MarketBuzz
1315: The Marketbuzz Podcast: Sensex, Nifty set to open gap-up, but will it sustain?
Good morning and welcome to CNBC TV, 18s Market Bus Podcast. I am Harmas Patakya. Well, the final trading day of the week is here, at least the official one is finally here. I know it felt as though Wednesday was the last trading day as it felt like a Friday. But, no, today is the actual Friday and we are back after the market holiday. Now, usually a day before the holiday, particularly one that feels like a long weekend will involve lower participation and range-bound trading for the markets and the nifty witness just that on Wednesday as well. The nifty is now locked in a 250-point range, 24-350 on the upside and 24-100 on the downside. Now, a 100-point range on Wednesday meant that the index could not even reach 24-300. But it did test 24-100 on the downside and managed to respect those levels and close above that near the mark of 24-150. Now, 24-100 does remain the key level for the nifty on the downside going into Friday. Now, that is because for the week, the nifty is down almost 0.8 percent and is on course for its third straight weekly loss. Now, last instance of the nifty seeing three straight weekly losses was back in July and August of last year and it shows the kind of market that we have been in. Now, in order to prevent that, the bulls will have to ensure that the nifty closes above 24-367, which is above the 24-350 range that the nifty has struggled to cross in recent times. Now, with the earnings season now coming to an end, the focus will shift back to valuations and of course, global markets. With the US CPI print coming in better than expected, it has now become all but certain that the US Federal Reserve will indeed cut interest rates in September. But the question now is by how much? The US markets, the positive handover coming in from Wall Street, the US markets have continued to rally both on Wednesday and on Thursday as well. The S&P 500 is now just 2 percent away from a record high. S&P 19 markets have also opened higher, the Nikka is up over 3 percent this morning and the Gif Nifty is suggesting a gap up opening for our own markets. Again, the question remains, will that gap up sustain at higher levels? Now, similar to the nifty, the nifty bank has also been respecting levels even as the index has struggled to cross that mark of 50,000 on the upside. However, it has managed to close above that very crucial 49-700 mark, which is a level that it has not closed below since the 4th of June. Now, that level will continue to remain key for the bulls to defend. For the week, the nifty bank also continues to remain an underperformer currently down one and a half percent and is set for a second straight week of declines unless it manages a close above the mark of 50,500 on Friday. Now, IT stocks will also be in focus considering the rally that you have seen in the NASDAQ. They were the ones that held on to some gains on Wednesday as well, so it will be interesting to see if those gains sustain. Some other stocks that you need to keep an eye out for both Hindustan Zinc and Vedanta will be in focus because Vedanta has now increased the OFS size. It earlier planned on selling around 11 crores shares. Now, they plan to sell 13.3 crores shares. The floor price that they have fixed 486 rupees, that's a 15 percent discount to Wednesday's closing price. The OFS will open for non-retail investors today and for retail investors on Monday. Ola Electric reported results on Wednesday. The net loss widened, revenue was up, abita loss was nearly flat but they launched a new bike on Thursday's holiday so that will also have a reaction and it also has now received a buy recommendation from HSBC with a price target of 140 rupees. SpiceJet also reported results. It was a net profit but that was because of other income. Now, if you exclude the other income, SpiceJet would have reported a net loss of 222 crores. But more than the results, what will be in focus for SpiceJet is the auditor concerns that have been flagged. The auditors have said that the airline is in non-compliance with various laws and regulations. The losses have also accumulated resulting in erosion of their net worth and more importantly, they have cast a significant doubt on the company's ability to continue as a going concern. They will keep an eye out on SpiceJet as well. Now, Glenmark Pharma also reported results US sales were slightly better than estimates. India and Europe also saw double digit growth and abita margins that came in at 18.1% were the highest in six quarters to keep an eye out for Glenmark as well. Suprajith Engineering also announced results but more importantly, they announced a share buyback. They are planning to buy back around 1.1% of their equity at 750 rupees which is a 38% premium to Wednesday's closing price. It will be done via the tender offer route and the record date has now been fixed as the 27th of August. These reactions will also come from stocks like Madras fertilizers with return to profitability, polyplex which also return to profitability and K&R constructions as well. So, plenty of stocks to watch out for, we will keep an eye out on all of them but that's all for today. Thank you so much for tuning in. For those who have not already embarked on the long weekend, wish you a happy weekend as well. Thank you so much for tuning in. Stay tuned to CNBC TV 18 and CNBC TV 18 dot com for the sharpest market insights. [music] [music] [music] [music] [music] [MUSIC PLAYING]