Newsletter: 13th February 2025

Natco Tumbles on Weak Q3

Aaj Ka Bazaar

Wall Street’s main indexes closed on a mixed note on Tuesday, with gains in Coca-Cola and Apple offsetting losses in Tesla. Investors were closely analyzing the latest comments from Federal Reserve Chair Jerome Powell. He stated that the central bank does not need to rush to adjust interest rates, indicating that officials will be patient before further lowering borrowing costs. In Asia, equities also displayed mixed results. Japanese stocks saw an increase, while Australian shares remained stable in anticipation of the US inflation report scheduled for Wednesday. Additionally, stock index futures suggested potential gains for Hong Kong stocks. Considering the global market cues, the domestic equity benchmark indices, Sensex and Nifty 50, are expected to open cautiously on Wednesday following a significant decline in the previous session and amid mixed signals from global markets. Moreover, Prime Minister Modi’s two-day visit to the US, beginning on Wednesday, comes at a crucial time. As he meets with President Trump to discuss trade, there are hopes for a breakthrough that could ease tariff tensions and restore market confidence.

Markets Around Us

BSE Sensex -76,666.20 (0.65%)

Nifty 50 – 23,140.15 (0.41%)

Bank Nifty – 49,691.05 (0.85%)

Dow Jones – 44,561.63 (0.19%)

Nasdaq – 19,648.78 (0.03%)

FTSE – 8,807.39 (0.34%)

Nikkei 225 – 39,523.13 (1.46%)

Hang Seng – 21,644.77 (1.56%)

Sector: Pharmaceuticals

Natco Pharma plunges 18.5% on weak Q3

Natco Pharma shares dropped 18.5% on February 13 after disappointing Q3FY25 results. Net profit fell 38% YoY to ₹132.4 crore, while revenue declined 37% to ₹474.8 crore. EBITDA margin collapsed from 35.3% to 8.2%, mainly due to a sharp drop in formulation exports, which fell over 50% to ₹285.8 crore. Domestic formulation sales also dipped slightly to ₹96.1 crore. Since exports contributed 44% of Q3 revenue (down from 76% in FY24), the earnings impact was significant. The stock has been falling for five straight sessions, losing 25% in this period. Heavy selling pressure was seen, with 24 lakh shares traded—five times the monthly average—intensifying the decline

Why it Matters:

Natco Pharma’s sharp profit decline and margin erosion highlight major weakness in exports, which form a significant part of its revenue. The stock’s continued slide and high trading volumes indicate strong selling pressure and shaken investor confidence. Traders should watch for recovery in exports and operational improvements to gauge future performance.

 NIFTY 50 GAINERS

TCS – 4015.00 (1.30%)

TECHM – 1684.50 (0.92%)

INFY – 1889.95 (0.76%)

 

NIFTY 50 LOSERS

M&M – 2965.00 (-3.92%)

BEL – 256.75 (-3.13%)

RELIANCE – 1198.30 (-2.96%)

Secto: Auto Components & Equipments

Bharat forge weaks Q3

Bharat Forge shares dropped over 5% to ₹1,047  after reporting weak Q3FY25 results. The stock has fallen over 30% in six months, underperforming Nifty 50’s 4% decline. Net profit dropped 16.4% YoY to ₹212 crore, while revenue fell 7.4% YoY to ₹2,095 crore. EBITDA declined 8% to ₹609 crore, with margins narrowing slightly to 29.1%. The company blamed weak European demand and volatility in the defence business. Despite this, Bharat Forge secured new orders worth ₹830 crore, with its defence segment generating ₹337 crore in revenue. The defence order book now stands at ₹5,706 crore, with expectations of strong long-term growth. The board announced an interim dividend of ₹2.50 per share, payable by March 12, with February 18 as the record date. Management remains optimistic about future defence revenue, expecting it to reach ₹2,200 crore in FY26, despite short-term volatility in the sector.

Why it Matters:

Bharat Forge’s weak performance and stock decline signal challenges in exports and defence business volatility, impacting investor confidence. However, strong order wins and long-term defence growth prospects suggest potential recovery. Traders should watch for demand improvements and execution of the ₹5,706 crore order book.

Desh Duniya Bazaar

Around the World

Asian stocks rose on Thursday, driven by an AI-fueled rally in China and tech dealmaking in Japan, despite concerns over high U.S. inflation. Chinese markets, including the Hang Seng, gained as AI optimism pushed stocks up 5-15% since January. However, broader sentiment remained weak due to trade tensions with the U.S. Japan’s Nikkei 225 jumped 1.2%, helped by a weaker yen and a bidding war for cybersecurity firm Trend Micro. South Korea’s KOSPI rose 0.9%, benefiting from China’s AI boom. Meanwhile, Australia’s ASX 200 inched up 0.2%, while Singapore’s Straits Times dipped 0.2%. U.S. stock futures rose in Asian trade despite Wall Street losses from stronger-than-expected inflation data, which reduced hopes for rate cuts. Risk appetite improved as Donald Trump talked about a Russia-Ukraine peace deal, leading to a drop in oil prices. India’s Nifty 50 futures pointed to a positive start, though U.S. tariff threats and weak sentiment weighed on the market.

Option Traders Corner

Max Pain

Nifty 50 – 23,200

Bank Nifty – 50,000 

Nifty 50 – 22,996 (Pivot)

Support – 22,874, 22,649, 22,501

Resistance – 23,193, 23,342, 23,540

Bank Nifty – 49,305 (Pivot)

Support – 48,908, 48,337, 47,940

Resistance – 49,876, 50,273, 50,844

 Have you checked our latest YouTube Video

Did you know?

India's Mutual Fund Industry Sees 40% Growth

The total equity assets under management of India’s domestic mutual fund industry reached ₹33.4 trillion in 2024, marking a 40% increase compared to the previous year, according to Motilal Oswal’s Fund Folio Report.

Newsletter: 12th February 2025

Birlasoft Profit Slips Sharply

Aaj Ka Bazaar

Wall Street’s main indexes closed on a mixed note on Tuesday, with gains in Coca-Cola and Apple offsetting losses in Tesla. Investors were closely analyzing the latest comments from Federal Reserve Chair Jerome Powell. He stated that the central bank does not need to rush to adjust interest rates, indicating that officials will be patient before further lowering borrowing costs. In Asia, equities also displayed mixed results. Japanese stocks saw an increase, while Australian shares remained stable in anticipation of the US inflation report scheduled for Wednesday. Additionally, stock index futures suggested potential gains for Hong Kong stocks. Considering the global market cues, the domestic equity benchmark indices, Sensex and Nifty 50, are expected to open cautiously on Wednesday following a significant decline in the previous session and amid mixed signals from global markets. Moreover, Prime Minister Modi’s two-day visit to the US, beginning on Wednesday, comes at a crucial time. As he meets with President Trump to discuss trade, there are hopes for a breakthrough that could ease tariff tensions and restore market confidence.

Markets Around Us

BSE Sensex –75,720.20 (-0.76%)

Nifty 50 – 22,896.15 (-0.76%)

Bank Nifty – 48,983.05 (-0.85%)

Dow Jones – 44,594.63 (0.00%)

Nasdaq – 19,642.78 (-0.36%)

FTSE – 8,777.39 (0.11%)

Nikkei 225 – 38,876.53 (0.19%)

Hang Seng – 21,634.77 (1.56%)

Sector: Computers- Software

Birlasoft shares crack 7%

Birlasoft reported a 1.5% increase in revenue for Q FY25, reaching Rs 13,627 crore, but its net profit fell by 27.4% to Rs 1,169 crore, mainly due to higher employee costs and weak seasonal demand. EBITDA dropped 23.7% to Rs 1,634 crore, and profit margins decreased to 12%, down by nearly 4%. As a result, Birlasoft’s shares fell by 2% to Rs 494.3. Analysts are pessimistic about the company’s performance, predicting further decline in revenue for Q4 due to extended employee furloughs and a weak demand outlook. The company expects growth in the BFSI (Banking, Financial Services, and Insurance) and Energy & Utilities sectors, but manufacturing and life sciences will continue to struggle. Brokerage firms like Nuvama and HDFC Securities have reduced their target prices for Birlasoft shares, indicating limited short-term growth and maintaining a negative or cautious outlook

Why it Matters:

Birlasoft’s weak profit and shrinking margins signal ongoing challenges, affecting investor sentiment. The company faces slower growth due to higher costs and uncertain demand, which could impact future performance. Reduced target prices from analysts reflect a cautious outlook, influencing stock value.

 NIFTY 50 GAINERS

TCS – 4015.00 (1.30%)

TECHM – 1684.50 (0.92%)

INFY – 1889.95 (0.76%)

 

NIFTY 50 LOSERS

M&M – 2965.00 (-3.92%)

BEL – 256.75 (-3.13%)

RELIANCE – 1198.30 (-2.96%)

Secto: Automobile

TVS Motor to invest Rs 2,000 crore

TVS Motor has signed an agreement with Karnataka to invest Rs 2,000 crore over the next five years to set up a Global Capability Centre (GCC) in Mysuru. A GCC focuses on IT and related business functions. The company will also build a new test track and office infrastructure as part of this expansion. TVS Motor, which is the world’s fourth-largest two-wheeler manufacturer with 5.8 crore global users, aims to bring together engineers, designers, and experts in AI and machine learning at the new centre to drive innovation for next-generation bikes. The Mysuru facility, which already employs over 3,500 people and produces 15 lakh vehicles annually, will see efforts to double exports and revenue. This move is in line with Karnataka’s new Industrial Policy, which targets 12% annual manufacturing growth, aiming for Rs 7.5 lakh crore in investments and the creation of 20 lakh jobs by 2030.

Why it Matters:

TVS Motor’s Rs 2,000 crore investment in Karnataka will boost innovation and expand its operations, enhancing production and exports. The move strengthens the company’s global position in the two-wheeler market. It aligns with Karnataka’s growth targets, supporting job creation and economic development.

Desh Duniya Bazaar

Around the World

Asian stocks mostly rose on Wednesday, with Hong Kong’s tech sector leading the gains, driven by excitement around artificial intelligence (AI). The Hang Seng index jumped over 2%, fueled by strong performances from Chinese tech companies like Alibaba and BYD, which saw significant stock price increases. Other regional markets were more cautious ahead of a key U.S. inflation report, with investors watching closely for hints about the Federal Reserve’s future interest rate moves. In Japan, the Nikkei 225 rose slightly, while South Korea’s KOSPI and Indonesia’s Jakarta Composite also saw modest gains. Meanwhile, China’s main indices barely moved. U.S. inflation data, along with comments from Fed Chair Jerome Powell indicating the economy is stable, kept traders on edge, as many are worried about the potential for higher interest rates and ongoing trade tensions. Indian and Australian markets showed mixed results, with India’s Nifty 50 slightly down and Australia’s S&P/ASX 200 up.

Option Traders Corner

 Max Pain

Nifty 50 – 23,200

Bank Nifty – 50,000

Nifty 50 – 23,149 (Pivot)

Support – 22,908, 22,746, 22,505

Resistance – 23,312, 23,552, 23,715

Bank Nifty – 49,495 (Pivot)

Support – 49,084, 48,766, 48,355

Resistance – 49,814, 50,225, 50,543

 Have you checked our latest YouTube Video

Did you know?

India's Mutual Fund Industry Sees 40% Growth

The total equity assets under management of India’s domestic mutual fund industry reached ₹33.4 trillion in 2024, marking a 40% increase compared to the previous year, according to Motilal Oswal’s Fund Folio Report.

Newsletter: 11th February 2025

Eicher’s Motors Growth, Margins Struggle

Aaj Ka Bazaar

Indian markets are expected to have a subdued start, with the GIFT Nifty remaining flat, which suggests a steady opening for Dalal Street. On Monday, Wall Street closed higher, driven by significant gains in Nvidia and AI-related stocks, while steelmakers saw a surge after Donald Trump proposed additional tariffs on steel and aluminium imports. In Asia, sentiment was mixed: Australia and South Korea reported slight gains, whereas Japan remained closed, resulting in muted movements in US Treasury yields in the region. Considering these factors, technology and AI-driven stocks are likely to continue attracting interest, while metal stocks could experience some volatility due to concerns over global trade tensions. Overall, the market is expected to trade with a cautiously positive bias, keeping an eye on sector-specific trends and global developments.

Markets Around Us

BSE Sensex –77,977.28 (-0.10%)

Nifty 50 – 23,306.75 (-0.32%)

Bank Nifty – 49,725.15 (-0.51%)

Dow Jones – 44,431.11 (-0.10%)

Nasdaq – 19,709.19 (0.95%)

FTSE – 8,767.80 (0.77%)

Nikkei 225 – 38,801.17 (0.00%)

Hang Seng – 21,367.69 (-0.72%)

Sector: Automobiles

Eicher Motors Ltd. Q3FY25

Despite Eicher achieving double-digit growth across its financial metrics, the results fell short of market expectations. Revenue growth was primarily driven by increased RE and VECV volumes. However, profitability suffered due to higher promotional costs, which offset the positive effects of improved exports, resulting in lower margins. Looking ahead, we maintain a positive outlook for the company, anticipating continued revenue momentum, though margins are likely to be pressured by persistent marketing expenses. With the introduction of new models such as the Bear 650, Guerilla 450, 2024 Classic 350, Goan Classic 350, and Shotgun 650, the company strengthens its position in the midsize motorcycle segment. Additionally, the opening of a new assembly plant in Thailand and plans to establish a new CKD unit in Brazil will boost its international presence. Furthermore, the company’s entry into the EV market with its new brand “Flying Flea” expands its reach. Overall, despite short-term challenges from increased promotional expenses.

Why it Matters:

Eicher’s strategic initiatives and strong product lineup position it well for sustained growth and expansion in both domestic and international markets. Key factors to watch will be the management’s commentary on new launches, cost management plans, and updates on the CKD unit in Brazil.

 NIFTY 50 GAINERS

ADNIENT – 2350.70 (2.61%)

GRASIM – 2516.20 (1.74%)

HINDALCO – 602.75 (1.13%)

 

NIFTY 50 LOSERS

EICHERMOT – 5089.95 (-4.60%)

APOLLOHOSP – 6468.10 (-4.34%)

POWERGRID – 263.00 (-2.12%)

Secto: Railways

RVNL Secures ₹335cr Deal, Shares Dip

RVNL’s stock fell nearly 2% in early trading on February 11, despite winning a ₹355.43 crore project from South Western Railway. At 9:22 AM, its share price was ₹375.10, down 1.63% on the BSE. The project involves designing, supplying, installing, testing, and commissioning KAVACH equipment over 790 RKM in the Hubballi and Mysuru Divisions, with completion expected in 18 months. This follows RVNL’s ₹210.78 crore project win on February 7 for upgrading the electric traction system in the Kharagpur-Tatanagar section and a ₹404.40 crore contract secured on February 4 from East Coast Railway. The company’s board will meet on February 12 to review its Q3 and nine-month financial results. Despite strong order inflows, the stock decline suggests investor caution, possibly due to execution risks or broader market trends. Traders and investors will closely watch financial results and future contracts for growth outlook and stock movement.

Why it Matters:

RVNL’s stock decline despite securing large projects suggests concerns over execution challenges, profitability, or broader market trends. Investors might be cautious about the company’s ability to deliver within deadlines or profit margins on these contracts. Additionally, upcoming financial results on February 12 could impact sentiment.

Desh Duniya Bazaar

Around the World

Asian stock markets fell on Tuesday as renewed U.S. tariffs under President Trump, particularly on aluminum and steel, increased global trade tensions and led to a risk-off sentiment. Investors shifted towards safe-haven assets like gold and bonds, fearing economic disruptions. China’s Shanghai Composite and CSI 300 fell 0.5% and 0.7%, respectively, while Hong Kong’s Hang Seng dropped 0.7% after a recent tech-driven rally. Other markets like the Philippines (-1%) and Indonesia (-0.6%) also declined, while South Korea’s KOSPI bucked the trend, rising 0.5%. U.S. stock futures also traded lower ahead of key inflation data due Wednesday, which could influence the Federal Reserve’s interest rate outlook. Meanwhile, Australia’s ASX 200 was flat as consumer sentiment remained weak despite expectations of an interest rate cut. The Reserve Bank of Australia is expected to lower rates in its February 17–18 meeting, given easing inflation, according to Westpac economists.

Option Traders Corner

Max Pain

Nifty 50 – 23,500

Bank Nifty – 50,200

Nifty 50 – 23,422 (Pivot)

Support – 23,275, 23,169, 23,023

Resistance – 23,528, 23,674, 23,780

Bank Nifty – 49,946 (Pivot)

Support – 49,737, 49,494, 49,284

Resistance – 50,190, 50,399, 50,642

 Have you checked our latest YouTube Video

Did you know?

India's Mutual Fund Industry Sees 40% Growth

The total equity assets under management of India’s domestic mutual fund industry reached ₹33.4 trillion in 2024, marking a 40% increase compared to the previous year, according to Motilal Oswal’s Fund Folio Report.

Newsletter: 10th February 2025

Sun TV Crashes 7%

Aaj Ka Bazaar

Wall Street ended sharply lower on Friday, with benchmark Treasury yields climbing in response to a mixed U.S. payrolls report, disappointing consumer sentiment data, and renewed trade war concerns. U.S. futures declined after President Trump announced he would reveal new steel and aluminum tariffs on Monday, along with reciprocal tariffs aimed at other countries.  In Asia, however, markets showed an upward trend, as both the Nikkei and Hang Seng indices reported solid gains driven by a rally in technology stocks. On the domestic front, Indian indices are drawing attention following the Delhi Assembly elections, where the BJP emerged victorious after 26 years. Given the global market dynamics, Indian equity benchmarks are anticipated to open flat on Monday, influenced by the global trade anxieties stemming from Trump’s tariff decisions.

Markets Around Us

BSE Sensex -77,977.28 (-0.10%)

Nifty 50 – 23,416.15 (-0.61%)

Bank Nifty – 49,915.20 (-0.49%)

Dow Jones – 44,392.78 (0.20%)

Nasdaq – 19,525.73 (-1.35%)

FTSE – 8,700.53 (-0.31%)

Nikkei 225 – 38,828.48 (0.11%)

Hang Seng – 21,435.42 (1.43%)

Sector: TV Broadcasting

Sun TV Falls on Weak Q3 Margins

Sun TV Network shares dropped over 7% on February 10 after the company posted weak Q3 results. Net profit fell 20% year-on-year to ₹363 crore from ₹453.9 crore in Q3 FY24, while revenue declined 10.4% to ₹827.6 crore. The company’s advertising revenue also dropped to ₹332.17 crore from ₹355.43 crore a year ago, impacting overall performance. The biggest concern was a sharp fall in EBITDA margins, which dropped to 53.7% from 63.8% last year due to weaker ad revenue and higher costs. Investors reacted negatively to the earnings report, leading to the stock decline.

Why it Matters:

Sun TV’s weak Q3 earnings highlight struggles in the media sector, with declining ad revenue and shrinking profit margins. A 20% drop in net profit and a sharp fall in EBITDA margins signal operational challenges. The 7% stock decline shows investor concerns over future growth and profitability.

 NIFTY 50 GAINERS

BRITANNIA – 4979.35 (2.24%)

BHARTIARTL – 1692.55 (0.94%)

HINDUNILVR – 2384.00 (0.85%)

 

NIFTY 50 LOSERS

TATASTEEL – 133.79 (-3.27%)

JSWSTEEL – 953.20 (-2.81%)

POWERGRID – 271.00 (-2.57%)

Secto: Defense

Bharat Electronics Rises on ₹962 Cr Orders

Bharat Electronics (BEL) secured new orders worth ₹962 crore, including ₹352 crore since January 28, 2025. These contracts cover anti-drone systems, fuzes, fire detection systems, vessel communication systems, spares, and services. With this, BEL’s total orders for the financial year now stand at ₹11,855 crore. In Q3, BEL’s revenue surged 37% year-on-year to ₹5,643.25 crore, while net profit soared 47% to ₹1,316.06 crore. The biggest highlight was its EBITDA margin expanding by 330 basis points to 28.7%, far exceeding its 23-25% guidance over the last six to eight quarters.

Why it Matters:

Bharat Electronics’ strong order inflow boosts its revenue visibility and growth prospects. The sharp rise in profitability and margins signals operational efficiency and strong demand for its defense products. Beating margin guidance consistently strengthens investor confidence in the company’s long-term potential.

Desh Duniya Bazaar

Around the World

Asian stock markets had a mixed start this week, with most indices falling after U.S. President Donald Trump announced new 25% tariffs on all steel and aluminum imports, raising trade tensions. China plans to retaliate with tariffs on U.S. goods, adding to market uncertainty. Mining and steel stocks in South Korea, Japan, and Australia declined, while Indonesia’s market dropped 2% and India’s Nifty 50 fell 0.4%. However, Chinese AI stocks, including Baidu and Alibaba, surged, driving Hong Kong’s Hang Seng up 1.5%. China’s Shanghai Composite gained 0.4%, supported by investor optimism in AI and expectations of government stimulus. Inflation data showed weak consumer and industrial demand, increasing speculation that Beijing might introduce economic support, such as interest rate cuts or infrastructure spending. Despite trade concerns, AI-related stocks in China remained strong, helping offset broader market weakness. Meanwhile, U.S. stock index futures were trading higher in Asia hours, providing some relief to investors.

Option Traders Corner

Max Pain

Nifty 50 – 23,500

Bank Nifty – 50,400

Nifty 50 – 23,565 (Pivot)

Support – 23,437, 23,314, 23,185

Resistance – 23,688, 23,817, 23,938

Bank Nifty – 50,223 (Pivot)

Support – 49,806, 49,453, 49,035

Resistance – 50,576, 50,994, 51,347

 Have you checked our latest YouTube Video

Did you know?

India's Mutual Fund Industry Sees 40% Growth

The total equity assets under management of India’s domestic mutual fund industry reached ₹33.4 trillion in 2024, marking a 40% increase compared to the previous year, according to Motilal Oswal’s Fund Folio Report.

Weekly Report: 07th February 2025

Weekly Trend Report

Week Gone By

The domestic equity benchmarks recorded modest losses this week, influenced by several key factors. The Union Budget announcement, presented by Finance Minister Nirmala Sitharaman,  affected investor sentiment. On the monetary policy front, the Reserve Bank of India (RBI) made a notable move by cutting interest rates for the first time in nearly five years, as anticipated, in an effort to revive economic growth. India’s fiscal deficit for the first nine months of the current fiscal year stood at Rs. 9.14 lakh crore, with total receipts at Rs. 23.18 lakh crore and overall government  expenditure at Rs. 32.32 lakh crore. On the global front, US President Donald Trump extended the proposed 25% import duties on Canada and Mexico by 30 days but remained firm on China, allowing his 10% tariffs on Chinese goods to take effect on Tuesday.

Week Ahead

The market will likely follow global cues for direction next week, while the ongoing earnings season is likely to drive stock-specific movements. The counting of votes for the much-anticipated Delhi Assembly elections is scheduled for Saturday, 8 February 2025. On the domestic front, India’s   Industrial production data for December and consumer price inflation data for January will be released on Wednesday, 12 February 2025. Additionally, WPI inflation data and balance of trade data for January are set to be published on Friday, 14 February 2025.  Globally, investors are closely watching the U.S. payrolls data, due on Friday, amid cautious optimism that a full-blown trade war can be avoided. Fed Chair Jerome Powell’s testimony is scheduled for Tuesday, 11 February 2025, while U.S. core inflation data for January will be released on Wednesday, 12 February 2025. This will be followed by Producer Price Inflation data on Thursday, 13 February 2025, and retail sales data for January on Friday, 14 February 2025.

Technical Overview
  • The Nifty50 index began the trading week on a negative note, influenced by global market cues, but witnessed a recovery on the following day. Nevertheless, the upward movement was constrained by the 50-day and weekly moving averages, which have   established a significant resistance zone near 23768-23754.
  • The index ultimately concluded the trading session with an increase of 77 points for the week, while the VIX declined by 2.9% to 13.69.
  • Throughout the week, the majority of broader and sectoral indices remained in a downtrend, trading below their 50-day moving averages.
  • However, there has been a notable improvement in momentum, as the indices have transitioned from the negative momentum quadrant to a more favorable positive momentum quadrant, representing a positive development.
  • In terms of market sentiment, over 70% of stocks traded above 10 DMA, reaching overbought levels during the week; however, due to profit-taking in the latter half of the week, only 58% of stocks continued to trade above 10 DMA.0
  • Examining broader trends, the proportion of stocks trading above the 50-day moving average and 200 DMA has remained significantly low over the past weeks, signaling a need for caution.
  • On the momentum breadth front, the data exhibited a positive reversal following four consecutive weeks of decline; however, it has not provided a robust follow-through, while the higher time frames still indicate a persistent downtrend in breadth.
  • From a technical perspective, the current relief rally appears to be a result of the oversold conditions following a 13% correction from recent peaks.
  • The index has immediate support near 23430, followed by 23050; maintaining a close above the last identified support level will be critical in mitigating further declines. Conversely, the level of 23770 presents a significant overhead resistance, and reclaiming this level on a closing basis will likely attract additional bullish momentum.
  • We continue to operate within a challenging monetary environment, characterized by limited trading setups, and it is expected that the ongoing choppiness will persist in the coming week.

To view the detailed report click here to   Download 

Newsletter: 07th February 2025

Strong Quarter for Hero

Aaj Ka Bazaar

The US major indices reported net gains on Wednesday after pessimistic sentiments driven by weak corporate earnings were countered by mixed economic data. Amongst the three indices, gains on the Nasdaq were capped on account of the dull earnings of Alphabet, which further raised questions on AI and its ROI amidst the heightened competitive landscape. The Asian peers also continue to hold their ground, with Nikkei and Hang Seng both recording modest gains as the markets continue to track US optimism. On the domestic front, GIFT Nifty indicates a flattish start with a positive bias. We expect the market to be firm, buoyed by positive global market sentiments.

Markets Around Us

BSE Sensex –77,977.28 (-0.10%)

Nifty 50 – 23,576.65 (-0.11%)

Bank Nifty – 50,367.20 (-0.03%)

Dow Jones – 44,748.82 (0.00%)

Nasdaq – 19,786.70 (0.48%)

FTSE – 8,727.28 (1.45%)

Nikkei 225 – 38,838.46 (-0.59%)

Hang Seng – 21,182.72 (1.39%)

Sector: 2/3 Wheelers

Hero MotoCorp Ltd. Q3FY25

Hero MotoCorp Ltd. reported healthy quarterly performance, beating market estimates on profitability counts. Although the overall revenue growth was modest, this was largely anticipated given the sluggish sales volumes during the quarter. The introduction of the Xtreme 125 has partially mitigated the decline in the 110cc segment. The company’s focus on premiumization is positively impacting profitability and is further supported by strong growth in exports. With the recent launches of the Xtreme 250R and Xpulse 210 motorcycles, as well as the Xoom 125 and Xoom 160 scooters, Hero MotoCorp is bolstering its premium motorcycle lineup, improving average selling prices (ASPs) and margins. Additionally, the company is expanding its presence in the scooter segment to leverage the increasing trend of urban mobility. Moving forward, the company is poised for dynamic changes, including plans to spin off its electric vehicle (EV) business and leadership transitions. These changes are expected to bring fresh perspectives and drive innovation. The recent changes in the income tax structure in the budget is likely to boost consumer confidence, especially in rural areas, coinciding with the conclusion of the Rabi sowing season by the end of February, which further bolsters our expectations of an improved demand environment.

Why it Matters:

Hero MotoCorp Supported by strategic initiatives and a continued focus on product innovation, Hero MotoCorp is well-positioned for sustained growth in the upcoming quarters. Management’s insights on demand outlook, the positioning of new releases, and the future pipeline will be key.

 NIFTY 50 GAINERS

BHARTIARTL – 1703.00 (5.14%)

ULTRACEMCO – 11677.00 (1.74%)

SHRIRAMFIN – 575.85 (1.68%)

 

NIFTY 50 LOSERS

BEL – 276.50 (-1.16%)

CIPLA – 1457.25 (-0.97%)

ITC- 432.80 (-1.88%)

Secto: FMCG

ITC Ltd Q3FY25 Result Net profit drops

ITC Ltd. posted a resilient performance in Q3FY25, benefitted by recovery in rural consumption even during challenging period where the company faced issues like economic slowdown due to low urban consumption and rising input cost impacting the company’s margins. The company improved its market position through strategic product differentiation and premiumization. The FMCG cigarette segment showed resilience amid rising costs. On the other hand, the FMCG non-cigarette sector faced challenges primarily due to inflationary pressures and growing competition. The agri business experienced significant growth, driven by leaf tobacco and value-added products, although margins were affected by rising costs. However, the boost to the economy by the government during the recent budget suggest a positive outlook for consumption demand especially in the premium category in the near term. Further, the company has demerged its hotel segment with effect from 1 January 2025 and it has been reported as the ‘Discontinued Operations’ in the Q3FY25 financial results. Post-demerger, ITC will focus on its core cigarette and FMCG businesses, benefiting from a more asset-light structure, improving capital efficiency and returns. This shift is expected to improve ITC’s return ratios substantially and improve profitability, thereby offering an attractive long-term upside. With focus on consumer centricity, purposeful innovation, agility and execution excellence, the company remains confident of navigating the short-term challenges and creating sustained value for all stakeholders. 

Why it Matters:

Implementation of several strategic cost management initiatives in areas such as supply chain optimization, smart procurement and productivity improvement through automation and leveraging new-age technologies, the company is set to maintain its market leadership position and deliver consistent growth for the coming period.

Desh Duniya Bazaar

Around the World

Asian currencies remained mostly unchanged on Friday, while the U.S. dollar held steady ahead of key job market data that could influence interest rate decisions. The Chinese yuan stayed weak near 7.3 per dollar after reopening from the Lunar New Year holiday. The Japanese yen had a strong week, dropping 2.3% against the dollar on expectations that the Bank of Japan will raise interest rates further. Investors are closely watching U.S. nonfarm payrolls data, which could impact the Federal Reserve’s stance on interest rates. A strong job report may delay rate cuts, putting pressure on Asian markets. The Indian rupee hovered near record lows amid expectations of a rate cut by the Reserve Bank of India. The Australian dollar showed slight recovery from a recent five-year low, while the Singapore dollar and South Korean won also made small gains. Markets remain cautious due to ongoing U.S.-China trade tensions.

Option Traders Corner

Max Pain

Nifty 50 – 23,600

Bank Nifty – 50,400

Nifty 50 – 23,644 (Pivot)

Support – 23,515, 23,427, 23,297

Resistance – 23,732, 23,861, 23,949

Bank Nifty – 50,361 (Pivot)

Support – 50,170, 49,958, 49,766

Resistance – 50,573, 50,765, 50,977

 Have you checked our latest YouTube Video

Did you know?

India's Mutual Fund Industry Sees 40% Growth

The total equity assets under management of India’s domestic mutual fund industry reached ₹33.4 trillion in 2024, marking a 40% increase compared to the previous year, according to Motilal Oswal’s Fund Folio Report.

Newsletter: 06th February 2025

VRL Soars on Q3 Boom

Aaj Ka Bazaar

The US major indices reported net gains on Wednesday after pessimistic sentiments driven by weak corporate earnings were countered by mixed economic data. Amongst the three indices, gains on the Nasdaq were capped on account of the dull earnings of Alphabet, which further raised questions on AI and its ROI amidst the heightened competitive landscape. The Asian peers also continue to hold their ground, with Nikkei and Hang Seng both recording modest gains as the markets continue to track US optimism. On the domestic front, GIFT Nifty indicates a flattish start with a positive bias. We expect the market to be firm, buoyed by positive global market sentiments. 

Markets Around Us

BSE Sensex –78,280.68 (0.01%)

Nifty 50 – 23,698.00 (0.01%)

Bank Nifty – 50,298.80 (-0.09%)

Dow Jones – 44,873.28 (0.71%)

Nasdaq – 19,687.92 (0.17%)

FTSE – 8,623.29 (0.61%)

Nikkei 225 – 39,001.57 (0.44%)

Hang Seng – 20,653.39 (0.28%)

Sector: Logistics

VRL Logistics surges 20% on Strong Q3

VRL Logistics shares surged 20% to ₹559 on February 6 after reporting strong Q3FY25 results. The stock saw heavy trading, with around 8 lakh shares changing hands—much higher than the usual 66,000. Despite this jump, it has remained mostly flat over the past three months. The company’s revenue grew 12% YoY to ₹830 crore, while net profit jumped four times to ₹59 crore. EBITDA rose 78% to ₹172 crore, with margins improving by 800 basis points to 21%. The margin boost came from successful freight hikes, better route planning, and reduced reliance on multiple transshipment hubs. These changes improved vehicle efficiency and overall profitability. VRL expanded its network, adding 39 new branches, and increased capital spending to ₹276 crore in Q3, focusing on property acquisitions in Bengaluru, Mysuru, and Mangaluru. The company’s long-term ICRA credit rating remains stable at A+ (Positive).

Why it Matters:

VRL Logistics’ strong Q3FY25 results, with a 4x jump in profit and 20% stock surge, highlight its improving efficiency and profitability. Strategic freight hikes and route optimizations have boosted margins to 21%. Expansion and higher capital investments signal long-term growth potential.

 NIFTY 50 GAINERS

DRREDDY – 1248.70 (1.72%)

BPCL – 265.65 (1.68%)

CIPLA – 1458.85 (1.53%)

 

NIFTY 50 LOSERS

SHRIRAMFIN – 558.05 (-2.32%)

TITAN – 3442.95 (-1.37%)

TATASTEEL – 132.90 (-1.12%)

Sector: Pharmaceuticals

Zydus Lifesciences surges on strong Q3

Zydus Lifesciences shares rose over 2%  after the company reported a strong Q3FY25 performance. Net profit jumped 30% year-on-year to ₹1,023 crore, driven by strong sales in India and the US. Revenue grew 17% to ₹5,269 crore, compared to ₹4,505 crore last year. The company’s EBITDA increased to ₹1,387 crore from ₹1,102 crore, with margins improving to 26.3% from 24.5%. Zydus credited its growth to a strong US portfolio, market share gains in key therapy segments in India, and strategic expansion in global markets. Additionally, forex gains significantly boosted profits, rising to ₹183 crore from ₹21 crore in Q3FY24. The company remains confident in achieving double-digit growth for FY25 with improved profitability. As of 9:45 AM, Zydus Lifesciences stock was trading at ₹997, up 2.05%, reflecting investor confidence in its continued business expansion and solid financial performance.

Why it Matters:

Zydus Lifesciences’ strong Q3 earnings show solid growth with a 30% profit surge, driven by strong sales in India and the US. Improved margins and higher forex gains indicate strong financial health. The stock’s rise reflects investor confidence in its future performance.

Desh Duniya Bazaar

Around the World

Asian stock markets rose on Thursday, driven by strong gains in tech stocks following Wall Street’s rally, especially after NVIDIA’s positive AI spending outlook. Major Asian tech firms, including Semiconductor Manufacturing International Corp and Sunny Optical, saw their shares surge, lifting China’s Shanghai Composite by 0.8% and Hong Kong’s Hang Seng by 0.4%. Japan’s Nikkei 225 gained 0.3%, with Tokyo Electron and Sony rising, while South Korea’s KOSPI climbed 0.5%, helped by Samsung and SK Hynix. Renesas Electronics soared 12% after strong earnings. However, gains were limited by ongoing U.S.-China trade tensions, with new Chinese tariffs on U.S. goods set to take effect next week. Singapore’s market gained 0.4%, supported by financial and tech stocks, while Australia’s ASX 200 rose 0.7% on mining and tech strength. India’s Nifty 50 remained mostly unchanged, as investors stayed cautious amid global uncertainty.

Option Traders Corner

Max Pain

Nifty 50 – 23,650

Bank Nifty – 50,300

Nifty 50 – 23,728 (Pivot)

Support – 23,648, 23,601, 23,521

Resistance – 23,775, 23,854, 23,902

Bank Nifty – 50,360 (Pivot)

Support – 50,198, 50,053, 49,891

Resistance – 50,504, 50,666, 50,811

Did you know?

India's Mutual Fund Industry Sees 40% Growth

The total equity assets under management of India’s domestic mutual fund industry reached ₹33.4 trillion in 2024, marking a 40% increase compared to the previous year, according to Motilal Oswal’s Fund Folio Report.

Newsletter: 05th February 2025

Titan Shines with Growth

Aaj Ka Bazaar

The Wall Street indices inched up during their trade yesterday after participants seemed to be optimistic about a breakthrough in the US-China trade war after the administration halted on implementation of tariffs on its neighbouring countries.  In contrast, the Asian market saw mixed results; Nikkei faced selling pressure after a strong start, while Hang Seng initially rose modestly but later declined due to a drop in tech stocks. The Domestic bourses are expected pick up on the trend of US markets, as the GIFT Nifty indicates a strong start for the market. The optimism is likely to be further boosted by the heightened expectation of a rate cut by RBI in its upcoming MPC meet this week.

Markets Around Us

BSE Sensex –78,551.89 (-0.05%)

Nifty 50 – 23,759.05 (0.08%)

Bank Nifty – 50,323.20 (0.33%)

Dow Jones – 44,513.56 (-0.10%)

Nasdaq – 19,657.59 (1.37%)

FTSE – 8,570.77 (-0.15%)

Nikkei 225 – 38,765.46 (-0.08%)

Hang Seng – 20,663.39 (-0.61%)

Sector: Gems & Jewellery

Titan Company Ltd. Q3FY25

Titan’s diversified portfolio of jewellery, watches, and eyecare businesses has demonstrated strong revenue growth of 25% YoY, driven by robust demand for studded jewellery, watches, and eyecare products. The jewellery segment saw its strongest quarter for the current fiscal due to wedding seasons. During the quarter, Tanishq opened 11 new stores (net), while Mia added 13 stores in the domestic market. Additionally, the company’s emerging businesses, such as Taneira and SKINN fragrances, offer potential opportunities for expansion. During the quarter, its emerging business expanded its store by opening its first IRTH store in Mumbai, followed by a store opening in Chennai; Taneira opened one new store in Salem, Tamil Nadu, bringing the total store count to 82 stores covering 42 cities. However, the profitability of the company was impacted due to the custom duty-related losses on the inventory (held at the time of the duty change), which have been fully realised in this quarter.

Why it Matters:

The company continues to focus on expanding its market share and investing in capabilities across all its business segments. Looking ahead, with the growing trend of premiumisation and increased consumption in the economy post-budget, we remain constructive about the company’s business prospects, driven by product innovation and branding with a single-minded focus on satisfying the ever-evolving needs of lifestyle consumers.

 NIFTY 50 GAINERS

BPCL – 264.45 (3.32%)

ONGC – 260.80 (2.64%)

INDUSINDBK – 1072.20 (2.39%)

 

NIFTY 50 LOSERS

ASIANPAINT – 2252.00 (-4.35%)

NESTLEIND – 2248.80 (-2.20%)

TITAN – 3537.00 (-1.69%)

Sector: Telecom

  MTNL Soars 20% on Asset Sale Plans

MTNL shares hit a 20% upper circuit at ₹57.21 on February 5, driven by optimism over its asset monetization plans for FY26. This follows a 7% rise in the previous session after DIPAM Secretary Arunish Chawla reaffirmed the government’s commitment to monetizing MTNL and BSNL assets to clear liabilities. Despite being classified as an NPA last year, MTNL gained momentum after Finance Minister Nirmala Sitharaman announced a broadband scheme for government schools and health centers in Budget 2025. The telecom sector rallied, with the BSE Telecom index up 1.4%. However, the government’s telecom revenue is projected to decline by 33% to ₹82,443 crore in FY26 due to lower spectrum usage charges and deferred spectrum payments. At 10:20 am, MTNL was trading at ₹56.6, up 18.8%, with a 17% gain over the past three months.

Why it Matters:

MTNL’s 20% surge signals strong investor confidence in its asset monetization plan and government support. Despite high debt and past struggles, policy-driven initiatives could help revitalize the company and the broader telecom sector. However, the expected 33% decline in government telecom revenue raises concerns about long-term sustainability.

Desh Duniya Bazaar

Around the World

Asian markets showed mixed performance on Wednesday as Chinese stocks fell due to rising U.S.-China trade tensions, while investors analyzed inflation data from South Korea and the Philippines. China’s Shanghai Composite dropped 0.4%, and Hong Kong’s Hang Seng fell 1% after China imposed retaliatory tariffs on U.S. goods following Trump’s 10% tariff on Chinese imports. The risk of a prolonged trade dispute kept markets uncertain. Japan’s Nikkei remained flat, Australia’s ASX 200 gained 0.6%, and Indonesia’s index dropped 0.5%. South Korea’s KOSPI rose 1.1% despite inflation crossing 2% for the first time in five months, fueled by AI-driven e-commerce stocks. The Philippines’ inflation stayed at 2.9%, supporting the central bank’s plan for rate cuts, boosting the PSEi Composite by 1.7%. U.S. stock futures declined as tech stocks fell after Alphabet’s weak earnings. Overall, trade tensions, inflation trends, and central bank actions shaped market sentiment.

Option Traders Corner

Max Pain

Nifty 50 – 23,600

Bank Nifty – 50,000

Nifty 50 – 23,641 (Pivot)

Support – 23,520, 23,302, 23,181

Resistance – 23,860, 23,981, 24,199

Bank Nifty – 49,949 (Pivot)

Support – 49,691, 49,224, 48,967

Resistance – 50,415, 50,673, 51,139

Did you know?

India's Mutual Fund Industry Sees 40% Growth

The total equity assets under management of India’s domestic mutual fund industry reached ₹33.4 trillion in 2024, marking a 40% increase compared to the previous year, according to Motilal Oswal’s Fund Folio Report.

Newsletter: 04th February 2025

Tata Chemicals Faces Losses

Aaj Ka Bazaar

Yesterday’s US market continued to show losses, though the extent was limited after the initial negative sentiment over global trade was eased by the Trump administration halting tariffs on Canada and Mexico, while maintaining them on China. The Asian markets reflected this positivity, with a notable surge in the Nikkei and similar optimism in the Hang Seng index as concerns over tariffs diminished. On the domestic front, Indian markets are expected to open on a positive note, buoyed by favorable global sentiments. GIFT Nifty indicates a strong start, and we anticipate that the market will sustain its upward momentum throughout the day, following a lack of positive triggers in previous sessions.

Markets Around Us

BSE Sensex –77,736.24 (0.71%)

Nifty 50 – 23,519.10 (0.68%)

Bank Nifty – 49,627.15 (0.85%)

Dow Jones – 44,485.04 (0.14%)

Nasdaq – 19,405.61 (-1.13%

FTSE – 8,583.56 (-1.05%)

Nikkei 225 – 38,960.88 (1.14%)

Hang Seng – 20,622.98 (1.99%)

Sector: Commodity Chemicals

Tata Chemicals Reports Loss, Stock Falls

Tata Chemicals’ stock dropped over 4% after the company reported a net loss of Rs 21 crore for Q3, reversing the profit of Rs 194 crore from the same quarter last year. The decline in profits was mainly due to lower soda ash prices and a one-time exceptional loss of Rs 70 crore, which was linked to plant closures and employee termination costs in the UK. Revenue also fell 3.8% to Rs 3,590 crore, and the operating margin shrank to 12.1% from 14.5% a year ago. The company faced higher fixed costs in the US due to a production outage and lower demand for soda ash. Tata Chemicals’ debt increased, with gross debt rising to Rs 6,722 crore and net debt reaching Rs 5,329 crore. The CEO expects short-term challenges to continue but anticipates improvement over time due to sustainability trends.

Why it Matters:

Tata Chemicals’ Q3 loss highlights ongoing challenges, including lower prices and higher costs, affecting profitability. The stock drop reflects investor concerns about the company’s financial stability. Increased debt could impact its future growth and ability to recover in the short term.

 NIFTY 50 GAINERS

HINDALCO – 594.20 (3.51%)

BEL – 282.45 (3.03%)

ONGC – 255.55 (2.63%)

 

NIFTY 50 LOSERS

TRENT – 5865.40 (-4.40%)

HINDUNILVR – 2414.10 (-1.14%)

BRITANNIA – 5050.25 (-1.08%)

Sector: NBFC

Bajaj Finance Hits Record High on Optimism

Shares of Bajaj Finance rose more than 5%, reaching a new all-time high, and are up over 21% this year, following strong quarterly results for December. Investors are optimistic, expecting a 25 basis point rate cut by the Reserve Bank of India (RBI) later this week, which could further support consumption, especially after the tax relief in the recent budget. The company has improved its loan portfolio, reducing customers with multiple unsecured loans to pre-Covid levels, and expects credit costs to stay below 2% in FY26. Bajaj Finance’s strong performance in Q3FY25 included an 18% increase in net profit, driven by a rise in assets under management. Analysts remain positive, with some setting price targets above Rs 8,000 per share. The company also announced a leadership transition plan, as the current MD’s tenure ends in March, though he will stay involved in the strategic direction.

Why it Matters:

Bajaj Finance’s strong performance and expectations of an RBI rate cut drive optimism, boosting investor confidence. The company’s improved asset quality and growth potential suggest solid long-term prospects. This makes it an attractive investment in 2025, especially with its leadership transition and market momentum.

Desh Duniya Bazaar

Around the World

Asian currencies made a mild recovery on Tuesday as the dollar lost some ground after U.S. President Donald Trump delayed plans to impose trade tariffs on Canada and Mexico. However, the gains in regional currencies were limited due to the ongoing 10% tariffs on China, which were still set to take effect later in the day. Chinese markets were closed for the Lunar New Year holiday, but the yuan showed wild fluctuations in offshore trade. Despite some recovery in Asian currencies, concerns about high U.S. interest rates lingered, keeping regional markets under pressure. The Japanese yen rose slightly, while the South Korean won remained unchanged. The Indian rupee stayed close to a record high against the dollar. Investors are also waiting for the U.S. nonfarm payrolls data this week, which could influence expectations about interest rates, while the Fed’s stance on inflation and the economy continues to impact the dollar.

Option Traders Corner

Max Pain

Nifty 50 – 23,500

Bank Nifty – 50,000

Nifty 50 – 23,321 (Pivot)

Support – 23,261 23,161, 23,101

Resistance – 23,421, 23,481, 23,580

Bank Nifty – 49,163 (Pivot)

Support – 48,953, 48,695, 48,485

Resistance – 49,420, 49,630, 49,815

Did you know?

India's Mutual Fund Industry Sees 40% Growth

The total equity assets under management of India’s domestic mutual fund industry reached ₹33.4 trillion in 2024, marking a 40% increase compared to the previous year, according to Motilal Oswal’s Fund Folio Report.

 Check Union Budget 2025-26: Market Impact & Insights with Manish Chowdhury

Weekly Report: 02nd February 2025

Weekly Trend Report

Week Gone By

The key equity indices remained volatile on Budget Day, ending near the flat line despite key announcements by Finance Minister Nirmala Sitharaman in the Union Budget 2025-26.  Despite this, broader markets traded mixed. With the exception of two day’s decline, the benchmark indices rallied for four consecutive days. The Economic Survey presented in Parliament has projected that India will achieve GDP growth of 6.3-6.8% in the financial year 2025-26, supported by strong fundamentals, disciplined fiscal consolidation, and steady private consumption. In the week ended on Saturday, 01 February 2025, The Nifty 50 ended slightly lower by 0.11% at 23,482, while the Sensex remained nearly unchanged at 77,505. The Nifty Smallcap 100 index edged up 0.12% to 16,560, while the Nifty Midcap 100 index declined 0.42%, closing at 53,486. Meanwhile, the Nifty Smallcap 100 index managed to stay positive, rising 0.41% to settle at 16,979.

Week Ahead

Indian markets closed the special Budget Day trading session on February 1 with little movement as investors responded to the Union Budget 2025’s capital expenditure figures. The current Q3 earnings season will continue to dominate market attention as some of the major companies are slated to announce their third-quarter earnings in the next week. On February 04, data pertaining to job openings that are part of the Job Openings and Labor Turnover Survey (JOLTS) of the US will be announced.  Further, The Reserve Bank of India’s (RBI) rate-setting committee is scheduled to meet later this week (February 5-7), with analysts largely anticipating the central bank to introduce rate cuts—the first in over four years. Further, The Bank of England holds its latest policy-setting meeting this week and is widely expected to cut interest rates and hint at more reductions to come as the UK economy stagnates.

Technical Overview
  • The benchmark index began the trading week on a panic note, opening 152 points lower, which led to extreme oversold conditions.
  • However, the markets quickly rebounded following the announcement of the Reserve Bank of India (RBI) purchasing G-sec securities worth Rs. 60,000 crore, a move intended to ease liquidity measures in the equity segment.
  • This sparked a pre-budget rally of 721 points. On Saturday, the index closed with a sense of indecision after the budget                announcement.
  • Ultimately, the index finished the trading week 389 points higher on a weekly basis, forming an outside bar candle pattern, with most sectoral and broader indices showing an improvement in their negative momentum for the third consecutive week.
  • Subsequently, the VIX cooled off 15.8% 14.09.
  • The pre-budget rally has resulted in a notable recovery in intermediate breadth, as over 50% of NSE stocks are now trading above 10DMA.
  • However, less than half of NSE stocks continue to trade above 20DMA. Additionally, the figures for 50 and 200 DMA over the past 7 and 4 consecutive weeks serve as pressing indicators, and a failure to improve in the near future could warrant caution.
  • From a technical standpoint the index has formed an outside bar on the weekly timeframe.
  • The formation of outside bars, particularly when the closing is relatively robust, indicates that buyers have prevailed. Consequently, when this pattern occurs during a pullback, it enhances the likelihood of diminishing declines.
  • As a result, support levels have been elevated from 22786 to 23050, with immediate support positioned near 23430. Sustaining above this zone could enable the index to gain bullish strength and test the 50 and 200 DMA, currently trading near 23809 and 24000.

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