News Shots
Blue Dart Express a posted a growth of 20.7 percent YoY in its standalone profit after tax of Rs 135 crore for Q4FY22 as compared to a profit of Rs 89 crore during the same period last year. The growth in profit was aided by higher revenues and cost efficiency initiatives that improved margins.
DCM Shriram declared a 73 percent increase in its net profit at Rs 401 crore for Q4FY22 as compared to Rs 232 crore during the same period last year.
CEAT posted a decline of 83 percent in its consolidated net profit for Q4FY22 to Rs 25.25 crore as compared to Rs 153 crore during the same period last year.
Blue Star reported that their consolidated net profit for the quarter increased by 12 percent on year to Rs 76.27 crore compared to Rs 68.09 crore during the same period a year ago
Sona BLW Precision Forgings reported that their Profit after tax for the quarter surged 76 percent to Rs 105 crore as compared to Rs 60 crore reported during the same period last year due to lower employee cost and tax credit pertaining to previous years.
What to expect?
NIFTY opened with a gap-up at 16,862 and moved up after an initial downmove. The index started falling after taking resistance at 16,950. It was a heavy fall breaking all the major support levels. NIFTY finally closed the day flat at 16,682.
BANK NIFTY opened with a gap-up at 35,713 and followed the general market. 35,900 acted as strong resistance. The index fell heavily and closed at 35,233, down by points or 0.09%.
All the sectors closed in the red.
The US markets fell heavily yesterday. The European markets were mixed with DAX closing in the red and FTSE in the green.
The Asian markets are trading lower. The U.S. Futures and the European futures are in the red.
SGX NIFTY is trading at 16,470 indicating a gap-down opening.
NIFTY has supports at 16,650, 16,600, 16,500 and 16,450. We can expect resistances at 16,780, 16,840, 16,910 and 17,000.
BANK NIFTY has supports at 35000, 34,900 and 34,400. Resistances are at 35,400, 35,620 and 35,800.
INDIA VIX dropped to 20.3.
Foreign Institutional Investors net sold shares worth Rs 2,100 crores. Domestic Institutional Investors net bought shares worth Rs 2,200 crores.
The gap-up opening was expected as the US markets shot up with the Fed announcing a 50 basis points hike. But the bearish sentiments set by the repo rate hike was strong enough to keep pushing the markets lower.
The heavyweight IT stocks performed well yesterday powered by the move in the IT stocks the previous day. However, there was a tech sell-off yesterday.
The US markets fell heavily yesterday and wiped out all the gains it made after the hike on Wednesday. The US bond yield rose to the highest since November 2018 and this affected the market sentiments. It is surprising that the market is volatile to this level.
It is worth noting that the Bank of England increased the rate again by 25 basis points. BOE was the first Central Bank to go for a rate hike since the pandemic.
Though VIX dropped significantly, it is still above 20 and there can be volatility in the coming days. We will have to see how our market reacts to the fall in the US.
Reliance will announce their quarterly results today.Watch the stock closely.
I will be waiting for a close above 16,950 for strength and a close below 16,600 can lead to further down-move. There is a high chance that the market opens below the level.
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