RIL’s Ambitious Plans, Paytm Stake Sales, Bharat Forge Achieves Milestone

Technical Overview – Nifty 50

During the last trading session of the week, the market opened lower on weak global sentiment and traded in a lower top lower bottom formation. Nifty has formed a bearish body candle on daily and weekly charts. Nifty had a volatile week, losing 319 points in the last two trading sessions. It was the fifth week in a row that Nifty had formed a bearish body candle.
The Benchmark index witnessed a flat opening on the monthly expiry week but eventually gained some momentum to close above 19,300 levels. The index on the daily chart is trading within the rectangle pattern and got tangled between 50 & 21 EMA.
The Nifty on the daily chart has formed a long-leg Doji pattern which indicates uncertainty among traders. The momentum oscillator RSI (14) has been hovering below 50 levels for the past couple of weeks suggesting weak momentum on the cards.
The immediate support for the index is placed near the lower band of the rectangle pattern at 19200 levels. A sustained move below the said levels will witness a breakdown in the index. The hurdle for the index is placed near its short-term EMA at 19,450 levels.

Technical Overview – Bank Nifty

The Bank Nifty on the intraday chart witnessed a smaller degree horizontal trend line breakout above 44,350 levels and traded higher towards the close with a gain of 0.60%. The index on the daily chart is trading within the rectangle pattern and got tangled between 50 & 21 EMA.
The Banking index witnessed a flat opening on the monthly expiry week but eventually gained some momentum to close above 44,400 levels. The momentum oscillator RSI (14) has been hovering below 50 levels for the past couple of weeks suggesting weak momentum on the cards.
Maximum Call Open Interest Build Up witnessed in 44500-45000 Call & on the Put Side Maximum Open Interest is being witnessed in 44000-44500 levels. The PCR ratio holds at 1.06.
The immediate support for the Banking index is placed near the lower band of the rectangle pattern at 44000 levels. A sustained move below the said levels will witness a breakdown in the Banking index. The hurdle for the index is placed near the upper band of the rectangle pattern at 45,000 levels.

Indian markets:

• Domestic equity benchmarks break two-day losing streak with slight gains. Nifty index recovers from morning low of 19,249.70, closes above 19,300. 
• Gains limited due to profit-taking in Reliance Industries before AGM. Positive global cues countered by profit-taking in Reliance Industries.
• Market sentiment impacted by concerns of potential US Federal Reserve interest rate hike. Worries about inflation and stagflation in China further affect sentiment.
• Fluctuating foreign institutional investments contribute to cautious sentiment.
• Nifty Realty, Pharma, and Healthcare indices outperform Nifty50. Nifty IT, FMCG, and Oil & Gas indices underperform.

Global Markets

• Markets in Europe and Asia experienced gains on Monday. This was attributed to Chinas support for its equities market, which boosted positive sentiment. Additionally, Federal Reserve Chair Jerome Powells statement that the Fed would proceed cautiously in deciding whether to raise interest rates again contributed to the optimistic market outlook.
• Chinese equities saw an increase after the government lowered stamp duty on stock trades for the first time since 2008. The Chinese government also pledged to slow the pace of initial public offerings.
• However, there was negative news in the market as well. China Evergrande Group, the worlds most indebted property developer, saw its shares plummet by as much as 87% on Monday. This was the first day of trading for the company since March 21, 2022. In July, China Evergrande Group had filed for Chapter 15 bankruptcy protection in a U.S. court.
• In the U.S., the stock market rallied on Friday following positive comments from Federal Reserve Chairman Jerome Powell at the annual central bank conference in Jackson Hole, Wyoming. Powell acknowledged that inflation remains too high and stated that the central bank is prepared to raise rates further if necessary. While progress has been made on inflation, Powell did not indicate an immediate readiness to lower rates.

Stocks in Spotlight

• Bharat Forge shares surged to an all-time high of Rs 1,056.80 following an announcement by Kalyani Rafael Advanced Systems regarding a substantial order valued at Rs 287.51 crore. This joint venture between Bharat Forge’s subsidiary, Kalyani Strategic Systems, and Israel’s Rafael Advanced Systems secured the order to supply missile systems to India’s Ministry of Defence. This achievement aligns with recent developments as the Defence Acquisition Council approved proposals amounting to Rs 7,800 crore in an effort to enhance the operational capabilities of the Indian armed forces.
• During the 46th AGM of RIL, Chairman Mukesh Ambani unveiled an array of initiatives aimed at reinforcing India’s position in the global economy. These plans encompass various digital and retail ventures, notably the upcoming launch of Jio AirFiber, an entry into the insurance sector through Jio Financial Services, a pursuit of wind power, and the ambitious goal of establishing a battery giga factory by 2026, among other ventures. However, despite these announcements, shares of Reliance Industries concluded 1.38 percent lower at Rs 2,435.95 on the BSE in response to the AGM revelations.
• Paytm’s share price experienced a decline due to additional stake sales by Ant Group. The investment entity Antfin (Netherlands) Holding BV, associated with Jack Ma’s Ant Group, sold 3.59 percent of its remaining stake in Paytm for Rs 2,039 crore. This involved the sale of 2.27 crore equity shares through open market transactions at an average price of Rs 895.20 per share. In contrast, Societe Generale and Morgan Stanley collectively acquired a 1.57 percent stake in Paytm. Societe Generale procured 59.87 lakh shares, while Morgan Stanley Asia Singapore Pte purchased 39.96 lakh shares, both at an average price of Rs 895.20 per share.

News from the IPO world🌐

• Medi Assist Healthcare Services files draft papers with SEBI for IPO
• Swiggy restarts IPO plans, aims for 2024 listing
• Chennai based Basilic Fly Studio to launch IPO on September 1

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