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Weekly Newsletter November 19, 2022

StockAxis Weekly Newsletter November 19, 2022

Sensex, Nifty Snap Four Week Winning Streak

Indian Markets

Sensex Nifty turns red post four week consecutive winning streak. The S&P BSE Sensex fall (-0.21%) to 61,663.48 in the week ending November 19, 2022, while the NSE Nifty50 fall by (-0.23%) to 18,307.65.

On the sectoral front, Nifty PSU Bank (+2.4%), Nifty Bank (+0.7%), Nifty IT (+0.3%), Nifty Reality (+0.1%) outperformed the NSE Nifty50 index while, Nifty Pharma (-1.2%), Nifty FMCG (-1.7%), Nifty Auto (-2%), Nifty Media (-5.4%), underperformed the index.

The India VIX decreased by (-0.14%) to 14.39.

FIIs/DIIs Daily Cash Market Activity (INR. in Crores)

Date FIIs DIIs
14/11/2022 +1089.41 +47.18
15/11/2022 -221.32 -549.28
16/11/2022 -386.06 +1437.40
17/11/2022 +618.37 +449.22
18/11/2022 -751.20 +890.45

Markets Halted amid End of Result Season and lack of events

World’s largest economy investors’ sentiments were encircled by the release of mixed economic data and awaited the reaction of FED officials on the data in their review. Decline in the inflation data for the last month along with falling home sales data had relieved investors of any aggressive stance by the FED. However, on the other hand better than expected retail sales data which posted biggest increase in last eight months derailed the sentiments. Thereby, US major indices had attempted to continue with the previous week’s rally on first two days of the week but snapped the gains and either consolidated or corrected for the remaining part of the week. Eventually FED officials cued continuation of rate hike spree even in December policy review but at a slower pace.

Indian benchmark indices witnessed gradual upbeat for the first half of the week driven by heavily weighted Banking and IT sectors specifically PSU Banks. However, sell-off in Pharma, FMCG and Auto sectors refrained benchmark indices from giving further rally. PSU Banks sustained optimism and cushioned the markets, which finally ended flat to negative. With lack of events and almost an end to the Q2 results season, markets more or less stayed lull considering the broader time frame.

Indian benchmark index Nifty had sustained its prior swing high breakout at 18350 and surged almost 100 points but witnessed correction on the last trading session to close below 18350 mark. Hence, considering the daily time frame, Nifty snapped two days winning streak in the last trading session. Moreover, RSI too has turned down from near 70 level with a negative crossover. Hence, below 18250, we hold 18100 as the next immediate support which is the gap-filling level on the daily chart. 17970-17950 which is the prior swing low will act as our further support zone for the Nifty. However, Nifty could maintain its Higher top Higher Bottom pattern for the seventh straight week which suggests continuation of an uptrend for now. For this, 18210-18200 will act as a crucial zone. Thereby, above 18450 only we can talk of Nifty breaching All time high levels. Above that we may also see Nifty hitting 19000 mark in the medium term.

News Update

Tata Power: Tata Power is planning to offer clean and green energy products and solutions to the people of Odisha. The company is planning to set-up EV charging stations to promote clean mobility across the state.

Maruti Suzuki: Strengthening its commitment towards offering green vehicles and building on its efforts to spread the ‘Joy of Mobility’, Maruti Suzuki has launched the All-New Alto K10 S-CNG.

Blue Dart: Blue Dart Express has opened 25 retail outlets in Tier I & II towns as part of its expansion plans. It already has a wide spectrum of solutions, and the company continues to also drive omni-channel growth.

Aurobindo Pharma: Aurobindo Pharma’s wholly owned subsidiaryEugia Pharma Specialities has received a final approval from the US Food & Drug Administration (USFDA) for Amphotericin B Liposome for Injection, 50 mg. Amphotericin B Liposome for Injection, 50 mg/vial Single-Dose Vial to be bioequivalent and therapeutically equivalent to the reference listed drug (RLD), AmBisome Liposome for Injection, 50 mg/vial, of Astellas Pharma US.

Black Stone: American private equity giant Blackstone has planned to pick up majority stake in digital services firm R Systems International for $359 million or Rs 2,904 crore. Blackstone has signed definitive agreements with Satinder Singh Rekhi and other promoters of R Systems to this effect.

Bharti Airtel: Bharti Airtel has deployed its cutting edge Airtel 5G Plus service at Pune Lohegaon Airport, making it the first airport in the state to enjoy ultrafast 5G services.

Ashok Leyland: Ashok Leyland has delivered 150 trucks and buses to the Tanzania Police Force. The supplies are a part of contract signed between Ashok Leyland and the Ministry of Home Affairs, Tanzania, and financed through a long term soft loan extended by Export Import Bank of India, Government of India.

Asian Paints: Asian Paints has entered into technology and other allied agreements with Kellogg Brown & Root (KBR) for manufacturing of Vinyl Acetate Monomer (VAM) in India.

Lemon Tree Hotels: Has signed new hotel in Tezpur, Assam. The property is expected to be operational by March 2025 and shall be managed by Carnation Hotels, a wholly-owned subsidiary and the management arm of Lemon Tree Hotels.

Timken India: Timken India is planning to set up new manufacturing facility at Bharuch, Gujarat to manufacture Spherical Roller Bearings (SRB) and Cylindrical Roller Bearings (CRB) and components thereof which will enhance manufacturing capacity of the Company.

Balrampur Chini Mills: Balrampur Chini Mills has commenced commercial production of industrial alcohol in its new distillery at Maizapur Unit on November 16, 2022, with a capacity of 320 KLPD. With the said addition, the total distillation capacity of the company now stands at 880 KLPD. Further 170 KLPD at Balrampur Unit is under process for implementation.

LTI: Larsen & Toubro Infotech (LTI) and Mindtree have received approval for merger from National Company Law Tribunal (NCLT).

IndusInd Bank: IndusInd Bank has partnered with the Department of Panchayati Raj, Government of Uttarakhand to offer its banking services in more than 600 Nyaya Panchayats.

Jubilant Foodworks: Dunkin’ (Operated by Jubilant FoodWorks in India) has unveiled a new restaurant design in India at a key moment in the brand’s global coffee-forward evolution.The new design upholds the brand’s core values of positivity, fun, and enthusiasm. The fresh modern design is also complemented with a complete new menu, which brings international coffee and bakery range to India at affordable prices.

IOL Chemicals: IOL Chemicals and Pharmaceuticals has received approval to incorporate wholly owned subsidiary of the Company in United Kingdom (UK) which gives better business growth opportunities and promoting business globally. The board of directors at its meeting held on November 14, 2022 has approved the same.