Markets on Monday broke out from triple top formation after opening with breakaway gap and followed with significant higher closing in past few days. The short covering in Nifty Bank acted as a key catalyst for forcing Nifty journey beyond 20,500. The recent Breakaway gap appearing after extended up move has the ability to turn into exhaustion gap, if prices close below 67,411 in Sensex and hence should be kept as a stoploss of recent long positions. On the higher side, Sensex has ability to test rising channel which is placed at 70,100. The overall view suggest that the RSI has made record high of 81 which not only confirms overbought zone but also vulnerable to sharp reversals. The sector where breakout after long consolidation was seen is Nifty Service Sector which hold 53% weightage in Nifty 50 and should be a key decider for sustainable up move in the near term.
Sensex 30 Chart
Stocks to watch
Positive Read through
- Sun Pharma – Licensing agreement with Aclaris, includes USD 15 mn upfront payment.
- Power Grid – Successful bidder for inter- state trans system project under TCBC.
- Oberoi Realty – Completes payment to NRB Bearings for land parcel in Thane.
- Himadri Spec – To set up Rs. 48 bn manufacturing unit for Lithium-Ion battery components.
- Bank of India – QIP launched, indicative price for Rs. 45 bn QIp at Rs 100.20/sh.
- India Grid – Launches QIP to raise up to Rs. 5.5 bn at Rs 127/sh,
- Shriram Props – TPG Asia sold entire 9.86 pct, BNP Paribas & HRTI are buyers.
- ION Exchange – Wins arbitration award against Rs. 1.5 bn claim by Ethigen Inc.
- Power Grid – Company emerged a successful bidder for transmission project in Gujarat.
- Bharat Electronics: Company sets FY24 sales target at Rs 195 bn -Rs. 200 bn.
- SBI – Company to acquire 20 pct stake held by SBI Capital in SBI Pension Funds for Rs 2.29 bn.
- NLC India – Commences Biomass Co-firing Operation in Its JV NLC Tamilnadu Power Limited.
- Dalmia Bharat – Company approves appointment of Puneet Dalmia as CEO.
Negative Read through
- Apollo Hosp – According to sources, Health Min starts inquiry on report of illegal kidney sales.
- Greenpanel – Chittoor MDF plant ops disrupted due to cyclone Michaung.
- Sapphire – Promoter Arinjaya sold 4.24 pct via block, Singapore government bought 3.17 pct stake.
- Honasa Cons – Fireside Ventures sold 1.9 pct via block, Norges Bank buys 0.8 pct stake.
- Cummins India – Company says supply chain challenges may defer revenues in some segments.
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