Paytm’s Surges Amidst UPI-Lite Expansion, Hero Moto Corp Caution, LIC’s Impressive Profit Surge

Technical Overview – Nifty 50

It was a super volatile weekly expiry as prices tilted both ways but traded within the prior four days’ trading range. On the lower time frame prices have formed a rectangle pattern and continue to trade within the same.

On the daily chart, the benchmark is taking support near the lower band of the rising channel pattern and prices are hovering within the range of 150 points since the last four trading sessions. The momentum oscillator RSI (14) has drifted below its trend line support which is placed at 60 levels and presently reading near 50 levels with a bearish crossover. 

Maximum Call Open Interest Build Up witnessed in 19550-19600 Call & on the Put Side Maximum Open Interest is being witnessed in 19500-19450 levels. The PCR ratio holds at 0.75. Notably, a significant challenge lies ahead for the index around the 19726 levels, which is a 61.8% and an unfilled gap. On the lower side, the immediate support for the index is placed at 19,450 – 19,400 levels.

Technical Overview – Bank Nifty

It was a super volatile day, especially for the Banking index where prices witnessed a marginal gap down opening and post the Monetary policy index traded below 44,700 levels with a sharp cut.  The Bank Nifty closed below its past four days’ candle indicating bears controlled day.

The Bank Nifty on the daily chart has formed a head & shoulder top pattern and the neckline of the pattern is placed at 44,270 levels. The prices have drifted below the 9, 21 & 50-day exponential moving averages indicating bears are having an upper hand at current levels. The momentum oscillator RSI (14) has drifted below its trend line support which is placed at 50 levels and presently reading near 40 levels with a bearish crossover. 

Maximum Call Open Interest Build Up witnessed in 45,000-46,000 Call & on the Put Side Maximum Open Interest is being witnessed in 44500-43000 levels. The PCR ratio holds at 0.80. For the bearish breakdown index needs to close below 44,250 levels which will drift the index further lower. On the higher end, 45,000 and 45,200 will continue to act as immediate resistance for the Banking Index.

Read More – RBI Monetary Policy Committee Meeting Update

Indian markets:

• Benchmark indices closed with slight losses on Thursday.
• Investor sentiment was affected by the outcome of the RBI policy meeting.
• RBI’s decision to impose an extra 10% I-CRR for banks and raise inflation forecast had a negative impact on market confidence.
• Volatility was observed due to the expiry of weekly index options on the NSE.
• Media, metals, and oil & gas shares made gains, while FMCG, healthcare, and PSU banks faced pressure.

Global Markets

• The Dow Jones futures were up 167 points, indicating a positive opening in the US stock market today.
• Most shares in Europe and Asia advanced on Thursday as investors looked ahead to a key U.S. inflation print that could provide hints about the Federal Reserves next monetary policy move.
• Japans wholesale inflation rate slowed for a seventh straight month to 3.6%, down from Junes revised figure of 4.3%. Wholesale inflation is measured by the corporate goods price index, which tracks the price companies charge each other for goods and services.
• Wall Street stocks fell on Wednesday, with investors turning their attention to data on Thursday that is expected to show an acceleration in US inflation in July.

Stocks in Spotlight

• Paytm shares rose by 2.48% to Rs 858.6 as the Reserve Bank of India proposed raising the minimum limit for UPI Lite transactions. The central bank announced an increase in the UPI-Lite limit from Rs 200 to Rs 500 on August 10. UPI-Lite is designed for easier small transactions like paying for groceries, milk, and eggs. This feature helps UPI handle frequent transactions more smoothly.
• Analysts are becoming cautious about Hero Moto Corp’s future, but investors haven’t seemed to receive this message. Despite warnings from analysts, the company’s stock has performed well in the past six months, rising 19%, outpacing both the Nifty Auto index (up 16%) and the benchmark Nifty 50 index (up 9.5%). However, this strong performance might be at risk as the number of downgrades in analyst ratings is increasing. According to Bloomberg data, the stock’s “buy” ratings have dropped from 28 to 23 in the first quarter of FY24, while the number of analysts with a “sell” rating has risen from 8 to 11.
• Life Insurance Corporation of India (LIC) announced an impressive 1,299 percent increase in net profit, reaching Rs 9,543 crore for the quarter ending on June 30, 2023. This growth was attributed to higher income from investments, a significant jump from Rs 682 crore reported a year ago. Notably, the gross non-performing asset (GNPA) decreased from 5.84 percent to 2.48 percent compared to last year. LIC’s investment income rose to Rs 90,309 crores in the April-June FY24 quarter from Rs 69,570 crores last year.

News from the IPO world🌐

• Shelter Pharma IPO opens today
• 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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