StockReport Archive

Newsletter: 05th December 2024

China Boosts HEG Demand

Aaj Ka Bazaar

On Wednesday, Wall Street’s main indexes advanced, with the S&P 500 and Nasdaq reaching record highs, driven by gains in technology stocks. Investors reacted to comments from U.S. Federal Reserve Chair Jerome Powell, who stated that the economy is stronger than the central bank had anticipated in September. Whereas, Asian stocks open mixed today as a ofter read on U.S. services data boosted investor confidence in the Federal Reserve lowering interest rates. Further, Hong Kong stock market is under pressure as investor are nervous about the effects of political instability in South Korea and France. Considering the global market cues, the Indian benchmarks will likely have a muted start, extending a four-session winning streak, as investors await the Reserve Bank of India’s (RBI) rate decision on Friday. On a stock-specific note, Indus Towers will be focused as the British telecom company Vodafone will sell a 3% stake in Indus Towers to clear its debt of Rs.856 crores, and use the residual amount to pay outstanding dues of its Indian venture, Vodafone Idea.

Markets Around Us

BSE Sensex –80,851.04 (-0.13%)

Nifty 50 – 24,423.05 (0.05%)

Bank Nifty – 53,153.00 (-0.21%)

Dow Jones – 44,984.84 (-0.06%)

Nasdaq – 19,732.87 (1.29%)

FTSE – 8,335.81 (-0.28%)

Nikkei 225 – 39,390.52 (0.29%)

Hang Seng – 19,547.01 (-1.00%)

Sector: : Electrodes & Refractories

HEG shares surge amid block deal

Shares of HEG extended their winning streak for the third day, jumping over 6% to a near six-year high of ₹619 on December 5, following a ₹172 crore block deal. Around 28.8 lakh shares, representing 6% of the company’s stake, traded at ₹600 per share, a premium to the previous day’s closing price. HEG’s stock has surged over 40% in the past week, driven by news of China restricting graphite exports, sparking concerns of global supply shortages. This move could boost HEG’s demand as it recently expanded its graphite electrode plant capacity to 1,00,000 tonnes, the largest in the western world, giving it a cost advantage. In the September quarter, HEG achieved 80% capacity utilization, the highest globally, and remains confident about long-term growth despite pricing pressure. With these developments, HEG is positioned to benefit from potential supply constraints and improved market prospects.

Why it Matters:

HEG’s stock surge reflects its strategic advantage as global graphite supply faces potential shortages due to China’s export restrictions. Its recent capacity expansion and high utilization rates position it to capitalize on increased demand. These factors could significantly boost earnings and strengthen its market leadership.

NIFTY 50 GAINERS

BHARTIARTL – 1598.60 (0.92%)

TCS – 4387.25 (0.75%)

TECHM – 1772.45 (0.73%)

NIFTY 50 LOSERS

BAJAJ-AUTO – 8833.50 (-1.84%)

NTPC – 366.60 (-1.65%)

POWERGRID – 320.15 (-1.51%)

Sector: Pharmaceuticals

Torrent Pharma Eyes Anti-Diabetes Brand

Torrent Pharmaceuticals’ shares are in focus as the company announced the acquisition of three anti-diabetes brands—Cospiaq, Cospiaq Met, and Xilingio—from Germany’s Boehringer Ingelheim, with the deal set to complete by March 2025. Torrent has been co-marketing these brands in India since 2022, leveraging empagliflozin, a cutting-edge SGLT-2 inhibitor used to manage blood sugar levels in adults with type 2 diabetes. The acquisition strengthens Torrent’s position in the diabetes care segment, enhancing its product portfolio. In the September 2024 quarter, Torrent posted a strong 40% growth in net profit, reaching ₹460 crore. Additionally, the company received an Establishment Inspection Report (EIR) from the USFDA for its Pithampur facility in November, boosting its global regulatory compliance credentials. These developments signal Torrent’s growth trajectory and its focus on expanding its presence in high-growth therapeutic areas.

Why it Matters:

The acquisition strengthens Torrent Pharma’s position in the growing diabetes care market with established brands. Empagliflozin-based therapies are innovative and crucial for managing type 2 diabetes, a major health concern. Combined with strong earnings and regulatory approvals, this move boosts Torrent’s growth potential and market confidence.

Around the World

Asian stocks mostly rose on Thursday, supported by Wall Street’s third consecutive record high, driven by a tech rally after Salesforce’s strong earnings. U.S. Federal Reserve Chair Jerome Powell highlighted the strength of the U.S. economy while hinting at a cautious approach to future rate cuts, providing some regional optimism. However, South Korea’s KOSPI index extended losses amid political turmoil after President Yoon’s brief declaration of martial law led to calls for impeachment, disrupting markets despite a 40 trillion won stabilization fund announcement. Broader Asian sentiment remained cautious, with Japan’s Nikkei and Australia’s ASX 200 gaining on positive economic data, while Hong Kong’s Hang Seng fell over 1% due to U.S.-China trade tensions. China’s markets remained stable, and India’s Nifty 50 futures pointed to a positive open ahead of the RBI’s rate decision. Investors globally await U.S. nonfarm payroll data for clarity on the Federal Reserve’s interest rate direction.

Option Traders Corner

Max Pain

Nifty 50 – 24,450

Bank Nifty – 53,600

Nifty 50 – 24,468 (Pivot)

Support – 24,364, 24,262, 24,157

Resistance – 24,571, 24,675, 24,778

Bank Nifty – 53,113 (Pivot)

Support – 52,839, 52,411, 52,137

Resistance – 53,540, 53,815, 54,242

Did you know?

FPI buying resumes strong

Foreign Portfolio Investors (FPIs) made net purchases of ₹10,000 crore in Indian equities, breaking a 36-session selling streak. The shift came amid positive market sentiment following the BJP-led alliance’s win in Maharashtra. This marks renewed foreign interest in India’s stock market.

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Newsletter: 04th December 2024

Founder Stakes, Market Shakes

Aaj Ka Bazaar

On Tuesday, the S&P 500 and Nasdaq eked out record closing highs, with tech-related shares extending recent gains as investors awaited further jobs data. Investors will also pay close attention to Friday’s U.S. monthly employment report. Asian stocks opened mixed today as investors reacted to the recent political turmoil in South Korea, where martial law was briefly declared and then lifted within hours. Further, Japan’s index is down as investors remained focused on the outlook for monetary policy, with speculation that the Bank of Japan may raise interest rates later this month. Considering the global market cues, the Indian benchmarks will likely have a steady start, extending a three-session winning streak, while focus will remain on the domestic central bank’s interest rate decision later in the week. On a stock-specific note, Reliance Power will be focused as the company has announced that Solar Energy Corporation of India Limited (SECI) has immediately withdrawn its debarment notice. As a result of this, Reliance Power and its subsidiaries, Reliance NU BESS Limited, are eligible to participate in all tenders issued by SECI.

Markets Around Us

BSE Sensex -80,922.37 (0.09%)

Nifty 50 – 24,479.25 (0.05%)

Bank Nifty – 52,739.30.95 (0.08%)

Dow Jones – 44,808.60 (0.23%)

Nasdaq – 19,480.32 (0.39%)

FTSE – 8,359.41 (0.56%)

Nikkei 225 – 39,211.96 (-0.10%)

Hang Seng – 19,780.69 (0.05%)

Sector: : Personal Care

Founder Boosts Stake, Stock soars 9%

Honasa Consumer, co-founded by Varun and Ghazal Alagh, saw its stock jump 9% after Varun increased his stake, bringing the couple’s total ownership to 35%—a rare move in India’s startup ecosystem where founders usually hold smaller stakes. Despite this positive news, the company is navigating challenges. Its stock has dropped over 38% year-to-date and recently reported its first quarterly loss in five quarters, with a ₹19 crore loss in Q2 FY25 compared to a ₹29 crore profit last year. Revenue also fell 7% year-on-year to ₹462 crore. While the stock has rebounded 25% in the past week from a sharp correction, concerns remain about slowing growth in the consumption sector. Analysts have downgraded the stock, citing weaker earnings and margins in the coming years. Traders and investors should weigh the recent rebound against ongoing challenges before making decisions.

Why it Matters:

Honasa Consumer’s rebound reflects renewed confidence due to increased founder stake, a rare move in startups. However, its financial struggles, including losses and revenue decline, highlight ongoing challenges in the consumption sector. Traders must assess if the recovery is sustainable amidst broader growth concerns.

NIFTY 50 GAINERS

BEL – 317.10 (1.60%)

HDFCLIFE – 642.65 (1.36%)

SBILIFE – 1457.35 (1.14%)

NIFTY 50 LOSERS

BHARTIARTL – 1608.00 (-0.77%)

SHRIRAMFIN – 3132.30 (-0.74%)

CIPLA – 1524.70 (-0.60%)

Sector: E-commerce

Swiggy rises with revenue, lower losses

Swiggy’s stock rose 3% to ₹517 after its Q2 FY25 results showed strong performance. Revenue jumped 30% year-on-year to ₹3,601.5 crore, growing from ₹3,222.2 crore in Q1 FY25, while net losses narrowed by 5% to ₹625.5 crore compared to last year, though slightly higher than the previous quarter. Monthly transacting users grew by 1 million, reaching 17.1 million, a 7% rise quarter-on-quarter and 19% year-on-year. Since its IPO at ₹390 last month, Swiggy’s stock has surged 33%, with its market cap crossing ₹1.16 lakh crore. The company is strengthening its competitive position in food delivery against Zomato and expanding its Instamart quick commerce segment with new dark stores. Swiggy raised ₹11,300 crore in its IPO, and its improved financials indicate potential for further growth, making it a stock to watch for traders and young investors alike.

Why it Matters:

Swiggy’s strong revenue growth and reduced losses signal improving financial health and competitiveness in the food delivery market. Its post-IPO stock surge highlights investor confidence in its growth potential. Expanding quick commerce capabilities positions it as a key player against rivals like Zomato.

Around the World

Asian markets dropped on Wednesday, led by a 2% slump in South Korea’s KOSPI after President Yoon Suk-Yeol declared and quickly revoked martial law, sparking political turmoil and investor concerns. South Korean lawmakers are now pushing for impeachment, deepening uncertainty. Japan’s Nikkei 225 and China’s CSI 300 also fell slightly, with China reporting weaker services sector growth as U.S. trade restrictions add pressure. However, Chinese chip stocks rose as the government encouraged local production over U.S. imports. Australia’s ASX 200 slid 0.5% after weak GDP data pointed to sluggish household spending and lower commodity exports, though it raised hopes of rate cuts. Thailand’s SET Index gained 1.3% on potential rate cuts to support its economy. While the Philippines saw minor losses, India’s Nifty 50 futures indicated a positive start. Political and economic instability across the region, combined with global monetary policy concerns, kept investors cautious.

Option Traders Corner

Max Pain

Nifty 50 – 24,400

Bank Nifty – 52,600

Nifty 50 – 24,406 (Pivot)

Support – 24,330, 24,204, 24,129

Resistance – 24,532, 24,607, 24,733

Bank Nifty – 52,564 (Pivot)

Support – 52,348, 52,000, 51,784

Resistance – 52,912, 53,128, 53,476

Did you know?

FPI buying resumes strong

Have you checked our latest Brand Ad

Newsletter: 03rd December 2024

KPI Green's Bright Future

Aaj Ka Bazaar

On Monday, the S&P 500 and the Nasdaq Composite closed at all-time highs as markets assessed manufacturing sector data for November and remarks by Federal Reserve officials. On the Asiatic front, Asian stocks began positively today, buoyed by a strong performance in the tech sector after Wall Street reached record highs overnight. The dollar traded close to a six-week low against the yen as traders considered the outlook for interest rates in both the United States and Japan. However, Chinese stocks faced some challenges, with Hong Kong’s Hang Seng Index declining slightly and mainland blue-chip stocks also dropping. Considering the global market cues, the Indian benchmarks will likely have a muted start. Technology companies earning substantial revenue from the U.S. will be in focus after data indicated improving manufacturing activity in the world’s largest economy. On a stock-specific note, Solar Industries India will be in focus as the company and its subsidiary have received export orders worth Rs. 2,039 Crores for Supply of Defence Products, to be delivered over a period of 4 years.

Markets Around Us

BSE Sensex –79,519.29 (0.15%)

Nifty 50 – 24,367.50 (0.38%)

Bank Nifty – 52,357.95 (0.48%)

Dow Jones – 44,781.01 (0.01%)

Nasdaq – 19,403.55 (0.96%)

FTSE – 8,312.89 (0.31%)

Nikkei 225 – 39,275.91 (1.98%)

Hang Seng – 19,553.19 (0.01%)

Sector: : Power Generation

KPI Greens gains on coal india order

KPI Green Energy’s stock is in focus today after securing its largest-ever order worth ₹1,311 crore from Coal India. At 9:44 am, the stock was trading at ₹803.45, up 3.11% on the BSE. The company will build a 300 MW solar power plant at GIPCL’s Solar Park in Gujarat on an EPC (engineering, procurement, and construction) basis, including five years of maintenance. This win follows the company emerging as the successful bidder for the project on November 30. KPI Green Energy also posted strong Q2 results with a 101% rise in net profit to ₹69.83 crore year-on-year. Over the past year, the stock price has more than doubled, with its 52-week high at ₹1,116 and low at ₹375. Currently, it trades 28% below its peak but is up 114% from its low, making it a stock to watch for potential growth.

Why it Matters:

KPI Green Energy’s largest-ever order strengthens its position in the renewable energy sector and showcases its ability to handle large-scale projects. The company’s strong financial performance and significant stock growth underline its potential for long-term value creation. This project also boosts investor confidence in its growth trajectory and execution capabilities.

Markets Around Us

ULTRACEMCO – 11630.20 (3.82%)

APOLLOHOSP – 7064.25 (3.45%)

GRASIM – 2686.00 (3.06%)

NIFTY 50 LOSERS

HDFCLIFE – 640.20 (-2.67%)

NTPC – 358.35 (-1.46%)

CIPLA – 1513.00 (-1.36%)

Sector: Tobacco Products

GST hikes hits tobacco stock hard

Shares of ITC, Godfrey Phillips, and VST Industries fell on December 3 due to reports suggesting an increase in GST on cigarettes, aerated drinks, and other “sin goods” from 28% to 35%. The proposed tax hike, if approved by the GST Council on December 21, could significantly impact cigarette volumes as higher prices may lead to reduced consumer spending and increased demand for cheaper, illicit tobacco products. At market open, ITC shares dropped by 2.16% to ₹466.85, Godfrey Phillips declined 2.7% to ₹5,605.30, and VST Industries slipped 1.7% to ₹319.75. Analysts noted that stable taxes had previously supported volume growth, but the unexpected proposal raises concerns about future sales and margins. The last hike in tobacco taxes was 2% in February 2023, and any further increase could disrupt the recovery in the cigarette business for these companies.

Why it Matters:

The proposed GST hike to 35% on tobacco products could significantly reduce cigarette sales, impacting revenue for companies like ITC and Godfrey Phillips. Higher taxes may drive consumers toward cheaper, illicit products, hurting the legal market. This unexpected move could disrupt industry growth and investor confidence in tobacco stocks.

Around the World

Asian markets saw gains on Tuesday, driven by strength in technology stocks, especially in Japan and South Korea, while Chinese shares fell due to new U.S. export restrictions targeting 140 Chinese companies. Japan’s Nikkei 225 rose 1.6%, with tech firms like Tokyo Electron and Advantest gaining over 3%, benefiting from reduced competition from Chinese chipmakers. South Korea’s KOSPI also climbed 1.6%, supported by Samsung Electronics and SK Hynix. However, Chinese markets struggled, with the CSI 300 and Shanghai Composite falling, as U.S. restrictions hit Chinese chipmakers like NAURA Technology and SMIC, leading to sharp declines in their stocks. These restrictions are expected to benefit non-Chinese semiconductor firms globally. Meanwhile, investors are awaiting Federal Reserve Chair Jerome Powell’s speech and upcoming U.S. economic data for insights on interest rate policies, while trade tensions between the U.S. and China remain a key concern.

Option Traders Corner

Max Pain

Nifty 50 – 24,300

Bank Nifty – 52,500

Nifty 50 – 24,195 (Pivot)

Support – 24,089, 23,902, 23,796

Resistance – 24,382, 24,488, 24,675

Bank Nifty – 52,000 (Pivot)

Support – 51,802, 51,496, 51,299

Resistance – 52,306, 52,503, 52,809

Did you know?

FPI buying resumes strong

Have you checked our latest Brand Ad

Weekly Report: 29th November 2024

Weekly Trend Report

Week Gone By

The Indian benchmark indices ended higher, with the Nifty closing above 24,100 and the Sensex surpassing 79,800, reflecting a bullish trend in the domestic market. In contrast, global markets faced pressure due to disappointment over China’s fiscal stimulus package and renewed tariff concerns from the Trump administration. U.S. technology stocks declined amid growing concerns that the Federal Reserve might adopt a cautious stance on rate cuts following persistently high inflation data. Additionally, major auto OEMs saw declines due to nervous market sentiment, as their supply chains are deeply integrated across Canada and Mexico. The tariff announcement triggered a dollar rally, with the U.S. dollar gaining 1% against the Canadian dollar and 2% against the Mexican peso.

Week Ahead

Traders are anticipating the RBI’s monetary policy decision, set to be announced on December 6. The HSBC Manufacturing PMI data will be released on December 2, followed by the HSBC Composite and Services PMI data on December 4. Globally, China’s Caixin Manufacturing PMI will be out on December 2, while the US ISM Manufacturing PMI will also be released the same day. Additionally, the US JOLTs Job Openings data is scheduled for December 3, and the ISM Services PMI will follow on December 4. US Fed Chair Jerome Powell is set to deliver a speech on December 5.

Technical Overview

The Nifty50 index started the trading week on a strong note, gapping up over 300 points as it attempted a recovery from the support of the 50-week moving average. This positive movement followed the recent state elections, which had garnered optimism in the market.
However, the index hit an intermediate top on Monday and subsequently consolidated for the next two trading sessions. By the end of the week, it had gained 223 points from the previous week, indicating a shift in its status to a rally attempt.
Volatility decreased during the week, closing at 14.42, down 10.39% from the previous week.
The last week saw most broader and sectoral indices changing their status to potential rally attempts. Contrastingly, all indices exhibited positive and improving momentum, which is a highly encouraging development.
In terms of market breadth, the percentage of stocks trading above short-term moving averages showed significant improvement, indicating a stronger trend and momentum overall. Although the proportion of stocks trading above 50 DMA remained below the median threshold, there was noticeable recovery compared to previous weeks.
The recovery for stocks above 200 DMA showed improving signs in the market, reducing the likelihood of further structural damage to the downside.
While momentum in market breadth saw a substantial recovery, further improvement in quarterly numbers is needed to ensure healthy stock participation overall. This suggests that we are still not completely out of the woods.
Looking ahead to the new week, a retracement or consolidation could precede a more meaningful upward movement.
The market seems to be transitioning from a no-money to a hard-money environment.
Therefore, Nifty’s performance before reaching 50 DMA will be crucial, making the zone of 24550-24665 an important resistance level to monitor.
The index is expected to gain additional bullish strength if it decisively reclaims this zone. On the other hand, the zone of 23650-23260 will serve as a critical support level.
The current market swing confidence is measured at 75, indicating that portfolios may sustain less than the maximum permissible open risk. This suggests that deployed portfolios should maintain their positions.

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Newsletter: 02nd December 2024

Google Pixel Boosts Dixon

Aaj Ka Bazaar

Global stock markets rallied on Friday, with Wall Street crowning November with its biggest monthly gain in a year on post-election growth hopes. The advance was on account of the rebound in technology stocks. On the Asian front, indices edged higher after US shares rose Friday as global markets entered a seasonally strong period. Meanwhile, Hang Seng was seen to be under pressure after registering its biggest gains five weeks earlier. Considering the global market cues, the Indian benchmarks are likely to have a subdued start, influenced by the GDP data released on Friday. On a stock-specific note, Aster DM Healthcare and Blackstone—and TPG-backed Quality Care India Ltd. will merge through a share-swap agreement to become India’s number three hospital operator.

Markets Around Us

BSE Sensex –79,519.29 (0.15%)

Nifty 50 – 24,140.85 (0.05%)

Bank Nifty – 52,087.65 (0.06%)

Dow Jones – 44,879.19 (-0.07%)

Nasdaq – 19,218.17 (0.83%)

FTSE – 8,287.30 (0.07%)

Nikkei 225 – 38,333.95 (0.33%)

Hang Seng – 19,465.62 (0.22%)

Sector: Consumer Electronics

Dixon Tech surges on google deal

Dixon Technologies’ shares surged nearly 6% to a 52-week high of ₹16,739 after its subsidiary, Padget Electronics, announced plans to mass-produce Google Pixel smartphones in collaboration with Compal Smart Device India. Production will take place at Dixon’s Noida plant under a contract signed earlier this year. The stock has gained 150% year-to-date, significantly outperforming the Nifty 50’s 11% rise. Analysts at Nomura maintain a “Buy” rating, targeting ₹18,654, citing potential revenue growth of ₹15 billion by FY26 from Pixel production. Dixon is expected to benefit from higher realisations per unit and its strong position in premium smartphone manufacturing as companies diversify away from China. The shift aligns with India’s growing role in global electronics, bolstered by the government’s proposed ₹400 billion incentives for local manufacturing, which could further enhance Dixon’s opportunities in high-value components like PCBs, camera modules, and lithium-ion cells.

Why it Matters:

Dixon Technologies’ collaboration to manufacture Google Pixel smartphones positions it as a major player in India’s growing electronics manufacturing sector. This aligns with the global shift away from China, opening significant revenue and growth opportunities. Additionally, government incentives for local production could further boost Dixon’s competitive edge and profitability.

NIFTY 50 GAINERS

MARUTI – 11250.35 (1.59%)

SHRIRAMFIN – 3058.60 (1.29%)

SUNPHARMA – 1803.75 (1.28%)

NIFTY 50 LOSERS

ONGC – 253.20 (-1.36%)

EICHERMOT – 4780.00 (-1.07%)

HDFCLIFE – 650.85 (-1.05%)

Sector: Banking

RBL Banks drops on partnership end

RBL Bank shares fell 4% after announcing the end of its eight-year partnership with Bajaj Finance for co-branded credit cards, citing changing synergies. Despite this, RBL plans to grow its credit card business through new partnerships with NBFCs like Mahindra Finance and consumer brands like IOC and IRCTC. Bajaj Finance was a key sourcing partner, and the move could slow credit growth by 200 basis points to 13-14% in FY25, with a potential dip in net interest income. Growth is expected to recover in H2FY25 as the bank ramps up collaborations with new partners to diversify its portfolio.

Why it Matters:

The end of RBL Bank’s partnership with Bajaj Finance impacts its credit growth and income due to Bajaj’s key role in sourcing customers. The bank’s shift toward new collaborations signals a strategic pivot to diversify partnerships. This development may temporarily affect financial performance but positions RBL for long-term growth.

Around the World

Asian stock markets rose on Monday, led by gains in China after positive factory activity data showed the economy is improving thanks to government stimulus. Key indexes like the Shanghai Composite and CSI 300 advanced, and China’s manufacturing PMI reached its highest level since June. Other markets, like South Korea, Japan, and the Philippines, also saw small gains, while India’s Nifty 50 slipped slightly. However, overall gains were limited due to concerns over potential U.S. tariffs on BRICS countries and ongoing trade tensions. The U.S. Federal Reserve’s rate decisions and key economic data are in focus this week, along with the Reserve Bank of India’s upcoming rate decision. Meanwhile, Japan’s factory output continues to shrink, and Australia’s retail sales beat expectations, helping its markets inch higher. Traders are watching for global economic cues as markets weigh optimism in China against broader trade and inflation challenges.

Option Traders Corner

Max Pain

Nifty 50 – 24,100

Bank Nifty – 52,500

Nifty 50 – 24,082 (Pivot)

Support – 23,976, 23,820, 23,714

Resistance – 24,237, 24,343, 24,498

Bank Nifty – 51,995 (Pivot)

Support – 51,819, 51,583, 51,408

Resistance – 52,231, 52,406, 52,642

Did you know?

FPI buying resumes strong

Have you checked our latest Brand Ad

Newsletter: 29th November 2024

Stock Split Sparks Buzz

Aaj Ka Bazaar

The US bourses were closed on Thursday on account of Thanksgiving. On the Asian front, both Nikkei and Hang Seng were seen to slump. The decline in Japan’s frontline index was likely on the back of the strengthening yen, increasing the pressure on the export-focused economy. Meanwhile, Hong Kong stocks continued to remain on track for a second consecutive monthly decline. The markets were likely weighed by the disappointment in China’s fiscal stimulus package and fresh tariff prospects from the Trump administration. The Indian benchmarks are expected to make a muted start yet again, driven by a lack of triggers in the market. On the stock-specific front, RIL’s subsidiary has entered into a stock purchase agreement with Wavetech Helium and acquired 21% of stakes in the company.

Markets Around Us

BSE Sensex -80,121.03 (0.15%)

Nifty 50 – 23,927.15 (0.05%)

Bank Nifty – 51,984.15 (0.15%)

Dow Jones – 44,834.12 (0.25%)

Nasdaq – 19,060.48 (-0.59%)

FTSE – 8,281.22 (0.08%)

Nikkei 225 – 38,208.47 (-0.37%)

Hang Seng – 19,564.10 (1.02%)

Sector: Jewellery

PC jeweller share surge on split

PC Jeweller’s shares rose 4.08% in early trade on November 29, reaching ₹162.60 on the NSE, following the announcement of a 1:10 stock split with a record date set for December 16. This means each share with a face value of ₹10 will be split into 10 shares with a face value of ₹1, making the stock more affordable for retail investors. Earlier in July, the company announced plans to raise ₹2,705 crore by issuing warrants to promoters and investors, aiming to reduce bank loans and strengthen working capital. Promoters are set to contribute ₹850 crore as part of this fundraising. The stock split and fund infusion reflect the company’s efforts to improve its financial health and attract more investors.

Why it Matters:

The 1:10 stock split makes PC Jeweller’s shares more affordable, attracting retail investors and increasing market activity. Combined with the ₹2,705 crore fundraising to reduce debt and improve working capital, it shows the company’s focus on financial stability and growth. These steps aim to boost investor confidence and long-term value.

NIFTY 50 GAINERS

HDFCLIFE – 673.20 (2.36%)

SBILIFE – 1448.40 (1.39%)

DRREDDY – 1203.15 (0.94%)

NIFTY 50 LOSERS

TCS – 4205.05 (-0.94%)

POWERGRID – 330.90 (-0.82%)

TECHM – 1704.00 (-0.55%)

Sector: Construction

NCC gains on ₹3390 crore contract

NCC has secured a ₹3,389.49 crore contract under the Ken-Betwa Link Project for constructing the Daudhan Dam, including planning, design, and hydro-mechanical works, to be completed in 72 months. With a market cap of ₹19,000 crore and shares up 83% in the past year, NCC has a strong project pipeline worth over ₹2.1 lakh crore and an order book of ₹52,370 crore. The water division, comprising 12% of the total order book at ₹6,071 crore, benefits from the government’s Jal Jeevan Mission, which allocated ₹70,163 crore this year. The company aims for FY25 revenue growth above 15%, order inflows of ₹20,000-22,000 crore, and EBITDA margins of 9.5-10%. This contract highlights NCC’s growth momentum and robust position in infrastructure development.

Why it Matters:

This contract strengthens NCC’s order book, showcasing its leadership in large-scale infrastructure projects like the Ken-Betwa Link. It aligns with the government’s infrastructure push, providing long-term revenue visibility. The strong growth outlook, supported by rising order inflows and steady margins, enhances investor confidence.

Around the World

Asian stocks mostly declined on Friday as the Russia-Ukraine conflict escalated, with Russia targeting Ukraine’s energy infrastructure and President Putin issuing new threats. Japan’s Nikkei dropped 0.5% due to a stronger yen driven by higher-than-expected inflation, raising expectations of a Bank of Japan rate hike. South Korea’s KOSPI fell 2%, led by tech losses, amid concerns over weak economic data, including declines in industrial output and retail sales. Meanwhile, Chinese stocks bucked the trend, with the CSI 300 and Shanghai Composite gaining over 1%, supported by reports of potentially less severe U.S. sanctions on China’s semiconductor industry. Hong Kong’s Hang Seng Index also rose 1.3%, as semiconductor stocks like SMIC saw strong gains. Investors are awaiting China’s manufacturing PMI data on Saturday, expected to show modest growth amid recent government stimulus measures.

Option Traders Corner

Max Pain

Nifty 50 – 24,000

Bank Nifty – 52,600

Nifty 50 – 24,044 (Pivot)

Support – 23,743, 23,572, 23,270

Resistance – 24,215, 24,516, 24,687

Bank Nifty – 52,149 (Pivot)

Support – 51,539, 51,172, 50,562

Resistance – 52,517, 53,127, 53,494

Did you know?

FPI buying resumes strong

Have you checked our latest Brand Ad

Weekly Report: 25th November 2024

Weekly Trend Report

Week Gone By

The key equity benchmarks concluded a truncated week with modest gains after Friday’s major rally following strong US labor market data. The Nifty closed above the 23,900 level, and the Sensex settled above the 79,100 mark. The HSBC Flash India Composite Output Index stood at 59.5 in November compared to 59.1 recorded in October, indicating a sharp rate of expansion that was the strongest in three months and above its long-run average. On the global front, US retail sales increased slightly more than expected in October, rising 0.4% last month, above the 0.3% expected, and compared with the upwardly revised 0.8% advance in September. Robust consumer spending helped the economy maintain its strong pace of growth last quarter.

Week Ahead

Next week, The domestic equity market may respond to the outcome of the Maharashtra Assembly election results over the weekend. India’s GDP growth data for the third quarter will release on Friday, 29 November 2024. The Indian economy expanded by 6.7% from the previous year in the June quarter of 2024, slowing from the 7.8% increase in the earlier period. US FOMC minutes on Wednesday, 27 November 2024 will reveal insights into the Federal Reserve’s recent rate cut to 4.50-4.75%, following Donald Trump’s 2024 presidential victory. Japan’s consumer confidence data for November is set to release on Friday, 29 November 2024. The consumer confidence index in Japan declined to 36.2 in October 2024 from September’s five-month high of 36.9.

Technical Overview

The benchmark index began the week under selling pressure, continuing its corrective decline from the preceding week. During the first four trading sessions, the price action demonstrated an inability to maintain momentum at the day’s high, consistently closing in the lower quartile of the trading ranges.
This trend resulted in a test of the 50 Weekly Moving Average (MA) for the first time since April 2023. However, after this test, the index experienced a long-awaited technical recovery, culminating in a closing increase of 374 points from the prior week and successfully reclaiming the 200 Daily MA. The volatility exhibited a modest increase, as evidenced by a rise of 8.95% in the India VIX, which reached 16.1.
The trading week concluded with the majority of broader and sectorial indices reflecting a downtrend, accompanied by a worsening of negative momentum. However, several sectorial indices began to show early indications of diminishing negative momentum, which is a positive development.
In terms of market breadth with regards to extension, the percentage of stocks trading above the 10 and 20 Daily MAs (DMA) continues to reside in oversold conditions. Nonetheless, the weak rebound observed on Friday suggests that these figures may not persist in oversold territory.
Furthermore, the percentage of stocks trading above the 50 DMA has remained below median levels for the eighth consecutive week. More concerning, the breadth above the 200 DMA has also sustained below median levels for a second consecutive week; continued sub-median performance for at least one month may indicate a transition from a bull market to a bear market.
Throughout the truncated trading week, the momentum market breadth remained weak, though a mild recovery on the final day suggests a potential transition from a no-money market environment to a hard-money market.
From a technical perspective, the Nifty index is currently testing significant resistance levels and is not entirely out of volatility concerns. As we approach the expiry week of the monthly derivative series, the forthcoming days are likely to be influenced by rollover-centric activities. The zone of 23350-23250 represents critical support, and its maintenance above this threshold will be essential to mitigate further drawdowns. We anticipate a meaningful technical pullback, with pivotal resistance identified near 24535 and 50 DMA, which is currently trading near 24780, potentially serving as a substantial resistance zone.
The prevailing market swing confidence remains at a neutral level, indicating that portfolios should exercise caution and refrain from assuming any open risk at this time. It is advisable to await further technical evidence, such as a closing above the designated 24150-24200 zone, to confirm the establishment of a base formation at the current low points.

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Weekly Report: 11th November 2024

Weekly Trend Report

Week Gone By

The markets had a mixed week, ending lower despite some global optimism following the US Federal Reserve’s 0.25% interest rate cut. The Nifty fell by 156.15 points to 24,148.20, and the Sensex dropped by 237.8 points to 79,486.32. In India, exports of services grew by 14.6% YoY to $32.6 billion, while imports rose by 13.2% to $16.5 billion. The HSBC Composite Output Index also improved to 59.1 in October, better than expected. Globally, the US economy added just 12,000 jobs in October, much fewer than anticipated. Following this, the Fed cut rates by 0.25%. In Europe, the Bank of England reduced interest rates to 4.75%, its second cut since 2020, due to high inflation and slower growth.

Week Ahead

Next week, investor sentiment will be shaped by a combination of domestic and global factors, with particular attention on the final batch of second-quarter results (Q2FY25) from Indian companies, which are expected to offer valuable insights into corporate performance. India’s Consumer Price Index (CPI) and Wholesale Price Index (WPI) will be released on November 12 and November 14, respectively, while balance of trade data will be published on November 15. On the global front, US inflation data will be released on November 13, followed by a speech from US Federal Reserve Chair Jerome Powell on November 15. Additionally, Japan’s GDP growth rate, as well as China’s industrial production and retail sales data, will also be released on November 15.

Technical Overview

The markets have been navigating a cautious path over the past week, reflecting a lingering sense of uncertainty.
The Nifty index digested the fallout from the US election results, with two days of robust technical rebounds quickly met with selling pressure, leaving the index oscillating within a broad range. In fact, it navigated a substantial 721-point swing throughout the week.
As volatility eased, the India VIX dipped by 6.95%, settling at 14.47.
However, despite a week characterized by range-bound trading filled with uncertainty, the headline index wrapped up with a net loss of 156 points. Most broader indices are feeling the pressure, finding their uptrends under threat, while sectorial indices have firmly entered a downtrend. On a brighter note, there has been a noticeable improvement in momentum, a positive development.
On the market breadth front, while the percentage of stocks trading above 10 and 20 DMA remains below their median, those above 10 DMA have begun to outnumber those above 20 DMA. This suggests a potential shift in intermediate trends and momentum.
Stocks that are above their 50 DMA are still lagging, but those above 200 DMA are inching lower to the median levels and a drop below 50% here could intensify the bearish sentiment.
Wednesday was a standout day for the momentum market breadth, rekindling hopes for a potential rally. Yet, the week concluded with the second-lowest momentum level seen in the last 10 trading sessions.
Technically, the Nifty has not fully escaped the challenges it faces; it has dipped below its 20-week moving average, currently sitting at 24775. A cluster of resistance levels lies ahead, with the 100 DMA at 24709 and a short-term 20-day MA at 24486.
This creates a formidable 250-point resistance zone around the 24500-24750 levels, meaning any technical rebounds may struggle once the index approaches this area, making it of cardinal importance to decisively reclaim this zone on a closing basis to attract bullish momentum.
On the flip side, the 23900-23800 zone holds immediate support. Should that be breached, the markets could succumb to greater weakness. As we look ahead, it’s clear we are in for a turbulent ride, with higher volatility and erratic swings expected. Given the current landscape, staying in cash appears to be a wise strategy, as swing confidence remains at zero and the broader market cautions against taking open risks with portfolios right now.

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Weekly Report: 04th November 2024

Weekly Trend Report

Week Gone By

The benchmarks witnessed mix trend during the week, closing lower despite of two days of gains. The BSE Mid-Cap index and BSE Small-Cap index outperformed the frontline indices . In the week ended on Thursday, 31st October 2024, the S&P BSE Sensex fell 13.23 points or 0.02% to settle at 79,389.06. The Nifty 50 index jumped 24.55 points or 0.10% to settle at 24,205.35. The BSE Mid-Cap index added 1.13% to close at 45,966.71. The BSE Small-Cap index declined 1.01% to end at 47,946.53. The BSE Small-Cap index rallied 5.06% to end at 54,982.87. On economy front, The finance ministry maintains that the Indian economy will grow between 6.5% and 7.0% in the current fiscal year.

Week Ahead

Next week, investor sentiment will be influenced by a mix of domestic and global factors, with a particular focus on the second-quarter results (Q2 FY25) for Indian companies, which are expected to provide insights into corporate performance .Global stock market movements and the upcoming 2024 United States presidential election on November 5 will also play crucial roles. The behavior of foreign and domestic institutional investors will also be closely monitored . On the macro front, HSBC India Manufacturing , composite & service PMI data for October will release in the coming week. In the global market, The US Federal Reserve will decide on interest rates on Friday, 8 November 2024.

Technical Overview

Over the past five trading sessions, the Nifty has predominantly engaged in a consolidation phase, characterized by a bearish undertone.
The index has exhibited trading activity within a defined range and concluded the week with a modest gain. Notably, it remained below critical resistance levels.
Accompanying this stabilization, market volatility has increased, evidenced by an 8.68% surge in the India VIX, which reached a weekly close of 15.90.
The constrained trading range, with the Nifty oscillating within a 363-point bandwidth, was significantly narrower compared to the preceding week. Despite the overall bearish setup, the headline index achieved a weekly gain of 123.55 points (+0.51%).
The conclusion of the week saw several broader and sectoral indices trending downwards; however, a deterioration in their negative momentum could be interpreted as a positive development, signaling a potential transition from a no-money market environment to a hard-money market framework.
From a market breadth perspective, the proportion of stocks trading above the ten-day moving average (10-DMA) has returned to levels above the median, indicating improvements in shorter-term trends among these stocks.
Conversely, the percentage of stocks trading above the twenty-day moving average (20-DMA) has fallen below the median levels, while those above the sixty-day moving average (60-DMA) are hovering near 60. Further improvement in these areas is deemed essential.
Towards the end of the week, there was an uptick in market breadth volume, supporting the transition narrative from a no-money to a hard-money market, as evidenced by enhanced stock participation.
It is noteworthy that in the previous week, the Nifty breached and closed significantly below the 100-day moving average, currently situated near 24670. Concurrently, the index also violated the 20-week moving average, which is positioned 24750.
Thus, the range of resistance identified 24750-24650 this zone becomes pivotal; the Nifty’s continued presence below this resistance zone renders it susceptible to ongoing selling pressure.
The most immediate support for the Nifty is positioned near 23900; a breach of this level could exacerbate market weakness.
In anticipation of global market conditions providing a favorable backdrop, it is projected that the Indian markets may experience a stable start to the upcoming trading week on Monday.

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Weekly Report: 28th October 2024

Weekly Trend Report

Week Gone By

The Indian benchmark indices experienced major losses during the week as the market extended its loss streak to 4 weeks. The decline was driven by the pressure from FII exodus, weak earnings and large scale selloff. The pressure in the broader market was more intense during the week as various indices continued to bleed. The global market also reflected a similar scenario, as weak earnings continue to weigh. Nasdaq was the only anomaly during the week.

Week Ahead

As the investors gear up for the coming week, earnings continue to act a significant trigger, affecting the sectoral trends during the week. Investors will also closely watch on FII and DII activity to gauge the market sentiment. Middle-East escalations will also act as a key trigger that could impact energy prices and volatility in the market. Key economic indicators to follow during the week: US job opening data, Japan Consumer confidence, US Q3 GDP data, BOJ’s interest rate decision and US core PCE price index.

Technical Overview

The overextended markets demonstrated a continued decline for the fourth consecutive week.
During the past five trading days, despite a few attempted technical rebounds, the Nifty Index has remained largely under sustained selling pressure that resulted in the loss of key support levels on the daily charts, as the trading range expanded significantly. The Nifty oscillated within a substantial 904-point range before culminating in a net weekly loss of 673 points.
Additionally, volatility increased, with the India VIX surging by 12.23% to 14.63 on a weekly basis; any movement beyond 15.7 warrants caution.
The week ended with the majority of broader market indices and sectoral indices exhibiting pressure on their uptrends, leading to a deterioration in momentum—a concerning development.
Market breadth analysis reveals that the percentage of stocks trading above their 10-day and 20-day moving averages has now dwindled to single digits.
Furthermore, the percentage of stocks trading above their 50-day moving average has fallen below median levels, currently reading below 20, with similar values last observed in March 2023 and 2024.
For the first time since June 2024, the percentage of stocks above the 200-day moving average has also dipped below the 50 median levels. Sustaining these levels for a minimum of one month will be crucial in confirming a transition from the current bull market to a bear market.
However, with stock participation at extreme lows, these trends indicate oversold conditions, hinting at the potential for a mild technical pullback in the near future.
The upcoming week presents a truncated trading schedule; as Friday’s trading session will feature a brief ceremonial Mahurat session lasting only one hour.
The Nifty has breached its critical support levels on the daily chart, specifically 20-week moving average positioned near 24700. This adverse technical landscape has lowered resistance levels for the Nifty to the range of 24500-24700.
Consequently, any potential technical rebounds are likely to encounter resistance in this zone, implying that rebounds will be susceptible to selling pressure as long as the markets remain below this threshold.
In light of the current technical setup, the market has entered a challenging environment characterized by a risk-off sentiment. It is imperative to prioritize investments in stocks demonstrating strong relative strength compared to the broader market. A selective and cautious approach is thus advised for the forthcoming week.

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