Markets confirmed a major blowout on Thursday after the Nifty ended above the key hurdle of 16600 on a closing basis. This breakout may fuel a 2500-3000 pts rally in the near term, as the spread of the Nifty 50 & Nifty 500 Index is likely to activate a flag breakout.
A similar upsurge in the spread of the Nifty 50 & Nifty 500 Index was witnessed at end of July 2021, which led to a 3000 pts upswing – this may be repeated in the near future. We expect the Banking sector to lead the move.
The immediate target for Nifty is seen at 17500.
Nifty 50 Index & Spread of Nifty 50-Nifty 500 Index(3 Day closing)
Stocks to watch
Positive Read Through
- UltraTech Cement board had approved an investment of Rs12,886 crore to add 22.6 MTPA capacity to its total production
- Yes, Bank will repurchase $200 million in medium-term notes and will pay 100% of the principal amount of the notes during an early tender offer period.
- JSW Steel has moved the Supreme Court seeking interim relief in a Rs 2,600-crore tax dispute with the Odisha state revenue department.
- Hindalco has completed the disinvestment process of Hindalco Do Brazil Industria Comercia de Alumina LTDA.
- McDowell Holdings approved the appointment of CA Krishna Mohan Maddula
- MTAR Technology has acquired a 100% stake in Gee Pee Aerospace And Defence Private Limited making Ltd worth Rs8.8cr
- Cipla announced the commercial operation of additional capacity of a captive renewable energy power plant in Maharashtra and Karnataka
- Bajaj Finance – Co’s MSCI ESG Rating Raised to A from BBB.
- Axis Bank – ICRA migrates rating of Axis Bank’s fixed deposit program, the bank has migrated its rating from MAAA (stable) to ‘ICRA AAA/Stable’
Negative Read Through
- Bajaj Auto- Dealers are grappling with a severe shortage of inventory as the chip crunch and vendor issues are hurting the Co
- Cement stocks- Ultratech’s expansion plan may lead to oversupply
- Bharat Forge- North American Class 8 Truck sales at 6-month low
- Restaurants- Consumer Affairs Minister calls Service Charge levied by restaurants illegal
- Deepak Nitrite- incidence of fire at a manufacturing site at Nandesari in Vadodara
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