Stock Market LIVE: Sensex sinks 600 pts, Nifty 200; Bank, IT drag; FMCG stable

Axis Securities – Weekly Technical Picks  

· Nifty started the week on a flat note and observed profit booking in the initial half however buying support at lower levels pulled index higher to close on a strong note. Nifty closed at 17158 with a gain of 439 points on a weekly basis

· Bank Bank Nifty started the week on a flat note and observed profit booking in the initial half however buying support at lower levels pulled the index higher to close on a strong note . Bank Nifty closed at 37491 with a gain of 752 points on a weekly basis.

· Container Corporation of India Limited has a buy at range 705 – 690. Holding period is 3 to 4 weeks.

· Gujarat Narmada Valley Fertilizers and Chemicals Limited has a buy at range 710 – 695. Holding period is 3 to 4 weeks.

· Bata India Limited has a buy at range 1945 – 1905. Holding period is 3 to 4 weeks.

· Coal India Limited has a buy at range 210-205. Holding period is 3 to 4 weeks.

Divi’s Laboratories drops 3% in early trade on Monday

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Gold prices today fall for 5th day in a row, near lowest of this month

Gold prices remained weak today as firm US dollar and higher US bond yields dampened the safe haven appeal of gold. On MCX, gold futures were down for the fifth straight day to near the lowest of this month. They were down 0.25% to ₹51,350 per 10 gram. Silver futures fell 0.6% to ₹55,144 per kg. In global markets, spot gold was down 0.1% at $1,746.06 per ounce, after falling nearly 3% last week. Among other precious metals, spot silver gained 0.2% to $19.06. (Full report)

Warehousing rents in Mumbai, Bengaluru, Delhi-NCR up 7.2% in FY’22: Report

Warehousing rents in Mumbai, Bengaluru and Delhi-NCR rose by an average 7.2% during the last fiscal on higher demand from third-party logistics, e-commerce and manufacturing sectors, as per a report.

In its Asia-Pacific Logistics Highlights H1 2022 report, Knight Frank said Mumbai saw annual growth of 9.3% in prime warehousing rents to ₹265 per square feet per year in the last fiscal, from ₹243 per square feet in the previous year.

Warehousing rent in Bengaluru rose 6.4 per cent to ₹240 per sq ft per year, while that in Delhi-NCR increased by 5.9% to ₹227.40. (PTI)

Adani to launch open offer for ACC and Ambuja Cements on August 26

The Adani Group is likely to launch next week an open offer worth ₹31,000 crore to acquire 26 per cent stake each in Swiss firm Holcim’s two Indian listed entities Ambuja Cements and ACC, from public shareholders.

In May this year, the Adani Group announced that it has clinched a deal to acquire a controlling stake in Holcim Ltd’s businesses in India for USD 10.5 billion.

Markets regulator Sebi granted approval for the open offer this week. The open offer is estimated at over ₹31,000 crore if fully subscribed.

In two separate regulatory filings, Ambuja Cements and ACC have submitted their letter of offers for the open offer launched by the Adani family group’s Mauritius-based firm Endeavour Trade and Investment. (PTI)

Rakesh Jhunjhunwala’s ‘most valuable’ advice is from his ‘worst’ investment. What he had said

Ace stock market investor Rakesh Jhunjhunwala who was referred as India’s Warren Buffett, died on 14 August. A self-made trader, investor and businessman, he was also known as ‘Big Bull’ of Dalal Street.

Rakesh Jhunjhunwala frequently spoke about generating wealth and investment and many wished to learn more from Big Bull regarding stock market investment. But his one worst advice has gone viral on social media which Jhunjhunwala had encouraged everybody to invest the most. (Full Story)

Angel One daily commodity outlook – Gold, Crude, and Metal

Saish Sandeep Sawant Dessai, research associate- base metals, Angel One Ltd:

Gold: We expect gold to trade lower towards 51040 levels, which could prompt the price to move more down to 50620 levels.

Crude: We expect crude to trade lower towards 7120 levels, which could prompt the price to move more down to 6980 levels.

Base Metals: While the production of metals remains uncertain given the high energy costs, the downside remains capped after China slashed its interest rates in order to promote demand and growth.

Ashika Stock Broking on Nifty: Medium to long term outlook continues to remain positive

Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking Ltd: On the technical front, Nifty formed a Long bearish candle resembling closer to a Bearish Engulfing candle as it engulfed the previous three candles, hence there are indications that Nifty might be on the verge of reversing. Though the trendline adjoining the highs of Oct’21, Jan’22 and Apr’22 has been breached and is trading comfortably above it. Against such backdrop one can expect that the present rally to extend further towards 18100-18150 levels. Likewise support base has now shifted higher to 17,500 to 17,550 range (gap support). Momentum oscillator though are trading in overbought price conditions. Going ahead, Nifty is likely to witness consolidation amidst the range of 17550-18100 band. Medium to long-term outlook continues to remain positive and is likely to head towards CY22 high of 18350 but presently temporary breather can be expected which need to be capitalised on as incremental buying opportunity. Thus, during the day Nifty is likely to open on a flat to negative note tracking weak global cues and intraday support zone of 17600-17650 might halt the slide.

Sebi mulls more disclosure norms for QIP funds

Markets regulator Securities and Exchange Board of India (Sebi) is considering more exhaustive disclosure requirements for companies raising funds via the qualified institutional placement (QIP) route, three people aware of the development said. (Full Report)

Syrma SGS Technologies IPO: Latest GMP, how to check allotment status

After closure of subscription, all eyes are now set on Syrma SGS Technologies IPO allotment date, which is most likely on 23rd August 2022. Those who have applied for the public issue worth ₹840 crore need not to move from pillar to post after the announcement of share allotment as one can check Syrma SGS Technologies IPO allotment status online by logging in at the BSE website or at the website of its official registrar. The official registrar of the IPO is Link Intime India Private Ltd. Meanwhile, share of Syrma SGS Technologies have been on a rise in the grey market since its subscription got opened on 12th August 2022. According to market observers, shares of Syrma SGS Technologies is currently available at a premium of ₹58 in grey market. (Full Report)

Indian rupee opens lower on hawkish Fed outlook

The Indian rupee opened lower against the U.S. currency on Monday, as decline in Asian equities and bets that the Federal Reserve will continue to raise policy rates, boosted the dollar.

The rupee was trading at 79.81 per U.S. dollar by 0333 GMT, compared with 79.7750 in the previous session.

IT Index tanks at start on Monday, sheds more than 1%. All stocks in red.

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Sensex and Nifty are in deep red and have lost around 350 and 110 points, respectively, at open  on Monday 

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India’s headline inflation may ease below 6% by March -analysts

India’s headline retail inflation may ease below 6% by the fourth quarter of this financial year, bringing an end to the current cycle of rate hikes, analysts said over the weekend.

Following the release of minutes from the central bank’s monetary policy committee on Friday, analysts said the Reserve Bank of India (RBI) may hike repo rates by 50-60 basis points by December.

“We expect the RBI to deliver two 25 bps rate hikes at the September and December meetings, taking the repo rate to 5.90%,” Rahul Bajoria, chief India economist at Barclays said. (Reuters)

Sensex is in flat-to-negative territory at preopen on Monday. Global cues hint a  rocky start for the indices.

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