– By Rahul Shah
Equity benchmark Sensex climbed up nearly 1400 and Nifty advanced 400 points last week led by banking, FMCG and IT stocks amid better-than-expected quarterly results and rally in the global markets. Sensex ended 1387 points or 2.3 per cent higher at 59,307, while its broader peer Nifty 50 ended above the 17,550 level, 391 points or 2.2 per cent against the previous week close. From Samvat 2078, Sensex fell 0.78 per cent to 59,307, while Nifty ended 1.4 per cent lower at 17,576.
Banking stocks led the rally in Dalal Street after better-than-expected quarterly results announced by PSU Banks like Union Bank, Canara Bank. Nifty Bank Index gained by 3.5 per cent last week, while PSU Bank Index soared by 7 per cent. However, select private banks like Axis Bank and IndusInd Bank reported strong quarterly results. Axis Bank climbed up from Rs 800 to Rs 900 (12 per cent) against the previous close.
With a short spun in the next week (Three trading sessions) due to Diwali holiday and F&O expiry expect the market to be volatile next. Both US and European GDP and PMI data along with quarterly results (Facebook parent Meta, Apple and ExxonMobil) will be in focus this week . On the domestic front, October series F&O expiry and few quarterly results (Maruti, Dr Reddy, IOC, SBI Card, Vedanta) will be announced this week.
Global markets gained between 2-5 per cent last week due to attractive valuation in the US S&P 500, hope of the US Federal Reserve to slow down its rate-hiking campaign, impressive corporate results, change in UK government within a short span and UK government’s sudden U-turn in its tax cut. Moreover, improvement in the global economy data like Germany, China and US will be positive for the market. On the other hand, UK September Inflation spiked to above 10 per cent, US 2-Year yield bond yield spiked to 14-year high, global current volatile are major concern. India, USDINR surged to record last week at nearly 83, Japanese Yen record high to 152 and China offshore yield surged to record high which may have a negative impact in the markets.
Back home, expected positive sentiment in the market due to impressive quarterly results, stable oil price and FIIs turned into solid net buyers in Indian equity (Rs 1350 crore last week) will be positive for the market sentiment. Expect positive sentiment in the market due to India being the only country in the world – produced locally, consumption local and manufacturing locally. It means, any cloudy global environment not yet any impact on our market or buying opportunity any sharp decline in the domestic bourses.
Nifty marginally fell 1 per cent from the last Diwali to this Diwali. However the current festive season provides a good entry point on Indian equity looking in a better position than its global peers. Happy Diwali and prosperous new year!!
IDFC : cmp 78 sl 74 target 88
The stock is giving a breakout of the falling trend line on the monthly scale • It is forming a bullish candle on the monthly scale which indicates strong buying interest in the counter . Momentum indicators on the monthly chart is placed in the positive territory which indicates uptrend to continue Considering the current chart structure, we expect the stock to inch higher , Hence we advise to buy the stock with a stop loss of 75 target 85
Cochin shipyard: Cmp 517 sl 498 target 560
The stock has surpassed the falling trend line on the monthly scale and trading higher • It is forming higher highs and higher lows on the monthly scale which indicates uptrend in the counter • It has strong momentum on the weekly and monthly scale which will take the prices to higher levels • Considering the current chart structure, Hence we advise to buy the stock with a stop loss of 498 and target of 560.
(Rahul Shah is a Senior Vice President, Group Advisory Leader-PCG, Broking & Distribution, Motilal Oswal Financial Services.)
Disclaimer: ICICI Securities Limited is a SEBI registered Research Analyst having registration no. INH000000990. It is confirmed that the Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 21/10/2022 or have no other financial interest and do not have any material conflict of interest. I-Sec or its associates might have received any compensation towards merchant banking/ broking services from the subject companies mentioned as clients in preceding 12 months.