km north of Karratha, Western Australia. On completion, this state-of-the-art facility will be the largest urea plant in Australia and one of the largest in the world.

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

Indian Rupee depreciated on a surge in crude oil prices and selling pressure by foreign investors. However, the weak tone in US Dollar's positive and domestic markets cushioned the downside. The US dollar declined after the Chinese central bank cut the 1-year PLR by 10 bps to 3.45% to stimulate the economy leading to risk on sentiments.

We expect Rupee to trade with a negative bias on rising global crude oil prices and overall strength in the US Dollar amid the hawkish US Federal Reserve. However, positive domestic markets and any intervention by the Reserve Bank of India may support Rupee at lower levels. USDINR spot price is expected to trade in a range of Rs 82.80 to Rs 83.50.

Stock Market LIVE Updates | 

Power Mech Projects to consider fund raising on August 25

A meeting of the board of directors of Power Mech Projects Limited is scheduled to be held on August 25, 2023 to consider and evaluate any or all proposals for raising of funds.

Sensex Today | Prashanth Tapse Research Analyst Sr VP Research Mehta Equities

Listing of Jio Financial Services (JFS) was below street expectation. Market was knowing this selling pressure would come from ETF funds after Friday news of FTSE funds. We believe the JFS would face short-term selling pressure as the street assumes the fair value of share price Rs 150-180 apiece on stake valuations and post listing the stock is trading at much higher price than its assumed fair value. Based on business interest the long-term outlook for JFS is bullish due to its focused interest in consumer and merchant lending, asset management, insurance, payments and digital broking. It has already announced a 50:50 joint venture entity with BlackRock to enter the mutual fund industry. As on date short term euphoria on valuations would stay as concern before it gets settled near the street fair value. We remain neutral on JSL for the short term.

Stock Market LIVE Updates | PFC gets Rs 105 crore loan from JBIC Financing

State-owned Power Finance Corporation has secured a loan of Rs 105 cr from JBIC financing. The funds will be used to finance a 11.5 MW waste-to-energy project of KPC Gas Power Corporation in Karnataka.

Sensex Today | Shree Pushkar Chemicals Board to consider fund raising via issue of convertible warrants on preferential basis on August 31

Sensex Today | Knowledge Marine & Engineering Works unit gets letter of intent worth Rs342.06 crore from four sand buyers in Bahrain

Sensex Today | Responsive Industries enters into waterproofing membrane division with Vaitarna Tunnel project win

Sensex Today| Mutual Funds enter the Account Aggregator arena with CAMSfinserv

CAMSfinserv, one of the first RBI licensed Account Aggregators(AA) in India, today announced onboarding of all seventeen AMCs (Asset Management Companies) serviced by CAMS as Financial Information Providers (FIPs) on the AA platform, making it the first in the industry to provide access to mutual fund data. This integration of Mutual Funds with the CAMSfinserv platform will play a significant role in the development of the AA framework in India. Customers will be able to access and share both their mutual fund holdings and bank account transactions from a single and secure platform, track their investments, identify areas where they can save and make better financial decisions in a more convenient and hassle-free way.

Sensex HDFC Mutual Fund launches HDFC NIFTY 1D Rate Liquid ETF

HDFC Asset Management Co. Ltd (HDFC AMC), investment manager to HDFC Mutual Fund (HDFC MF), one of India’s leading mutual fund houses has announced the launch ofHDFC NIFTY 1D Rate Liquid ETF (“the Scheme”). The investment objective of the scheme is to invest in Tri-Party Repos in Government Securities or Treasury Bills (TREPS). The Scheme aims to provide investment returns that, before expenses, correspond to the returns of the NIFTY 1D Rate Index.The captioned NFO opens on August 18, 2023, and closes on August 23, 2023.

Sensex Today| L&T secures "Significant" order for Perdaman’s Urea Plant in Australia

The Saipem & Clough JV (SCJV), Australia has awarded a contract for fabrication and supply of process and piperack modules for a 2.3 MMTPA urea plant for Perdaman Chemicals and Fertilisers Pty Ltd to L&T Energy Hydrocarbon. The plant will be constructed on the Burrup Peninsula, approximately 20 km north of Karratha, Western Australia. On completion, this state-of-the-art facility will be the largest urea plant in Australia and one of the largest in the world.

Sensex Today| Rajnish Wellness opens a new store in Malad

The company has initiated Exclusive Dava Discount Franchisee and also discount of Flat 25% on all branded medicine all over India with home delivery.

Sensex Today| ABB India bags breakthrough order for automating Reliance Life Sciences' biopharmaceutical facilities

Sensex Today | Market at 12 PM

The Sensex was up 243.40 points or 0.37 percent at 65,192.06, and the Nifty was up 68.10 points or 0.35 percent at 19,378.30. About 1873 shares advanced, 1290 shares declined, and 134 shares unchanged.

Stock Market LIVE Updates | JPMorgan View On Titan Company

-Overweight rating, target at Rs 3,260 per share
-Increasing stake in CaratLane to 98 percent, value accretive in medium term
-Transaction will be EPS dilutive in short term
-Believe this is accretive to medium-term value of Titan
-CaratLane is a high-growth biz with opportunity to ensure healthy revenue & margin

Stock Market LIVE Updates | Yes Bank receives Rs 230 crore from a single trust in the security receipts portfolio

Yes Bank has received a redemption amounting to Rs 230 crore from a single trust in the security receipts portfolio. The bank had sold NPA portfolio to JC Flowers ARC on December 17, 2022.

Stock Market LIVE Updates | PNB Housing Finance resolves & fully recovers large corporate non-performing account of Rs 784 crore

PNB Housing Finance has resolved and fully recovered its large corporate non-performing account of Rs 784 crore, which is 1.3% of loan asset as of June 2023. The account has been resolved on August 19, 2023 through an ARC sale under Swiss Challenge method. As on June 2023, the gross NPA of the company stood at Rs 2,270 crore (3.76% of loan asset) and loan asset was Rs 60,395 crore.

Stock Market LIVE Updates | Ashok Leyland issues corporate guarantee of 82.1 million pound to cover lender facilities of 2 subsidiaries

Ashok Leyland has issued corporate guarantee of 82.1 million pound to cover the lenders/banking facilities. The corporate guarantee is for subsidiaries - Optare Plc UK, and Switch Mobility, UK. The impact would be limited to the amount given by the company as guarantee.

Sensex Today | Prathamesh Mallya, DVP Research, Non-Agro Commodities & Currency, Angel One:

Extending a cut from the previous week, gold prices breached the $1900 per ounce mark, hitting its lowest point since June end and concluding below the same.

This drop was triggered by rising 10-year U.S. Treasury yields, reaching a 10-month high and making them more appealing than non-interest bearing gold.

Gold priced in pounds hit a July low due to a strengthening sterling prompted by robust British basic wage growth.

The Federal Reserve's mixed signals on interest rates, coupled with a strong dollar, further dented investor sentiment.

Consequently, gold prices hit a five-month low, down over 8% since May, due to diminished appeal and heightened opportunity cost in light of rising U.S. interest rates.

With the dollar and treasury yields on the rise, capping the upside, gold prices are expected to face pressure.

Stock Market LIVE Updates | HSBC View On Titan Company

-Buy rating, target at Rs 3,580 per share
-Company acquires founders’ remaining 27.2 percent stake in CaratLane for Rs 4,620 crore
-CaratLane is an omni-channel jewellery retailer, has turned profitable in FY21
-CaratLane’s valuation increased to 30x under Titan’s ownership

Stock Market LIVE Updates | Murugappa Group stocks jump up to 6% as warring family branches settle feud

Shares of Murugappa Group companies traded with gains on August 21 after the Murugappa family agreed to settle the disputes between the family branch of the late MV Murugappan (including Valli Arunachalam and Vellachi Murugappan), on one side, and the rest of the family members, on the other side, which arose post the demise of late MV Murugappan.

Shares of key stocks of the Group such as Carborundum Universal, Cholamandalam Investment and Finance, EID Parry (India), Tube Investments of India and Shanthi Gears are up up to 6 percent on BSE.

The settlement of the feud removed the overhang on these stocks. Now the management and shareholders can focus on the growth of the Group.

The dispute was over a post of directorship in Ambadi Investments Ltd (AIL), which is the holding company of the Rs 36,893-crore Murugappa Group. Arunachalam, who has been engaged in a long-standing battle for recognition as her father's heir, had reportedly proposed her name for the directorship in a notice back in 2020. The Murugappa family's patriarchal practice of allegedly keeping women out of the group's businesses has hit the headlines yet again. Read More