Markets opened lower on Thursday, but late recovery helped Nifty to restrict losses to 0.5% especially during weekly expiry day where leverage in the system remain high. The crisis in the Middle East has been escalating further with Israel facing rocket attacks from neighboring countries like Syria, Iraq, and Lebanon and this is forcing Brent Crude to surge beyond USD 93 a bbl for a potential target of USD 150 a bbl. From Nifty perspective, we have seen major cushion on back of rising USDJPY but a move below 19393 is likely to activate major breakdown in Next Notes Nifty 2X Leverage Index which is actively traded in Tokyo exchange and almost represent Nifty 50 in JPY terms. The Index is showing signs of major breakdown with immediate downside seen 10% on breach of 19400. Hence ideal strategy would be opening fresh short positions in Nifty futures if weekly closing occurs below 19500.
Result Today – J&K Bank, JSW Steel, JSW Energy, Lauras Labs, Poonawalla Fincorp
Next Notes Nifty 2X Leverage Index
Stocks to watch
Positive Read through
- ITC – Healthy Q2 internals, cigarette Volume growth likely at 6-7 pct, FMCG sales up by 8.3 pct.
- HUL – Q2 above estimates, gross margin up by 6.90 pct YoY.
- Tata Motors – Signs definitive Agreement to acquire 27 pct in Freight Tiger for Rs 1,500 mn.
- Jindal Stainless – Q2 in-line with estimates, sales volume rises by 25.4 pct YoY.
- Cyient – EBIT increased by 4.8 pct, EBIT margin stood at 14.6 pct Vs 14.7 pct (QoQ).
- RVNL – Gets LoA for Project of Rs 1743 mn from Western Railway.
- Elecon – Company gets order for supply, from Arcelormittal Nippon Steel India of Rs 514 mn.
- Metro Brands – Sales rises by 16.7 pct, EBITDA increased by 5.6 pct YoY.
- Aarti Drugs – EBITDA increased by 2.8 pct, margin stood at 11.9 pct vs 10.8 pct YoY.
- Hatsun Agro – EBITDA rises by 23.8 pct, margin stood at 11.5 pct vs 10.1 pct YoY.
- Sagar Cements – EBITDA/tn came at Rs. 459 Vs Rs. 258 QoQ, sales increased by 3.6 pct YoY.
- Tejas Networks – Company gets Rs 1077 mn order from TCS.
- Bharti Airtel – Amdocs’ platform will enable Airtel to create a single bundled plan and bill for all its services.
Negative Read through
- Havells – Weak sales growth across All segments, Q2 below estimates.
- Grasim – Company gets Rs 1410 mn demand notice from Rajasthan Stamps Collector.
- Mphasis – CC sales Flat, deal wins at USD 255 mn Vs USD 707 mn QoQ.
- United Breweries – EBITDA declined by 16 pct YoY, margin came at below estimates at 9.8 pct.
- Voltas – EBITDA declined by 30.2 pct, margin stood at 3.1 pct Vs 5.7 pct YoY.
- Tata Communication – Margin came below estimates, EBITDA declined by 1 pct QoQ.
- Indoco – US FDA issues form 483 with 4 observations for Goa facility.
- Zomato – SVF Growth Singapore likely to sell 1.1 pct via block deals.
- HFCL – Profit declined by 15.2 pct at Rs 690mn Vs Rs 820 mn, sales down by 5.3 pct YoY.
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