Markets succumbed to selling pressure last week with Nifty declining more than 1% on back of major unrest in Middle East which forced Nifty closer to breaching multi week support zone of 19,455 in Nifty Spot. In Sensex terms, markets have tested 7-week closing low and we expect selling to accelerate on breach of crucial of support of 19,455 for a potential target of 17,000. Ideal trading strategy should be opening short positions in Nifty futures when Nifty spot breaches below 19,455 with closing stop loss of 19,820. The CBOE VIX in US markets has already confirmed major up move after breakout above 20 mark, this may also act as a trigger for selling in global market with a potential target of CBOE VIX placed at 30 in very short term.
Nifty 50 Chart
Stocks to watch
Positive Read through
- ICICI Bank – Quarterly RoA came at an all-time high of 2.41 pct, Q2 above estimates
- Zydus Life – Gets US FDA nod for type 2 Diabetes drug ZITUVIO
- RBL Bank – NIM Improves to 4.9 pct, GNPA came at 16-quarters low
- IPCA Labs – US FDA classifies Ratlam Unit as voluntary action indicated, issues EIR
- L&T Fin – Q2 above estimates, NIM came at an all-time high of 8.62 pct
- JSW Energy – Margin came at 57.8 pct Vs 37.5 pct, sales rises by 36.5 pct YoY
- AB Fashion – To acquire 51 pct stake in Styleverse Lifestyle for Rs 1,550 mn
- Balkrishna Ind – EBITDA increased by 25 pct, Margin came at 23.6 pct vs 16 pct YoY
- Paytm – Posted EBITDA profit Vs loss, GMV rises by 40.6 pct, Avg monthly users Rises by 19.2 pct YoY
- Sterling & Wilson – Losses narrow, EBITDA cams at profit Vs loss YoY
- Tejas – Sales rises by 80 pct YoY, highest ever order book till date at Rs 92,710 mn
- KFIN Tech – Margin came at 44.8 pct Vs 38.7 pct, EBITDA rises by 34 pct QoQ
- Poonawalla – Profit came at Rs. 12,589 mn vs Rs. 1,631 cr, NII rises by 18.7 pct at Rs. 5,292 mn vs Rs. 4459 mn YoY
- Mazagon Dock – Delivered 3rd Stealth Destroyer of Project 15B Class Guided Missile Destroyer to the Indian Navy
Negative Read Through
- Kotak Mah Bank – NIM came at 5.22 pct Vs 5.57 pct QoQ, appoints new MD & CEO
- Yes Bank – posted Q2 below estimates, NIM declines to 2.3 pct Vs 2.5 pct QoQ
- Oberoi Realty – Q2 booking value declined by 20 pct, units booked at 151 Vs 132 YoY
- Sunteck Realty – Posted EBITDA loss Vs profit, Sales down by 69 pct YoY
- Finolex Industries – Sales declined by 6 pct YoY, Net loss Vs profit (YoY)
- Amber Ent – Posted loss Vs estimated profit, EBITDA declined by 62 pct YoY
- Goa Carbon – Sales declined by 47.4 pct, Profit slips by 18.1 pct YoY
- Sasken Tech – EBITDA declined by 52 pct, margin stood at 14.2 pct Vs 25.1 pct YoY
- Sanghi Ind – Sales declined by 21 pct, EBITDA loss expands YoY
- Yatharth Hos – I-T Dept carries out search Operations at various locations from Oct 19-22
- PNB Gilts – Net loss came at Rs 411 mn vs profit Rs. 70 mn, Sales at Rs 3,450 mn vs Rs 3370 mn YoY
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