Markets for the month of Aug began on a positive note with key indices closing higher by 1% with FIIs infusing more than Rs 5000 crore in cash + future segment to force Nifty to close above 17250. A move above 17250 is seen as a booster dose for bulls as call writers are expected to do a major short covering despite any lower opening.
A breakout in the Nifty 50 equal-weighted index on a weekly closing basis has major significance as most buying algos are expected to take Nifty towards Oct’2021 highs of 18612. An Ideal strategy would be adding long positions on any lower opening today and leveraged long positions can be held as long the Nifty spot closing is above 17250.
Nifty- 50 Eq Wt Index & Spread of Nifty50-Nifty 500 Index.
Stocks to watch
Positive Read through
- ITC- Healthy Q1, cigarette business volume growth at 26% to 27%
- Bharti Airtel- Bid volume for 5G auction at Rs. 43,084 Cr
- RIL- Jio bids at Rs. 88,078 Cr, buds 2 times of Bharti
- TVS Motors- Total sales up 13% YoY at 3.14 lakh units
- Eicher Motors- Strong growth in CV sales on a low base, RE sales up 26% YoY
- Indigo- To reinstate salaries of pilots by another 6% from Sep 2022
- Castrol- Profits up 47%, EBITDA rises 45% and margins 23% vs 22%
- Zomato – Food delivery business reports EBITDA break-even loss narrows
- Vodafone Idea Bought airwaves worth Rs 188 bn
Negative Read through
- NMDC July Production 2.05M Tons Vs. 3.06M Y/y; Sales -10% Y/y to 2.95m ton
- Hero Motocorp July Total sales down at 2% YoY at 4.45 lakhs
- Max Financials- Max life VNB at Rs. 213 Cr, VNB margins at 21.1% vs estimates of 23.2%
- Thyrocare- Profits down 61%, EBITDA falls 69%, margins at 28.1% vs 43.2%
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