Markets resumed selling pressure on weekly expiry day with a fresh round of selling seen post 12 pm forcing Nifty to tank more than 200 points at one point time and thereafter recover to settle closer to 19400. The crack in markets is getting wider day by day due to a breakout in
USDINR which has pushed financial stocks into a free fall.
The next leg of selling is expected after spread of Nifty 50- Nifty 500 breaks the support line of the head & shoulder top pattern. The implication of spread breakdown would force portfolio managers to aggressive opening up short positions in Nifty futures which may eventually force Nifty to break 18,000 in the coming days. The FII selling of Rs 8100 crores (Index Fut + Stock Fut) is a mere indication of how hedgers resort to aggressive shorting to align portfolio beta during a downward trending market.
Nifty in JPY terms & Spread of Nifty50-Nifty 500
Stocks to Watch
Positive Read through
- Bharti Airtel’s sales Up by4 pct QoQ, India ARPU touches 200
- Eicher Motors reported strong Q1 earnings, the margin increased by 110 bps YoY
- SUN Pharma reported strong earnings, speciality sales down QoQ due to seasonality
- LUPIN Q1 beat estimates, benefits from Rs 2,050 mn milestone Income
- MGL reported earnings above estimates, Margin
Rises by 1,030 bps YoY - PAYTM July merchant volumes go up by 39 pct, disbursements rise by 148 pct YoY
- Radico Khaitan EBITDA rises by 29.2 pct & sales up 26.4 pct YoY
- Gulf Oil EBITDA was up by 6.1 pct & margin stood at 11.4 pct Vs 11 pct QoQ
- Gulf Oil EBITDA was up by 6.1 pct & margin stood at 11.4 pct Vs 11 pct QoQ
- Torrent Power PPA for the supply of 132 MW solar power with an Investment of Rs *7,000 mn
Negative Read through
- Cummins posted a margin below estimates, export growth muted at 3 pct
- Deepak Nitrite Q1 misses estimates, margin slips by 540 bps YoY
- LIC Housing NII & profit above estimates, disbursements down 32 pct QoQ
- CDSL BBG reports SEBI issues a warning letter following an onsite inspection
- Navneet EDU profit down 5 pct, margin falls by 180 bps YoY
- JM FIN profit down 12 pct, NII slips 25 pct by YoY
- TEXRAIL sales are up by 120 pct, and EBITDA came at Rs 210 mn Vs EBITDA Loss Of Rs 90 mn YoY.
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