M&M’s Anti-Drone Partnership, Bharti Airtel’s AGR Case Surge, and Sugar Stocks Soar on Ethanol Policy

Written by - Fisdom Research

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August 30, 2024 3 minutes

Indian markets overview:

Benchmark indices Nifty and Sensex ended the day at record highs on August 30, maintaining positive momentum.
A sharp rally in realty and pharma stocks fueled market sentiment, helping the indices hold steady.
After a brief dip from profit booking the previous day, the broader market rebounded quickly.
Mid-cap and small-cap indices outperformed the main indices, with gains of 0.5% and 0.8%, respectively.
Despite analyst concerns over stretched valuations, mid and small-cap indices have shown resilience and continue to significantly outpace Nifty’s year-to-date performance..

NIFTY hit a new all-time high of 25,263, gaining 0.32% for the day and forming a DOJI candlestick on the daily chart.
The index traded within a tight range of 25,200 to 25,300, creating a rectangle pattern on the 25-minute chart; a breakout could trigger a momentum move.
RSI (14) has broken the falling trend line, and the index is above the DEMA, indicating strong momentum.
MACD has crossed positively and remains above polarity.
Short-term outlook is negative to sideways, with support at 25,100 and 25,000, and resistance at 25,350 and 25,450.

The banking index gained around 0.40%, forming a bullish candlestick on the weekly chart.
The daily chart shows a higher low structure, closing above the falling trend line resistance.
The index remained stable throughout the day, trading between 51,300 and 51,500.
It maintained its short-term upward trend, closing above the key DEMA.
The weekly chart’s rising trend line supports the RSI (14), while the daily RSI crossed above 55, indicating positive momentum.
MACD on the daily chart shows a positive crossover.
Resistance levels for the next sessions are 51,600 and 51,750, with support at 51,000 and 50,800.

Mahindra & Mahindra Ltd’s share price rose over 2% on August 30 following the announcement of a partnership with Sentrycs to develop anti-drone technology aimed at protecting India’s critical infrastructure, airports, and borders. Sentrycs specializes in adaptive counter-drone solutions, leveraging advanced cyber over RF technology.

Bharti Airtel’s share price surged nearly 3% to a record high of ₹1,608.40 on August 30 as the Supreme Court reviewed the curative petitions filed by Bharti Airtel and Vodafone Idea in the AGR case. Brokerages anticipate that the review could lead to government relief measures for telecom companies. Global brokerage Bernstein, expecting strong growth, raised its price target for Bharti Airtel by 9% to ₹1,740, maintaining an ‘outperform’ rating.

Sugar stocks surged after the government announced a new policy allowing sugar mills to produce ethanol from cane juice or syrup for the 2024-25 Ethanol Supply Year. Shares of sugar companies, including Dalmia Bharat Sugar, Shree Renuka Sugar, Triveni Engineering, and Bajaj Hindusthan, rose by up to 16%..