Markets gave away gains yesterday and ended near day’s low at 16,800 levels while midcap and small-cap sectors outperformed the key benchmarks. The spread of the Nifty 50 – Nifty 500 Index has landed the support leg of ‘Bullish Flag’ and this would mean the next leg of up-move will be concentrated in high free float-based Nifty 50 stocks.
In fact, the spread of the Nifty 50-Nifty 500 Index was into a consolidation zone since Oct 2021 which was mainly responsible for range-bound trade in Nifty 50, but soon bullish impetus would take its course. For reversal confirmation, Sensex needs to close above 57634.
Reserve Bank of India expected to announce a 50 bps rate hike today at its policy meet. The policy comments and guidance would be crucial for the market sentiments along with interest rates. Rate-sensitive sectors like Real Estate, Banks, NBFCs, Infrastructure, Auto, etc are likely to remain volatile before the outcome of policy.
Spread Nifty 50- NIFTY 500 Index and Spread of India 10 Yr- US 10 yr yield
Stocks to watch
Positive Read through
- Bajaj Electricals: Company bags order worth Rs 332.6 cr from Power Grid.
- Rail Vikas Nigam has received a contract for the construction of 4 lane highway from Samarlakota to Achampeta Junction.
- Hero MotoCorp is finalizing a collaboration agreement with Zero Motorcycles, a USA-based manufacturer of premium electric motorcycles and powertrains.
- Lupin has received approval from the United States FDA for its abbreviated new drug application.
- Tata Comm- Launches Private 5G Global Centre of Excellence in India.
- SRF commissions facility to produce 300 million tonnes per annum (mtpa) of P38 at Dahej.
- Adani Power- CCI approves the acquisition by Adani Power of the share capital of Diliigen Power and DB Power.
- Deepak Nitrite- LIC’s shareholding in Deepak Nitrite has increased from 4.97% to 5.02%.
- Tejas Network: To merge Saankhya Labs and its subsidiaries with itself.
- JSW Steel: Hikes rebar prices by Rs 1,000/t for early-Oct’22: SteelMint.
- Zydus Life: US FDA issues 2 observations for Zydus Animal Health & Invsts Ahmedabad unit.
Negative Read through
- Zee Entertainment- Sony merger hearing inconclusive, CCI seeks written submissions.
- IEX- CERC extends price cap on power exchanges for 3 months till Dec 31.
- ICICI Pru- Reports say 15 insurance companies and multiple intermediaries, NBFCs, and banks are under the GGGI scanner.
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