Stock Market Highlights 7 Sept 2022: Nifty ends above 17,600, Sensex settles near 59,000; Shree Cement, UltraTech shine in weak market

USDINR outlook

USDINR (CMP Rs 79.92 spot): Indian rupee depreciated by 0.12% today on a weak tone in the domestic markets and a strong Dollar. US Dollar surged as economic data from US surprised the markets. US ISM services PMI unexpectedly rose to 56.9 in August from 56.7 in July and expectations of a decline to 55.4. this raised expectations of a 75-bps rate hike by the Federal Reserve in its FOMC meeting later this month. However, weak crude oil prices and FII inflows cushioned the downside. We expect Rupee to remain weak on strong US Dollar and weak cues from global markets. Dollar index surged to a fresh 20-year high and is currently trading around 110.45 levels. Recovery in crude oil prices from lower levels may also weigh on Rupee. However, FII inflows may support Rupee at lower levels. Markets may also take cues from US trade deficit which is expected better than previous month. USD INR spot price is expected to trade in a range of Rs 79 to Rs 80.50 in next couple of sessions.- 

Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas

 

Gold outlook: Wider markets remain under pressure anticipating steep hike by Fed

Gold (CMP $1704/Oz spot):

 

Spot gold is currently trading a tad higher as the US 10-year yields after rallying to fresh cyclical high of 3.37% yesterday have retreated by 1%. Much awaited US ISM services PMI data (August), released yesterday, topped the forecast as the data unexpectedly rose to 56.90, a four-month high reading, on easing supply chain and logistics issues. Although S&P Global US Services PMI painted a starkly different picture of the US services sector as the S&P services data showed that services sector contracted at the fastest pace since 2020, the market participants in general give more importance to the US ISM services data, which in turn pushed the yields higher. Surging yields sent gold lower to low $1790s level. Wider markets remain under pressure as probability of a 75-bps hike in September has risen sharply. Market participants look forward to Fed Chair Powell’s speech tomorrow for clues to Fed’s monetary policy path.The possibility of a sharp decline in gold prices due to capitulation has increased significantly. Traders are likely to treat any bounces/rallies as a selling opportunity for a target of $1675.

Praveen Singh – AVP, Fundamental currencies and Commodities analyst at Sharekhan by BNP Paribas

 

 

Nifty: Consolidation can continue further 

The Nifty has been witnessing short term consolidation, where it has been swinging in both the directions. On September 07, it opened gap down however there was no follow through selling. The index attracted buying support near the psychological mark of 17500 as well as near the swing low of 17468. Thereon the index had a gradual recovery & moved up again towards the key hourly moving averages, where it had halted in the previous session. Structurally, the consolidation can continue further & any move towards 17700 is expected to attract another round of selling. Additionally, the selling pressure can aggravate once the level of 17500 is breached on a closing basis.- 

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

 

Bank Nifty stuck in broad range: Bias remains on the buy side 

"The Bank Nifty index is stuck in a broad range of 1500 points where stiff resistance is visible at 40,000 and support is seen at 38,500. The index will witness a trending move on a break on either side. The immediate support stands at 39,200 and if breached will see a further decline toward the 38,800-38,500 zone. The bias remains on the buy side as long as the mentioned support level is held."-  Kunal Shah, Senior Technical Analyst at LKP Securities. 

Nifty may drift down towards 17200

"Nifty started to gap down and remained with a positive bias throughout the day. On the lower end, bulls were able to protect 17500 on a sustained basis, which attracted buyers at the lower levels. The trend remains positive for the near term. On the lower end, support is visible at 17470, below which Nifty may drift down towards 17200. Resistance is visible at 17750." Rupak De, Senior Technical Analyst at LKP Securities. 

Crude oil: Things not looking good in terms of demand growth  

WTI Crude oil (October) CMP $87.34 

Crude oil prices for October futures fell 0.5% to trade around $86.45 during mid European hours following a 2.6% slide on Tuesday, when the contract finished at $86.88 per barrel. Despite all the efforts by Saudi led OPEC+ to keep prices higher by announcing a production cut of 0.1mbpd, prices are heading for a south trip as the economic conditions in Eurozone and China keeps deteriorating by each passing week. The unprecedented level of covid-19 restriction in China has brought down the second largest economy to its knees, the August crude oil imports fell by 9.4% from an year ago, while European construction PMI dropped to 44.2 in August from 45.7 in July, marking 4th month of straight decline. The US on other front is giving hope to lead the economic revival with ISM services notching best reading in 4 months, which pushed Saudi Arab to sell their benchmark oil grades as premium to US buyers. Overall things are not looking any better for crude in terms of demand growth, while supply disruption from Libya and other region could spurt prices but will not be sustainable for longer term in absence of incremental demand. We see prices to test support of $82 followed by $80.- Mohammed Imran, Research Analyst at Sharekhan by BNP Paribas 

 

 

Concor share price jumps 10%, hits 52-week high 

Container Corporation of India shares jumped nearly 10% to trade on 52-week high value of Rs 766.30 per share in BSE intraday trade on Wednesday. The volume rose by massive over 14 times as the counter hit year-high value. The stock traded on 52-week low value of Rs 554 per share on May 20 this year 

Ambuja Cements share price hits 52-week high; 4 cement stocks to buy from large cap, midcap and small cap categories

Shares of Ambuja Cements jumped more than four per cent in early trade on Wednesday to hit 52-week high value of Rs 457.50 amid spurt in volume. The counter opened at Rs 437.20 and rose 4.5% to touch its fresh 52-week high value.  Meanwhile, the company also clarified over number of shares tendered in connection with an open offer to the shareholders of Ambuja Cements Limited (“Open Offer”). Full Report 

Cement stocks shine in weak market 

Cement stocks were leading the recovery on the benchmarks. Sharee Cement gained 5.7% to Rs 22,889.95 per share on NSE, while UltraTech Cement gained 3.5% to Rs 6730 per share on the BSE. 

EIH share price hits 52-week high 

Shares of EIH Ltd surged over 11% in BSE intraday trade to hit 52-week high of Rs 203.80 per share on Wednesday amid a spurt in volume.  

Bharti Airtel share price falls over 2% intraday; brokerage sees around 40% upside | Here's why

Shares of Bharti Airtel fell around two per cent in BSE intraday trade on Wednesday. The counter was also volume topper on the BSE with a total tradable quantity of 6,05,912 shares worth Rs 45.33 crore in intraday trade on Wednesday.  The telecom scrip has yielded around 13% return in the past one year as on September 7.  Full Report

IndusInd Bank share price: Morgan Stanley raises target 

Global brokerage firm Morgan Stanley maintained an overweight stance of IndusInd Bank and raised target price from Rs 1300 to Rs 1400 

Construction tech startup Project Hero raises $3.2 million, to expand business

Construction tech startup Project Hero has raised USD 3.2 million (about Rs 25.5 crore) in a funding round led by Ankur Capital and Omidyar Network India to expand business. The seed funding round also saw the participation from investors such as Titan Capital. Full Report

Market narrows losses; IT among top gainers

The Indian market trimmed losses in the afternoon trade on Wednesday as Nifty traded above 17,600, while the Sensex near 59,100. IT turning positive along with FMCG, Consumer Durables aided the market 

Bluedart Express share prices hits 52-week high 

Shares of Bluedart Express surge over five per cent to hit 52-week high value of Rs 9277.00 per share in BSE intraday trade on Wednesday.