From Advisory Desk 24th April 2023

From Advisory Desk 24th April 2023

Market Outlook: US futures were trading a quarter percent lower ahead of major economic data and earnings due this week. According to the latest survey released on Friday, US and European business activity accelerated to an 11-month high despite high interest rates. Asian markets have started on a mixed note, while the SGX Nifty is indicating a positive opening. On the domestic front, the Nifty continues to move in a range and has respected its 50-DEMA. However, it has formed a bearish engulfing pattern on the weekly chart. Overall, we expect sideways movement in our markets ahead of key results, but sector- and stock-specific action is likely to continue. Over the weekend, Reliance Industries and ICICI Bank declared a good set of quarterly numbers, which will support the markets at the lower end.

Actionable: Buy ICICI bank, HDFC Life, Mahindra CIE.

Delivery Idea: Buy Zomato

Global market:

DOW:  + 22

SGX NIFTY:   + 50   (prev. close 17639)

NIFTY 50 : 17624

Sensex : 59655

 

Institution:

FII:               -   2117    Cr

DII:              +  1633    Cr

NSE:

Advances:  1477  / Declines:  1985

Currency:

Dollar: $ 82.09

Dollar Index: 101.73

 

Commodity:

Gold: $ 1991  per ounce

Crude: $ 80.90  per barrel

 

Bonds:

10 year US bond rate: 3.56

10 year Indian Bond rate: 7.19

Derivative:

PCR: 0.80

VIX:  11.63

Today's Result Announcement - IndusInd Bank, Century Textiles, Bank of Maharashtra, Persistent Systems, Mahindra Logistics, IIFL Securities, NELCO, Tamilnad Mercantile Bank, Trident Texofab, and Tata Teleservices.

 

Results Update:

Above estimates: ICICI Bank, Reliance Industries, Macrotech Developers

 

Inline estimates: Hindustan Zinc

 

Below estimates: Yes bank

 

Updates:

 

HDFC Bank/HDFC Life - HDFC Bank has reported that RBI has provided some key forbearances with respect to the ongoing merger process between HDFC Bank and HDFC Ltd. The Reserve Bank of India granted HDFC Bank three years to meet the priority sector requirements, once the HDFC book is merged into it. Also, allowed to raise stake in insurance subs to >50%.

 

Wipro - Company will consider a proposal for share buyback at its board meetings on April 26-27.

 

Sunpharma - US FDA has directed the Company to take certain corrective actions at the Mohali facility before releasing further final product batches into the US and there will be a temporary pause in the release of batches from Mohali until US FDA-mandated measures are implemented.

 

Lodha (Mcrotech Developers)  – Company approves bonus in the ratio of 1:1.

 

Adani Ports - Company commences tender offer to buy outstanding senior notes due 2024 worth $130 million to partly prepay company’s near-term debt maturities in each of the next 4 quarters.

Kotak Mahindra Bank - Shareholders have approved an appointment of Uday Kotak as a Non-executive, Non-independent Director of the Bank. Uday Kotak's current term as MD and CEO of Kotak Mahindra Bank is set to end in December 2023.

Securities in Ban: Nil.

 

Derivative View: On option front, Maximum Call OI is at 17700 then 18000 strike while Maximum Put OI is at 17700 then 17500 strike. Option data suggests an immediate trading range in between 17500 to 17750 zones.