Hero Expands to Brazil, Hindustan Zinc Dips on Vedanta Sale, Voltas Rebounds 5%

Indian markets overview:

• Benchmark indices Nifty and Sensex closed flat on August 19, hovering near the flatline as investors awaited cues from the US Federal Reserve.
• Investors are keenly awaiting the speech by Federal Reserve Chairman Jerome Powell on August 23 at the Jackson Hole Economic Symposium for hints of potential monetary policy easing.
• Among sectors, Nifty Metal led the gains, rising nearly 2% after a recent sell-off.
• Nifty PSU Bank and Nifty Media also advanced, ending over 1% higher each.

• The benchmark index, after a consolidation breakout on Friday, traded flat on Monday but maintained a bullish bias on the daily time frame.
• The index closed above its consolidation range but traded within the range.
• A 9-day EMA crossing above the 21-day EMA indicates a bullish golden cross on the daily chart.
• RSI (14) bounced from 40 to 55 levels on the daily chart, signaling strength.
• India VIX remained flat but stayed above 13 levels throughout the day.
• The PCR ratio stayed above 1, indicating a neutral view from the options front.
• The index closed above key short-term averages (10 and 20 DEMA) and surpassed last week’s high of 24,500.
• A decisive move above 24,500 could push the index towards the gap between 24,500 and 24,700.
• A buy-on-dips strategy is favorable as long as the index stays above 24,350.

Technical Overview – Bank Nifty

• The Banking index is consolidating within a tight range, needing to break the 50,800-resistance level to continue upward momentum.
• The index is around the 100-day EMA, closed above the 9-day DEMA, but remains below the 21-day EMA, showing mixed pressure.
• Significant open interest in options at 50,500 calls and 50,000 puts; notable activity around 51,000 calls and 50,500-50,000 puts.
• RSI (14) is below 50, indicating a bearish to sideways trend; MACD is also below its polarity line.
• The market view is sideways, with a bullish breakout expected only above 50,800; immediate support lies at 49,650 levels.

Stocks in Spotlight

• India’s largest motorcycle maker Hero Motocorp announced it will begin operations in Brazil in the fourth quarter of FY2025, with dispatches already starting to the Philippines in March 2024. In May, the company revealed plans to establish a unit in Brazil for manufacturing and distributing two-wheelers, parts, and accessories. This move comes after its initial 2014 entry plan was postponed due to Brazil’s insistence on a petrol-ethanol fuel mix.

• Hindustan Zinc fell 4.8 percent, extending its losses after Vedanta announced a 3.17 percent stake sale via an offer-for-sale (OFS) from August 16-19. The divestment is part of Vedanta’s broader strategy under Anil Agarwal’s leadership.

• Voltas rebounded with a 5 percent gain after three days of declines, as investors booked profits following strong June quarter results. While the company’s appliance market share gains were well-received, analysts remain cautious due to the management’s unchanged guidance and limited near-term margin expansion potential.

News from the IPO world🌐

• Bengaluru-based TruAlt Bioenergy files draft papers with Sebi to launch IPO
• Logistics company Shadowfax eyes Rs 3,000 crore IPO
• Interarch Building Products announces Rs 850-900 price band for Rs 600 crore IPO

Daily Leader board:

Sectoral Performance

Top Sectors	Day change (%)
NIFTY AUTO	-0.9
NIFTY PRIVATE BANK	-0.5
NIFTY BANK	-0.3
NIFTY FINANCIAL SERVICES	-0.2
NIFTY REALTY	0.2

Advance Decline Ratio

Advance/Declines	Day change (%)
Advances	2710
Decline	1316
Unchanged	139

Numbers to track

Indices Name	Latest	% 1D	% YTD
10 Year Gsec India	6.9	0.1 %	23.3 %
WTI Crude (USD/bbl)	75	(0.4) %	7.9 %
Gold (INR/10g)	70,938	1.5 %	6.3 %
USD/INR	83.89	(0.0) %	1.1 %
Hang Seng	17,569	0.8 %	4.6 %
Shanghai Composite	2,894	0.5 %	(2.3) %
Dow Jones	40,659	0.2 %	7.8 %
DAX	18,322	0.8 %	9.2 %
FTSE 100	8,311	(0.4) %	7.3 %
Nikkei	37,389	(1.8) %	12.5 %
Straits Times	3,357	0.1 %	3.9 %