Actionable: Buy Axis Bank, Indusind Bank, Persistent systems.

Insight Online News

From Advisory Desk : Vikash Sahay

20th October 2022

Market Outlook: Global equity markets have snapped their recent rally, with wall street turning lower on rising treasury yields due to higher inflation numbers in the UK and canada as investors increased their rate hike expectations. US futures are also trading lower due to cautious earnings forecasts from Tesla. Treasury yields continue to soar, with most of the bond yields hits a new cycle high and well above 4%. Asian markets including SGX Nifty is indicating a weak opening for indian markets. Today being weekly expiry, we expect with Nifty’s range to be 17250/17350 – 17650/17777 and Banknifty’s range to be 39750/40000 – 40750/41000 .

Actionable: Buy Axis Bank, Indusind Bank, Persistent systems.

Global market:

DOW:   -100
SGX NIFTY:   -110   (prev. close 17504)

NIFTY 50 : 17512
Sensex : 59107
 
Institution:
FII:                –  454   Cr
DII:               + 908   Cr

NSE:
Advances:  1567 / Declines:  1866

Currency:
Dollar: $ 83.02
Dollar Index: 113.06
 
Commodity:
Gold: $1630  per ounce
Crude: $92.25  per barrel
 
Bonds:
10 year US bond rate: 4.15
10 year Indian Bond rate: 7.45

Derivative:
PCR: 1.02
VIX:  17.48
 
Today’s Results:

Nifty – Asian Paints, Bajaj Finance , Tata Consumer Product, Axis Bank, ITC Ltd.
Others – Coforge, Mphasis, ICICI Securities, UTI AMC, Colgate, Granules India, Happiest Minds, Clean Science, Canara Bank, L&T Finance, United Breweries, IEX, Shriram Transport, IIFL Securities, Mastek, Jubilant Ingrevia, Eris Lifesciences, IndiaMart, Dixon Technologies, Union Bank of India, Symphony, Nazara tech.
 
Results Update:

Above estimates: Persistent system, Syngene International

Inline estimates: AU Bank, Ultratech cement, Nestle, Indusind Bank, HDFC AMC, Metro Brands, IIFL wealth, Shoppers Stop, Home First Finance

Below estimates: Havells, Navin Flourine

Updates:

BEL – Company has received Letter of intent (LOI) of Rs.8060cr and signed an MoU with Triton Electric Vehicle (TEV), for manufacture of Hydrogen Fuel cells by BEL with technology transfer from TEV, to meet the requirements of Indian market.
 
Lupin – Company received 17 observations from USFDA for its Biotech manufacturing facility in Pune. The company does not believe that the 483 letter will have an impact on the existing revenues from operations of this facility.
 
Steel Sector – World Steel Association downgraded steel demand forecast by 270bps compare to April 2022 estimates due to surging inflation, climbing interest rates, China lockdowns and impact of Russia Ukraine war. India only bright spot with demand growth expectation of 6.1%/6.7% 2022/2023. China demand (51% of global consumption) is expected to be flat while RoW will improve 2% driven by India.
 
Steel & Power – The company has signed an MoU with Greenko Group to facilitate 1,000 MW of carbon-free energy for its steel-making operations at Angul, Odisha. This is in line with its goal to become a net-zero steel company by 2035.
 
Tata Motors – Company has signed an agreement with EV ride hailing platform Evera for delivering 2,000 XPRES T EVs. These vehicles are an addition to the existing fleet of Tata Motor’s EVs.
 
Securities in Ban: BHEL, DELTACORP, IBULHSGFIN, INDIACEM, ZEEL.
 
Derivative View: Immediate Max Call OI is at 18000 and 17500 and max Put OI is at 17000 and 16500. Option data suggests an immediate trading range in between 17200 to 17700.

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