News Shots
Cipla reported a 10 percent year-on-year fall in consolidated profit at Rs 370.7 crore in the quarter ended March 2022, impacted by lower operating income and impairment loss with respect to investment in associate company Avenue Therapeutics Inc. Revenue during the quarter grew by 14.2 percent to Rs 5,260.33 crore compared to the year-ago period, while EBITDA fell 6 percent to Rs 750 crore in the same period.
Vodafone Idea posted a consolidated loss of Rs 6,563.1 crore in the quarter ended March 2022, which narrowed compared to a loss of Rs 7,230.9 crore in the previous quarter, supported by higher operating income and ARPU. Revenue during the quarter at Rs 10,239.50 crore increased by 5.4 percent QoQ aided by tariff hikes taken in November 2021, with 24.38 crore subscribers as of March 2022. EBITDA grew by 22 percent QoQ to Rs 4,649 crore and margin improved by 610 bps QoQ to 45.4 percent in Q4FY22 with average revenue per user rising by Rs 9 sequentially to Rs 124 during the quarter.
Torrent Power posted a consolidated loss of Rs 487.4 crore in Q4FY22 against a profit of Rs 398 crore in the same period last year impacted by an additional impairment charge of Rs 1,300 crore with respect to DGEN Mega Power Project. Revenue from operations grew by 21 percent YoY to Rs 3,744 crore in Q4FY22 and EBITDA increased by 15 percent YoY to Rs 1,088 crore during the same quarter.
Gulshan Polyols signed and executed a contract with Meghna Pulp & Paper Mills received on May 9. It will supply GCC, GCC coating plant, vibrator separating machine with standard accessories including motor, conveyor, panel etc. and spare parts for GCC and GCC-coated machine to Meghna Pulp.
Gujarat Gas clocked a 27.6 percent year-on-year growth in consolidated profit at Rs 444.4 crore in the quarter ended March 2022 despite higher input cost, led by strong topline and operating income. Revenue surged 36.5 percent to Rs 4,773.4 crore during the same period.
EPL reported a 14.2 percent year-on-year decline in consolidated profit at Rs 50.1 crore in the quarter ended March 2022 impacted by higher input costs. Revenue grew by 8.6 percent to Rs 880.2 crore during the same period.
What to expect?
NIFTY opened with a gap-down at 16,257 and formed a green candle in five minutes. The next candles traded in this range and finally, there was a breakout which was resisted by 16,400 again. There was a huge sell-off and NIFTY closed the day at
16,240, down by 62 points or 0.38%.
BANK NIFTY opened with a gap-down at 34,245. 34,700 was a major level and it was broken. But the up-move was not sustained and BNF fell heavily towards the end and closed at 34,483, up by 207 points or 0.6%.
IT moved down by 1% and Metals fell by 5%.
The US markets closed mixed with S&P closing in the green and DOW closing in the red. The European markets moved higher.
The Asian markets are trading higher. The U.S. Futures and the European futures are trading around 0.2% higher.
SGX NIFTY is trading at 16,190. All the factors together indicate a flat opening.
NIFTY has supports at 16,150, 16,000 and 15,850. We can expect resistances at 16,250, 16,320 and 16,400.
BANK NIFTY has supports at 34,000, 33,900 and 33,500. Resistances are at 34,800, 35,000 and 35,250.
NIFTY has the highest call OI build-up at 17,000. The highest put OI build-up is at 16,000.
BANK NIFTY has the highest call OI build-up at 36,000 and the largest put OI build-up is at 34,000.
INDIA VIX is at 22.3.
Foreign Institutional Investors net sold shares worth Rs 4,000 crores. Domestic Institutional Investors net bought shares worth Rs 3,000 crores.
16,400 has played the resistance role again. There was a double top formation followed by a quick fall, a base formation and a heavy sell-off in the final hour.
Despite the Rupee falling, IT stocks fell by 1% owing to the global tech sell-off. However, Metals have fallen significantly as the rate hikes will affect the construction businesses.
We have US CPI data to be released today evening. We can expect the release at around 6 PM IST, estimated above 8, but below the March rate. The market participants think that inflation has already peaked and thus the April CPI data will be irrelevant. However, if the data surprises with weak figures, you can see more bearishness. There can be short covering otherwise.
All the eyes will be on India’s CPI data on Thursday in the evening, expected at 7.5%. As a result, our market may hesitate to move up much even if there is a global recovery.
The global cues are mixed right now. SGX Nifty is trading lower despite the up-move in the Asian markets. The initial price action will be crucial to set the direction.
I will be watching 16,000 on the downside and 16,400 on the upside.
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