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Daily Market Feed Post Market Analysis

Bank Nifty Holding Down Nifty! – Post-Market Analysis

post-market analysis | marketfeed

NIFTY started the day at 19,770 with a gap-up of 77 points (well above the important resistance zone). After initial consolidation, the index moved up to 19,830 levels but faced rejection. It then fell back to the opening levels and consolidated. Nifty closed at 19,783, up by 89 points or 0.45%.

BANK NIFTY (BNF) started the day at 43,790 with a gap-up of 207 points. The index mostly consolidated during the first half, but gave a sharp fall to 53,585 levels after 1 PM. Then, BNF bounced back and later consolidated. BNF closed at 43,689, up by 104 points or 0.24%.

All indices except Nifty PSU Bank (-0.35%), Nifty IT (-0.18%), and Nifty FMCG (-0.16%) closed in the green. Nifty Metal (+1.2%) moved up the most.

Major Asian markets closed mixed. UK’s FTSE100 and France’s CAC40 are currently trading in the red, while Germany’s DAX is trading in the green.

Today’s Moves

SBI Life Insurance (+2.7%) was NIFTY50’s top gainer. 

RattanIndia Ent (+17.1%) hit a 52-week high after the company’s subsidiary, Neobrands, launched its casual fashion brand.

Coal India (-3.9%) was NIFTY50’s top loser. The drop came after the stock traded ex-dividend.

KPIT Tech (-7.28%) fell sharply after Kotak Institutional Equities downgraded the stock to “Sell”, with a target price of ₹940.

Shares of ONGC (-3.36%) turned ex-dividend today.

Markets Ahead

Bank Nifty is currently holding key resistance levels and is unable to cross them. Meanwhile, Nifty was trying to move up, but Bank Nifty was holding it down. We could expect a directional move soon, depending on whether there is a breakout or breakdown from the current levels.

Nifty: The crucial support level to watch is around 19,750. A breach of this level could lead the index to fall to around 19,700 levels (potentially filling the gap). On the other hand, a breakout from the resistance at 19,800 might push the index upward to 19,860 levels.

Bank Nifty: The major resistance is located near 43,700, coinciding with the highest Open Interest (OI) in weekly contracts. A breakout from that level could potentially trigger a short-covering rally, pushing the index to 44,000 and 44,200. Meanwhile, a breakdown from 43,650 may lead the index down to 43,500 and 43,000 eventually.

Considering tomorrow’s weekly expiry for Bank Nifty and the recent consolidation, we could expect a directional move in BNF. So keep a close watch on breakout and breakdown levels and make trading decisions accordingly!

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Daily Market Feed Post Market Analysis

Momentum Lost in Nifty and Bank Nifty! – Post-Market Analysis

post-market analysis | marketfeed

NIFTY started the day at 19,674 with a gap-down of 91 points. After opening, the index made a strong recovery of more than 130 points to 19,800 levels. For the rest of the day, it consolidated in a range with a negative bias. Nifty closed at 19,731, down by 33 points or 0.17%.

Nifty chart Nov 17 - post-market analysis | marketfeed

BANK NIFTY (BNF) started the day at 43,656 with a gap-down of 504 points (below the 44,000 support zones). After initial volatility, 43,800 acted as strong resistance, and the index consolidated with a negative bias. BNF closed at 43,583, down by 577 points or 1.31%.

Other indices except Nifty PSU Bank (-2.39%), FIN NIFTY (-0.9%), and Nifty IT (-0.25%) closed in the green.

Major Asian markets closed mixed. European markets are currently trading in the green.

Today’s Moves

SBI Life Insurance (+3.97%) was NIFTY50’s top gainer. The stock extended gains for the third day in a row.

Tata Investment Corp (+20%) surged on account of value unlocking opportunity with Tata Technologies IPO. The public offer opens for subscription on November 22.

Varroc Engineering (+16.8%) surged on the back of strong volumes.

State Bank of India (-3.69%) was NIFTY50’s top loser. 

RBL Bank (-7.7%), Aditya Birla Capital (-5.6%), SBI Card (-5.14%), and other banking and NBFC stocks crashed after the RBI tightened the norms for personal loans and credit cards.

Markets Ahead

Markets gave a strong closing on a weekly time frame. Looking at the daily timeframe, there is a retracement of 38% in the Fibonacci levels for Bank Nifty. However, it’s important to note that this retracement is for the uptrend from 42,100 levels. When examining the same retracement levels from 46,300 levels, it coincides with the 50% rejection zone. This suggests a bearish sentiment on an even larger time frame.

On the other hand, Nifty looks stronger than Bank Nifty, and no retracement was observed. So if Bank Nifty shows weakness, there is a possibility that Nifty might experience a slight dip as well.

Nifty: The key support levels for the index are at 19,600 and 19,500. If there’s a breakdown from 19,630, potential targets could be 19,500 and 19,400. On the other hand, the major resistance level to monitor is around 19,860. A breakout from there might set a target of 20,000.

Bank Nifty: A vital support level to monitor is around 43,400. A breakdown from this level could confirm short-term bearishness, with potential downside targets at 43,000 and 42,500. On the other hand, significant resistance is evident near 44,800, while the immediate resistance lies at 44,000. A breakout from there could cause the index to rise to 44,400 and 44,800.

The Indian stock market displayed a mixed performance today, marked by a decline in financial stocks as RBI tightened consumer lending rules. Meanwhile, global markets have been strong due to the easing U.S. interest rate outlook and a decline in oil prices.

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Daily Market Feed Post Market Analysis

Muhurat Trading Gains Lost! – Post-Market Analysis

post-market analysis | marketfeed

NIFTY started the day at 19,486 with a gap-down of 38 points. After opening, the index further fell nearly 80 points with volatility. Then, it consolidated throughout the day in a 25-point upward channel. Nifty closed at 19,443, down by 82 points or 0.42%.

Nifty chart November 13 - post-market analysis | marketfeed

BANK NIFTY (BNF) started the day at 43,915 with a gap-down of 81.5 points. Similar to Nifty, BNF fell more than 200 points with wild moves. Then, the index rebounded 200 points in just 20-25 mins and consolidated for the rest of the day. BNF closed at 43,891, down by 105 points or 0.24%.

All indices except Nifty PSU Bank (+2.64%) and Nifty Metal (+0.37%) closed in the red.

Major Asian markets closed in the green. Germany’s DAX and UK’s FTSE100 are currently trading in the green, while France’s CAC40 is trading in the red.

Today’s Moves

Coal India (+5.29%) was NIFTY50’s top gainer. Jefferies India and other brokerages have upgraded the stock and raised their target prices on the back of strong Q2 earnings by the state-run miner.

BSE (+9.2%) hit a 52-week high of ₹2,350 after the stock exchange reported a 4x jump in its net profit to ₹118.4 crore in Q2.

Hindustan Copper (+8.07%) surged after the company’s net profit more than doubled in Q2.

SBI Life (-2.2%) was NIFTY50’s top loser. 

Glenmark Pharma (-5.03%) fell sharply after the company posted a loss in Q2 on exceptional legal costs.

Markets Ahead

On the occasion of Muhurat Trading, the Indian markets opened with a gap up (above major resistance levels). However, today’s opening brought the indices back into their original zones, suggesting the presence of selling pressure in the markets.

Nifty: Keep an eye on the resistance levels at 19,460 and 19,500. If there’s a breakout, we might see the index aiming for 19,540 and 19,600. On the other hand, the critical support for Nifty is at 19,400. If it falls below this level, potential targets could be 19,360 and 19,330.

Bank Nifty: The resistance levels to keep an eye on are at 43,900 and 44,000. A breakout might set a target at 44,000 and a larger one at 44,500. On the downside, the key support levels are at 43,800 and 43,700. If there’s a breakdown, potential targets could be 43,500 and 43,300.

Also, watch out for this channel in BNF! 

Bank Nifty chart November 13 - post-market analysis | marketfeed

The Indian market continues to consolidate due to various factors: the sudden slowdown in Industrial Production (IIP) growth in Sept 2023, and the declining manufacturing PMI mirror global patterns influenced by rising interest rates and inflation. The weakness in the Indian Rupee has made FIIs adopt a cautious stance. However, the market’s potential decline is limited by robust Q2 earnings, economic stability, and consistent DII investments.

The markets will be closed tomorrow (Nov 14) on account of Diwali-Balipratipada! marketfeed wishes all our readers a Happy Diwali! 🪔

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Daily Market Feed Post Market Analysis

Rejection from the Top! More Fall Incoming? – Post-Market Analysis

NIFTY started the day at 19,232 with a gap-up of 92 points. There was an immediate sell-off till the previous swing or support zones of 19,100. Then, Nifty consolidated with a bit of volatility and gave a negative closing at 19,079, down by 61 points or 0.32%.

Nifty chart October 31 - post-market analysis | marketfeed

BANK NIFTY (BNF) started the day at 43,356 with a gap-up of 317 points (near the 50% Fibonacci rejection levels). It quickly came under selling pressure and fell to yesterday’s breakout levels of 42,800. Then, the index tried moving up but 43,000 round levels acted as resistance and pushed the index down. BNF closed at 42,845, down by 193 points or 0.45%.

Bank Nifty chart October 31 - post-market analysis | marketfeed

All indices except Nifty Realty (+1.27%), Nifty Media (+0.91%), Nifty FMCG (+0.19%), and Nifty PSU Bank (+0.14%) closed in the red.

Major Asian markets closed mixed. European markets are currently trading up to 1.4% in the green.

Today’s Moves

SBI Life (+3.14%) was NIFTY50’s top gainer. The stock has been moving up after the company reported strong Q2 earnings; a 45% YoY rise in its net profit and a 19% growth in net premium income.

FACT (+10%) surged on the back of long volumes.

Piramal Pharma (+9.48%) rallied up to 13% on positive guidance for the second half of FY24.

Mahindra & Mahindra (-2.62%) was NIFTY50’s top loser. Shares of the company’s subsidiary, M&M Financial Services, have tanked on the back of poor Q2 results.

DCM Shriram (-4.8%) fell sharply after the company posted weak Q2 results today.

Shares of Butterfly Gandhimathi (-7.04%) fell after public shareholders of the company voted against its merger with Crompton Greaves Consumer Electricals.

Markets Ahead

As discussed earlier, major indices are taking proper rejection from Fibonacci levels. The rise in India Vix and selling pressure from the top is indicating some bearishness in the markets. So even if today’s lows are breached, markets can fall further. The up-move in the last two trading sessions (Friday and Monday) can be considered a retracement.

Nifty: The immediate support for the index is near 19,075 (where the markets closed today). If there’s a flat or gap down opening, the index could move down— giving us targets of 19,000 and 18,940 again. On the other hand, the important resistance to watch out for will be today’s high of 19,250. If the index crosses 19,150, we can expect Nifty to test 19,250 again.

Bank Nifty: The index is looking weak. BNF is currently at yesterday’s breakout levels of 42,800. If there is a flat or gap down opening tomorrow, BNF could achieve targets of 42,400 and 42,200 on the downside. If the resistance at 43,075 is taken out, 43,300 can be tested again.

Markets are facing rejections at the top. The rise in India Vix also indicates the markets to be bearish. So you could look for sell-on-rise opportunities, which will be ideal till major resistance zones are breached in Nifty and Bank Nifty.

How was FIN NIFTY expiry? Are you in net profit or loss? Let us know in the comments section!

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Daily Market Feed Post Market Analysis

Calm Fin Nifty Expiry! – Post-Market Analysis

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Photo by Pixabay on Pexels.com

NIFTY started the day at 19,627 with a gap-up of 29 points (near the resistance zone of 19,600). Immediately after opening, there was a sell-off of nearly 100 points to 19,530 levels. Then, the index tried moving up but there wasn’t enough strength, and it consolidated. Nifty closed at 19,570, down by 26 points or 0.13%. 

Nifty chart - Aug 8 post-market analysis

BANK NIFTY (BNF) started the day at 44,888 with a small gap-up of 51 points. With the help of ICICI Bank, the index moved up initially to 45,100 levels, took resistance, and mostly consolidated in a small range of 120 points between 45,050 and 44,900. BNF closed at 44,964, up by 126 points or 0.28%. 

Bank Nifty chart - Aug 8 post-market analysis

All other indices except Nifty Metal (-1.1%), Nifty Auto (-0.31%), Nifty FMCG (-0.28%), and Nifty Realty (-0.18%) closed in green. Nifty PSU Bank (+3.3%) moved up the most. 

Major Asian markets closed mixed. European markets are currently trading up to 1% in the red.

Today’s Moves

Hero MotoCorp (+3.8%) was NIFTY50’s top gainer. The company reported that it has received over 25,000 bookings for the Harley-Davidson X440.

SBI Life (+3.59%), Cipla (+3.5%), and Dr Reddy’s Labs (+0.48%) hit their respective 52-week highs today.

Gland Pharma (+20%-UC) rallied after posting a 41% YoY rise in Q1 revenue yesterday, aided by its acquisition of French pharma group Cenexi.

Adani Ent (-2.98%) was NIFTY50’s top loser amid broader weakness in the market.

Policybazaar (-4.7%) fell after the company’s loss narrowed from ₹204 crore in Q1 FY23 to ₹11.9 crore in Q1 FY24.

Markets Ahead

Nifty is looking weak, while Bank Nifty is looking strong. But overall, the markets are still under selling pressure for the short term. So major resistances have to be breached for markets to turn bullish again.

Nifty: The index is now taking the 50% rejection from the Fib levels. So 19,650 is the major resistance for Nifty. There is also a trendline resistance that Nifty is respecting. So till this level, the markets may stay bearish. Now, the major support for Nifty is clearly the round levels of 19,500 levels.

A breakout from 19,650 levels can give us a target of 19,740 and a breakdown from 19,500 can give us a target of 19,380.

Bank Nifty: The index is looking strong compared to Nifty, and is in a range between 45,100 and 44,780. A breakdown from these levels can give us targets of 44,500 and 44,300. A breakout can give us targets of 45,470 and 45,740 eventually.

Finnifty: The index moved sideways today, and was volatile in a range of 120 points. Being an expiry, it was easy for non-directional players to trade as Fin Nifty is also moving in a range. A breakout or a breakdown is possible, so watch out for 20,100 as resistance and 20,000 as support levels.

The Reserve Bank of India (RBI) will hold its policy meeting on Thursday, where the expectation is for interest rates to remain unchanged. Meanwhile, the US dollar strengthened ahead of the release of US, Chinese economic data.

How was FIN NIFTY expiry? Are you in net profit or loss? Let us know in the comments section of the marketfeed app.

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Daily Market Feed Pre Market Report

U.S. GDP Increases. Will Market Follow F&O Data? – Pre-Market Analysis Report

Here are some of the major updates that could move the markets today:

U.S GDP expanded by 2.4% on an annual basis in the April to June quarter, higher than the expected 1.8%. Crude Oil also remains strong.

Stocks

Adani Enterprises’ subsidiary has raised a working capital loan facility of Rs 3,231 crore from two foreign banks, for its integrated solar module manufacturing facility.

Indian Hotels reported 31% YoY jump in net profit to Rs 222.4 crore.

Indus Towers reported a 182% YoY growth in profit at Rs 1,348 crore for the quarter, on the back of good operating performance and the highest quarterly tower additions in company’s history.

Major results today: IOC, M&M Financial, Marico, Equitas Small Finance Bank, Laxmi Organics, SBI Cards

What to Expect Today?

NIFTY started the day at 19,850 with a gap-up of 72 points, and tried to move up. But it gave a continuous fall to 19,600 and recovered post 3 PM. NIFTY closed at 19,659, down by 118 points or 0.6%.

BANK NIFTY started the day at 46,285 with a gap-up of 223 points. The index consolidated even while NIFTY was falling, but eventually fell 750 points from the day high. BANK NIFTY closed at 45,579, down by 383 points or 0.8%.

US markets closed in the red. The European markets closed in the green.

The Asian markets are trading mostly in the red, with Japan’s Nikkei down 1.35%.

The U.S. Futures are trading flat.

GIFT NIFTY is trading flat at 19,767.

All the factors combined indicate a flat to gap-down opening in the market.

NIFTY has supports at 19,600, 19,550 and 19,500. We can expect resistances at 19,670, and 19,750.

BANK NIFTY has supports at 45,600, 45,470 and 45,230. Resistances are at 45,900, 46,000, and 46,240.

NIFTY has the highest call OI build-up at 19,800. The highest put OI build-up is also at 19,800.

BANK NIFTY still has strong call OI build-up at 46,000. The highest put OI build-up is also at 46,000.

Foreign Institutional Investors net-sold shares worth Rs 3,979 crores. Domestic Institutional Investors net-bought shares worth Rs 2,528 crores.

INDIA VIX is flat at 10.51.

With yesterday’s monthly expiry, volatility was definitely expected. And as traders and institutions carry forwarded their trades to next month, all of NIFTY’s move were fast.

The futures OI data indicate that the August Futures were not heavily sold as yesterday’s fall. Options also indicate that 19,800 has a huge straddle buildup already for next week with a combined premium of 237 points.

There is enough space for the indices to swing throughout the week, with the premiums of the straddle.

The technicals still indicate that there is bullishness in the market. But today’s gap-down will decide if this view stays relevant. The U.S. GDP numbers and crude oil movements are indicating that the general economy is also in decent shape, for now.

As we get to the end of the week, the expectation is an initial gap-down opening with a recovery towards the middle of the day.

We will be entering new positions on our Smart Money (NIFTY) and Piggy Bank (BANK NIFTY) trades. Follow along on the marketfeed app, or on our website for trades!

Make sure that you tune in to The Stock Market Show at 7 PM on our YouTube channel. All the best for the day!

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Daily Market Feed Pre Market Report

Fed Interest Hike as Expected. Who Will be the Villain for Monthly Expiry? – Pre-Market Analysis Report

Here are some of the major updates that could move the markets today:

US Fed hikes interest rates to highest level since 2001 to a range between 5.25-5.5%, which is in line with expectations.

Stocks

Axis Bank reported profit lower than expected profits at Rs 5,797.1 crore for the quarter, but still jumping 40.5% YoY.

Dr Reddy’s recorded an 18% YoY growth in consolidated profit at Rs 1,402.5 crore, but profit margins fell.

Tech Mahindra had a disappointing result announcement as profit fell 39% YoY to Rs 692.5 crore.

Netweb Technologies will get listed today. The final offer price has been fixed at Rs ₹500/share.

Tata Consumer Products registered 22% YoY growth in consolidated profit at Rs 338 crore with growth under all verticals.

The Government of India is going to sell up to 7.09 crore equity shares (3.4%) of RVNL via offer for sale today and tomorrow. Floor price has been fixed at Rs 119 per share, down 14% from current price

Cipla Q1 Results showed profit increasing 45% YoY to Rs 996 crore, beating estimates..

Major results today: Nestle India, ACC, Bajaj Finserv, Indian Hotels, IEX, JK Cement

What Happened Yesterday?

Yesterday, NIFTY started at 19,733 with a gap-up of 52 points above a resistance zone. With help from Reliance, it quickly moved up but later consolidated. A sharp fall was seen at 2:35 PM. Nifty closed at 19,788, up by 97 points or 0.5%.

BANK NIFTY (BNF) started the day at 45,935 and moved up slowly. It continued trading in an upward channel with 46,000 acting as a good resistance. BANK NIFTY closed at 46,062, up by 217 points or 0.47%. 

US markets closed slightly in the green. The European markets closed in the red.

What to Expect Today?

The Asian markets are trading mostly in the green.

The U.S. Futures are trading flat.

GIFT NIFTY is trading flat at 19,867, in the green.

All the factors combined indicate a gap-up opening in the market.

NIFTY has supports at 19747, 19,630 and 19,550. We can expect resistances at 19,846, and 19,920 then at 20,000.

BANK NIFTY has supports at 45,900, 45,635 and 45,470. Resistances are at 46,253, 46,400, and 46,500.

NIFTY has the highest call OI build-up at 20,000 and 19,800. The highest put OI build-up is at 19,700.

BANK NIFTY still has strong call OI build-up at 46,000. The highest put OI build-up is also at 46,000.

Foreign Institutional Investors net-bought shares worth Rs 922 crores. Domestic Institutional Investors also net-bough shares worth Rs 470 crores.

INDIA VIX increased 12% to 10.45.

The market is still indicating technical bullishness, including yesterday’s up-move. Both foreign and domestic institutional investors also continued buying.

Even with the hike in Federal Reserve’s interest rates in the U.S, global markets are looking okay as it was expected. But do not rule out volatility in the Indian market as FII selling may attract big movements.

The straddle buildup at 46,000 has continued throughout the week. The chance of a strong short-covering rally is also less on the upper side as most players are enjoying good decay.

Do not look at OI made on the last many days to take active trades today, as they are already in good profits. Only look at the intraday change in OI to determine your positions.

This being the monthly expiry, there is a high chance of volatility in the second half. But I am not expecting any record highs to be created or the support levels of 45,230 on BNF and 19,500 on NIFTY to be broken. If the respective levels are broken with at least 1 hour to go, market may turn trending.

Make sure that you tune in to The Stock Market Show at 7 PM on our YouTube channel. All the best for the day!

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Daily Market Feed Pre Market Report

Consolidation for Monthly Expiry? – Pre-Market Analysis Report

Here are some of the major updates that could move the markets today:

Stocks

Tata Motors said it will cancel DVR shares and issue ordinary shares which will take shareholding of the promoter group down by 3.16%. Reported a consolidated net profit of Rs 3,203 crore for Q1, back to profits due to good sales from Jaguar Land Rover.

Union Bank of India has entered into a strategic partnership with IBM to act as a system integrator in its digital push. The bank has embarked on Project Sambhav to create a Digital bank.

Piramal Enterprises said it will consider a share buyback proposal on July 28.

Larsen & Toubro agreed to buy back 2.4% of equity capital, at a max price of Rs 3,000 per share, for a total of Rs 10,000 crore. Net profit of the company jumped 46.5% YoY to Rs 2,493 crore, and beating estimates.

SBI Life reported a 46.2% YoY increase in net profit at Rs 380 crore for Q1.

Major results today: Axis Bank, BPCL, Cipla, Dr Reddy’s Laboratories, Punjab National Bank, Shree Cement, Tech Mahindra, Bajaj Finance.

What to Expect Today?

NIFTY started the day with a gap-up at 19,729. It was volatile for the FINNIFTY expiry and kept on making sharp moves but ended flat. Nifty closed at 19,680, up by 8.25 points or 0.04%.

BANK NIFTY (BNF) started the day at 46,154 with a gap-up of 231 points. But from the first candle, it could not sustain and started falling. The index had a 300-point fall in 30 minutes at 1 PM but recovered. BANK NIFTY closed at 45,845, down by 78 points or 0.17%. 

US markets closed slightly in the green. The European markets closed slightly in green also.

The Asian markets are trading mixed.

The U.S. Futures are trading flat.

GIFT NIFTY is trading flat at 19,711.

All the factors combined indicate a flat opening.

NIFTY has supports at 19,630, 19,550, and 19,440. We can expect resistances at 19,750 and 19,800.

BANK NIFTY has supports at 45,635, 45,470 and 45,230. Resistances are at 46,253, 46,300, and 46,500.

NIFTY has the highest call OI build-up at 19,800. The highest put OI build-up is at 19,500 and 19,700. 

BANK NIFTY has strong call OI build-up at 46,000. The highest put OI build-up is also at 46,000, indicating expectation of consolidation around that zone.

Foreign Institutional Investors net-bought shares worth Rs 1,088 crores. Domestic Institutional Investors net-sold shares worth Rs 333 crores.

INDIA VIX fell 12% to 10.23.

BANK NIFTY is forming similar candles to the 4th July week. Even with intraday weakness, the index is still in the breakout zone and bullish. The question is how many days of consolidation will we see.

The same goes for NIFTY as well. The moves without news or reason, which I believe are the best moves, have been paused just temporarily.

Options data is also indicating consolidation coming up for the market, and the BNF straddle buildup at 46,000 continues. 

Have an eye on Punjab National Bank and Axis Bank results for today. Otherwise, the next results announcement I will be looking forward to is SBI in August.

I expect some consolidation with selling ahead of the monthly expiry tomorrow.

And as long as 45,230 on BNF and 19,500 on NIFTY are defended, I will not be overly bearish on the market.

Make sure that you tune in to The Stock Market Show at 7 PM on our YouTube channel. All the best for the day!

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Daily Market Feed Post Market Analysis

Markets Take a Pause Due to ITC, Reliance – Post-Market Analysis

NIFTY started the day flat at 19,748. The index was volatile within a 100-point range between 19,780 and 19,680 with a bearish bias. It has been moving in a downward channel since Friday. Nifty closed at 19,672, down by 72 points or 0.37%.

BANK NIFTY (BNF) started the day at 46,131 with a small gap-up of 56 points. Similar to Nifty, BNF fell sharply after 11:30 and consolidated in a 230-point range for the remainder of the day. The index has also formed a triangular pattern. BNF closed at 45,923, down by 152 points or 0.33%. 

All indices except Nifty Pharma (+0.4%), Nifty Realty (+0.2%), Nifty PSU Bank (+0.1%), and Nifty Auto (+0.17%) closed in the red. Nifty FMCG (-1.7%) fell the most.

Major Asian markets closed mixed. France’s CAC40 is currently trading in the red, while UK’s FTSE100 and Germany’s Dax are in green.

Today’s Moves

SBI Life (+2.05%) was NIFTY50’s top gainer on the back of strong volumes. 

Aarti Drugs (+18.6%) surged after the company approved plans for a buyback of 6.65 lakh fully paid-up equity shares. The floor price for the buyback is set at ₹900 per share, which is over 72% higher than the stock’s closing price on Friday.

ITC (-3.89%) was NIFTY50’s top loser. The company’s board has given in-principle approval for the demerger of its hotel business.

Kotak Bank (-3.7%) fell sharply despite reporting better-than-expected Q1 results.

Tejas Networks (-8.1%) crashed after the company’s net loss widened sequentially in the April-June (Q1) quarter.

Hikal (-7.28%) moved down after the Gujarat Pollution Control Board (GPCB) asked the pharma company to close down its plant in Bharuch for alleged violation of environmental norms.

Markets Ahead

Both Nifty and Bank Nifty are at crucial support zones and can give good moves on either side tomorrow.

Nifty: The index is now below its support of 19,700. But if there’s a flat or gap down opening, the index can further come down to the 19,560 level. If there’s a gap up and further up-move, the index can go back into the consolidation zone of 19,800 and 19,700.

Bank Nifty: 45,900 in Bank Nifty is a very important support zone. A breakdown from here can give us the target till the round levels of 45,500 and then eventually to 45,200 zones. But looking at the triangular pattern Bank Nifty has formed, a breakout on the upside is more likely to happen and if the market goes up tomorrow, we can expect a target of 46,400.

Meanwhile, Reliance Industries shares fell over 2% today after the company reported lower-than-estimated Q1 earnings. The US will report its manufacturing PMI data tonight.

Being FIN NIFTY expiry tomorrow, major indices can be volatile. Since it’s the monthly expiry also, we can expect some directional moves tomorrow. So trade cautiously if you’re a non-directional player! 

Which levels are you watching out for FIN NIFTY expiry tomorrow? Let us know in the comments section of the marketfeed app.

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Market News Top 10 News

5G Spectrum Auction Likely In Early June – Top Indian Market News

5G Spectrum Auction Likely In Early June: Ashwini Vaishnav

The government is planning to hold a 5G spectrum auction in early June, as per telecom minister Ashwini Vaishnav. The minister stated that the Department of Telecom is on track to meet its deadlines and that the process to solve industry concerns about spectrum price is underway. TRAI has seconded a massive auction proposal worth over Rs 7.5 lakh crore for over 1 lakh megahertz spectrum, in case the government allocates it for 30 years and Rs 5.07 lakh crore if it is for 20 years. 

Read more here. 

Canada-based Sagen picks a 31% stake in India Mortgage Guarantee Corporation.

Sagen, a Brookefield subsidiary and Canadian mortgage insurer, is acquiring a 31% share in India Mortgage Guarantee Corporation (IMGC). The deal’s value was not disclosed, and it would be completed subject to legislative and regulatory approvals. According to a public statement, IMGC will use the new funds to expand its business and improve its operational and technological capabilities. IMGC was set up in 2008 as India’s first mortgage guarantee company(MGC). The company has since received investment from  National Housing Bank, International Finance Corp (IFC), Asian Development Bank, and Enact Holdings Inc.

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P&G Hygiene and Health Care Q3 Results: Profit Up 4.6% to Rs 102.85 crore.

Procter & Gamble Hygiene and Health Care Ltd recorded a 4.59% increase in net profit to Rs 102.85 crore in the third quarter ended March 2022Rs 98.33 crore last year. Revenue from operations increased by 28.11% to Rs 973.26 crore, up from Rs 759.66 crore the previous year. Total expenses were up 28.36% at Rs 828.19 crore, against Rs 645.18 crore in the previous year. 

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SBI Life Q4 Results: Profit advances 26% YoY to Rs 672 crore

SBI Life Insurance recorded a 26.27% year-on-year (YoY) increase in net profit to Rs 672.15 crore, from Rs 532.30 crore the previous quarter.  Net premium income increased by 12% year on year to Rs 17,433.77 crore, up from Rs 15,555.74 crore the previous quarter. In the quarter under review, total income increased by 2.5% to Rs 21,427.88 crore, up from Rs 20,896.70 crore the previous year.

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Vedanta Q4 Results: Profit declines 10% to Rs 5,799 crore YoY

For the current quarter Q4FY22, Vedanta recorded a 4.8% year-on-year (YoY) reduction in net profit standing at Rs 7,261 crore. The business had a net profit of Rs 7,629 crore in the same period the previous year. Revenue from operations increased by 41.14% to Rs 39,342 crore, up from Rs 27,874 crore in the previous quarter.

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TVS ties up with Bike-Taxi Platform Rapido

TVS Motor Company and Rapido, a bike-taxi platform, have established a strategic partnership. Both TVS and Rapido signed a memorandum of understanding (MoU) to allow them to capitalize on their synergies in the mobility industry. The partnership will cover both two-wheelers and three-wheelers in both ICE and EV segments. 

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Viacom18 to get an investment worth ~$2 billion

Viacom 18 Media Private Limited is an Indian joint venture between Reliance-owned TV18 and US-based media company Paramount Global. Viacom18 will receive a Rs 13,500 crore ($1.8 billion) investment from Bodhi Tree Systems – run by James Murdoch and Uday Shankar, a former head of Walt Disney India. Reliance Projects & Property Management Services Limited, a wholly-owned subsidiary of Reliance Industries, will invest another Rs 1,645 crore. Paramount Global shall continue to be a shareholder and supply its premium global content to Viacom18.

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World Bank approves $47 million for India’s Mission Karmayog

The World Bank Board of Executive Directors approved a $47 million project today to support the Government of India’s Mission Karmayogi, a national program to build civil service capacity, said the bank in a statement. 

Mission Karmayogi is a program aimed to modernize thinking and approach, improve human resource management practices in the government, and improve the skillset of the millions of civil servants across the country. 

There are nearly 18 million civil servants employed across India, with approximately two-thirds at the state government and local authority levels. While India has steadily improved its performance over the past decade, through the implementation of Mission Karmayogi the Government aims to make the country’s civil service force more future-ready and capable of meeting twenty-first-century challenges, the statement further said. 

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PNB Housing Finance Q4 Results: Net Profit up 34% to Rs 170 crore

PNB Housing Finance report a 34% rise in consolidated net profit at Rs 170 crore compared with Rs 127 crore, the previous year. This was the case even as sales declined 18.52% YoY to Rs 6195.93 crore. Net Interest Income declined 37% QoQ to Rs Rs 377 crore compared to Rs 593 crore. While Gross NPA stood at 7.61% of loan assets while the net NPA ratio stood at 4.49%.

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Tata Power to set up 5,000 EV charging points across Maharashtra

Tata Power has partnered with Maharashtra’s National Real Estate Development Council (NAREDCO) to install up to 5,000 electric vehicle charging outlets across the developer properties of NAREDCO’s members. The two have signed a Memorandum of Understanding(MoU). Through Tata Power’s EZ Charge mobile app, EV owners across members’ properties will enjoy 24×7 vehicle charging, monitoring, and e-payments services.

Read more here. 

Categories
Market News Top 10 News

Tata Motors Reports Net Loss of Rs 4,451 crore in Q1 – Top Indian Market News

FILE PHOTO: Tata Motors logos are seen at their showroom in Mumbai February 14, 2013. REUTERS/Vivek Prakash/File Photo

Tata Motors Q1 Results: Net loss at Rs 4,451 crore

Tata Motors Ltd reported a consolidated net loss of Rs 4,450.92 crore for the quarter ended June (Q1 FY22). It had posted a net loss of Rs 8,437.99 crore in the corresponding quarter last year (Q1 FY21). Its revenue from operations jumped 107.6% YoY to Rs 66,406 crore in Q1 FY22. Tata Motors’ electric vehicle (EV) business delivered 5x revenue growth and the highest ever quarterly sales at 1,715 units. Jaguar Land Rover (JLR) retail sales rose 68.1% YoY to 1.24 lakh units during the same period.

Tata Motors said the global chip shortages, uncertainty due to the spread of coronavirus variants, and commodity inflation would continue to impact business in the short term.

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Kotak Mahindra Bank Q1 Results: Net profit rises 32% YoY to Rs 1,642 crore

Kotak Mahindra Bank reported a 32% YoY increase in net profit to Rs 1,641.9 crore for the quarter ended June (Q1 FY22). Its net interest income (NII) rose 6% YoY to Rs 3,942 crore during the same period. The gross non-performing assets (GNPA) ratio stood at 3.56% in Q1 FY22, compared to 3.25% in Q4 FY21. The bank’s operating profit rose 19% YoY to Rs 3,121 crore in Q1 FY22. Provisions and contingencies declined by 2.8% YoY to Rs 935 crore during the April-June quarter of FY22.

[NII is the difference between the interest income a bank receives on assets such as loans and interest paid to depositors]

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Hitachi ABB Power Grids commissions Raigarh-Pugalur UHVDC link

Hitachi ABB Power Grids in India has commissioned a 1,800 km long 6 gigawatts (GW) ultra-high voltage direct current (UHVDC) transmission link from Raigarh to Pagulur. The 800 kilovolts (kV) transmission link has the capacity to meet the electricity demand of more than 8 crore people. The link strengthens grid resilience and stabilizes the power infrastructure by combining traditional and renewable power generation. It stretches from Raigarh in Chattisgarh to Pugalur in Tamil Nadu.

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Axis Bank Q1 Results: Net profit rises 94% YoY to Rs 2,160 crore

Axis Bank reported a 94% YoY increase in net profit to Rs 2,160 crore for the quarter ended June (Q1 FY22). Its net interest income (NII) rose 11% YoY to Rs 7,760 crore during the same period. The gross non-performing assets (GNPA) ratio stood at 3.85% in Q1 FY22, compared to 3.7% in Q4 FY21. The bank’s operating profit grew 10% YoY to Rs 6,416 crore in Q1 FY22. Axis Bank posted a 12% YoY increase in loan advances to Rs 6.14 lakh crore.

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Sun Pharma gets exclusive right to market Cassiopea’s acne drug in the US, Canada

Sun Pharmaceutical Industries has signed an exclusive licensing agreement with Italy-based Cassiopea SpA to sell Winlevi (clascoterone cream 1%) in the United States and Canada. Winlevi is a novel drug with a unique mechanism of action for the topical treatment of acne in patients 12 years and older. Cassiopea will receive an upfront payment of $45 million, potential commercial milestones totaling up to $190 million, and customary double-digit royalties. 

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L&T Q1 Results: Net profit jumps 287% YoY to Rs 1,174 crore

Larsen & Toubro (L&T) reported a 287% YoY jump in consolidated net profit to Rs 1,174 crore. Its revenue from operations rose 38% YoY to Rs 29,335 crore during the same period. EBITDA increased by 95.8% YoY to Rs 3,171.5 crore in Q1. The company secured orders worth Rs 26,557 crore at the group level in Q1, registering a growth of 13% YoY. You can learn more about L&T here.

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HCL Tech selected as a strategic launch partner for Microsoft Cloud for Financial Services

HCL Technologies has been selected as a launch partner for Microsoft’s recently announced industry cloud– Microsoft Cloud for Financial Services. It brings together capabilities with multi-layered security and comprehensive compliance coverage to deliver differentiated customer experiences. HCL Tech’s PowerBanking product is built to leverage all available capabilities of the Microsoft Cloud for Financial Services.

Read more here.

SBI Life Q1 Results: Net profit falls 43% YoY to Rs 223 crore

SBI Life Insurance Company reported a 43% YoY decline in net profit to Rs 223.16 crore for the quarter ended June (Q1 FY22). There was a 1.28 times increase in the number of claims reported from the end of the previous financial year (FY21) to the end of the June quarter. The company posted a 9% YoY growth in new business premium to Rs 3,350 crore in Q1. SBI Life’s assets under management (AUM) rose 32% YoY to Rs 1.75 lakh crore during the same period.

Read more here.

DLF Q1 Results: Net profit at Rs 337.17 crore

DLF Limited reported a consolidated net profit of Rs 337.17 crore for the quarter ended June (Q1 FY22). It had posted a net loss of Rs 71.52 crore in the corresponding quarter last year (Q1 FY21). The real estate developer’s total income rose 92% YoY to Rs 1,242.27 crore in Q1 FY22. DLF’s board has announced a dividend of Rs 2 per share for the previous financial year (FY21).

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Alembic Pharma Q1 Results: Net profit falls 45% YoY to Rs 165 crore

Alembic Pharmaceuticals Ltd reported a 45.42% YoY decline in consolidated net profit to Rs 164.52 crore for the quarter ended June (Q1 FY22). Its revenue from operations fell 1.13% YoY to Rs 1,326.03 crore during the same period. Revenue from its Active Pharmaceutical Ingredients (API) business rose 6% YoY to Rs 279 crore in Q1. The India branded business grew 57% YoY to Rs 481 crore during the April-June quarter.

Read more here.

NTPC REL secures 325 MW solar projects at Shajapur Solar Park in Madhya Pradesh

NTPC Renewable Energy Ltd (NTPC REL) has secured 325 megawatts (MW) solar projects to be set up at Shajapur Solar Park in Madhya Pradesh. The company won a capacity of 105 MW and 220 MW by quoting the lowest tariff rate of Rs 2.35 per kilowatt-hour (kWh) and Rs 2.33 per kWh, respectively. NTPC REL is a wholly-owned subsidiary of NTPC Limited.

Read more here.

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Editorial

Indian Life Insurance Industry: Three Key Stocks

Insurance is not too popular in India. Especially, when it comes to life insurance, a marginal proportion of the country holds life insurance. Covid-19 will be bringing some radical changes to our society including an increase in number of individuals taking insurance. Unfortunately, many families have seen their breadwinners dying due to this cruel disease and it has left them with no or little source of income. 

It is at this point life insurance comes as a light of hope in everyone’s life. A typical life insurance agreement involves an insuree (customer) and the insurer (insurance company). This agreement asks the insurer to deposit regular premiums to the insurer in order to receive a lump sum amount at the death event of the insured person.

Life insurance involves paying today to receive benefits at the later stage of life. Many people are not able to invest in something like life insurance where they have to wait for decades to receive benefits. However, one should not ignore how important this policy can be. The Indian Millennials are understanding its value and this gives us the hope that the Indian insurance industry can grow massively in the long term.

We published a jargon where we mentioned the four key ratios related to the Insurance industry. Check out this article here. These metrics are the key to any insurance company as it tells how lucrative an option that organisation is for the customers. 

The Indian insurance industry is still dominated by the Life Insurance Corporation of India (LIC), with a market share of over 60%. The remaining market is shared by many private companies. Let’s take a look at the top three private companies in this sector which are listed on the Indian stock market. These organisations are the front-runners to get the benefit of the huge potential this industry holds.

HDFC Standard Life

HDFC Life Insurance Company was established in 2000 and is one of the companies under the arm of HDFC Limited. It is present with the partnership of Standard Life Aberdeen, a global investment company. It offers a range of individual and group insurance solutions that attracts various customers. 

As of FY21, the company had 36 individual and 12 group products in its portfolio. It operates through over 400 branches and many other distribution points. Currently, it has a market share of 11.25%, the second-highest by a private player in this industry. 

Financials

In the last five years, HDFC Life has seen its net income growing at an astounding rate of 10.56% against the industry average of -0.71%. In terms of life insurance companies, it has the highest market capitalization with Rs 1,43,410.19 crore (as of 20th June 2021). The company recorded an increase of 18% in premium earned in FY21 as compared to FY20. Their net income grew by 4.5% from Rs 1,297 crore to Rs 1,360 crore in the same time period. Their EPS has seen an increase from Rs 4.44 in FY17 to Rs 6.74 in FY21.

SBI Life

SBI Life is the biggest private player in the Indian life insurance industry in terms of market share with 16.76%. It was incorporated in 2000. As the name suggests, it comes from the house of SBI which is the largest commercial bank in terms of assets, deposits, branches and customers. SBI Life has 947 offices with a network of about 1,70,096 agents. From December 19 to December 20, the FIIs held a stake of around 25-26% but this has been boosted in the latest March quarter to 30.51%. This shows that even the FIIs are bullish about the company’s progress and the efforts they are putting in.

Financials

The company saw a robust 23% increase in net premium earned in the last year. During the same period, their net income noticed a meagre increase of 2.3% to Rs 1,455 crore from Rs 1,422 crore. The EPS of the company also shows that this company is reliable for investment purposes. In FY17, the EPS of the company was Rs 9.55 which increased to Rs 14.56 in FY21. SBI Life has a strong free cash flow of Rs 19,209.53 crore in FY20 which was recorded to be Rs 8,376.65 crore in FY17. The fundamentals are quite healthy, signally that if the industry keeps on moving in the right direction, SBI Life will surely benefit.

ICICI Pru Life

Just like the other two companies above, ICICI Prudential Life started its operation in the year 2000 in a partnership between ICICI Bank Limited and Prudential Corporation Holdings Limited. They are known for their high-quality assets with 96% of their fixed income in sovereign or AAA-rated assets. They also distribute their products through individual agents, corporate agents, banks, brokers and other sources.

Financials

Unlike the other two companies, the net income of ICICI Prudential Life fell in FY21 even after an improvement in revenues generated. For FY20, the net income was declared to be Rs 1,066 crore which fell to Rs 956.15 crore in FY21. In fact, there has been a decrease in net income every year since FY17. In that year, it was recorded to be Rs 1,650 crore which has been declining each year. This has heavily impacted market share which has shrunk to 8.54%. With profits going downwards, EPS has fallen steeply as well. It was Rs 11.73 in FY17, the highest among the private players. In FY21, it was recorded to be Rs 6.66.

Conclusion

The total insurance coverage in India was recorded to be just 3.76% in 2019. This shows that there can be a massive scale of development in this sector. After the Covid-19 pandemic, the awareness towards insurance has massively increased. 

Whether it is health insurance or life insurance, more people are actively looking for the best products that can safeguard their future. Having a long-term vision with these shares can be beneficial if the companies keep on operating on the right path. 

Do let us know about your expectations with the Indian insurance industry in the comments section of the marketfeed application below.