Markets witnessed a sharp jump on Friday which helped Nifty to end 5 weeks of losing streak and post weekly gains of closer to 1%. Friday’s rebound was mainly on the back of retail euphoria which suddenly pumped an additional Rs 32,000 crore into the system compared to the previous day and this may be termed as unusual buying to protect weekly closing. Friday’s up move has the maximum potential to extend towards 19,520 which turns out to 38.2% retracement of the entire down move and is likely to be followed by a severe down leg towards 17,500. The key trigger which may cause a sharp decline in Indian markets is Brent crude crossing the USD 90 a bbl mark after a recent upsurge beyond 38-week highs. overall outlook for the market remains highly cautious as US bond yields especially 2-yr and 10-yr have already shown an inverted curve. Short positions can be added on moves below 65,174 in Sensex.
Nifty 50 Chart
Stocks To Watch
Positive Read Through
- Biocon acquired Eywa Pharma’s oral solid dosage manufacturing facility, located in New Jersey, US for $7.7 million.
- Oil upstream stocks- Govt cuts windfall tax on crude petroleum, SAED on diesel, ATF increased.
- IDBI Bank: Bids invited to appoint an asset valuer for strategic divestment of IDBI Bank.
- IDFC First Bank – GQG buys shares worth Rs. 15,273 mn, now holds 2.6 pct Stake.
- Lemon Tree Hotels- Signs a license agreement for an 80-room property in Dehradun, Uttarakhand.
- Hindalco entered into an Agreement with Seven Renewable Power Private Limited for the acquisition of a 26% stake in SRPPL.
- Hero Motocorp- Total sales at 4.89 lk vs 4.63 lk, up 5.6 pct YoY.
- Maruti- August total production up 3.5 pct at 1.65 lakh units vs 1.59 lakh units.
- Ashok Ley- Total sales at 15,576 units vs. estimate of 15,661 units YoY.
- ONGC- Co approves capital restructuring of ONGC Petro additions.
- VST Tillers- August sales are up 12% at 4,037 units vs. 3,602 units YoY.
- Coal India- August production is up 13.2 pct at 52.3 MT vs. 46.2 MT YoY while offtake is up 15.3 pct at 59 MT vs 51.2 MT.
- Tata Steel – In talks with the UK government to raise funds for the UK plant.
- Hal – 1:2 ratio of stock split approved by the board.
Negative Read Through
- Kotak Bank- Uday Kotak Resigns As MD and CEO, Dipak Gupta takes interim charge. bank seeks nod for new CEO.
- JSW Steel – 4 iron ore mining leases in Odisha are surrendered by the company.
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