On Friday, Nifty 50 index heavyweight Reliance Industries hit a new high of 22,126, its best week in nearly two years. Reliance ended last week up nearly 8%, firmly ending the index's two-week losing streak.
Although Nifty set a new record on Friday, it was unable to maintain that level and ended up dropping 170 points from that level to end at 21,850 points. With the interim budget out of the way, focus returns to the end of the financial year and the Reserve Bank of India's monetary policy next week.
Friday's trading showed that both foreign and domestic investors were net buyers in the spot market. While the FII numbers were negligible, domestic investors bought worth over Rs 2,000 crore.
Vaishali Parekh of Prabhudas Liladha said Nifty's support is currently at $21,500 and the next upside target would be $22,200-$22,500. He further expects the IT and metals sectors to drive the market.
Amol Athawale of Kotak Securities said 21,800 is an important support level for position traders and above that level, Nifty could test new highs towards 22,300 level. However, below the 21,800 level, the index could fall towards 21,700 or even 21,600, he added.
Nagaraj Shetty of HDFC Securities said Friday's swing high can also be considered as a double-top formation in the Nifty 50s chart. He believes there will be high volatility at the new highs and that the rally will encounter strong resistance around the 22,100-22,200 level. Immediate support on the downside is at 21,700.
Nifty Bank continues to be a weaker index among benchmark indices. At one point on Friday, the index nearly tested the 47,000 mark, but it fell sharply from that level, correcting nearly 1,000 points from the day's high and ultimately trading below the 46,000 mark. finished. Despite the sharp correction, Nifty Bank ended the week higher, ending a four-week losing streak.
Kunal Shah of LKP Securities said the bears have regained control as Nifty Bank failed to recover its closing price of $46,500. Immediate downside support is at 45,700, below which the index could be pushed back towards 45,000. “Given the heightened volatility in the short term, traders are advised to approach the market with caution and implement strict risk management,” he added.
Kotak Securities' Athawale said the 50 DMA at $46,650 will be a key resistance zone for Nifty Bank, below which it will continue to weaken and is likely to retest the $45,500-$45,200 level. said. Above 46,250, the index may move back towards 47,250-47,500.
What does the F&O queue show?
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Nifty 50 February futures added 4.1%, or 470,000 shares, on Friday. It is currently trading at a premium of 97.6 points, up from 54 points previously. Meanwhile, Nifty Bank's February futures fell in open interest by 6.6% or 200,000 shares on Friday. Nifty50's put-call ratio is now 1.02, up from 1.01 previously.
Hindustan Copper, SAIL, Zee Entertainment, India Cements and Indus Towers are included in the F&O banned list.
Nifty 50 for callers expiring on February 8:
This Thursday's weekly expiry saw an addition of open interest on the Nifty 50 call strikes of 22,100 and 22,200, and a reduction of open interest on the strikes of 21,700 and 21,800.
| strike |
OI change |
premium |
| 22,100 |
248,600 added |
67.25 |
| 22,200 |
242,400 added |
43.1 |
| 21,700 |
Shs 177,000 |
267.3 |
| 21,800 |
15.97 million lac shed |
202.95 |
Nifty 50 on the put side expiring February 8:
On the put side, open interest was added on the Nifty 50 strikes at 21,500, 21,600 and 21,900 for expiry this Thursday.
| strike |
OI change |
premium |
| 21,600 |
257,100 added |
57.15 |
| 21,900 |
201,500 added |
162.55 |
| 21,500 |
198,900 added |
39.95 |
These stocks added new long positions on Friday, which means an increase in price and open interest.
| stock |
Price change |
OI change |
| hindustan copper |
2.00% |
13.11% |
| Alkem Institute |
0.86% |
13.04% |
| cummins india |
1.97% |
12.42% |
| torrent pharma |
0.51% |
11.40% |
| Atul |
1.55% |
9.81% |
These stocks added new short positions on Friday. In other words, the price has fallen, but the open interest has increased.
| stock |
Price change |
OI change |
| City Union Bank |
-4.66% |
20.71% |
| bata india |
-0.42% |
13.03% |
| Tata Chemicals |
-2.07% |
9.34% |
| big city |
-0.67% |
8.50% |
| MRF |
-1.04% |
7.67% |
Here are the stocks to watch ahead of Monday's trading session.
G Entertainment: Singapore International Arbitration Center rejects Sony's application for emergency interim relief. According to SIAC, the emergency arbitrator has no jurisdiction or power to restrain companies from approaching the NCLT to implement the merger plan as these are within the statutory regime and matters to be decided by the NCLT. .
Paytm: After running two consecutive circuits at 20% lower, the circuit filter was fixed to 10%.What the people involved said CNBC TV 18 On Friday, it said there were serious KYC frauds and false compliance filings, adding that the payments bank does not maintain arm-length with promoter entities. His lack of KYC for numerous customers amounts to hundreds of thousands of dollars. A single PAN may be used for over 1,000 of his customers. The stock price fell 36% in two sessions. Morgan Stanley Asia Singapore Pte. acquired 5 million shares of the company's stock on Friday. The company also flatly denied any investigation by the Enforcement Directorate into its anti-money laundering activities against One97 Communications or its associates and its founder and CEO.
State Bank of India: Net profit for the December quarter was down 35% year-on-year due to one-time special items of Rs 7,100 crore. Net interest income was Rs 39,815 crore, broadly in line with expectations. Gross NPAs stood at 2.42% from 2.55% in September, while net NPAs remained unchanged at 0.64%. Provisions increased sequentially from Rs 115 million in September to Rs 687.5 million and slippage increased sequentially from Rs 3,098 million in September to Rs 4,960 million. increased to.
Tata Motors: Earnings improved significantly as JLR raised its FY24 EBIT margin outlook for the second consecutive quarter. EBIT margin is expected to exceed 8%, up from 8% previously. JLR also expects to have positive net cash flow in the 2025 financial year. Consolidated net profit was 7,025 million rupees, exceeding expectations of 4,071 million rupees.
UPL: Losses in the December quarter were much higher than expected, and management expects the March quarter to be similarly weak. Management expects him to recover from the second quarter of fiscal 2025. Sales volume will be down 5% year-on-year. EBITDA decreased by 86% and margin was 4.2%, below the expected 10%. Net debt rose to Rs 31,165 crore from Rs 27,528 crore year-on-year.
Interglobe Aviation: The third quarter was the fifth consecutive quarter of a profit, with sales up 30% year-over-year. Lower fuel prices supported the company's performance, with net profit doubling year-on-year. EBITDAR increased by Rs 615 crore to Rs 5,475 crore, beating Motilal Oswal's estimate of Rs 4,690 crore. However, debt increased significantly, increasing by 15.1% from last year to Rs 51,187 billion.
Bank of India: While net income and net interest income were below Morgan Stanley's expectations, asset quality was the highest in nine years. Net interest margin is the lowest in six quarters. The NCLT exposure has increased from the previous quarter and the cost-to-income ratio is also the highest in his six quarters.
delivery: Reported quarterly profit for the first time. Record quarterly revenue and EBITDA. The margin is also reported to be 5%. Sales increased 20.3% compared to the same period last year. Operating leverage drove third quarter results. We have established the right infrastructure and capabilities for continued growth in FY25.
Metropolis Healthcare: Revenues rose 2%, subdued as expected, but below expectations. The Chennai floods and the termination of his PPP contract in February 2023 affected the numbers by 1%. EBITDA was impacted by a one-time impact from Aam Aadmi Mohalla Clinic's loan loss provisions. Guidance for the third quarter showed the core business increased by his 12%. Revenue per test increased by 1% to ₹492 and revenue per patient increased by 3% to ₹1,009.
Oil-related stocks: Windfall tax on crude oil has been increased from ₹1,700 to ₹3,200 per tonne. Windfall taxes on diesel, ATF, and gasoline remain zero.
Aurobindo Pharmaceuticals: The USFDA made nine observations on Useia Pharma Specialties' Unit III, formerly known as Unit 4. The company has decided to temporarily suspend production on certain lines to conduct a comprehensive investigation and corresponding partial distribution. The company believes that there will be no material impact on its business at this time. Unit III is the drug manufacturing facility.
Cochin Shipyard: The company has signed a contract worth 150 million rupees with the Indian Navy, under which it will undertake the medium-sized refurbishment of two Indian naval vessels.
First Published: February 4, 2024 3:12 PM IST
