Metal and auto shine, TATA Motors to swap ordinary shares for DVR

Technical Overview – Nifty 50

From the last three trading sessions, the Nifty is taking strong support near its 9–day exponential moving average and it is acting as an anchor point for the index. Nifty failed to show any single hourly close above the prior hour’s high since the morning indicated selling pressure on every rise for the intraday.

The highest call side open interest is at 19,800 & 19,700 and the highest put side open interest is at 19,500 & 19,700 levels and the Nifty PCR ratio stands at 0.68 levels which indicates call sellers are dominant at the present level.
Volatility and choppiness have found their way to Dalal Street again. The breakout of a wedge pattern on the intraday chart stands above 19,720 levels and above that 19,800 levels are likely to be seen. On the lower side, intraday supports stand at 19,620 levels.

Technical Overview – Bank Nifty

The Bank Nifty on the daily chart is trading in a rising wedge pattern and has continuously taken support at 9 EMA which is placed at 45,630 levels. It was a super volatile day for the banking index where the index swing both ways during the trading sessions and finally closed with a loss of 78 points.

The Banking index on the intraday chart has formed a falling channel pattern and is trading within the range of 250 points. The breakout in the Banking index is expected above 45,950 levels and on the lower side the immediate support stands at 45,600 levels.

The highest call side open interest is at 46,000 & 47,000 and the highest put side open interest is at 46,000 & 45,000 levels and the Bank Nifty PCR ratio stands at 0.74 levels which indicates call sellers are dominant at the present level.
The Bank Nifty was also under pressure, forming a bearish candlestick on the daily charts. On the downside, if prices slip below 45,600 levels than 45,300 will be on the cards and immediate resistance stands at 46,350 levels.

Indian markets:

• Key equity indices closed almost unchanged on Tuesday.
• The Nifty managed to stay above the 19,650 level, bouncing back from its mid-afternoon low of 19,615.95.
• PSU banks and FMCG shares witnessed declines, while metal and auto shares experienced gains.
• Investor sentiment is being impacted by two factors: Strengthening dollar index and Decreasing Foreign Portfolio Investment (FPI) inflows.
• Additionally, concerns are arising due to: Firmness in Brent crude oil prices and Expectations of a 25 basis point rate hike by the Federal Reserve.

Global Markets

• European and Asian stocks advanced on Tuesday as markets awaited more cues from a Federal Reserve meeting this week, while Chinese markets rose sharply after top officials promised more policies to support growth.
• Chinas Politburo- the top decision-making body of the Communist Party- promised more policy measures to support slowing economic growth in the coming months. Measures will be aimed at the countrys biggest growth engines- real estate and private consumption, both of which have deteriorated substantially over the past three years.
• South Koreas gross domestic product grew 0.9% year-on-year in the second quarter of 2023, according to advance estimates. This was unchanged from the 0.9% seen in the first quarter.
• Global central bank meetings will be in focus. Markets reportedly anticipate a 25 basis points interest rate hike from the US Federal Reserve on Wednesday and European Central Bank on Thursday. Meanwhile, the Bank of Japan on Friday is likely to keep its super-loose policy intact. Investors are waiting for Chair Jerome Powells statements on his outlook for the economy as it tackles inflation.
• US stocks settled higher on Monday as investors bet on sectors beyond technology in a week filled with earnings reports and a Federal Reserve meeting.

Stocks in Spotlight

• The board of Tata Motors Ltd. has given approval for a scheme of arrangement through the NCLT (National Company Law Tribunal) to eliminate Tata Motors ‘A’ Ordinary Shares, also known as DVR (Differential Voting Rights) shares. These DVR shares will be exchanged for Ordinary shares of the company that are listed on the stock exchanges. For every 10 DVRs held by investors, the company will issue seven Ordinary shares. As a result of this shareholding restructuring, the effective voting rights of the promoter and promoter group will be reduced by 3.16%.
• Tata Steel witnessed a rise of over 3 percent in its stock price, boosted by better-than-expected earnings for the April-June quarter, which positively impacted investor sentiment. However, the steel manufacturer’s consolidated net profit for the same quarter plummeted by 93 percent year-on-year to Rs 525 crore. This significant downturn was primarily attributed to the performance of its Europe operations. In comparison, the company’s net profit in the corresponding quarter a year ago was substantially higher at Rs 7,714 crore, and in the previous quarter (January-March 2023), it stood at Rs 1,566 crore.
• HDFC AMC has received praise from analysts for its impressive growth in assets under management (AUM), systematic transactions, and market share gains during the June quarter. Despite this positive performance, brokerages believe that the stock has already factored in these gains, as evidenced by a significant 42 percent rally in the past two months. The revenue yield dropped 3 basis points year-on-year to 47.3 bps as a percentage of QAAUM in Q1 FY24 (QAAUM referring to Quarterly Average Assets Under Management).

News from the IPO world🌐

• IPO worth Rs. 50,000 crore in next 6 months; proposal worth Rs. 42000 crore more await SEBI nod
• Oriana Power sets IPO price band at Rs. 115 to Rs. 118 per equity share
• Textile Manufacturer Shri Techtex to roll out IPO 

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