Trade Setup Today: Global Cues, Quarterly Results, Stocks in News And Crude Making New High
As we have pointed out that Nifty and the broader market may drag and witness some minor correction today as Nifty is facing strong resistance. Let’s do a pre-market analysis for Monday:
Nifty Outlook: Nifty facing resistance at the 18400 level and we may see the index consolidating it around the level with positive bias. It’s a Buy on Dip market for a few days.
Bank Nifty Outlook: Sell Bank Nifty in the 38600-38800 range.
FII/DII Buy/Sell Data
Foreign institutional investors (FIIs) net sold shares worth Rs 1,598.20 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 371.41 crore in the Indian market on January 14, as per provisional data available on the NSE.
Global Market Outlook
There is good news on the interest front as China announced a rate cut by 10bps, for the first time since April 2020,.
US markets ended on a lacklustre note on Friday with banks underperforming and tech stocks outperforming. JP Morgan stock fell 6% after the company was guided to miss a key profit target in the next two years; Citi bank fell 1.3% after PAT declined 26%, Wells Fargo advanced 3.5% on good results.
Dow Jones tanked 200 points or 0.56%, S&P up 0.08%, NASDAQ was up 0.6%. Shedding Omicron worries, casino stocks surged after Macau’s government announced it would allow just six casino licenses in the gambling hub. Las Vegas Sands surged 14.1%, while Wynn Resorts gained 8.6%
Commodities: Crude oil up 2% (gained 5.5% this week), Iron ore down 2%, Sugar up 1%
Stocks In News
Is It Going To Be EV/ Ethanol Day?
Tata Motors EV sales from 350 to 50k units in 4 years Eyes 50k EV sales in FY23. Just imagine, Tata used to do 350 EV sales in FY19 and did 9MFY22 sales at 10k, expected to close FY22 with 17k-18k numbers and expected 50k number by FY23. Electric Vehicles only used to be 0.2% share in Tata Motors PV volumes in FY20, which is now 5.6% as on Dec 2021 and targets20% going ahead.
Also, Govt announced the guidelines for charging infrastructure of Electric vehicles. Owners can now charge at residences or offices using existing electricity connections. Can set up charging station without a license provided safety norms are met. Delhi makes the adoption of EVs by ride aggregators and delivery services mandatory.
Praj Industry: It bagged a big order from Swaraj Green Power & Fuel that is planning to build the “largest” ethanol plant (1100 KLPD) in Maharashtra in two stages.
Banks: The loan growth in PSBs has been the highest at 9% YoY over the past two years.
- Nazara Board meet today to consider the preferential issue
- Sequent Scientific: Positive News Appoints Rajaram Narayanan as Managing Director and CEO- Ex MD of Sanofi India
Oil Price Surged Further
Crude again up 2% Watch for ONGC, HOEC
- Jefferies on L&T Maintain Buy with a PT of Rs2,845, Valuation Re-rating.
- Spark on Cement trends: In January, cement prices are up Rs.10 per bag across regions.
Results Calendar Q3 Results
- Results Today: Ultratech, Angel One, Sonata, Tatva Chintan, Tata Steel Long Products
- Results Tomorrow: Bajaj Finance, ICICI Pru, L&T Tech, Tata Elxsi, Trident, ICICI Sec, DCM Shriram Ltd, Just Dial, Network 18, TV18, RK Forgings, Shakti Pumps
- Results Day After: L&T Info, Bajaj Auto, ICICI Lombard, JSW Energy, Tata Comm, OFSS, Syngene, Sterlite Tech, Saregama, Mastek, Ceat, Rallis
- HCL Tech Results Review: Solid topline, but margins muted. It is the cheapest large cap IT stock.
- HDFC Bank Results Review: Stable, operating profit growth rate is slowest in 22 qtrs at 10.5% YoY, Stable GNPA ratio at 1.26% vs 1.35%QOQ.
- Tinplate Results Review: Solid Revenue Rs. 1,180 cr (+21% QoQ, +92% YoY), EBITDA Rs. 133 cr (+25% QoQ, +148% YoY), PAT Rs. 95 cr (+29% QoQ, +184% YoY), Q3 EPS Rs. 9 & 9MFY21 EPS Rs. 23
- Metro Brands Results Review – Reports very good result but very expensive.
- DCM Nouvelle: QoQ dip ebidta down by 25% QoQ basis, margins at 18.5% vs 24% in the similar quarter.