Markets for the week witnessed sharp decline with Nifty breaching consensus support of 19300 thus opening gates for a wider decline towards 17,000 in the near term. The Friday’s gain which occurred from support of 200 simple moving average in Nifty mainly occurred on the back of rebound in Nifty service sector Index which accounts for 60% weightage in Nifty 50. The Nifty service sector Index tested the support leg of ending triangle and has formed a separating line pattern on daily candlestick. The next leg of decline for Nifty 50 could be quite devastating as Nifty Service Sector Index shows downside projection of 25%. The crucial event to watch would be Bank of Japan (BoJ) monetary policy meeting in which BoJ is under pressure to discontinue policy of zero interest regime and this may aggravate more selling in Indian markets if Japanese Yen starts appreciating.
Result Today – Adani Green, APL Apollo, DLF, Marico, UPL
Nifty 50
Stocks to watch
Positive Read through
- Reliance – Q2 results above estimates, retail sales increased by 10.3 pct YoY.
- Cipla – Raises margin guidance to 23-24 pct, with A higher-end bias from 23 pct.
- NTPC – Q2 in-line with estimates, margin came at 25.70 pct Vs 22.30 pct YoY.
- Union Bank – Profit rise 90 pct at Rs 35,114 mn vs Rs 18,480 mn, NII up 10 pct.
- UltraTech – Board approves an investment of Rs.130 bn towards increasing the capacity.
- HAL – Signes Mou with Safran Aircraft Engines to develop industrial cooperation in Ring forging manufacturing.
- Inox Wind – Losses narrow YoY & QoQ, EBITDA profit Vs loss YoY.
- Guj Gas – Hikes Industrial Gas price by Rs 2.3/scm to Rs 45.6/scm with effective from Nov 1, 2023.
- Route Mobile – Margin stood at 12.60 pct Vs 12.20 pct, EBITDA increased by 24.37 pct YoY.
- Oberoi Realty – Margin stood at 52.42 pct Vs 45.08 pct, sales up by 76.8 pct YoY.
- Piramal Pharma – Margin came at 13.9 pct Vs 10 pct, Profit Vs Loss (YoY)
- Greenlam Ind – EBITDA rise 40.8 pct, Margin stood at 12.50 pct Vs 10.35 pct YoY.
- AU SFB – NII increased by 15.3 pct YoY, approves merger with Fincare SFB.
- MGL – Q2 volumes came at 3.57 mmscmd, up 3 pct YoY, sales up by 2 pct QoQ.
Negative Read through
- Dr Reddys – India Business sales up by 3 pct YoY, US FDA issues 10 observations for Bachupally Unit.
- BPCL – Q2 result above Estimates, GRMS at USD 18.5/bbl Vs estimates of USD 16.5/bbl.
- SBI Card – Q2 NIM at an all-time low of 11.30 pct, credit cost remains elevated.
- M&M Fin – NIM declines to 6.5 pct Vs 7.5 pct (YoY), NII came below estimates.
- Blue Dart – EBTIDA declined by 8.60 pct, margin came at 16.80 pct Vs 18.40 pct YoY.
- Tamilnad Mercantile – Asset quality deteriorates, slippages increased by 205.90 pct QOQ.
- Astec Life – Posted loss Vs profit, sales down by 44.5 pct YoY.
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