MarketBuzz
1309: The Marketbuzz Podcast: Sensex, Nifty set for a gap-up start, but will that sustain?
(upbeat music) - Good morning and welcome to CNBC TV, AT&T, market buzz, podcast time, (speaks in foreign language) The bulls are jittery at higher levels. There's no doubt about that because it is evident from the price action that we witnessed in the last few minutes of the trading session yesterday. Almost every index we traded with healthy games through most parts of the trading session came significantly off the highs with the top four indices even ending in the negative at the close of trade. Now here this, nifty down nearly 400 points, the nifty bank down nearly 950 points, the mid cap index down nearly 1500 points and the small cap index down 500 points from the highs of yesterday's trading session and that is the kind of selling pressure that emerged after the initial bounce and there's nobody who's ready to stick their neck out and say that this bout of selling in the markets is over for good. Now while the nifty still managed to somehow close near that mark of 24,000, the nifty bank, the mid cap and the small cap index are testing some very key levels on the downside. Both the mid cap and the small cap index broke below Monday's low and have closed just 50 to 100 points a drift of those levels. So some important levels to be watched on the downside for all of these indices. The bulls wanted a positive handover from Wall Street. They've gotten one and there also updates coming in from the deputy governor of the Bank of Japan who said that the central bank will not raise rates when the markets are unstable and that the easing needs to stay for the time being and these statements have sparked a sharp reversal in the Asian markets which have earlier opened lower and the Nikkei is up over 5% from the lows of early morning. The gift NFT2 is pointing to a 100 point uptick for our own markets but the question remains will that sustain as the day goes by. There are of course plenty of things to watch out for in today's session. Today being the NFT2 banks weekly expiry and that has been a rank underperformer. Even during the NFTs move towards 25,000 and it continues to be so and unlike Monday, the index could not hold on to that 50,000 mark in yesterday's trading session. So we'd see how the NFT2 bank moves in today's session. We'll also see if the moves in these Bangladesh linked companies continue today as well. Mariko ended at the day's low yesterday with losses of over 6.5% with stocks like Vocal Das exports, Kitex garments and others gaining anywhere between 10 to 15%. The big theme today though will be real estate and because in confirmation of a CNBC TV18 news break, the government will move an amendment to the finance bill to provide relief to the sector under the long-term capital gains tax regime. The government is set to allow taxpayers to avail either a lower rate of 12.5% without indexation or a higher rate of 20% with indexation if the property is acquired prior to 23rd of July 2024 which was the day the budget was presented. The relief is proposed in respect of the taxation of immovable property. Now remember, CNBC TV18 was the first to report this on the 31st of July and then followed it up with another news break yesterday which had already sparked a relief rally in most of the real estate stocks and most of them are down 10 to 15% since the budget was presented. While PSUs kept moving higher, they were the talk of the town but currently there has been a silent selloff that is ongoing in these names particularly in these high-flying defense and railway stocks. Most of them have corrected 20 to 25% from their recent peaks and it remains to be seen whether that continues if the market turns out to be as wobbly as it was on Tuesday. It does look like the overarching theme appears to be that of caution ahead of the RBI policy announcement tomorrow especially what the MPC will have to say after the recent turn of events over the last week. Now some other stocks that should be on your radar include Bata which reported a soft quarter, Glant Pharma where the numbers were a miss on expectations, Gujarat gas where the operational performance was a miss but volumes were better than expected, PI Industries reported a strong margin-led beat and the company has also maintained its 15% revenue growth target with sustained improvements in profitability. Apollo Tires, Gautre Phillips, Gothridge consumer, Gokal Das exports, Lemon Tree are some other stocks that are reporting results later today. And lastly, Susslan which has announced the acquisition of a 76% stake in random energy services in two tranches from the Sanjay Godavat group. The first tranche will see the acquisition of a 51% stake for over 400 crore rupees and the second tranche will be just the remaining 25% stake will be acquired within 18 months for 260 crore rupees. So keep Susslan on your radar as well. That's all for today. We wish you a happy and safe trading day and of course for the sharpest market insights, stay tuned to CNBCTV18 and CNBCTV18.com. Thank you for tuning in. (upbeat music) (upbeat music) [BLANK_AUDIO]