JSW Infra

BUY | CMP: 250.00 | TARGET: 300.00 | SL: 230.00

The stock has given a good re-test to the breakout mark on its daily charts. Previously, the level of 247.50 was an important resistance, which should likely serve as a strong support going forward. A stoploss should be kept at 230 for upside potential targets of 300 and above. Overall, the risk-reward looks favourable on the buying side at the current market price.

Havells India

BUY | CMP: 1518.00 | TARGET: 1650.00| SL: 1480.00

The stock has given a good breakout above its October 2021 highs and now giving a pull-back towards its Anchor VWAP support levels. At current market price of 1517, any pull-back towards 1510-1515 zone should offer a good buy opportunity with a set stoploss below 1480 mark, for potential targets of 1600 and 1650.

(Please consult your financial advisor before investing.)

Analyzing the Dollar and Rupee market trends, Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, commented that the Indian Rupee experienced a 0.03% decline due to weak domestic markets and a robust US Dollar. Geopolitical tensions in the Middle East added pressure to riskier assets, although the downside was cushioned by a softening of crude oil prices.

The US Dollar strengthened amidst global risk aversion and increasing chances of no rate cut by the Fed in the March and May FOMC meetings. Anticipating a slight negative bias for the Rupee, Choudhary pointed to weak global equities, month-end Dollar demand from importers and OMCs, and potential selling pressure by FIIs.

Traders are advised to monitor cues from Q4 GDP data (2nd Estimates) from the US, while investors should exercise caution ahead of inflation data from the US this week. The expected trading range for USDINR spot price is Rs 82.70 to Rs 83.10.

In the initial hours of trading, Reliance Industries Limited (RIL) observed a significant uptick of 1.5% following the execution of a binding agreement with Walt Disney for the amalgamation of their media operations in India.

As of 10:23 am, Reliance shares exhibited a 1.16% increase, reaching Rs 2,942.80 on the Bombay Stock Exchange (BSE), securing the position of the leading gainer across the stock exchanges. This positive movement marks a noteworthy reversal for RIL’s stock, which had faced a decline in momentum over the past five trading sessions amid cautious sentiments and profit booking.

According to an official joint statement, the merged entity is valued at $8.5 billion or over Rs 70,000 crore, outstripping the valuation of any other player in the industry. In this joint venture, Reliance, along with its associates, is set to collectively own over 60%, with Disney acquiring approximately 37%.

Read More: Reliance Industries shares surge 1.5% following media merger deal with Walt Disney

“Backed by the power-packed demand, the home sales registration for February 2024 has touched a 5-year high for the month. This substantial progress is a testimony to the rise of housing demand in Mumbai MMR driven by factors including the realization of real estate as a secured asset class, and the shift in consumer mindset leading to lifestyle upgrades, particularly in the mid-segment and luxury housing categories,” said Dhaval Ajmera, Director, Ajmera Realty & Infra India

Ajmera also added that, the driving forces behind this surge include the bolstered purchasing power of homebuyers, the need for a bigger and better living space, a pause in rate hikes, and substantial infrastructural developments like MTHL bringing the prominent distant destinations of the city closer to each other, ultimately boosting housing demand. As we progress through the year, we foresee the numbers to only strengthen given the pipeline of infra projects boosting connectivity across micro-markets day by day and redevelopment boom across Mumbai MMR.

In intra-day trade, Coal India shares experienced a gain of over 1%, reaching Rs 444. This surge is attributed to the news that the company has signed a joint venture with BHEL for a coal-to-ammonium nitrate plant. Under this collaboration, Coal India will possess a 51% stake in the joint venture, while BHEL will hold a 49% stake.

Commenting on the derivative outlook Anand James, Chief Market Strategist at Geojit Financial Services said, Nifty weekly contract has highest open interest at 22200 for Calls and 21500 for Puts while monthly contracts have highest open interest at 22200 for Calls and 21500 for Puts. Highest new OI addition was seen at 22200 for Calls and 18650 for Puts in weekly and at 22200 for Calls and 18650 for Puts in monthly contracts.

“FIIs decreased their future index long position holdings by 0.33%, increased future index shorts by 1.45% and in index options by 28.48% increase in Call longs, 8.29% increase in Call short, 49.14% increase in Put longs and 23.82% increase in Put shorts,” added James.

The stock of Shriram Finance rose 4.5% to the intraday high of Rs 2,455.10 after the NSE rejigged its Nifty 50 index. The stock will replace UPL in Nifty 50 index w.e.f from March 28.

Shares of Apollo Hospitals fell 4.3% to Rs 6,087.65. The stock was the major loser in the Nifty 50. The stock’s lower band is Rs 5,726.15, while the 52-week-low is Rs 4,168, which it touched on April 05, 2023.

Sharing insights on the Dollar and Rupee outlook, Anand James, Chief Market Strategist at Geojit Financial Services, stated, “Expect 82.94, as long as above 82.87, but for directional breakout, watch out for penetration of 82.78-83.1 range.”

The index rose 0.76% to 7,910.30. The index was trading highest among its peers.

M&M, Adani Enterprises, Tata Consumer Products, Maruti Suzuki, and Adani Ports were the top gainers in the Nifty 50. While Apollo Hospitals, Bajaj Auto, LTIMindtree, Eicher Motors, and BPCL were the key losers in the Nifty 50 on February 29.

The NSE Nifty 50 was down 4.55 points or 0.02% at 21,946.60. While the BSE Sensex was up 54.97 points or 0.08% at 72,359.85.

The index was trading lowest among its peers.

In Thursday’s intra-day trade, Reliance Industries shares experienced a gain of over 1%, reaching Rs 2,941.30. This surge is attributed to the news of the company’s decision to merge its media business with the Walt Disney India unit, forming a substantial Rs 70,352 crore joint venture. Reliance Industries holds a 16.34% direct stake and a 46.82% stake through Viacom 18, while Disney is set to own a 36.84% stake in the joint venture.

The NSE Indices’ index maintenance sub-committee has executed significant adjustments, prominently replacing UPL Ltd with Shriram Finance Ltd in Nifty50.

Additionally, at least five stocks, including Adani Power Ltd, Indian Railway Finance Corporation Ltd (IRFC), Jio Financial Services Ltd (JFS), Power Finance Corporation Ltd (PFC), and REC Ltd, have now entered the esteemed list of the next 50 influential group.

Undergoing a thorough transformation, the Nifty 500 index has witnessed 34 changes. Noteworthy inclusions consist of AstraZeneca Pharma India Ltd, Indian Renewable Energy Development Agency Ltd, Honasa Consumer Ltd, Inox Wind Ltd, Jai Balaji Industries Ltd, and Jio Financial Services.

On the flip side, exclusions from the Nifty 500 index involve Delta Corp Ltd, Infibeam Avenues Ltd, Nazara Technologies Ltd, Relaxo Footwears Ltd, TTK Prestige Ltd, V-Guard Industries Ltd, Vinati Organics Ltd, and Tata Technologies.

Also Read: Shriram Finance replaces UPL; what’s in, what’s out in index rejig. Here’s all you need to know

Reliance Industries, M&M, Tata Consumer Products, Maruti Suzuki, and Hero MotoCorp were the top gainers in the Nifty 50. While Bajaj Auto, Apollo Hospitals, LTIMindtree, Power Grid Corp, and Axis Bank were the key losers in the Nifty 50 on February 29.

On Wednesday, Mukka Proteins, a prominent manufacturer of fish protein products, announced the successful raising of Rs 67.20 crores from anchor investors in anticipation of its forthcoming initial public offering (IPO).

Scheduled to commence on February 29, 2024, and conclude on Monday, March 04, 2024, the IPO’s price band has been fixed at Rs 26 – Rs 28 per equity share, aiming to raise Rs 224 crores at the upper end of the price range.

Investors have the flexibility to bid for a minimum of 535 equity shares, with subsequent bids in multiples of 535 equity shares. On Wednesday, February 28, 2024, the company revealed the allocation of 2,39,99,565 equity shares at Rs 28 per share to six anchor investors.

Read More: Mukka Proteins IPO opens for subscription today; Here is all you need to know

Analyzing the technical aspects of Nifty, Anand James, Chief Market Strategist at Geojit Financial Services, commented, “Anticipate recovery attempts throughout the day as prices approach 21800. However, these efforts are expected to be limited initially, likely capping at 22000. A definitive reversal signal would necessitate a direct rise beyond 22070. Failing that, we can anticipate a resumption of downsides.”

GPT Healthcare IPO made its debut on the bourses with a premium of 15.6% at Rs 215. The book-built IPO raised Rs 525.14 crores from the investors. The company opened the IPO for bidding to offer 28.3 million shares on February 22 and closed it on February 26.

Read more: GPT Healthcare sees over 15% premium on debut; Find out if it is good time to invest in the stock?

The Indian Rupee depreciated marginally against the Dollar on Wednesday weighed down by weakness in its Asian peers. However, dollar sales from state-run banks helped ease some of the pressure. The Rupee finally settled at 82.9225 against the U.S. dollar, compared to its previous close of 82.8975.

The currency was trading in a small range but weakened towards the close of the session amid an uptick in the dollar index. 

Meanwhile, dollar-rupee forward premiums fell with the one-year implied yield dropping 3-bps to 1.64%, its lowest level in over two-and-a-half months. Amongst other spot pairs, the EURINR and the GBPINR eased while the JPYINR gained marginally on Tuesday’s session.

“From an intraday perspective, the Indian Rupee could open flat to marginally against the Dollar this Thursday morning as market await host of data tonight which could provide further clues on the monetary policy from Fed and other central banks,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.

During a recent board meeting conducted on Wednesday, Tips Industries has granted approval for a buyback of its equity shares. The company intends to repurchase up to 5.95 lakh equity shares, totaling a value of Rs 37.2 crore. The buyback price has been established at Rs 625 per share, indicating a significant 21.3% premium over Tuesday’s closing price.

The record date for the share buyback is still pending determination. The buyback process will be carried out through the tender offer route, where the company specifies a fixed price at which it plans to repurchase shares from existing shareholders.

Read More: Tips Industries announces Rs 37.2 crore share buyback at a premium of 21.3%

The NSE Nifty 50 opened 0.13% lower at 21,922.85, while the BSE Sensex opened 0.09% lower at 72,237.89.

Share of Bajaj Auto fell 4.6% to Rs 8,071.85 during the pre-open session. The stock was the key loser in the Nifty 50.

In yesterday’s tumultuous session on Dalal Street, Nifty took a significant hit, closing well below the crucial 22000 mark, while small-cap and mid-cap indices experienced a 2% decline following SEBI’s guidance to safeguard investor interests. The looming release of the January PCE index adds anxiety, as it could shape the narrative around potential Federal Reserve interest rate cuts. Until the inflation challenge is addressed, volatility is expected to persist, said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.

Technicals indicate a negative bias for Nifty and Bank Nifty, with today’s trading session anticipated to be marked by volatility due to the monthly expiry of February F&O contracts. Attention is also on India’s GDP figures for Q4 2023 and the upcoming auto sales data for February. The recommended trades involve selling on Nifty and Bank Nifty, while value buying and bargain hunting are expected themes.

Bank Nifty has decisively breached the 20- and 40-day moving averages (46125 – 46281) and closed below it on February 28, which is a sign of weakness. It is very close to its crucial support zone of 45700 – 45675 which coincides with the 61.82% Fibonacci retracement level of the previous rise from 44634 – 47359. Thus, bank nifty is also approaching a crucial support zone from a short-term perspective, said Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas.

Commenting on the technical outlook Jatin Gedia, a technical research analyst at Sharekhan by BNP Paribas, said that the Nifty opened on a flat note on February 28 and traded with a negative bias throughout the day. It closed in the negative down – 247 points. 

“On the daily charts, we can observe that the Nifty on account of the sharp decline has reached the 20-day moving average (21944). The broad range of 21800 – 22300 still has not been breached. The daily as well as hourly momentum indicators have a negative crossover which is a sell signal, however, prices are still in a range and hence a decisive breach below 21875 i.e. the previous swing low is required to validate the change of trend,” Gedia said. The Index is around the crucial support zone 21900 which is likely to act as a make-or-break level from a short-term perspective.

Indus Tower and Steel Authority of India Ltd were on the ban list on February 29.