Earnings Update: Karur Vysya Bank, Bajaj Finance, and Jio Financial Services

Technical Overview – Nifty 50

In early action, Gift Nifty indicated that Nifty would open with smart gains, and the same was followed as the Indian Benchmark index opened 100 points higher and sustained above 19,800 levels for the majority of the time. Nifty shifted into a sustainable upside for the day and closed near 19,800 levels with gains of more than 50 points.

The Nifty50 on the daily chart has given an inverted head & shoulder pattern breakout on 11th October and after that prices are hovering above the neckline of the pattern with volatility. Presently the index is trading above all the important smaller and medium-term averages on the daily time frame which is positive for the prices.

As per OI data, max CE writing was seen near 19800, 19900 & 20000 while on the PE side, max writing was seen near 19700, 19800 & 19600 levels. The Max pain in Nifty is near 19800 levels. Any level above 19850 could bring back bullish momentum in the Nifty. On the downside, 19700 could offer support in the near term.

Technical Overview – Bank Nifty

The Bank Nifty witnessed a massive gap-up opening of more than 250 points on 17 October but couldn’t hold on to its gains and drifted lower post recording a day high within the first 5 minutes of the trade. The index traded within the range of 100 points for most of the time and ended with a gain of nearly half percent.

The Banking index continuously faces stiff resistance near its 21 & 50 EMA and prices have reversed from the top in the past few occasions. The momentum oscillator RSI (14) is hovering within the range of 40 – 50 indicating a sluggish momentum in the index.

As per OI data, max CE writing was seen near 44,500, 44,600 & 45000 while on the PE side, max writing was seen near 44,000, 44,200 & 44,500 levels. The Max pain in Bank Nifty is near 44,400 levels. Any level above 44,700 could bring back bullish momentum in the Bank Nifty. On the downside, 44,000 could offer support in the near term.

Indian markets:

• Positive global cues contributed to a strong opening and sustained market momentum throughout the day.
• Buying activity was observed across various sectors, with utilities, power, and energy stocks performing well. In contrast, capital goods, realty, and auto shares faced challenges.
• Towards the end of the day, some profit-taking activities were noted among investors.
• Foreign institutional investors continued to withdraw funds due to firm US bond yields, impacting market dynamics.
• Market participants are eagerly awaiting the speech by the Fed chair on 19 October for insights into future interest rate trends.
• The Israel-Hamas conflict is being closely monitored, although there is a consensus that geopolitical risks are unlikely to escalate further at the moment.

Global Markets

• Most European shares declined while Asian stocks settled higher on Tuesday, recovering a measure of recent losses tracking strength in Wall Street, although markets still remained on edge over the Israel-Hamas war and key upcoming economic readings from China.
• Chinas third-quarter gross domestic product data is due on Wednesday, and is expected to show continued weakness in economic growth.
• US stocks ended sharply higher on Monday as investors were optimistic about the start of the earnings season, while transportation and small-cap shares also jumped.

Stocks in Spotlight

• Karur Vysya Bank ended the day with a 5 percent increase, building on its previous day’s 2 percent surge. The stock’s momentum followed a remarkable 51 percent year-on-year rise in net profit during the September quarter, boosting investor confidence in the bank’s performance.
• Bajaj Finance reported a significant increase in net profit, rising by 27.8 percent to ₹3,550 crore from ₹2,781 crore in the same period last year. Analysts’ expectations of stable asset quality and robust loan growth were met. The company also saw a substantial growth in net interest income (NII), surging by 26.4 percent to ₹8,841 crore, compared to ₹6,997 crore in the corresponding year-ago period.
• Jio Financial Services (JFSL) experienced a decrease of 1.69% in its stock value. However, the company’s financial performance in Q2 FY24 showcased significant growth, reporting a 101.31% increase in consolidated net profit, reaching Rs 668 crore compared to Rs 332 crore in Q1 FY24. Additionally, the total revenue from operations surged by 46.82% to Rs 608 crore from Rs 414 crore, indicating a strong quarter for the company.

News from the IPO world🌐

• GPT Healthcare refiles IPO papers with SEBI
• Manappuram Finance arm Asirvad Micro Finance files for Rs. 1500 crore IPO
• Paymate plans IPO in 6-9 months

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