Markets exhibited extreme bearish behaviour on Tuesday as indices attempted gains of more than 300 points in Nifty futures but most of the gains were wiped out in the last hour of traded to end in marginal losses. The rebound expectation was mainly attributed due to oversold reading in RSI which had touched levels below 30. The current market trend suggests that there has been already a range breakdown from earlier range of 3000 points witnessed in April-June 2022. This would mean that Nifty is susceptible to another 3000 points correction in a short span of time. Adding to it, triggers like new allegation on Adani matters would result in ETF based selling as lot of Adani Stocks are part of Nifty 100 ETF. Overall view suggests that Nifty is poised to test 20,900 in the near terms.
Nifty 50 Chart
Stocks to watch
Positive Read through
- Aegis Logistics – Arm Aegis Vopak terminals files DRHP to raise Rs. 35 bn via IPO.
- Tata Power – Partners with Druk Green to develop 5,000 MW of clean energy capacity in Bhutan.
- BEML – Bags order of Rs. 2.46 bn for 48 BH60M rear dump trucks from Central Coalfields.
- GNFC – Signs MoU with INEOS to build a new world scale acetic acid unit in India.
- PSP Projects – Adani Infra to acquire up to 30.07 pct equity for Rs 6.85 bn.
- JSW Steel – Preferred bidder for Codli iron ore block in Goa.
- Telcos – Supreme Court says Telcos companies can avail tax credits for duties paid on infra.
- Godrej Props – Buys 53 acres in Joka with Rs. 5 bn revenue potential.
- NLC – To invest Rs. 37.20 bn in renewables arm & transfer assets worth Rs. 62.63 bn.
- Godawari Power – To acquire 51 pct stake in Jammu Pigments for Rs. 2.55 bn.
- UPL – Alpha wave to invest USD 350 mn to acquire 12.5 pct stake in arm Advanta Ent.
Negative Read through
- Adani Group – US prosecutors indict Gautam Adani on bribery charges.
- Dr Reddy’s – US FDA issues form 483 with 7 operations for API manufacturing unit in Bollaram, Hyderabad.
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