Traders Guide: 10 things to know before market opens on Monday, February 6 – stocks in news, Q3 results, FII/DII data and more

Traders Guide: The Indian markets managed to end higher amid excessive choppiness, taking a breather after the last week’s sell-off. Much on the expected lines, the benchmark remained volatile throughout the week, taking cues from the Union Budget and US Fed meet.

Besides, a sharp sell-off in Adani Group stocks further added to the choppiness. However, sustained recovery in select index majors, especially from the banking and financial pack, helped the index to end in the green.

The Nifty50 and BSE Sensex settled at 17,854 and 60,841.88 respectively. While mixed trends on the sectoral front kept the traders busy wherein FMCG, banking and IT saw noticeable traction and metal, energy and pharma traded subdued. The broader indices too ended higher amid volatility.

We have mixed signals, so participants should continue with a cautious stance until the Nifty decisively reclaims 17900 levels, Ajit Mishra, VP - Technical Research, Religare Broking said.

He added that the focus should be on sectors like IT, FMCG and select auto and banking names that are seeing buying interest. With all the major events behind us, the performance of the global markets will be in focus for cues, Mishra pointed out.

Here is a list of things to watch out for on February 6, 2023

Technical Outlook

Nifty has formed a bottom after a painful period in the last few trading sessions, and it managed to close above 17800. However, we need a follow-through in the coming session, and if Nifty manages to trade above 17950, then we can expect a move towards the 18200–18300 zone.

On the downside, 17400 will act as an immediate support level, while the 200-DMA of 17300 is a sacrosanct support level on a closing basis.

Banknifty is holding a psychological level of 40,000 on a closing basis. 200-DMA is around 39,000, a key support level. 41800, 42000, and 42600 will be resistances on the upside.

- Santosh Meena, Head of Research, Swastika Investmart Ltd.

Key support & resistance levels for Nifty50:

The Nifty50 closed 1.4 per cent higher at 17,854.05. Key Pivot points (Fibonacci) support for the index is placed at 17660.24, 17592.72, and 17483.43, while resistance is placed at 17878.82, 17946.34, and 18055.63.

Key support & resistance levels for Nifty Bank:

The Nifty Bank closed 2 per cent higher at 41,499.70. Key Pivot points (Fibonacci) support for the index is placed at 40861.17, 40641.67, and 40286.37, while resistance is placed at 41571.77, 41791.27, and 42146.57.

Gross Open Interest:

Open Interest means the number of contracts open or outstanding in futures trading in NSE at any one time. One seller and one buyer together create one contract.

Here the gross values of Open Interest Positions taken by the four participants namely Client are Clients are the retail individual investors who invest in the derivatives instruments, DIIs are domestic individual investors, FIIs are foreign institutional investors and Pro are the proprietors and brokerage firms who trade on their own behalf.

Image Source - Stockedge

Q3 Earnings

Paytm operator One97 Communications narrowed its consolidated net loss to Rs 392 crore in the third quarter ended December 2022 as compared to a net loss of Rs 778.4 crore in the same period a year ago.

Indigo Airlines operator InterGlobe Aviation reported a steep rise in profit at Rs 1,422.6 crore in the three months ended December 2022 against Rs 129.8 crore profit in the same period a year ago.

SBI reported a 62 per cent rise in its net profit to Rs 15,477 crore for the December 2022 quarter, helped by core income growth and improvement in asset quality.

ITC Ltd reported a 23.09 per cent increase in consolidated net profit at Rs 5,070.09 crore for the third quarter ended December 2022, helped by growth momentum across its operating segments.

Marico Ltd reported a 5.04 per cent increase in consolidated net profit at Rs 333 crore in the third quarter that ended December 31, 2022.

Tata Power’s consolidated net profit almost doubled to Rs 1,052.14 crore in the quarter ended December 2022 compared to a year ago, mainly due to higher revenues.

Emami Ltd reported a 6.12 per cent increase in consolidated Profit after Tax (PAT) to Rs 232.97 crore for the third quarter ended December 2022 amid contraction of gross margins due to inflationary pressure.

Bank of Baroda reported a 74.76 per cent jump in its consolidated net profit at Rs 4,305.66 crore during the quarter ended December 2022, helped by improving asset quality and higher core income.

Kansai Nerolac Paints Ltd reported a 13 per cent decline in consolidated net profit at Rs 108.97 crore in the December quarter, impacted by higher expenses.

Stocks in News

The Securities and Exchange Board of India issues statement on unusual price movement in #stocks of a business conglomerate

Axis Bank: Total outstanding to Adani Group is 0.94% of Net Advances.

Bharti Airtel launches 5G services in Itanagar.

Natco Pharma: US FDA completes regulatory inspection of company’s Vizag-based formulation facility; issues two observations.

S&P Global Ratings revises outlook on Adani Ports & Adani Electricity to negative; ratings affirmed following short-seller report.

Vodafone Idea confirms Govt sanctioning equity conversion of equity dues. The conversion of shares is done at Rs 10/Sh.

SBI: Adani exposure in absolute terms is close to Rs 27,000 cr.

M&M Fin names Raul Rebello as MD & CEO-designate as MD Ramesh Iyer to retire on April 29, 2024

FII Activity on Friday:

Foreign portfolio investors (FPIs) remained net sellers for Rs 932.44 crore in the Indian markets while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 1264.74 crore, provisional data showed on the NSE.

FII Index and Stock F&O:

Image Source – Stockedge

Bulk Deals:

Aarti Pharmalabs Limited: JP Morgan Funds sold 7,14,011 equity shares in the company at the weighted average price Rs 255.33 per share on the NSE, the bulk deals data showed.

Mahalaxmi Rubtech Limited: Kabra Kailash bought 1,00,000 equity shares in the company at the weighted average price Rs 277 per share on the NSE, the bulk deals data showed.

Tembo Global Ind Ltd: Kaushik Mahesh Waghela bought 1,00,000 equity shares in the company at the weighted average price Rs 160 per share on the NSE, the bulk deals data showed.

Stampede Capital Limited: L7 Hitech Private Limited bought 3,75,000 equity shares in the company at the weighted average price Rs 12.64 per share on the NSE, the bulk deals data showed.

Stocks under F&O ban on NSE

Adani Ports is placed under the F&O ban for Monday. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

With PTI Inputs