Markets ended with gains of 1% after opening higher which helped Nifty futures to penetrate above the September series VWAP of 17,666 with Bank Nifty outperforming by a wide margin. A close above 17,775 in Nifty has re-activated bullish momentum after indices re-enter the weekly breakout zone with a potential upside of 19,867.
The main trigger for an upside in Nifty in the coming days is due to a continuous surge in the ratio of Nifty 50 to MCX Crude which would ensure follow-up buying in case of dips and post-Fed events, we can expect a sharp drop in Indian VIX. The overall view remains positive with an expectation of a new lifetime high in the coming days.
Key Events: US Fed interest rate decision today at 11.30 pm IST, Butterfly Gandhimati OFS for retail.
Ratio of Nifty 50 to MCX Crude & Spread of Nifty 50- Nifty 500 Index
Stocks to watch
Positive Read through
- Tata Steel announced a hike of Rs 500/t in its list prices of HRCs and CRCs for end-Sep’22 sales effective from 22 Sep.
- Adani aims to double ACC, and Ambuja Cements’ capacity by 2030.
- Hero MotoCorp, and Hindustan Petroleum partner to set up charging infrastructure for electric vehicles.
- Yes Bank approves sale of Rs 48,000 cr stressed loans to JC Flowers ARC.
- Lupin launches generic Suprep Bowel Prep Kit in the United States.
- INOX Leisure – CRISIL Ratings has upgraded INOX Leisure bank facilities to ‘CRISIL AA-/CRISIL A1+’ from ‘CRISIL A+/CRISIL A1.
- RBI announced that the Central Bank of India has been taken out of the PCA framework.
- Hero Honda – Global investment firm KKR will invest $450 million (about Rs 3,580 crore) in Hero Future Energies.
- M&M proposes to acquire 17.41 pct of the equity share capital of Swaraj Engines from Kirloskar Industries.
- Zydus Life launched Lenalidomide capsules in the U.S.
- Nestle India in talks to buy a significant stake in nutritional snacks startup Yoga Bar.
Negative Read through
- Adani pledges a stake worth $13 billion in newly acquired ACC, Ambuja Cements.
- SpiceJet sends 80 pilots on 3-month leave without pay.
- NDTV announced that its promoters will move the Supreme Court against an order passed by the SAT.
- Kalyan Jewellers – Moody’s, which had a B2 rating and a stable outlook on the Indian firm, said its grade was pulled for business reasons.
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