Fall to continue in the Nifty? what next?

Good Morning Everyone, as discussed in the weekly meeting yesterday, we could see Nifty down by 2.5% last week and 17600 will be strong support which if broken can bring down nifty to 17500 levels. Let us look for opportunities to invest in quality stocks during this fall. Trends on SGX Nifty indicate a positive opening for the index in India with a 37 points gain.

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Global Markets:

The Dow added 89.08 points to 35,819.56, while the Nasdaq gained 50.27 points to 15,498.39. The Russell 2000 index of small companies slipped 0.79 points, or less than 0.1 percent, to 2,297.19.

Shares in Asia-Pacific were mixed in Monday trade as investors reacted to economic data that showed a mixed picture of Chinese manufacturing activity in October.

Japanese stocks led gains regionally as the Nikkei 225 jumped 2.17% in morning trade. South Korea’s Kospi advanced 0.37% while the S&P/ASX 200 in Australia gained 0.6%.

Indian Market:

After two months of buying, foreign portfolio investors (FPIs) have turned net sellers in October by pulling out Rs 12,278 crore from Indian markets. As per depositories data, FPIs took out Rs 13,550 crore from equities but invested Rs 1,272 crore in the debt segment during October 1-29.

The total net outflow stood at Rs 12,278 crore during the period under review. FPIs were net buyers in August and September.

We will have to wait till the second half of the day to understand the FII action today, along with the major corporate results that will be announced today.

Asian Paints and Berger Paints confirmed price hikes effective November 12. Nomura said the latest price hike by Asian Paints was larger than its cumulative increases in the past six months.

The price increases come at a time when the industry has been facing headwinds due to a surge in key raw materials, primarily crude oil and its derivatives.

Crude oil has surged 62.8 percent on a year-to-date basis, riding on rising demand amid limited supply.

Varun Singh, FMCG, and Retail Analyst at IDBI Capital are bullish on both Asian Paints and Berger from the space. He believes the benefit of price moves should be visible from the fourth quarter of FY12.

Results today

HDFC, Tata Motors, IRCTC, Aditya Birla Capital, Allcargo Logistics, Bajaj Consumer Care, Bayer Cropscience, Carborundum Universal, Chambal Fertilisers, Devyani International, Dollar Industries, Graphite India, Gravita India, IG Petrochemicals, Indian Railway Finance Corporation, Lux Industries, Nilkamal, Parag Milk Foods, The Phoenix Mills, Privi Speciality Chemicals, Punjab & Sind Bank, Relaxo Footwears, Shipping Corporation of India, SPARC, VIP Clothing, Whirlpool of India, and Windlas Biotech.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 5,142.63 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 4,342.51 crore in the Indian equity market on October 29

Stock Specific News:

Policybazaar, Sigachi Industries and SJS Enterprises | Initial public offerings of these companies will open today.

Automobile companies | Automobile companies will announce their sales data for October today and on Tuesday.

Reliance Industries | Much-awaited JioPhone Next, the made-for-India smartphone, will be available in stores from Diwali at the down payment of Rs 1999. The remaining amount can be paid via easy EMI schemes.

Indian Oil Corporation | The company's Q2 profit rose 7 percent Year-on-Year (YoY) to Rs 6,360 crore and revenue was up 14 percent to Rs 1.35 lakh crore.

Equitas Small Finance Bank | Gross and net non-performing asset ratio weakened sequentially with net profit and net interest income falling short of expectations at Rs 41 crore and Rs 483.9 crore.

Vedanta | The company reported a higher consolidated net profit at Rs 5,813 crore in Q2FY22 against Rs 1,642 crore in Q2FY21. Revenue rose to Rs 30,101 crore from Rs 21,107 crore YoY.

Steel Authority of India | The company reported a net profit of Rs 5,794.9 crore in Q2FY22 against Rs 660.2 crore logged in Q2FY21, while revenue was up at Rs 26,828 crore as compared to Rs 16,925.5 crore YoY. Both net profit and revenue exceeded Street's expectations.

Adani Enterprises | The company has acquired a significant minority stake in Cleartrip Private Ltd, an online travel aggregator and part of the Flipkart Group.

Bharat Petroleum Corporation Ltd | BPCL's net profit and revenue for Q2 FY22 were sharply above the estimates, at Rs 2,694 crore and Rs 81,536.8 crore respectively.

Bandhan Bank | The bank reported a loss of Rs 3,008.6 crore for Q2 FY22 as against the expectation of a profit and net interest income of Rs 1,935.4 crore which was also below estimates.

UPL | The company's Q2 profit came in below expectations at Rs 634 crore whereas a revenue of Rs 10,567 crore beat estimates.

IDFC Bank | The company’s net profit was up 49.6% at Rs 151.7 crore versus Rs 101.4 crore and NII was up 27.4% At Rs 2,722.2 crore versus Rs 1,783.9 crore, YoY.

Tata Steel | NCLT approved the composite scheme of amalgamation of Bamnipal Steel & Tata Steel BSL into and with the company.

Airline Stocks in focus | Directorate General of Civil Aviation (DGCA) has extended the ban on scheduled commercial international passenger flights until November 30. However, the international scheduled passenger flights on select routes approved by the competent authority and international cargo flights, passenger flights approved by DGCA to continue the operations.

Dr Reddy's Laboratories | The company reported a consolidated profit after tax (PAT) of Rs 992 crore, up 30% from Rs 762 crore. The revenues were up 18% at Rs 5,763 crore for the quarter, compared to Rs 4,897 crore in the same period last year.

IOC | The company reported a 7 percent jump in its net profit at Rs 6,360 crore versus Rs 5,941,4 crore and revenue was up 14.1% at Rs 1.35 lakh crore against Rs 1.18 lakh crore, QoQ.

Shree Cement | The company reported a 5.6 percent jump in net profit at Rs 577.7 crore versus Rs 547 crore and revenue was up 5% at Rs 3,205.9 crore versus Rs 3,053.3 crore, YoY.

Apollo Tyres Q2 | The company posted a lower net profit at Rs 173.8 crore versus a loss of Rs 246.8 crore, revenue was up 18.2% At Rs 5,077.3 crore versus Rs 4,294.9 crore, YoY.

Godfrey Phillips Q2 | The company reported marginally higher net profit at Rs 104.9 crore versus Rs 103.9 crore and revenue was down 9.2% At Rs 631.9 crore versus Rs 695.8 crore, YoY.

Aarti Industries Q2 | The company’s net profit was up 22.6% at Rs 176 crore versus Rs 143.5 crore and revenue was up 32.3% at Rs 1,551.6 crore versus Rs 1,172.6 crore, YoY.

Tata Consumer Products | The company has decided to transition its Tata Cha business- a tea cafe format Quick Service Restaurant (QSR) chain to Qmin-Shops operated by a subsidiary of Indian Hotels Company Limited.