Nifty Rebounds, Tejas Networks Gains, IndiGo and IIFL Securities Witness Shifts

Technical Overview – Nifty 50

The Indian benchmark index continued its volatile move for the second consecutive trading day and closed above 19,450 levels after a negative gap-down opening. prices have given a bounce from the 50 EMA and an unfilled gap of around 19240. 

Nifty on 16th August witnessed a negative gap down opening and reversed sharply from the lower levels identical to its previous trading day where prices witnessed a V shape reversal rally. From the last two trading sessions, prices are finding support near the upward-rising trend line which is placed at 19,400 levels.

The momentum oscillator RSI (14) is hovering near 50 levels from the last more than 7 trading sessions which indicates a bearish to a sideways trend which volatility. The India VIX on the daily chart has witnessed a falling wedge pattern breakout above 11.5 levels and moving higher. The higher VIX suggests an increase in the volatility. A close below 19,250 might pull the market down towards 19,050. On the flip side, hurdles for bulls are the 21 EMA at 19517 and the 19550 level (61.8% of the recent decline).

Technical Overview – Bank Nifty

The Bank Nifty on the daily chart has witnessed a head & shoulder pattern breakdown and prices are trading below its neckline which is placed at 44,300 levels. Banking Index on 16th August witnessed a negative gap down opening and reversed after recording an intraday low at 43,600 levels.

The prices witnessed significant resistance at the 21–day exponential moving average which is placed at around 44,650 levels. The momentum oscillator RSI (14) has drifted below 40 levels with a bearish crossover on the cards.

The trend remains bearish as long as the banking index stays below the neckline of the bearish head & shoulder pattern which is placed at 44,350 levels. A break below 43,700 would add more bearishness & it will take the banking index lower near 43,300 levels. On the flip side, hurdles for bulls are near neckline resistance which is placed at 44,200, and the 44,400 level.

Indian markets:

• Domestic equity benchmarks break two-day losing streak with marginal gains.
• Nifty index closes above 19,400, recovering from the morning low of 19,257.90.
• Metals and PSU bank stocks decline, while IT and FMCG shares make gains.
• Concerns arise about demand slowdown in China and possible interest rate hikes in developed economies.
• Caution among investors due to foreign investors selling off local market shares this month.

Global Markets

• The Dow Jones index futures were up 79 points, indicating a positive opening in the US stocks today.
• Europe shares advanced while Asian stocks declined on Monday.
• Japans gross domestic product for the second quarter will be out on Tuesday, as well as its inflation print for Friday. China will release industrial production and retail sales for July, as well as house prices on Tuesday.
• US stocks slipped on Friday after producer price inflation data came in above market expectations, heightening investors concerns that the worlds largest economy could keep rates higher for longer.
• Data in the US showed that annual producer inflation accelerated to 0.8% in July from 0.2% in the previous month.

Stocks in Spotlight

• Tejas Networks saw its stock price rise by 4 percent. This was due to the company securing a significant contract with Tata Consultancy Services (TCS). The contract involves providing and maintaining Radio Access Network equipment for BSNL’s nationwide 4G/5G network, which includes around 100,000 sites. The company received a purchase order worth Rs 7,492 crore for this project. Tejas Networks will supply the equipment during 2023 and 2024, and they will also provide support and maintenance services for nine years after the warranty period.
• IndiGo airlines saw its stock price drop by 3.5 percent. This happened because of a block deal. In this deal, 5.1 percent of the company’s ownership changed hands. Two crore shares were sold for a total of Rs 4,837 crore. Even though the exact buyers and sellers aren’t mentioned here, it was reported that the main owner of the company, the Gangwal family led by Rakesh Gangwal, wanted to sell some of their ownership in the company. They were trying to raise $450 million (about Rs 3,735 crore) through this deal, which would reduce their stake in the low-cost airline, IndiGo.
• IIFL Securities jumped 8 percent following a report from Bloomberg. The report talked about a large block deal where 12 million shares, which is a 3.9 percent ownership in the financial services company, were bought and sold. The stock has been witnessing lot of volatility post SEBI’s ban on onboarding new customers. However, the decision was later put on hold by the Securities Appellate Tribunal (SAT), which means the company got temporary relief from the order. 

News from the IPO world🌐

• Hero FinCorp in talks with I-banks for Rs 4,000-crore IPO
• Westbridge, Nexus backed India shelter Finance files for Rs. 1800 crore IPO
• Cello World files for Rs. 1,750 crore IPO

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