Business News›Traders' Diary: Nifty has immediate support at 10,333-10,250 levels
Economic Times | 03 Jul, 2020 | 05.26PM IST
Traders' Diary: Nifty has immediate support at 10,333-10,250 levels
Banks fall behind in today's market rally as 21 of 30 Sensex stocks end the day in the green
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Motherson Sumi Systems approves group reorganisation plan
Auto component major Motherson Sumi Systems (MSSL or the Company) Thursday said it has approved a group reorganization plan with the objective of creating value for the shareholders.
KKR to buy JB Chemicals & Pharma in $500 million deal
KKR & Co. Inc. has agreed to acquire about 54% stake in Mumbai based drug manufacturer JB Chemicals and Pharmaceuticals, one of the oldest pharma companies in India. KKR has agreed to acquire 41.7 million equity shares of JB Chemicals, representing 54% stake from the promoters of the company, said a company statement on Thursday. KKR will acquire the stake at a price of Rs.745 / share, a premium of 5% to the closing price of Rs.712 on BSE.
There may be inorganic opportunities for HDFC group cos: Deepak Parekh
There may be inorganic opportunities for HDFC (Housing Development Finance Corporation) group companies, and it has identified new investment opportunities, Chairman Deepak Parekh said on Thursday. “We are now emerging into a scenario where there may be inorganic opportunities for our group companies,” Chairman Deepak Parekh said in HDFC’s annual report.
Edelweiss sells sticky wholesale loans of Rs 4,000 crore
ECL Finance, the non-banking finance arm of the Edelweiss Group, has sold about Rs 4,000 crore of sticky corporate loans to global asset buyers in what would be the first such large transaction in India since the lockdown began. US-based Farallon Capital and Singapore-based SSG Capital are said to be the two investors that purchased the assets at 25% haircuts, two people with direct knowledge of the matter told ET.
Nifty extended its winning streak into a second consecutive session and formed a bullish candle on the daily chart on Thursday. Analysts said the short-term trend for the index remains positive. Deepak Jasani of HDFC Securities said technically with Nifty moving up further after breaking out of the 10194-10410 range, the underlying trend remains upward.
Bulk deals: Kotak Mahindra International trims stake in KRBL
Here’s who bought and sold what in some of the key bulk deals of the day:. Kotak Mahindra International sold 12,98,728 shares in KRBL at Rs 262.03 per share. It held 2.32 per cent stake in the company at the end of March quarter. Promoter group Chayadeep Properties and JS Ramaprasad JS Ramaprasad sold 27,00,000 and 39,91,815 shares in Sequent Scientific to another co-promoter Agnus Holdings at Rs 94.25 and 94.20 in two separate deals on BSE and NSE, respectively. At the end of March quarter, Chayadeep Properties held 2.17 per cent stake in the company, while Agnus Holdings had a 0.52 per cent stake.
HDFC Life replaces Vedanta in Nifty; SBI Cards enters 5 indices
NSE said on Thursday its index maintenance sub-committee is replacing Vedanta with HDFC Life Insurance Co in its flagship Nifty50 index, effective July 31 due to the proposed voluntary delisting of the mining major. HDFC Life Insurance will cease to be a part of Nifty Next 50, and will be replaced by SBI Cards and Payments Services. Vedanta will also cease to be a part of Nifty 500, Nifty 100, Nifty LargeMidcap 250, Nifty 200, and will be replaced by SBI Cards in each of these indices, the exchange said.
Indian households not selling gold despite price surge
Economic uncertainty unleashed by the Covid-19 pandemic is still not persuading India’s gold hoarding lot to sell their household gold even in the midst of a surge in the price of the yellow metal, said gold traders in Zaveri Bazaar, the hub of gold trade in Mumbai, and South India, where gold is treasured. Instead, most are going to gold loan companies to pledge their gold jewellery as the interest they pay against the loan is lesser than the loss in making charges they will have to bear if they sell it.
Dow Jones jumps at open as US job growth accelerates
Wall Street's main indexes opened higher on Thursday, with the Nasdaq hitting a record high, as data showed the U.S. economy added jobs at a record pace in June, bolstering hopes of a post-pandemic economic rebound. The Dow Jones Industrial Average rose 201.48 points, or 0.78 per cent, at the open to 25,936.45.
Stocks that hit upper circuits
Over 450 stocks kissed their upper daily limit set by exchanges. They included IFCI, Infibeam Avenues, Future Retail, Adani Green Energy, GE Transmission, Indiabulls Real Estate, South Indian Bank, IDBI Bank and Dish TV, among others.
Rating agencies flag off NBFC asset quality concerns
Rating agencies are increasingly flagging off asset quality concerns for NBFCs - After Icra, now Fitch Ratings has raised an alarm. Non-performing assets (NPAs) of NBFCs could touch 7.0-9.5% by March 2021, Icra said. Global Ratings firm Fitch Ratings expects that the moratorium will erode payment discipline and its extension will result in lagged asset-quality problems for NBFIs, particularly when combined with the economic damage from the pandemic and lockdown.
Pharma index snaps 4-day losing streak
The 10-share Nifty Pharma index snapped a four-day losing streak and advanced 0.62 per cent. Cadila Healthcare was the biggest gainer, up 5 per cent, while Cipla, Sun Pharma, Biocon and Aurobindo Pharma gained up to 4 per cent.
Tata Power board OKs share issue to Tata Sons, InvIt for renewable units
Tata Power Company plans to raise Rs 2,600 crore through preferential issue of shares and set up an infrastructure investment trust for its renewable energy assets as a part of its strategy to reduce debt and deleveraging the balance sheet of the company. The board of the company approved the issue of over 49 crore shares to promoter, Tata Sons Private at Rs 53 a share, which is a 15% premium to the previous close. Consequently, Tata Group’s shareholding will increase from 37.22% to 46.86%. Reacting to the news, shares power rose over 8% to Rs 49.85 on the Bombay Stock Exchange on Thursday.
Nifty50 saw follow-up buying on Thursday and formed a bullish candle on the daily chart for the second session in a row. The NSE barometer made a higher high and low for the third straight session. Nifty, however, failed to surpass the recent swing high 10,553 on a closing basis, even as Thursday marked the highest close for the index in 64 sessions. Analysts said the sentiment remains positive, but further buying is needed to instill confidence among traders.
On the upside, expect rally to scale towards 10,650-10,750 levels: Rajesh Palviya
"Nifty opened on a positive note and buying momentum throughout the session led it close on strong note The daily price action has formed a sizable bullish candle and closed above the previous session's high indicating positive bias. Nifty also manages to close above 200 day EMA (10513) indicating positive sign. The bullish gap area formed in today's session in the range of 10485-10447 will act as a short term support zone. On the upside, we expect this upside rally to scale further towards 10650-10750 levels'. The daily strength indicator RSI is in a bullish mode which supports bullish sentiments ahead," said Rajesh Palviya, Axis Securities.
Nifty moving in a rising channel on daily scale: Chandan Taparia
"The index has been moving in a rising channel on the daily scale by connecting swing lows of 7,511, 9,004, 9,544, 9,845, 10,250 and 10,300 levels and supports are gradually higher," said Chandan Taparia of Motilal Oswal Securities. The expert said that the index has to continue to hold above 10,450 level to witness an up move towards 10,650 while he sees immediate support at 10,333 and 10,250 levels.
CLOSING BELL: HDFC, RIL and IT heavyweights send Sensex 429 pts higher; Nifty above 10,550; M&M rises 6%, Titan 4%
IT and RIL lead the market rally
21 of 30 Sensex stocks end the day in the green
Index contributors: HDFC, Infy, TCS, RIL, ITC
Top Index gainers: M&M (6.21%), Titan (3.81%), HCL Tech (3.45%)
Top Index losers: Axis Bank (1.92%), HUL (0.59%), Kotak Bank (0.27%)
All sectoral index except BSE Bankex end the day in the green
S&P BSE Information Technology biggest sectoral gainer, up 2.91%
S&P BSE BANKEX biggest sectoral loser, down 0.19%
Volume toppers: Bajaj Fin, RIL, Axis Bank, HDFC Bank, IndusInd Bank
Max India issues fresh shares post demerger
Here are the volume toppers in today's trade
Forex Center: This is how the major currencies are faring against each other
Rupee posts biggest single session gain against US dollar since April 23; closes at 75.01
Sebi probing recent rally in Ruchi Soya, Alok Industries | https://t.co/dDWe50YXew https://t.co/O6njnxowF9
Price as on 02 Jul, 2020 01:44 PM, Click on company names for their live prices.
Dilip Buildcon may snap 6-day losing streak
Shares of Dilip Buildcon look set to snap their six-day losing streak in Thursday's session after the company informed bourses that its joint venture has declared as the lowest (L-1) bidder for a new EPC Project in Gujarat. Earlier, shares of the company declined to Rs 271.55 on July 1 from Rs 292.50 on June 23.
Tata Power to issue up to 49.05 crore shares to promoter Tata Sons on a preferential basis at Rs 53 per share
Here are the top gainers from the tourism & hospitality sector
Price as on 02 Jul, 2020 01:10 PM, Click on company names for their live prices.
India's June gold imports plunge 86% year-on-year to 11 tonnes: Govt source
"If Vodafone Idea is still around for the next two-three years and all its AGR problems are solved, then the stock could turn out to be a multibagger. Otherwise if it has to stop its operations and go under bankruptcy, then investors will lose the entire capital they have invested at this stock price," said Dipan Mehta, Founder & Director, Elixir Equities.
Railway-linked stocks rally up to 12% as privatisation process kicks off
Price as on 02 Jul, 2020 12:00 PM, Click on company names for their live prices.
BSE IT index best sectoral performer, jumps 2.6%; Infy, TCS top contributors
BSE FMCG worst sectoral performer on BSE, down 0.15%
Bajaj Auto reports 31% drop in June sales
Bajaj Auto on Thursday reported a 31 per cent decline in its total sales at 2,78,097 units in June as against 4,04,624 units in the same month last year. Domestic sales declined by 34 per cent at 1,51,189 units last month as compared to 2,29,225 units in June 2019, Bajaj Auto said in a regulatory filing.
"There has been a huge participation in the last two months in which we have seen the Nifty recovering back. So there is a lot of catch up on it. So I think ICICI Bank tops the chart. There will be another 15% upside in ICICI Bank. Second is HDFC and third is Axis among private banks," says Rahul Shah, VP, Broking & Distribution, MOFS.
Here are the top gainers & losers from the auto pack
Price as on 02 Jul, 2020 10:31 AM, Click on company names for their live prices.
Axis Bank to raise up to Rs 15,000 crore via shares, depository receipts
Nifty crossing 10,450-mark a bullish sign: Deen Dayal Investments
"The markets have successfully crossed the 10,450 mark upon opening. This is a bullish signal. We should now be looking at a target of between 10,650-10,700. The support for the market would be 10,300," said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
ICICI Securities downgrades Voda Idea to 'SELL' from 'BUY'
"We increase our EBITDA estimates by 34.3% / 32.8% for FY21E / FY22E on adoption of Ind-AS 116, but cut revenues by 5.2% and 3.4%, respectively. We increase our target price to Rs 8 (from Rs 6) as we raise FY22E EBITDA multiple to 11x (from 9.3x) in line with Bharti. Downgrade to SELL (from Buy)," said ICICI Securities.
Vodafone Idea, IB Housing Finance, Tata Motors among most active stocks on NSE
Price as on 02 Jul, 2020 09:41 AM, Click on company names for their live prices.
Nifty tops 10,500-mark
OPENING BELL: Sensex gains 280 points, Nifty tops 10,500; railway stocks rally up to 11%
Nifty futures on the Singapore Exchange traded 73.75 points, or 0.71 per cent higher at 10,470.30, in signs that Dalal Street was headed for a positive start on Thursday.
Tech view: Nifty forms bullish candle
Analysts said the index has seen a breakout of the consolidation range of the last four sessions, but requires follow-up action to start the next leg of the rally. The sustainability of this up-move remains somewhat doubtful, but as long as Nifty trades above 10,299 level, one can remain hopeful of it aiming for the 10,553 level, analysts said.
Asian stocks open higher
Japan's Nikkei 225 index was up 0.43 per cent or 95.30 points at 22,217.03 in early trade. Hong Kong's The Hang Seng Index added 0.56 per cent, or 136.38 points, to 24,563.57. China's benchmark Shanghai Composite index dipped 0.07 per cent, or 2.26 points, to 3,23.72 while the Shenzhen Composite index on China's second exchange eased 0.08 percent, or 1.69 points, to 1,989.42.
US stocks ended mixed
US equities finished mixed as investors digested a slew of economic data. On Wednesday, the Dow Jones Industrial Average index fell 77.91 points, or 0.30 per cent, to 25,734.97. The S&P500 index was up 15.57 points, or 0.50 per cent, to 3,115.86. The Nasdaq Composite index rose 95.86 points, or 0.95 per cent, to 10,154.63,
Oil prices slip on demand fears
Oil prices dipped on Thursday after the United States recorded its biggest one-day spike in coronavirus cases and California reimposed some lockdown measures, stoking worries a resurgence in COVID-19 cases will stall a recovery in fuel demand. Brent crude futures eased 6 cents, or 0.1 per cent, to $41.97 a barrel, after rising 1.8 per cent in the previous session.
FPIs sell Rs 1,696 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 1,696.45 crore, data available with NSE suggested. DIIs were net buyers to the tune of Rs 1,377.13 crore, data suggests
Sensex, Nifty on Wednesday
Equity indices clawed back lost ground on Wednesday after two sessions of losses as investors accumulated banking, finance and energy stocks amid encouraging macroeconomic data and firm global cues. After hitting a high of 35,467.23, the 30-share BSE Sensex settled 498.65 points, or 1.43 per cent, higher at 35,414.45. Similarly, the broader NSE Nifty surged 127.95 points, or 1.24 per cent, to close at 10,430.05.
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