Markets failed to carry momentum beyond 18300 on Wednesday despite higher opening and were followed by closing in the negative terrain with breadth turning unfavorable. After the recent upmove, the Nifty 50 Index remains under major risk with a potential downside of 14700, if it is unable to clear the critical hurdle of 18513.
The daily RSI has been showing negative divergence and a larger triangle may see bearish action if prices trade below 18025 levels. On the global front, the divergence between US markets and Indian markets has expanded further with Nasdaq Composite sustaining below the long-term moving average of 1000 DMA and opening other gates of downside by another 35%. The recent carnage in the cryptocurrency market also points out toward tight liquidity situation in global markets and thus we need to turn cautious on Nifty 50 closing below the 18025 mark.
Nifty 50 Index & Nasdaq Composite
Stocks to watch
Positive Read Through
- Adani Ports- acquires 49.38 pct, stake in Indian oil tanking for Rs 1050 cr
- Lupin- US sales at USD 159 mn vs est of USD 155 mn, margin 10.9 pct vs 10.7 pct expected
- Tata Power gets the order to set up a 150 MW solar project in Maharashtra
- Aurobindo gets USFDA nod for Isosorbide Mononitrate
- Narayan Health- Revenue up 21 pct, margin at 21 pct vs 18 pct YoY
- Petronet LNG- Revenue up 12 pct, margin at 7.3 pct vs 7.5 pct QoQ
- NDTV- Revenue up 16 pct, EBIDTA up 32.8 pct, and margin 18.4 pct vs 16.1 pct YoY
- Krsnaa Diagnostics- Revenue up 13.6 pct YoY, margin flat at 25 pct QoQ
Negative Read through
- Axis Bank- Govt SUUTI to sell its entire holding of 1.55 pct, the floor price of Rs 830 a sh
- Deepak Nitrite- Revenue up 17 pct, margin at 13.8 pct vs 23 pct.
- Tata Motors- earnings below estimates, JLR reports negative Free Cash Flow
- Pidilite- reports weak earnings, Cons Biz volume up 1.2 pct vs expected of mid-single digit
- Piramal Enterprise- Loss at Rs 1537 cr, Rs 5888 cr of the book moved to Stage 2 from 1
- Balrampur Chini- Revenue down 8.3 pct, EBIDTA loss at Rs 16 cr vs EBIDTA of Rs 135 cr
- Nykaa- Reports say individual employees to sell Rs 250 cr shares via block deal
- GSK Consumer- Consignment selling agreement between Co and HUL terminated
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