Nifty back to 16800. . Break down or bounceback?
Good Morning Everyone, Nifty opened with a gap up yesterday, but could not sustain the levels and fell down by end of the day.
Today being the monthly expiry, will add to the volatility of the existing geopolitical trauma.
Nifty is expected to open a gap down today, which might lead to a sudden panic in the market, and 16800 will be very important to watch, which if broken can lead to a major breakdown in Nifty. However, chances are low for the same as the Nifty is already in the oversold zone.
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Huge selling came in at end of the day yesterday as seen below.
Nifty has formed a bearish candle on a daily frame as shown below!
Global Markets:
Wall Street's major indices ended sharply lower on Wednesday. The Dow Jones Industrial Average fell 464.85 points, or 1.38 percent, to 33,131.76, the S&P 500 lost 79.26 points, or 1.84 percent, to 4,225.5 and the Nasdaq Composite dropped 344.03 points, or 2.57 percent, to 13,037.49.
Asia-Pacific shares fell on Thursday as investors continued to watch the escalating situation between Russia and Ukraine. The Shanghai Composite in mainland China fell 0.32 percent and the Shenzhen component dropped 0.4 percent. Hong Kong’s Hang Seng index was down 1.3 percent. In Japan, the Nikkei 225 declined by 0.73 percent, while the Topix slid by 0.5 percent.
Oil prices steadied on Wednesday, holding below 2014 highs, as US officials indicated escalation between Russia and Ukraine was unlikely to result in sanctions on energy supplies from Russia, one of the world's top oil producers.
Indian Market:
Reserve Bank on Wednesday asked certain classes of Non-Banking Financial Companies (NBFC) to mandatorily implement 'Core Financial Services Solution (CFSS)' by September 30, 2025, in order to provide a seamless customer interface as well as have a centralized database.
In a circular, the Reserve Bank of India (RBI) said it has been decided that Middle Layer and Upper Layer NBFCs with 10 and more 'fixed point service delivery units' as of October 1, 2022, shall be mandatorily required to implement CFSS.
India Ratings has revised downwards its GDP growth forecast for 2021-22 to 8.6 percent from the consensus 9.2 percent projected earlier. The National Statistical Organisation (NSO), which has forecast 9.2 percent real GDP growth for the year, will release the second advance estimate of national income on Monday.
According to an India rating analysis, NSO is likely to peg the FY22 real gross domestic product growth at Rs 147.2 lakh crore.
Analyst Radar:
Salasar Techno Engineering: Buy | CMP: Rs 260.80 | Stop-Loss: Rs 247 | Target: Rs 281 | Return: 8 percent
Bharat Forge: Buy | CMP: Rs 704.35 | Stop-Loss: Rs 667 | Target: Rs 760 | Return: 8 percent
Natco Pharma: Sell | CMP: Rs 825 | Stop-Loss: Rs 858 | Target Rs 775 | Return: 6 percent
Bernstein said on Wednesday it has an 'outperform' rating on Reliance Industries Ltd (RIL) with a target price of Rs 2,830. It expects the oil-to-telecom conglomerate's retail arm, Reliance Retail Ventures Ltd (RRVL), to grow at a CAGR of around 30 percent over FY22-FY25 with expanding margins.
FII and DII data:
Foreign institutional investors (FIIs) have net sold Rs 3,417.16 crore worth of shares, whereas domestic institutional investors (DIIs) have net bought Rs 3,024.37 crore worth of shares in the Indian equity market on February 23
Stock Specific News:
Wipro | The technology major said it has joined the global partnership network of o9 Solutions.
Indus Towers | Vodafone PLC is expected to sell a 2.4 percent stake in the company worth $200 million. The stake sale will take place through a block deal today and the offered range is Rs 227-231 per share, which is up to a 10 percent discount from the current market price. The offer size is about Rs 1,440 crore.
Federal-Mogul Goetze | Pegasus Holdings will buy a 25.02 percent stake in Federal-Mogul Goetze through Open Offer.
Sun Pharmaceutical Industries | The company will acquire anti-acne brand Alchemee for $90 million.
Vedanta | The company's Board of Directors on March 02, 2022, will consider and approve Third Interim Dividend on equity shares, if any, for the Financial Year 2021-22.
L&T Finance Holdings | Citigroup Global Markets Mauritius & CBNA London has offloaded a 4.88 percent equity stake in the company through open market transactions on February 21. With this, their shareholding stands at 3.87 percent now, down from 8.75 percent earlier.
Sanofi India | The final dividend of Rs 181 per equity share for the year ended December 2021 has been approved by the board of directors. In addition, the firm has also declared a special dividend of Rs 309 per share for the year. The decision of special dividend has been taken especially after the selling of nutraceuticals business during the year. Also, the net profit declined 26.5 percent YoY to Rs 90.4 crore for the quarter ended December 2021, and revenue during the same period fell 4.5 percent to Rs 688 crore YoY.
Forbes & Company | The firm said the board has given its approval for a binding term sheet for the sale of the company's entire shareholding in subsidiary Forbes Facility Services to SILA Solutions. The said transaction of Rs 42 crore is expected to be completed by the first quarter of FY23. Further, there would be termination of its Joint Venture agreement with Sterling Investment Corporation, G S Enterprises in relation to Shapoorji Pallonji Forbes Shipping (SPFSL), but the company would continue to hold 25 percent equity and preference share capital in SPFSL. The termination is taking place with mutual consent.
Piramal Enterprises | The firm said the Committee of the Board of Directors on February 28 will consider the fundraising by the issue of non-convertible debentures up to Rs 100 crore along with an option to retain oversubscription up to Rs 400 crore. With this, the total fundraising via NCDs would be Rs 500 crore on a private placement basis.
SKF India | Anurag Bhagania has resigned from the position of chief financial officer.
Kotak Mahindra Bank | Shares of the bank ended 2.5 percent higher and were the top gainers on Nifty50.
Oil and Natural Gas Corporation | ONGC shares settled 2.6 percent lower and were the biggest losers on Nifty50.
Raymond | Shares of the company ended 10.48 percent higher and were the top gainers on Nifty500.
PNC Infratech | The company has emerged as the lowest bidder for 3 new hybrid annuity model projects by NHAI for an aggregate bid project cost of Rs 4,384 crore in Uttar Pradesh. With this, the company's stock closed 11.22 percent higher.
Mahindra CIE Automotive | The company reported a muted performance for the December quarter. Post this, shares of Mahindra CIE Automotive ended 1.86 percent lower.
Butterfly Gandhimathi Appliances | The company's stock ended 2 percent higher after Crompton Greaves Consumer Electricals said it would acquire a controlling stake in the company. However, the stock erased most of its gains and settled 0.24 percent higher/lower.