July’s Trade Deficit, SEBI’s Adani Probe, Hero Fincorp IPO plans

Technical Overview – Nifty 50

The Indian benchmark index closed in the red for the third consecutive week and drift lower towards its breakout levels on the weekly time frame. The prices witnessed significant resistance at the 21–day exponential moving average and a trend line that was placed at around 19,650 levels.

On 14th Aug, Nifty witnessed a negative opening taking the clues from its global peers and recorded an intraday low of 19,257.90 levels in the first 30 mins of their trade. Post that prices started to take support near 19,300 levels and witnessed a shape V shape reversal rally and closed above 19,400 towards the end.

The index has formed a hammer candle stick pattern on the daily chart and the wick of the hammer is near the 50–day exponential moving average which is placed at 19,250 levels. The initial PUT Writers are still holding positions, no reduction in OI seen yet, rather fresh OI added by new (bullish) players. The window for initiating fresh Intraday Option Trades is very narrow now.

A break below 19,250 would add bearishness & take the index lower near 19,100 levels while on the higher side index needs to take out 19,550 levels which proves to be a strong resistance zone.

Technical Overview – Bank Nifty

The Bank Nifty closed in the red for the third consecutive week and drift lower towards its breakout levels on the weekly time frame. The prices witnessed significant resistance at the 21–day exponential moving average which is placed at around 44,650 levels.

The Banking Index on the daily chart has witnessed a head & shoulder pattern breakdown and prices closed below the neckline of the pattern on 14th Aug.  The index on the daily time frame has closed below its 9, 21 & 50-day exponential moving averages which suggests bears are having the upper hand.

The momentum oscillator RSI (14) has drifted below 40 levels with a bearish crossover on the cards. Post-breakdown bank Nifty witnessed a smart recovery from the lower levels and recovered almost 300 points towards the closing.  
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 43,800 would add more bearishness & it will take the banking index lower near 43,400 levels.

Indian markets:

• India’s trade deficit for July amounted to $20.67 billion, attributed to imports of $52.92 billion and exports of $32.25 billion. This marks an improvement from the trade deficit of $25.43 billion during the same period last year. June’s trade deficit narrowed to $20.13 billion from May’s $22.1 billion.
• The Adani group stocks faced continuous pressure throughout the trading session, driven by the news that the Securities and Exchange Board of India (SEBI) requested an additional 15 days from the Supreme Court to submit a report on allegations made by US-based short-seller Hindenburg Research against the Adani Group.
• SEBI shared that it has concluded investigations on 17 of the 24 transactions under scrutiny, while collaborating with other regulatory bodies and foreign jurisdictions to determine the next steps in its action plan.
• On August 15, the market will remain closed due to the observance of Independence Day.

Global Markets

• Asian shares struggled on Monday ahead of China data that is likely to amplify the case for serious stimulus even as Beijing seems deaf to the calls, while rising Treasury yields pressured sky-high valuations on tech stocks and underpinned the dollar.
• Geopolitics was an added worry after a Russian warship on Sunday fired warning shots at a cargo ship in the southwestern Black Sea, heralding a new stage of the war that could impact on oil and food prices.
• MSCI’s broadest index of Asia-Pacific shares outside Japan eased another 0.2%, after shedding 2% last week. Japan’s Nikkei was off 0.1%, though exporters have drawn support from the weak yen.

Stocks in Spotlight

• PVR and Inox, the multiplex chains, experienced a 5 percent rise in their stock prices. This came after they shared record-breaking achievements in terms of daily and weekend admissions, along with box office earnings. Over the weekend, the combined guest count for both chains reached 33.6 lakh, generating a box office revenue exceeding Rs 100 crore. Notably, on August 13, 2023, PVR and Inox achieved their highest-ever single-day admissions and box office earnings across their theaters, hosting 12.8 lakh guests and accumulating a gross box office revenue of Rs 39.5 crore.
• Reliance Industries Ltd (RIL) announced on Twitter that Jio Financial Services (JFS) shares have been credited to demat accounts. This comes after a special pre-open session for JFS’ price discovery held by the exchanges three weeks ago. However, it’s important to note that trading of JFS shares is not possible yet as the listing date hasn’t been announced.
• Ashok Leyland, the main company of the Hinduja group, has announced its complete acquisition of OHM Global Mobility Pvt Ltd. The acquisition involves Ashok Leyland investing Rs 300 crore into the acquired entity. OHM Global Mobility Pvt Ltd, a subsidiary of OHM International Mobility Ltd UK, is the focus of this acquisition. Hinduja Automotive Ltd, the promoter, directly holds 20 percent and indirectly through other subsidiaries holds 43.23 percent in OHM UK. This move is in line with Ashok Leyland’s electric vehicle (EV) strategy to venture into e-Mobility as a Service (eMaaS) business.

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
• ITC likely to launch IPO for its Hotel Business in 2023

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