Markets posted gains of around +1% for the week on the back of a surge in global markets mainly due to China re-opening news with the Nifty 50 inching a step closer to negating the critical hurdle of 18513. On a weekly basis, Nifty 50 has formed ‘Hanging Man’ pattern which often is seen as a major trend reversal, and the only way strength can emerge is when prices trade above the ‘Hanging Man’ highs.
Last week’s gains were mainly due to a sharp decline in India’s VIX to 14.4% which may have added a significant put writing cushion of around 18000 strike puts mainly necessary for the Nifty 50 journey towards 19867. For Nifty 50, the safest path towards 19867 would only emerge if Nifty 50 crosses above 18513 else there is always the risk of a sudden jerk towards 14700.
The Dow Jones Index has also formed a ‘rising wedge’ after the recent upmove which may also act as a major reversal and confirm an end to the bear market rally.
Nifty 50 Index & Dow Jones Index
Stocks To Watch
Positive Read Through
- M&M- Positive mgmt. commentary, UV mkt share 17 pct, Tractor mkt share 41.5 pct.
- Glenmark- Earnings better than expectations, Revenue up 7 pct, margin at 18.4 pct
- ABB India- In-line results, order inflows up 38 pct YoY
- LIC- the value of new business up 63.3 pct, APE up 45 pct QoQ
- Info Edge- Revenue up over 50 pct for the 4th consecutive qtr, margin up 240 bps QoQ
- JK Cement- Revenue up 18 pct, expansion at attractive CAPEX/ton
- Pfizer- Revenue flat at Rs 637.5 cr, margin improve QoQ on better gross margin and VRS
Negative Read Through
- Manappuram- Gold tonnage declines 6.4 pct, AUM down 0.3 pct QoQ
- Aurobindo- Weak Q2, US revenue at USD 331 mn vs estimated of USD 382-388 mn
- Zee Ent- EBIDTA and margin higher than estimates, margin may remain subdued in H2
- BHEL- Weak Q2, earnings miss on all fronts, EBIDTA loss at Rs 243 cr
- Alkem Labs- Lowers FY23 margin guidance to 15 pct.
- Patanjali Foods- EBIDTA down 41 pct, margin slips 320 bps YoY
- Natco- named defendants in an antitrust lawsuit in the U.S
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