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End of fall for Nifty?

Good Morning, Everyone, Equity benchmarks ended their three-day losing run following a volatile session. Both Sensex and Nifty fluctuated between loss and gains after opening higher this morning to finally settle on a positive note. At close, the Sensex climbed 187 points, or 0.3%, to 57,809, while the Nifty rose 53 points, or 0.3%, to 17,267. Metal, PSU, and select auto stocks gained while power, mid-cap, IT, and small-cap stocks witnessed profit booking. Nifty touched the intra-day low of 17044 and a high of 17306.

Tata Steel was the top gainer among the Nifty stocks followed by Divi’s Lab, Bajaj Finance, Bajaj Finserve, Reliance Industries, and Titan. However, ONGC, Power Grid, IOC, TCS, and Tech Mahindra are among the major loser in the Nifty stocks.

Sentiment positive on account of the rally in the global market, fall in oil price, and US Bond yield. RBI credit policy on Thursday while the 2-day MPC meeting will commence from today. Continued FIIs selling and volatility globally is a concern in the market. Among the global market, both European and Asian markets gained as focus centered on earnings updates while awaiting key US inflation data later in the week. US Dow Future has gained marginally.

Nifty PSU Bank witnessed a major gainer today and surged by 1%. Metal Index advanced nearly 1%. However, the Nifty power index slipped over 1%. Nifty IT Index declined marginally. Nifty mid-cap and small index declined 1% and 2% respectively. Nifty 500 stocks advance-decline ratio was 1:2.5. India Vix slipped 3.5% to close at below 20.

Power stocks witnessed profit booking. Tata Power slipped 7% to close at Rs235 amid 8.2cr shares traded on NSE. Torrent Power slipped 3% to close at Rs510. Heavyweight, Reliance Industries witnessed a smart rally. It has gained nearly 2% to close at Rs2356. The upstream oil company, ONGC declined 3% to close at Rs167 on account of profit booking.

The northbound journey continues on PSU Banks after strong quarterly results announced by SBI and Bank of Baroda. Bank of Baroda surged 4% to close at Rs118. SBI managed to end positive territory at Rs531 while touching an intra-day low of Rs519. Among the private banks like Axis Bank bounced back into positive territory. It has gained 1% to close at Rs799 while touching an intra-day low of Rs799. ICICI Bank and Indusind Bank bounced back into positive territory. NBFC stocks like Bajaj Twins, Bajaj Finance and Bajaj Finserve gained nearly 2% each.

Auto stocks like TVS Motor surged by 3% to close at Rs656 after announcing better than expected Q3 results. Maruti gained 1% to close at Rs8599 after the news that the commencement of bookings for its much-awaited, technologically advanced premium hatchback the "New Age Baleno". Metal stocks like Tata Steel surged by 3% to close at Rs1220. Jindal Steel, Vedanta, Hindalco, and JSW Steel gained nearly 1% each.

The Nifty index opened positive but failed to hold above 17300 zones and witnessed a sharp decline in the initial half of the day. After drifting down and taking support at 17050 zones, it recovered well in the next half of the session and closed with gains of around 50 points. It formed a small-bodied Bearish but a Hammer Sort of candle on the daily scale with a long lower shadow indicating buying interest is seen on declines. It has been forming lower highs - lower lows from the last four sessions. Now if it holds above 17300 zones by negating lower highs, then the recent correction may be over and a bounce could be seen towards 17500 then 17777 zones where on the downside support exists at 17050 and 17000 zones.

Global Market:

US stocks advanced Tuesday while the benchmark government bond yield hit its highest level since 2019 as investors continued to digest corporate financial results and await inflation data. Dow Jones, Nasdaq Composite, and S&P 500 gained 1% each. The 10-year US Treasury yield increased 5 basis points to 1.96%, the highest since July 2019. The US trade deficit widened to $80.73 billion in December from $79.33 billion in November, versus expectations for a gap of $83 billion.

Asian Stocks rose this morning and a selloff in sovereign bonds paused, bringing some relief for markets from the concerns about tightening monetary policy that has whipsawed assets this year. Shares climbed in Japan, South Korea, Hong Kong, Taiwan, and Australia (gained 1% each)

European stocks finished Tuesday mixed as investors continue to monitor corporate results and look forward to key US inflation data scheduled to be released later in the week. Germany, UK, and France Index ended flat but fell from the intra-day high.

Oil edged higher to above $90/bbl after a two-day decline as an industry report pointed to shrinking U.S. crude and gasoline stockpiles.

Indian Market:

Trends on the SGX Nifty indicate a positive opening for the broader index in India with a gain of 59 points.

The Reserve Bank of India (RBI) may hold its repo rate steady but economists expect an increase in the reverse repo rate as part of a process to reduce the surplus liquidity poured into the markets earlier during the pandemic.

The three-day RBI monetary policy committee (MPC) meeting that began yesterday will conclude on February 10, having been rescheduled after Maharashtra declared a day of mourning on February 7 following the death of legendary singer Lata Mangeshkar.

A Reuters poll of economists forecasts that the central bank will raise the reverse repo rate - the rate at which it borrows from banks - to 3.55 percent from 3.35 percent, narrowing the gap with the repo rate to 45 basis points (bps).

Brokers Radar

Nomura TGT on CreditAccess Grameen at 920, Lupin TGT at 1098, Nomura TGT on SBI at 650, JP Morgan TGT on TCS at 3800

FII and DII data:

Foreign institutional investors (FIIs) net sold shares worth Rs 1,967.89 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 1,115 crore in the Indian equity market on February 8

Results Today:

Abbott India, ACC, Aurobindo Pharma, BASF, Bosch, DCB Bank, EPL, FDC, Finolex Cable, GMR Infra, HEG, Jindal Hisar, P&G, Tata Power, and Tata Global


Ex-dividend Sun Pharma Rs7, IOC Rs4, BEL Rs1.5, FDC Meeting for share buy-back

Results: Castrol, GlaxoSmithKline Pharma, Indian Bank, Indo-count, Jindal Stainless, KPR Mills, JM Finance, Nalco, Phoenix Mills, SH Kelkar, TVS Motor, Union Bank and WPIL

Stock Specific News:

Bharti Airtel | The company reported a lower profit at Rs 829.6 crore in Q3FY22 against Rs 1,134 crore in Q2FY22, but revenue rose to Rs 29,866.6 crore from Rs 28,326.4 crore QoQ.

Bata India | The footwear company recorded a sharply higher profit at Rs 72.32 crore in Q3FY22 against Rs 26.4 crore in Q3FY21, while revenue surged to Rs 841.3 crore from Rs 615.6 crore YoY.

Vedanta | The company completed a reorganisation review and concluded that the current structure is optimal. It also announced the capital allocation policy.

Latent View Analytics | The company recorded a profit of Rs 49.92 crore in Q3FY22 against a profit of Rs 22.45 crore in Q3FY21. Revenue surged to Rs 107.75 crore from Rs 78.25 crore YoY.

Lupin | The company has received approval from US FDA for the Arformoterol Tartrate inhalation solution.

YES Bank | The capital-raising committee of the bank will meet on Friday to consider a proposal to seek the approval of investors for early redemption of certain Basel II- compliant lower tier-II and upper tier-II bonds.

Data Patterns (India) | The company clocked a profit of Rs 8.96 crore in Q3FY22 against a loss of Rs 4.4 crore in Q3FY21. Meanwhile, revenue nearly doubled to Rs 43.84 crore from Rs 22.41 crore YoY.

IRCTC | The company posted a sharp rise in net profit at Rs 208.8 crore in Q3FY22 against Rs 78.08 crore in Q3FY21, and revenue more than doubled to Rs 540.21 crore from Rs 224.37 crore YoY.

Jindal Steel & Power | The company posted a lower profit at Rs 1,621.68 crore in Q3FY22 against Rs 2,439.89 crore in Q3FY21, and revenue increased to Rs 12,524.86 crore from Rs 9,280.54 crore YoY.

NMDC | The company reported a higher-than-expected profit at Rs 2,049.8 crore but missed revenue expectations. Revenue came in at Rs 5,873.7 crore.

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