Manappuram Finance’s Gain, Hero MotoCorp’s Surge, APSEZ’s Profits Rise

Technical Overview – Nifty 50

The Benchmark index on 08th Aug witnessed a flat opening near 19,600 levels and traded with very less enthusiasm throughout the day and closed within the previous candles range. The index from the last couple of sessions is trading within the range of its 9 & 21-day exponential moving averages.

The prices have found support near the lower band of the rising channel pattern and inching higher with a tired pace on the daily scale. The momentum oscillator RSI (14) continues to hover near 50 levels with a bearish crossover.

Currently, the Options Writing activity is seen with muted aggression on the PUT sides; rather has a strong tilt towards CALL Writing. Maximum Call Open Interest Build Up witnessed in 19600-20000 Call & on the Put Side Maximum Open Interest is being witnessed in 19500-19400 levels. The PCR ratio holds at 0.83.

Technically bulls are looking a bit tired and a sustained move above 19,700 will be needed for the further bullish extension. On the lower end, 19,500 – 19,450 will be immediate for this week’s expiry.

Technical Overview – Bank Nifty

The Banking index on 8th Aug opened flat near 44,900 levels and closed the day at 44,964 levels. Throughout the day, the Bank Nifty showed a consolidation within a range of 100 – 150 points. By day’s end, a modest bullish candle had formed which does not give any clear picture.

The Banking index on the daily chart has given a negative crossover where 9 EMA has crossed below 21 EMA. In the index continues to trade below this average then we may witness a weakness in the prices. Looking forward, the 21-day exponential moving average (EMA) at 45,162 may provide a hurdle to bullish momentum.

Currently, the Options Writing activity is seen with muted aggression on the PUT sides; rather has a strong tilt towards CALL Writing. Maximum Call Open Interest Build Up witnessed in 45000-45500 Call & on the Put Side Maximum Open Interest is being witnessed in 45000-44500 levels. The PCR ratio holds at 0.84.

The immediate support for the Bank Nifty stands at 44,650 – 44,400 levels and the index is likely to face resistance near 45,200 levels. Both the support and resistance are covered within the band of 21 & 50 EMA.

Indian markets:

• Volatility in the market is observed due to the expiry of the July F&O series.
• The Nifty50 has recorded net losses for the fourth consecutive derivatives series in July, leading some traders to unwind their long positions, resulting in a market decline.
• The Federal Reserve’s decision to raise interest rates by 25 basis points was in line with market expectations.
• However, Fed Chair Jerome Powell’s comments about the potential for further rate hikes if inflation does not cool down as anticipated caused investors to book profits.

Global Markets

• Wednesday, July 26, the U.S. markets closed mixed after the Federal Reserve hiked interest rates by 25 basis points, taking rates to a target range of 5.25% to 5.5%. 
• In his opening remarks, Fed Chair Jerome Powell acknowledged the extensive progress made yet highlighted that the full impact of policy tightening is yet to be experienced. The Federal Reserve will maintain a data-dependent approach moving forward.
• Japan’s Nikkei 225 ended Thursday’s session up 0.82% at 32,920.00, recoding gains in the Paper & Pulp, Steel, and Pharmaceutical Industry sectors. USD/JPY was down 0.17% to 139.97 at 04.30 AM ET.
• Australia’s S&P/ASX 200 rose 0.73%, ending the session at 7,455.90, reflecting gains in the A-REITs, IT, and Consumer Discretionary sectors. AUD/USD was up 0.84% to 0.6813 at 04.30 AM ET.

Stocks in Spotlight

• Manappuram Finance share price gained 5 percent on August 8 after subsidiary Asirvad Microfinance’s June quarter numbers beat Street expectations. The microfinance institution (MFI) reported a consolidated net profit of Rs 111 crore in the quarter gone by against a loss of Rs 8.3 crore in the year-ago period. Revenue from operations jumped 77 percent YoY to Rs 637 crore.
• Hero MotoCorp Shares of the company surged over 4 percent on August 8, propelling it to the top of the Nifty50 gainers list. The surge followed the company’s announcement of receiving 25,597 bookings for the Harley Davidson X440 since the commencement of bookings on July 4. Of the total bookings, more than 65 percent are for the top model priced at Rs 2.96 lakh ex-showroom, the company said in a disclosure to the exchanges on August 8.
• Adani Ports & SEZ (APSEZ) reported an 80% rise in quarterly profits due to robust operations and a swing to forex gains from a loss in the previous year. In addition, APSEZ has provided guidance for the current fiscal year of up to a 15% increase in cargo tonnage, a 20% rise in revenue, and a 17% increase in EBITDA.

News from the IPO world🌐

• TVS Supply Chain’s IPO opens on Thursday
• Concord Biotech IPO fully subscribed on Day 2. Retail portion booked 2.26 times
• SBFC Finance public issue subscribed over 70 times

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