MOSt Market Roundup : Nifty future closed positive with gains of 0.87% at 23177 levels - Motilal Oswal Wealth Management
Market Update
* Equity benchmark indices, Sensex and Nifty, surged by over 600 points and closed above the 23,000 mark, respectively, supported by strong quarterly earnings, optimism about the upcoming Union Budget, and a global market rally. Traders also covered short positions ahead of the US Fed’s policy announcement, while the RBI’s move to conduct a Rs 60,000 crore open market operation to enhance liquidity in the banking system positively impacted market sentiment.
* The Nifty ended 213 points higher, a 0.90% gain, at 23,170, while the Sensex rose 682 points, or 0.90%, to 76,583. The broader market experienced a significant rebound, with the Nifty Midcap 100 index rising by 2% and 3%. Sectors that had been underperforming, such as Nifty Realty, Nifty IT, Nifty Pharma, Nifty Auto, and Nifty Metal, saw gains between 1.5% and 3%. The Nifty 500 stocks had a 9:1 advancedecline ratio, reflecting strong buying interest in mid-cap and small-cap stocks.
* Indian IT stocks saw a strong recovery, with the Nifty IT index rising 2.60%, driven by companies like Infosys, Persistent Systems (up 6%), Mphasis, LTTS, and LTI-Mindtree, following a tech-led rebound on Wall Street. The real estate sector also witnessed a solid rally, with the Nifty Realty index climbing 3%. Brigade Industries surged 7% to close at Rs 1,093, and Godrej Properties rose 3.5% to Rs 2,237.
* On the global front, US markets gained up to 2%, and European markets hit fresh record highs, buoyed by strong quarterly results and anticipation of the US Fed's rate decision
Technical Outlook:
* Nifty index opened positive above 23000 zones and witnessed buying throughout the day and base shifted higher till the last hour. It went on to comfortably trade above 23150 zones and closed with gains of around 200 points. It formed a bullish candle on daily frame and has started forming higher highs - higher lows from the last two sessions.
* Now it has to hold above 23150 zones for strength towards 23350 then 23500 zones whereas supports are placed at 22950 then 22800
Derivative Outlook:
* Nifty future closed positive with gains of 0.87% at 23177 levels. Positive setup seen in Indian Bank, Persistent, Navin Fluorine, Bajaj Finance, Cholamandalam, Manappuram, LTTS, Bajaj FinServ and Mphasis while weakness in JSW Energy, Berger Paints, Ambuja Cement, Indus Tower, Asian Paints, Godrej CP, Dabur, Bharat Forge, GAIL, Indiamart and Dixon.
* On option front, Maximum Call OI is at 24000 then 23000 strike while Maximum Put OI is at 23000 then 22000 strike. Call writing is seen at 23150 then 24000 strike while Put writing is seen at 22500 then 23100 strike. Option data suggests a broader trading range in between 22700 to 23700 zones while an immediate range between 22900 to 23400 levels.
* IFCI - Board approved a preferential issue of about 8.07 crore equity shares to the Government of India, aggregating up to ?500 crores
* KPIT FY 25 earnings guidance – Margin rising to 21% and Constraint currency revenue growth outlook increase between 18-22%
* Maruti – Company approved Hisashi Takeuchi as MD & CEO, SMG merger final nod after October in principal nod and principal nod to merge Suzuki Motor
* Railtel Corp – Company gets Rs17.13cr order from Navodaya Vidyalya
* Acme Solar Q3 results - Net profit more than doubled to Rs 112 crore versus Rs 44.4 crore. Revenue rises 5.2% (YoY) to Rs 349 crore. Ebitda up 10.8% (YoY) to Rs 307 crore. Margin at 88% versus 83.6% (YoY)
* Car Trade Q3 FY25 results - Net Profit Rs43cr vs Loss Rs 24.2cr (up %YoY), Revenue Rs176.2cr (up 27.2% YoY), Ebitda Rs50cr (up 98% YoY), Ebitda Margin 28.4% vs 18.2% YoY and
* Onetime loss 46cr
* KPIT Tech Q3 Results - Income Rs1478cr (up 17.6% YoY), Net profit Rs187cr (up 20.4% YoY), Ebit Rs254cr (up 22% YoY) and Ebit margin 17.2 vs 16.6 (YoY)
* Teamlease Q3 FY25 – Net Profit Rs28.4cr (down 8.4% YoY), Revenue Rs2921cr (up 19.5% YoY) , Ebitda Rs35cr (down 2.8% YoY) and Ebitda Margin 1.2% vs 1.5% YoY
* JBM Auto announced stable Q3 FY25 results. Net Profit Rs52cr (up 8.3% YoY), Revenue Rs1396cr (up 3.7% YoY), Ebitda Rs175cr (up 11%% YoY) and Ebitda Margin 12.5% vs 12% YoY
Global Market Update
* European Market - European stocks advanced to a fresh record high as ASML Holding NV’s strong earnings reassured investors following this week’s tech-related jitters. Germany Index gained 0.4% while France Index decline 0.4%.
* Asian Market - Asian stocks gained, led by advances in Australia, Japan and India while most markets were shut for the Lunar New Year.
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