As is usual with major events, the market took a “wait-and-see” attitude. Nifty ended unchanged from Tuesday's level but 120 points off the session high. The index briefly recovered to 22,000 points, but was unable to sustain above that level.
Markets are currently awaiting the outcome of the three-day RBI Monetary Policy Committee meeting on Thursday. RBI governor rules out possibility of premature rate cut, but the central bank's comments on a number of issues will focus on current macroeconomic factors and the Paytm issue, which is most likely to come up in media interactions It will be. .
Thursday marks the weekly expiration date for Nifty 50's option contracts in line with central bank policy. It will also react to the returns of stocks such as Tata Consumer, Power Grid and broader market names such as Lupine and Apollo Tires.
As we have noticed, favorable reactions are evident in Trent (up 19% on Tuesday), Zaguru (up 20%) and vice versa in cases like NLC India and Redington (down 6%). Returns are disproportionately rewarded by the market. Each).
Foreign investors were large sellers in the spot market on Wednesday, while domestic investors were small buyers.
HDFC Securities' Nagaraj Shetty said Nifty has hit the previous major open downside gap of 21,970 but lacks a definitive upside breakout from that level. But he thinks the index is likely to break above the 21,950-22,000 range. Immediate downside support is at 21,750.
Shrikant Chauhan of Kotak Securities said the daily chart of Nifty still maintains an upper bound formation, which supports further upside from current levels. He expects the index to return to 22,150 as long as it stays above the 21,850 level. Once below these levels, the index could see a rapid correction towards the 21,800-21,750 levels during the day.
Angel One's Osho Krishnan argues that 22,000-22,100 remains a tough challenge for bulls and it is important for it to happen to trigger the next uptrend. Conversely, a drop below 21,750 could worsen profit booking towards his 21,670 in the 20 DMA zone.
Nifty Bank outperformed in mid-week trade, but the gains were not convincing. Most of the outperformance was from his low-float PSU banks, which rose 15% to 20%. However, State Bank of India was the top gainer in the index, finishing 4% higher.
Despite the outperformance, the index struggled to break above the 46,000 mark, reversing from an intraday high of 46,062. Thursday's policy will be a key factor in determining which direction the index heads.
Kunal Shah of LKP Securities said the index continues to find support in the 45,500-45,600 zone and a convincing break below could trigger a sharp correction in the index. . However, a break above the 46,200 resistance band would lead to significant short covering towards the 46,500 mark.
Ashwin Ramani of Samco Securities said strong call writing was observed at Nifty Bank's 46,000 strike, creating resistance on the upside. He said Nifty Bank is unlikely to move higher unless call writers come out of the 46,000-strong strike.
What does the F&O queue show?
Nifty 50 February futures on Wednesday added 0.5% to open interest of 65,500 shares. It is trading at a premium of 73.2 points from 31.75 points previously. Meanwhile, open interest in Nifty Bank's February futures increased by 6.1% or 182,000 shares. Nifty 50's put-call ratio is now 1 from 1.11 earlier.
Balrampur Chini, Delta Corp and SAIL are under F&O ban.
Ashok Leyland, Zee Entertainment, India Cements, Indus Towers, Hindustan Copper, UPL and NALCO remain banned.
Nifty 50 for callers expiring on February 8:
Heading into today's weekly options expiry, the Nifty 50 call strike between 22,000 and 22,100 has added open interest, while the 21,800 strike has seen some reduction in open interest.
| strike |
OI change |
premium |
| 22,100 |
394,000 added |
24.65 |
| 22,000 |
387,000 added |
54.45 |
| 22,050 |
2.5 million added |
37.45 |
| 21,800 |
76,000 lac shed |
170.95 |
Nifty 50 on the put side expiring February 8:
On the put side, open interest was added on the Nifty 50 strike between 21,800 and 21,900 for weekly expiry today.
| strike |
OI change |
premium |
| 21,900 |
Added 2.27 million yen |
55.05 |
| 21,850 |
128,000 added |
37.7 |
| 21,800 |
107,000 added |
25.35 |
These stocks added new long positions on Wednesday, with both price and open interest increasing.
| stock |
Price change |
OI change |
| delta company |
10.55% |
26.24% |
| Ballampur Chini |
1.11% |
16.33% |
| torrent |
19.63% |
13.62% |
| big city |
1.04% |
11.93% |
| max financial services |
5.36% |
9.46% |
These stocks added new short positions on Wednesday. This means that the price has fallen, but the open interest has increased.
| stock |
Price change |
OI change |
| burger paint |
-0.66% |
29.42% |
| nuvin fluorine |
-4.91% |
14.37% |
| Bank of Baroda |
-1.33% |
13.02% |
| bata india |
-1.69% |
9.89% |
| Power grid |
-2.17% |
9.78% |
We saw some short covering in these stocks on Wednesday, pushing prices higher but reducing open interest.
| stock |
Price change |
OI change |
| chambal fertilizer |
5.82% |
-15.01% |
| HDFC Life |
2.03% |
-9.17% |
| Pidi Light |
3.14% |
-7.12% |
| Dr. Lady's |
0.15% |
-6.47% |
| ICICI Lombard |
2.21% |
-5.77% |
These stocks saw long positions unwind on Wednesday, with both price and open interest decreasing.
| stock |
Price change |
OI change |
| Ashok Leyland |
-1.83% |
-7.85% |
| TCS |
-1.11% |
-5.99% |
| Naruko |
-0.80% |
-5.62% |
| infosys |
-1.56% |
-4.68% |
| JK cement |
-0.20% |
-3.40% |
Here are stocks to watch ahead of Thursday's trading session.
Tata Consumer Products: Net profit decreased due to extraordinary loss of 91.5 billion rupees. EBITDA margin is 15% (survey result: 14.4%). India sales rose 9.7%, matching his 8-10% growth forecast. Packaged beverage revenue increased 4% versus expectations for growth of 6% to 8%. NourishCo's revenue increased 34%, beating expectations by 25%. International sales increased 10.6%, also beating expectations for 8% growth. The Indian food business is expected to grow volumes by 5%. Soulfull, Sampann and NourishCo accounted for 17% of sales, up from 13% last year.
Lupin: The U.S. was expected to have a weak quarter, but it beat expectations. Contributions from Spiriva generics and Supplep generics supported the US numbers. U.S. sales were $212 million for her, up from expectations of $200 million for his to $205 million. Revenue for the quarter was a record high, and margins were 20%, the highest in 10 quarters. Revenue also crossed Rs 5,000 crore for his second consecutive quarter. We are on track to achieve our fiscal 2024 exit margin guidance of 18%.
Manappuram Finance: Net interest income exceeded Motilal Oswal's expectations, while net profit remained flat. Net interest margin was calculated at the highest level of the past 10 quarters. The share of gold loans was 51.4%, continuing from 58.4% last year to 53.4%. Gold tonnage is at a seven-year low. Gold operating balance also decreased by 3.7% quarter-on-quarter, but increased by 26.7% year-on-year. Provisions almost tripled year-on-year to Rs 149.6 million and also increased 25% quarter-on-quarter. Asset quality deteriorated with gross NPAs at 2% from 1.6% in September and net NPAs at 1.8% from 1.4%.
Apollo tires: Net profit rose 78.1% to Rs 496.6 million, while revenue remained flat at Rs 6,595.4 million, up 2.7%. EBITDA increased by 32.2% year-on-year to Rs 1,208.1 million, while profit margin expanded by 400 basis points to 18.3% from 14.2% in the previous year.
JK paper: Net profit fell by 29.1% year-on-year to Rs 236.4 million from Rs 333.5 million. Revenue increased by 2.7% to Rs 1,781.78 crore. EBITDA decreased by 31.9% to Rs 447.6 million and profit margin contracted from 37.9% to 25.1%. Sales were impacted by lower overall realizations and significantly higher timber costs. Selling prices are also under pressure due to increasing import trends and weak demand.
Kalpataru Project: Revenue rose 22.3% year-on-year to 4,896 million rupees, the highest ever, and net profit rose 19.5% to 141 million rupees. EBITDA increased by 13.4% to Rs 424 million, while profit margin contracted from 9.3% to 8.7%. Solid orders for T&D, B&F, water supply, and urban infrastructure businesses drove sales growth. Year-to-date order inflow for FY2024 is Rs 18,065 crore and additional L-1 is around Rs 6,000 crore. It is advantageously positioned for large-scale EPC projects for airport development and metro tunnel construction in India.
Aarti Pharma Labs: Revenue was down 5% year-over-year, but slightly improved quarter-over-quarter. EBITDA margin improved year-over-year and quarter-on-quarter to 21.3%. Net income is also up from last year and the previous quarter.
Piramal Pharma: The Riverview facility receives a Form 483 from the USFDA containing three observations. The pre-approved test was conducted by the USFDA from January 29, 2024 to February 6, 2024. Observations are classified as instructions for voluntary action and are not related to data integrity. The company plans to submit a detailed response to the U.S. Food and Drug Administration within the specified deadline.
SJVN: Obtained Letter of Intent from Gujarat Urja Vikas Nigam Ltd. for 200MW solar power project in GUVNL Phase XXII. Previously, the company's wholly-owned subsidiary won an initial 100 MW solar power project through tender and a further 100 MW under green shoe option at a rate of ₹2.63 per unit on a build, own and operate basis. The preliminary construction and development cost of the project is said to be Rs 1,100 crore and will be commissioned within 18 months of the signing of the PPA. The term of his signed PPA is 25 years.
KEC International: Received orders worth Rs 1,175 crore across various businesses. The T&D business received orders in India and the Americas, and the Civil Business received orders in the housing field. The company has also received orders for solar power generation projects in India. The year-to-date order book for FY2024 is over Rs 14,000 crore.
PSP project: New jobs worth Rs 935.41 million were awarded. The project includes riverside development of Daloi dam area as a world-class sustainable tourist and pilgrimage destination worth Rs 357.07 crore, civil engineering, MEP and finishing development of Gandhinagar Road worth Rs 155.62 crore. The works include Sabarmati riverfront development worth Rs 399.38 crore. The total order inflow for FY2024 so far is Rs 1,995.70 crore.
Sterling & Wilson Renewables: The customer issues a notice of termination of the EPC and O&M contract to its Australian subsidiary. The project was mechanically completed in July 2022, but this notification was strongly refuted by the subsidiary. Customers also triggered outstanding bank guarantees amounting to nearly Rs 9,000 crore. The subsidiary plans to initiate appropriate legal action and seek compensation for damages.
NHPC: The government plans to sell the shares at a price of ₹71 per share to eligible employees between February 13 and February 16, 2024. However, the amount of the stock sale was not disclosed by the company.
Supriya Life Sciences: We are planning a capital investment program at the Ambernath site, with a total capital expenditure of Rs 6,000 crore expected over the next three years for site development and associated infrastructure on approximately 500 square meters of land. The majority of our capital expenditures are funded by internal accruals.
IRB infrastructure: Toll collection increased by 25% to Rs 466.8 million in January despite a transporter strike earlier in the month.
Kalyani Steels: The balance cash paid to acquire the assets of Kamineni Steel & Power India Pvt. Ltd. was announced as the winning bidder on January 10.
Aurion Pro Solution: A board meeting will be held on February 12th to consider fundraising.
Information edge: It will invest Rs 25,000 crore in its wholly-owned subsidiary Jeevansaathi by taking up 2,500,000 compulsorily convertible debentures.
First Published: February 7, 2024 7:35 PM IST
