Markets rebounded sharply on Monday on the back of gains from the technology index with Nifty ending higher by 1.4% but failed to close above the monthly resistance line of 18130. The rally was led mainly on the back of short covering by FIIs in the derivatives segment as there was an expectation that Fed would tone down its hawkish stance on rate hikes in a meeting to be held in Stockholm late evening yesterday.
The concerning part of yesterday’s up move was lower volumes, where non-institutional turnover stood at a mere Rs 18000 cr hitting 2 yr low. The critical trigger to watch would be movement in USDJPY in the coming days as Dow Jones ETF trading in Tokyo is a mere 1% higher from major breakdown levels which may trigger an immediate downside of 22%.
The MSCI India net USD also trades firmly below the crucial breakdown zone which would turn any rebound unsustainable so far. Sensex 60000 should be seen as the last support after which it should activate a free-fall movement.
Dow Jones in JPY and MSCI India Net USD
Stocks to watch
Positive Read through
- L&T won multiple orders in the range ₹1,000-2,500 cr, the company won 11 significant orders in Q3.
- Airtel Africa acquires 4G, 5G spectrum for $316.7 million.
- Centre to fully exit IDBI Bank once it gets ‘upside value’ – Dipam secy.
- Bandhan Bank collection efficiency rises to 98% at end of Dec 2022.
- PVR aims to operate 1,000 screens by FY24-end, invest Rs 300 cr.
- Adani Total Gas hikes CNG price by Re 1 in Gujarat; to cost Rs 80.34 per kg.
- Paytm reports Rs 3.46 trn in Gross Merchandise Value (GMV) for Q3 FY23, 38% growth.
- JSW Steel’s combined output in Q3 grows 17% to 6.24 MT.
- Jaguar Land Rover reports a 5.9% YoY jump in retail sales in Q3, with wholesale up 15%.
- ONGC Videsh retakes a 20% stake in the Sakhalin-1 oil and gas fields of Russia.
- Karnataka Bank’s gross advances grow 12.37% to Rs 63,658.59 cr in Q3.
- Sona Comstar- acquires 54 pct stake in Serbian Co, Novelic for Euro 40.5 mn.
Negative Read through
- TCS results in-line. Mgmt commentary weak, headcount reduced by 2,197 employees, declines for the first time in 10 quarters.
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