Zomato Shares Soar Over 10% as Q2FY24 Profit Hits ₹36 Crores, Titan’s Strong Q2 Performance

Technical Overview – Nifty 50

It was a week with a mixed reaction from the markets where prices swung both ways but eventually gained close to one% on the weekly time frame due to the continuous buying in the last couple of sessions. 

The Benchmark index on the weekly chart has formed a bullish harami candle stick pattern but prices will require confirmation in the coming weeks to solidify the bullish bias. On the daily chart, prices seem to have completed their pullback near their breakdown levels and have formed a resistance near its 100 EMA which is placed at 19,300 levels.

Overall it was a mixed reaction week with a lack of trend clarity and high volatility. Foreign Institutional Investors withdrew from the Indian markets in October. After pouring money for 6 successive months, FIIs withdrew ₹14,768 Cr in Sept’23 and ₹24,548 Cr in Oct’23, the highest since Jan’23.

The major resistance for the Benchmark Index is placed at 19,350 – 19,400 levels, a successful closing above the same will trigger for a major trend reversal for the index. The immediate support for the index Is placed at 19,100 levels.

Technical Overview – Bank Nifty

The Banking index has shown a smart recovery from the 42,100 levels amid volatility and prices have moved more than 1,000 points after forming a bullish ABCD harmonic pattern near the lower levels. The Bank Nifty on the weekly chart has formed a bullish harami candle stick pattern but prices will require confirmation in the coming weeks to solidify the bullish bias.

The momentum oscillator on the weekly chart is reading near 40 levels with a bearish crossover and the MACD indicator has slipped down and moving lower. On the weekly chart, the Banking Index is trading in a rising wedge pattern and prices are trading near the lower band of the pattern. The prices are hovering near its 50 WEMA which is placed at 42,800 levels and is likely to act as an important pivot level.

Continuous gap-up openings signal the presence of bullish sentiments, a decisive closing above its important averages will trigger confidence among the traders. The immediate and import hurdle for the Bank Nifty is placed at 44,000 levels and on the lower side 42,800 is expected to act as import support for the Banking index.

Indian markets:

• Domestic market benchmarks Nifty 50 and the Sensex ended higher for the second consecutive session on Friday, November 3, amid broadly positive global cues as the risk appetite of investors improved on hopes that the end of monetary policy tightening is near.
• The world’s major central banks, including the US Federal Reserve, the Bank of England and the European Central Bank, left rates unchanged this month, fueling hopes that interest rates have peaked.
• All sectoral indices ended in the green on the NSE, with Nifty Realty jumping 2.54 per cent.
• The BSE midcap index rose 0.7% and the smallcap index a Percent.

Global Markets

• The Dow Jones index was up 546 points, indicating a strong opening in the US stocks today.
• The dollar eased on Friday and was on course for a weekly decline against a basket of currencies as traders wagered that the U.S. Federal Reserve was most likely done with rate increases, lifting risk sentiment.
• Wall Street’s main stock indexes rallied on Thursday on hopes that the U.S. Federal Reserve had reached the end of its tightening campaign, while a raft of upbeat corporate updates added to the bullish mood.
• European markets are mixed. The DAX is higher by 0.13%, while the CAC 40 is leading the FTSE 100 lower. They are down 0.16% and 0.15% respectively. 
• Asian shares and bonds extended a global rally on Thursday as a non-committal Federal Reserve Chair had markets double down on bets that U.S. interest rates have peaked and cuts are on the way.
• Asia-Pacific markets rose at the end of the week, with investors accessing a fresh round of data for more clues on the health of business activity through the region.

Stocks in Spotlight

• Zomato share prices gained more than 10% and scaled 52 week highs of ₹120 on Friday after the company reported a net profit of ₹36 crores during July-September quarter for fiscal 2023-24 (Q2FY24) against a net loss of ₹251 crores in the corresponding period last year.
• InterGlobe Aviation, the company behind IndiGo, reported a profit of Rs 188.9 crore in Q2 2023, a significant improvement from the Rs 1,583.33 crore loss in the same period the previous year. Revenue from operations for IndiGo, India’s largest airline, increased by 19.5% to Rs 14,943 crore, driven by a surge in domestic travel demand over the past three quarters.
• Titan Company Ltd. reported a consolidated net profit of Rs 916 crore for Q2 FY24, a 9.7% increase from the same quarter in the previous fiscal year. The company also saw a 21.16% rise in profit from the previous quarter. Total consolidated revenue reached Rs 12,529 crore, marking a 36.73% increase from the year-ago quarter and a 5.31% increase from the previous quarter. Earnings before interest, tax, depreciation, and amortization (EBIDTA) grew by 9.8% to Rs 1,355 crore, with an EBIDTA margin of 11.6%, down from 14.1% in the previous year.

News from the IPO world🌐

• ESAF Small Finance Bank IPO fully subscribed on Day 1.
• ASK Automotive’s Rs 834-crore issue to open on Nov 7.
• Mamaearth IPO closes with 7.61 times bids

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