Paytm’s Surge, ICICI Bank’s Expansion, and Godrej’s Earnings Report

Technical Overview – Nifty 50

NIFTY50 on 07th Aug witnessed a marginal gap up opening and traded below the neckline resistance in the pre-lunch session. On the 30 mins chart index has witnessed an inverted head & shoulder pattern breakout and the index closed above its neckline resistance.

The index on the daily chart continues to trade within the rising channel pattern and presently has just taken support near the lower band of the pattern. Index continuous to close above 9, 21 & 50-day exponential moving average on the daily scale.

Maximum Call Open Interest Build Up witnessed in 19600-20000 Call & on the Put Side Maximum Open Interest is being witnessed in 19500-19400 levels. The PCR ratio holds at 1.08. From the last couple of days, the index is taking support near the lower band of the rising channel pattern and the index should continue to close above 19,450 levels in the further trading sessions. If the up move continues prices are likely to fill the gap created on 02nd Aug.

Technical Overview – Bank Nifty

Bank Nifty index remained under pressure for the second consecutive week and also broke its 21-DMA placed at 45400 which will now act as immediate resistance. On the 07th Aug witnessed a flat opening near 45,000 levels and traded within the very narrow range of 200 points. 

The Banking index on the daily chart has given a negative crossover where 9 EMA has crossed below 21 EMA. In the index continues to trade below this average then we may witness a weakness in the prices. Maximum Call Open Interest Build Up witnessed in 45000-46000 Calls & on the Put Side Maximum Open Interest is being witnessed in 44500-44800 levels. The PCR ratio holds at 0.72.

The momentum oscillator RSI (14) has drifted below its trend line support which is placed at 50 levels and closed below the same on the daily time frame. The immediate support for the Bank Nifty stands at 44,600 – 44,400 levels and the index is likely to face resistance near 45,200 – 45,400 levels.

Indian markets:

• Domestic equity barometers closed with significant gains on Monday, marking a second consecutive trading session of upward trend.
• The Nifty index finished close to the 19,600 level.
• Investors were cautious due to the pending release of inflation data and the Reserve Bank of India’s monetary policy.
• Healthcare and IT stocks saw increased demand, while bank shares encountered downward pressure.

Global Markets

• European markets declined today, primarily due to German economic weakness and anticipation of key inflation data. German industrial production dropped significantly by 1.5% in June, indicating a global demand slowdown, particularly from China.
• Asian markets settled on a mixed note as investors awaited Chinas inflation figures and trade balance. Moreover, factors such as a U.S. sovereign rating downgrade, rising Treasury yields, and weak Chinese economic data impacted risk-driven markets.
• On Wall Street, stocks experienced their longest daily losing streak in three months on Friday, largely influenced by weaker-than-expected U.S. jobs growth and earnings from major technology companies. In July, the U.S. economy added 187,000 jobs, slightly higher than Junes 185,000, while the unemployment rate decreased to 3.5% from 3.6%.

Stocks in Spotlight

• Paytm’s value went up by around 7 percent after its founder and CEO, Vijay Shekhar Sharma, said he’s buying more ownership in the company. He’s getting a 10.3 percent ownership from another company called Antfin. This will make his total ownership in Paytm go up to 19.42 percent, while Antfin’s ownership will go down to 13.5 percent. This was all mentioned in a document filed with the exchange.
   
• On August 7, the shares of ICICI Bank, a private bank, went up by almost 1 percent. This happened because the Reserve Bank of India (RBI) gave permission to the bank to own more of its subsidiary called ICICI Lombard General Insurance Company Limited. This bank, which is the second largest private bank in the country, got the RBI’s approval to increase its ownership in ICICI Lombard General Insurance Company. They can do this in different parts, adding up to a total of 4 percent.
   
• Godrej Consumer Products shared its financial results for the April-June period of FY24. The company made a profit of Rs 318.82 crore during this time, which is 7.6 percent less than the Rs 345.12 crore they earned in the same period last year. However, their earnings were not as high as what experts had predicted. A poll conducted by CNBC with different financial experts estimated that Godrej Consumer Products would make a profit of Rs 428 crore and have a revenue of Rs 3600 crore.

News from the IPO world🌐

• Concord Biotech IPO booked 2.21 times, retail portfolio subscribed 2.14 times on Day 2
• Westbridge, Nexus backed India shelter Finance files for Rs. 1800 crore IPO
• SBFC Finance IPO subscribed over 70.11 times on final day

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