Markets extended gains on Thursday with Bank Nifty gaining by 1.5% outperforming the key indices but Nifty failed to see closing above 17700 even after FII buying. After yesterday’s up move, the put writing in the system has intensified further which led to a sharp drop in India’s VIX below 18.5%.
With FII buying in spot and derivatives market, Nifty is now prone to a major short squeeze in days to come as call writers would be forced to cover positions as weekly could be above 17500. We expect a major upswing in Nifty above 17700 with Bank Nifty eyeing a target of 42000
Nifty Bank Chart
Stocks to watch
Positive Read through
- Auro Pharma- Revenue up 9%, US revenue higher than estimated at $386m
- AB Capital- ADIA to infuse Rs. 665Cr into Aditya Birla Health Insurance
- Aster DM- Revenues up 12% margins at 11% vs 12% profit raises 54% YoY
- Quess Corp- Revenue raises 33%, margins slip 106 bps, profits up 52% YoY
- Phoenix Mills- Retail consumption up 10%, profits Rs.752 Cr vs Rs. 35 Cr loss YoY
- KSB- Profits up 74%, EBITDA margins at 13.3% vs 12.7% YoY
- Garden Reach Shipyard- Revenue up 91%, margins at 6% vs 1%
- IRCTC- Co looks to amend articles of association and apply for a Payments license with RBI
- Voltas- LIC raised its stake in the company to 6.86% from 4.83%.
Negative Read through
- Apollo Hospital- Margins slip 100 bps, Apollo 27/7 EBITDA loss at Rs.141 Cr
- Paint Companies- Crude raised overnight, Brent back at 100$/ bbl
- KNR- Revenue up 20%, EBITDA up 15% and margins at 18.5% vs 19.4%
- Shilpa Medicure- Profits slip 27% EBITDA loss at Rs. 5.7Cr Rs. 21.7 Cr.
- Nykaa- Reena Chhabra resigns as CEO of Beauty Private Label
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