Stock Market Highlights 29 Aug 2022: Nifty ends near 17,300, Sensex drops over 850 points; FMCG stocks shine in falling market

Reliance AGM: Mukesh Ambani's succession plan

"A highlight of the AGM was Mukesh Ambani's emphasis on succession planning. He concluded his address by seeking everyone's blessings for the " Gen next taking over the reins confidently. " With Akash heading Jio, Isha heading Retail and Anant heading Energy the plans are clearly spelt out. Mukesh Ambani's promise to double the value of the company by 2027 is reassuring. His commitment to India and faith in the India Growth Story remains as strong as ever"- 
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Nifty:17350-17400 is an immediate resistance zone 

The Nifty had seen a minor degree bounce in the last week that retraced nearly 61.8% of the first leg of the fall. Structurally, the index was gearing up for a down move. Accordingly, the index had a huge gap down opening on August 29. On the way down, the index breached the swing low of 17345, which got retested with an intraday bounce. Although, the index witnessed some recovery intraday, it is unlikely to sustain going ahead. 17350-17400 is an immediate resistance zone where the index is likely to attract another round of selling. Overall short term target continues to be pegged at 17000. - 

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

 

"Nifty Outllook: Index may drift down towards 17000-16950 over short term"

"Nifty slipped sharply lower as it broke down from consolidation on the daily chart suggesting a rise in the bearish bet in the market. The momentum oscillator RSI is in bearish crossover and falling towards the oversold zone. The short-term trend at the juncture looks weak, on the lower end, the index may drift down towards 17000-16950 over the short term. On the higher end, resistance is visible at 17500."- Rupak De, Senior Technical Analyst at LKP Securities

"Overall structure is bullish, correction a buying opportunity"

Indian market kicked off a new week with a deep cut followed by a sharp sell-off in global markets on the back of hawkish commentary by US Fed chairman Jerome Powell.  Nifty witnessed profit booking from a psychological level of 18000 and slipped below 20-DMA where 17150 is an important support level then 200-DMA of 17000 is a sacrosanct support level. 38.2% retracement of the previous rally comes around 16900 therefore bulls will try to defend the 17150-16900 area to come back in the game. The overall structure is bullish therefore this correction is a buying opportunity because the market may try to approach a fresh all-time high near Diwali. In terms of sector Banking, Capital goods, Infra, Auto, and Consumption may continue to outperform while IT may also see buying interest from lower levels. The market is already discounting a hike in interest rates while cool off in inflation may help to improve sentiments.- Santosh Meena, Head of Research, Swastika Investmart Ltd. 

 

Bank Nifty: Immediate hurdle is 38,500 

"After a big gap down, the index traded in a range on an intraday basis and held the support of 38,000. The index is stuck in a broad range between 38,000-39,000 levels where the demand and supply are visible. The index if fails to hold the support of 38,000 on a closing basis will see an extension of the current sell-off. The immediate hurdle on the upside is placed at 38,500 and if breached can witness some short covering move toward 38,800-39,000 levels," said Kunal Shah, Senior Technical Analyst at LKP Securities. 
 

Rupee likley to trade negative on strong Dollar, weak global cues

USDINR (CMP Rs 79.97 spot): Indian rupee depreciated today and touched an all-time low of 80.1325 on strong Dollar and deteriorating global risk sentiments. Global markets fell sharply by more than 2% amid hawkish speech by Fed Chair Powell. He reiterated Fed’s hawkish stance and said that the FOMC’s focus is to bring down inflation to their goal of 2% and that the central bank will keep tightening till inflation in controlled. This may lead to slower growth, higher interest rates and softer labour market conditions along with pain to households and businesses.

We expect Rupee to trade on negative note on strong Dollar and weak global market sentiments. Concerns over global economic slowdown and inflation worries may also put pressure on Rupee. Markets may also remain cautious ahead of India’s GDP, manufacturing PMI and trade deficit data later this week. Traders may also remain alert ahead of US consumer confidence, ISM Manufacturing PMI and non-farm payrolls data this week. USDINR spot price is expected to trade in a range of Rs 79.20 to Rs 80.80 in next couple of sessions.- 

Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas

 

Stock Market Outlook: How to navigate current market volatility? 

Post peaking out at ~18K mid-August, markets are now at around 17300 levels. IT sector has seen more pain than other sectors on fears of weaker economic growth given the hawkish stance of the FED and the firm resolve to control inflation in the US. The US market had rallied ~18% over mid-June -mid August on the expectation that the US rate hike trajectory would be more measured going ahead. But the message last Friday belied these hopes. This was unexpected and hence globally markets have seen weakness today. This weakness has been accentuated by the fact that the USDINR rate moved to a new low today accompanied by the dollar index hitting a new multi-year high and the US 10 year seeing a sharp spike this month over the preceding month. The immediate fallout of this could be a reversal of the solid FPI inflows seen this month. Our market has already digested a fair share of the global weakness which began around 10 months back. We believe a systematic allocation to equities is the best way to navigate these alternate bouts of market decline and recovery.- 

Vineet Bagri, Managing Partner- TrustPlutus Wealth 

 

 

 

 

Oil price outlook: WTI Crude oil (October) CMP $93.34

WTI October futures posted a 2.5% weekly gains for the week ended 26 August. It traded higher in Asian hours and continued to maintain the momentum in mid-European trading hours to trade around $93.35. Oil prices have been moving higher by the notion of OPEC nations agreeing to a supply cut talks signalled by Saudi oil minister last week. The oil minister warned of supply demand imbalance due to anticipated supplies from Iran once the N-deal is signed. Iran could add 1 mbpd of oil supplied to the world supplies. The unrest in capital city of Libya is also lending some support as the chaos could turn into full blown conflict. On macro front, dollar index hit fresh 20 year high of 109.44 as the Fed chief signalled of hiking the interest rates until the inflation reached at Fed’s comfort level. For the day prices are expected to trade higher and we see strong resistance at $96 followed by $98, while the downside is supported by $90.- 

Mohammed Imran, Research Analyst at Sharekhan by BNP Paribas

 

 

Defence stocks rally up to 13% after government approves list of 780 items to be procured from domestic industry – Details

Defence companies’ shares surged up to 13 per cent on the BSE intraday during Monday’s trading session as the government approved the fresh list of 780 components and subsystems which will only be procured from domestic industry, to give push for Atmanirbhar Bharat Abhiyan. Full Report

BUY ITC - Share price target 2022 NSE - Check here

ITC is one of the most talked about shares for investors. ITC share price has rallied to a fresh three-year high in 2022. The stock price is currently near its 52-week high. ITC share price has delivered a stellar return of 43 per cent in 2022. The sharp surge in ITC share price or say exceptional return has raised experts' eyebrows. Experts are bullish on ITC for a long, given the company's robust businesses and growth. Full Report

Stocks to buy with Anil Singhvi: Sanjiv Bhasin picks IndusInd Bank, HDFC Bank

 Market expert and IIFL Securities Director Sanjiv Bhasin on Monday picked two stocks for investors that can yield high returns. In a special segment ‘Bhasin Ke Hasin Share' aired on Zee Business with Managing Editor Anil Singhvi, he predicted that 18,000 would be achievable soon and went on to note that India is shining. Full Report

What makes Zomato a 'good buy'? Brokerage sees over 30% upside— key factors

Stock of the restaurant aggregator dropped 6.5% to Rs 58.10 against its previous closing price of Rs 61.90 per share on the BSE. The counter is trading at a discount of around 65% from its 52-week high of Rs 169.10, which the scrip clocked on November 16 last year, as on August 29.  Full Report

Stock Market Live Updates: FMCG leads recovery 

FMCG and Energy stocks were pushing for recovery as the stock market trimmed some losses from opening trade. Nifty FMCG and IT gained 0.5% and 0.25% respectively as all other sectoral indices remained in red. Meanwhile, Britanni, HUL, Tata Consumer, Nestle India, reliance and Maruti aide some recovery in the market. IT stocks led the drag as Tech Mahindra, Infosys remained top losers on the benchmarks 

Akasa Air data breach news: Airline issues apology | Details

Akasa Air suffered a data breach, allowing unauthorised individuals to view data of some of its customers, India's new airline has admitted. The airline apologised for the data breach, saying there was "no intentional hacking attempt" to break into its systems. Full Report

Soon change your broker just like mobile service providers—Zee Business Exclusive

Demat account change rules: In good news for stock market investors, now they will be able to change their brokers, just like they do with mobile phone operators. Yes, under the interoperability scheme, investors would soon be able to change their brokers if they are not satisfied with their service.  Capital market regulator Securities Exchange Board of India (SEBI) and stock exchanges are mulling how the scheme could be executed.  Full Report