Markets succumbed to selling pressure on Tuesday with Nifty violating key support of 23,890 on closing basis thus opened the gates for a major downside of beyond 15% in the near term. The selling in the last hour of trade clearly indicates lack of appetite for domestic funds to hold markets at higher levels and it may trigger ripple effects as retail investors are forced to cut down their positions due to losses in the midcap segment. The Bank Nifty which so far remained resilient may see wider cracks below 51,000 and could see testing of 44,000 in the near term. Overall view suggests cautiousness this could be an ideal time for adding short positions aggressively.
Results Today – Eicher Motors, Thermax
Nifty 50 Chart
Stocks to watch
Positive Read through
- Nykaa – EBITDA increases 29 pct, overall GMV up 24 pct YoY.
- PTC India – Volume rises 40 pct, profit increases 13 pct YoY.
- BSE – Q2 EBITDA rises 37 pct QoQ due to lower-than-expected operating expenses.
- Bosch – Operating performance aligns with expectations, EBITDA grows 14 pct YoY.
- Suven Pharma – Reaffirms growth outlook, aims to double business in 5 years.
- Repco Home – NIM reaches 37-quarter high, loan growth at 8 pct YoY.
- Tata Chemicals – Subsidiary TCEL to invest Rs. 6.55 bn in new UK facility.
- Samvardhana – Positive outlook despite earnings miss; margin expected to improve in H2.
- Medplus Health – Profit and margins exceed estimates, margin up by 26 bps YoY.
- Hyundai – High SUV demand and marriage season expected to drive growth.
- EMS – Revenue up 11 pct, margin improves by 230 bps YoY.
- Ion Exchange – Revenue increases 21 pct, EBITDA 13 pct higher YoY.
Negative Read through
- Cello World – Flat growth in Q2, multiple headwinds affecting export demand.
- PNC Infra – Revenue declines 25 pct, road business EBIT margin at 9 pct vs 11 pct YoY.
- Sula – Weak Q2, margin declines 710 bps, volumes down 8 pct YoY.
- PNB Housing – Carlyle likely to sell 9.4 pct stake, offer price at 4.25 pct discount to CMP.
- Epack Durable – Weak Q2, gross margin decreases over 200 bps YoY.
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