PremiumThe benchmark Sensex pared its early gains to close 344 points lower at a five-month low on Wednesday, while Nifty slid below the 17,000-mark due to selling in banking, financial and telecom stocks.
BAJAJ-AUTO (PREVIOUS CLOSE: RS3,730) SELL
For today’s trade, short position can be initiated in the range of Rs3,755- 3,775 for the target of Rs3,660 with a strict stop loss of Rs3,815.
GAIL (PREVIOUS CLOSE: RS109) SELL
For today’s trade, short position can be initiated in the range of Rs110.50- 111.50 for the target of Rs106 with a strict stop loss of Rs113.
CONCOR (PREVIOUS CLOSE: 590) BUY
For today’s trade, long position can be initiated in the range of Rs586- 582 for the target of Rs602 with a strict stop loss of Rs577.
On Wednesday, After a gap-up opening, Nifty traded below 17,100 in the morning trade & after making a day high of 17,211.35 in the morning trade; Nifty closed below 200 DMA for the fourth consecutive day. Yesterday, profit booking in Nifty began near Tuesday's high. So Tuesday’s high will act as a resistance for nifty now. Intraday traders can look for long opportunities only above the resistance level of 17,250 if it sustains for 15 minutes. Traders can look for fresh shorts only if nifty breaks the 16,900 level & remains below for 15 min to ensure short.
The primary market seems to be muted, with companies raising only ₹478 crore through 12 initial public offerings (IPOs) in January, according to a report by Press Trust of India.
Of the 12 IPOs, only two were of the main board that garnered ₹323 crore, while 10 small and medium enterprises (SME) mobilised ₹155 crore through the initial share-sales, according to the latest data with the Securities and Exchange Board of India (Sebi) showed.
In comparison, companies mopped-up funds to the tune of ₹5,120 crore through IPOs in December.
Overall, a total of 38 companies collected over ₹57,000 crore in 2022, way lower than the ₹1.2 lakh crore raised by 63 companies in 2021, which was the best IPO year in two decades.
Jubilant FoodWorks Ltd is set to expand the presence of fried chicken brand Popeyes, which is owned by US’s Restaurant Brands International, in India and will add 250 outlets in the medium term. The American parent expects India’s youth to drive business for a range of fast-food brands and is looking to cash in on the opportunity.
Restaurant Brands International is a large quick-service restaurant chain with over $35 billion in annual system-wide sales and over 29,000 outlets across more than 100 countries. It owns four restaurant brands—Tim Hortons, Burger King, Firehouse Subs and Popeyes—and operates via franchise partners globally. Of these, three brands are present in India each operated by a different local partner.
Indian Oil, GAIL, Vedanta, LIC, Nazara Tech are among the stocks that could be in focus on Thursday.
Credit Suisse Group AG said on Thursday it intended to borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank in what it called "decisive action" to boost its liquidity.
The planned move came after Swiss regulators pledged a liquidity lifeline to Credit Suisse in an unprecedented move by a central bank after the flagship Swiss lender's shares fell by as much as 30% on Wednesday.
"Credit Suisse is taking decisive action to pre-emptively strengthen its liquidity by intending to exercise its option to borrow from the Swiss National Bank (SNB) up to CHF 50 billion under a Covered Loan Facility as well as a short-term liquidity facility, which are fully collateralized by high quality assets," Credit Suisse said in a statement.
Oil prices rose in early Asian deals on Thursday, clawing back some ground from more than one-year lows hit in the previous session as markets calmed somewhat after Credit Suisse was thrown a financial lifeline by Swiss regulators.
Brent crude futures rose 85 cents, or 1.2%, to $74.54 per barrel. West Texas Intermediate crude futures (WTI) rose 74 cents, or 1.1%, to $68.35 a barrel.
Both benchmarks rose by more than $1 earlier in Thursday's session.
On Wednesday, they hit their lowest levels since December 2021, having fallen for three straight days. Brent has lost nearly 10% since Friday's close, while U.S. crude is down about 11%.
Nifty futures on the Singapore Exchange were down 1.5 points at 16,972.50, hinting at a flat start for Indian indices on Thursday.
Indian equity markets ended lower for the fifth straight day, with Nifty falling below 17,000 amid selling seen in FMCG, realty, oil and gas and financial stocks.
The Sensex fell 344.29 points to close the day at 57,555.90, and the Nifty was down 71.10 points at 16,972.20.
Asian shares headed for declines after US equities fell and government bonds and the dollar rallied as fresh turmoil at Credit Suisse Group AG roiled markets.
Australian and Japanese stocks and Hong Kong futures dropped. The financial sector was among the hardest hit in Japan’s Topix Index and Australia’s S&P/ASX 200 benchmark. Contracts for US stocks showed fledgling signs of stability after the S&P 500 fell 0.7% Wednesday. The US benchmark pared earlier losses after Switzerland’s central bank said Credit Suisse would receive a liquidity backstop if needed.
Tech stocks offered a bright spot. Nasdaq 100 futures advanced after a gain on Wednesday as traders forecast interest rates to climb less than previously expected.
Overnight, Wall Street stocks declined on worries about a spreading banking crisis and how badly it will hit the economy, and stocks and bond yields fell on both sides of the Atlantic.
The S&P 500 sank as much as 2.1% before ending the day with a loss of 0.7%, while markets in Europe fell more sharply as shares of Switzerland’s Credit Suisse dropped to a record low. The Dow Jones Industrial Average lost 280 points, or 0.9%, after dropping as much as 725 points. The Nasdaq composite rose 0.1% after erasing a steep decline.
Markets trimmed their losses toward the end of the day as the Swiss National Bank said it could provide some assistance to Credit Suisse “if needed."
Companies in the oil and gas business had the sharpest stock drops. Helping to cushion the blow were gains for several Big Tech stocks. They've had their own struggles recently, but they tend to benefit from lower interest rates.
Download the App to get 14 days of unlimited access to Mint Premium absolutely free!