Infosys revises FY24 guidance, HUL Q1FY24 results disappoints

Technical Overview – Nifty 50

In early action, GIFT Nifty indicated Nifty is likely to consolidate in today’s trading session and prices traded in a narrow range in the initial first hour of the trade. As the weekly expiry day progressed the Nifty index extended its positive move and scaled to fresh all-time highs at 19,991 levels.

Strictly speaking, the bulls seen quite excited as Nifty’s 20,000 eye-catching moment is almost here and greed is running high. The highest call side open interest is at 20,000 & 20,500 and the highest put side open interest is at 19800. The nifty PCR ratio stands at 1.41 levels which is very close to the overbought zone.

The prices on the daily chart clearly indicate a strong up move but while analyzing an intraday chart the RSI (14) is spotted at 80 levels with bearish divergence. Similarly, the daily chart’s momentum oscillator RSI (14) has reached nearly 80 levels, suggesting profit booking possibilities in the further trading sessions. The upside is open for 20,050 followed by 20,100, whereas the intraday support is at 19750 followed by 19700.

Technical Overview – Bank Nifty

BANKNIFTY continues to move higher post the bullish pole flag pattern breakout on the daily time frame. As the weekly expiry day progressed the Bank Nifty index extended its positive move and scaled to fresh all-time highs at 46,256 levels.
The prices on the daily chart clearly indicate a strong up move but while analyzing an intraday chart the RSI (14) is spotted at 80 levels with bearish divergence. Similarly, the daily chart’s momentum oscillator RSI (14) has reached nearly 73 levels, suggesting profit booking possibilities in the further trading sessions.

The highest call side open interest is at 46,000 & 47,000 and the highest put side open interest is at 46,000 & 45,500 levels. The bank nifty PCR ratio stands at 1.26 levels which indicates a bullish outlook. The upside is open for 46,300 followed by 46,500, whereas the intraday support is at 45,700 followed by 45,500.

Indian markets:

• Benchmark indices post significant gains for the sixth consecutive day.
• Thursday’s trading saw volatility due to the expiry of weekly index options on the NSE.
• Nifty closed above the 19,950 mark after hitting a low of 19,758.40 during morning trade.
• Both Sensex and Nifty achieved record closing highs.
• Pharma, healthcare, and private banks witnessed high demand.
• IT and consumer durables sectors experienced a decline.

Global Markets

• European markets advanced while most of the Asian stocks declined on Thursday as investors digested a slew of economic data across the region.
• German producer prices rose by 0.1% year on year in June, the federal statistics office said Thursday, slightly exceeding analyst expectations of no annual change.
• Meanwhile, China left its one year and five year loan prime rates unchanged at 3.55% and 4.2% respectively, days after it also left its medium term facility loan rates unchanged at 2.65%.
• Japan recorded a surprise trade surplus of 43.05 billion yen ($308.5 million) in June. This was a sharp reversal from the 1.38 trillion yen deficit recorded in May, and the 1.37 trillion yen seen in June 2022.
• US stocks ended higher Wednesday following earnings reports from a spate of banks and other large companies.

Stocks in Spotlight

• Infosys, the IT major, saw a decline of 1.73% as it reported a 3% decrease in consolidated net profit to Rs 5,945 crore in Q1 FY24 compared to Q4 FY23. Revenues also fell by 1.3% to Rs 37,933 crore during the same period. However, on a YoY basis, net profit and revenues showed growth, being higher by 10.9% and 10%, respectively, as compared to Q1 FY23. The company secured large deals worth $2.3 billion in Q1 FY24, with a net new value of 56.1%. Operating profit for the quarter stood at Rs 7,891 crore, showing a 0.2% QoQ increase and a 14.1% YoY increase. The operating margin was 20.8% in Q1 FY24. The company revised its FY24 revenue guidance to 1% – 3.5%, while retaining the operating margin guidance at 20%-22%.
• Larsen & Toubro has announced that its board will review a proposal for the buyback of equity shares and the payment of a special dividend for the financial year 2023-24 on July 25. If approved during the meeting, August 2 will be set as the record date to determine the entitlement of equity shareholders for the dividend. The company shared this information in a filing to the exchanges on July 20.
• Hindustan Unilever Limited (HUL) revealed a standalone net profit of Rs 2,472 crore for the June quarter of FY24, showing an 8 percent increase compared to the same quarter in the previous financial year, which recorded Rs 2,289 crore. However, there was a 10 percent sequential decline in profit from the previous quarter, which stood at Rs 2,552 crore. The company’s domestic volume growth of 3 percent fell significantly short of estimates.

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