Paytm’ foray into AI, Bharat forge surged and more

Technical Overview – Nifty 50

In today’s trade, Nifty portrayed bearish consolidation but digging deeper broader markets were seen outperforming as Nifty Midcap 100 and Nifty Small cap 100 indices surged around 0.85% each. From the past 6 trading sessions, the Benchmark Index is trading within the very narrow range of just 200 points from 19,470 – 19,270 levels which indicates a clueless directional bet for the traders. 
Nifty on the daily chart has formed a bullish body candle on 22nd Aug and the overall pattern looks like a morning star pattern, which is known as a reversal pattern. On daily charts, the index has started moving in lower lows & lower high patterns which is the first signal for a profit booking scenario after the rally from 16800 to 19991 levels.
Maximum Call Open Interest Build Up witnessed in 19400-19500 Call & on the Put Side Maximum Open Interest is being witnessed in 19300-19400 levels. The PCR ratio holds at 0.93.
Technically speaking, Nifty bulls are likely to hesitate as long as Nifty’s 19510-19550 zone is a resistance area. On the downside, bears will become active if the Nifty slips below the 19250 mark.

Technical Overview – Bank Nifty

The Bank Nifty continues to sustain below its short-term averages and maintain its lower high lower low trend on the daily time frame. From the past 6 trading sessions, the Banking Index is trading within the very narrow range of just 500 points from 43,700 – 44,150 levels which indicates a clueless directional bet for the traders.
On the daily chart, Banking Index stays below its neckline of the head & shoulder pattern which is placed at 44,300 levels. The momentum oscillator RSI (14) is reading in a lower low formation but from the last couple of days, it’s finding support near 33 levels. Despite volatility and choppiness, Bank Nifty managed to end a tad above its 100–day exponential moving average which is placed at 43,856 levels.
Maximum Call Open Interest Build Up witnessed in 44000-44100 Call & on the Put Side Maximum Open Interest is being witnessed in 44000-43800 levels. The PCR ratio holds at 0.82.
Technically speaking, Bank Nifty bulls are likely to hesitate as long as Banking Index 44300-44450 zone is a resistance area. On the downside, bears will become active if the Bank Nifty slips below the 43600 mark.

Indian markets:

• Indian benchmark indices failed to carry on the previous session’s gains and ended with no change on August 22.
• After a subdued start, the market traded in a tight range but remained in green territory for the most part of the session but in the final hour, erased all the gains to close on a flat note.
• Among sectors, except Information Technology, Pharma and PSU Bank, all other indices ended in the green with Capital Goods and Power adding 1 percent each, while Metal and FMCG rose 0.5 percent each.
• The broader indices, BSE midcap and smallcap, outperformed the benchmarks as both the indices touched fresh record highs in today’s trading session.

Global Markets

• S&P 500 and Nasdaq rise for a second day as Wall Street’s rebound continues.
• Japanese stocks climb for second session as Hang Seng increases.
• Chinese tech company Baidu reported better-than-expected revenue, up by 15% year-on-year in the second quarter and bolstered by growth in advertising.
• U.S. stocks mostly fell Friday as the recent rise in bond yields and Chinas economic woes left major benchmarks with another losing week.
• U.S. Treasury yields rose to decade highs, European equities recovered from a six-week low and the Nasdaq jumped more than 1% on Monday as investors awaited a Federal Reserve meeting on Friday at Jackson Hole, Wyoming.

Stocks in Spotlight

• Bharat Forge Shares rose 3 percent to hit a new high with the recent order wins brightening the company’s export order outlook. Kalyani Strategic Systems, a wholly owned defence subsidiary of Bharat Forge, bagged two export orders aggregating to about Rs 850 crore from “friendly countries” for the supply of components and armoured vehicle chassis over 18 months. The company commenced defence exports, of both systems and components, in Q1 FY24 and said new orders worth Rs 280 crore during the quarter resulted in its combined defence order book reaching Rs 2,200-2,300 crore.
• Paytm Shares of One 97 Communications Limited, the parent company of Paytm, were trading over 2 percent higher on August 22 morning after the mobile payments giant shared plans to invest in AI to build an artificial general intelligence software stack. In the annual report for FY23, CEO Vijay Shekar Sharma said Paytm, which pioneered mobile payments in India, was building an artificial general intelligence system which would help various financial institutes in capturing possible risks and frauds, while also protecting them from new risks arising out of advances in AI.
• Shares of Bharat Heavy Electricals Ltd (BHEL) jumped over 10 percent to Rs 111.25 on August 22 after the company secured order worth Rs 4,000 crore from a wholly-owned subsidiary of Adani Power Limited. The scrip hit a new 52 week high of Rs 112.85. The government-owned company has received the order from Mahan Energen Limited, formerly known as Essar Power MP Limited, a wholly owned subsidiary of Adani Power Limited, BHEL said in a filing to the stock exchanges on August 22.

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