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View on market: Volatility Prevails, Market is searching for better value

Asian indices started the week on a negative note as they pared some of the gains made on a mixed performance by the New York indices. Most of the U.S. markets closed with mixed prices as investors weighed their quarter results. Shares of key Indian companies got under pressure, as did Kotak Mahindra Bank and Infosys Ltd; benchmark equities slid. But the losses were cushioned by gains from heavyweight counters, including HDFC Bank and Reliance Industries. This means that the investors embark on a risk reservation for an understanding of the earnings and markets, hence creating a negative tone for the week. Major companies’ performance is more important because their performance sets the tone for the general market. In a nutshell, the early trading session turns out to be slightly bearish because traders face mixed corporate earnings and economic indicators.

Economic Calendar:

  • USD: S&P Global US Manufacturing PMI (Oct) on 24th October 2024.
  • IND: HSBC Manufacturing PMI on 24th October 2024.
  • USD: House Price Index (YoY) (Aug) on 29th October 2024.
  • IND: Foreign Exchange Reserves (USD) on 25th October 2024.

IPO Watch:

Company Open Close Price View
Waaree Energies Limited 21-Oct 23-Oct 1427-1503 Apply
Afcons Infrastructure Ltd 25-Oct 29-Oct 440-463 Apply

Brokerage Radar:

GOLDMAN SACHS ON ULTRATECH CEMENT:

Maintain Buy; cut target price to Rs 11,720 from Rs 12,430, Q2 Review: Weak profitability, management optimistic on H2 recovery, Price increases will be key to watch as volume share competition is likely to persist, Ultratech is the only Buy in sector od coverage, Bullish on strong balance sheet.

BOFA ON SAPPHIRE FOOD:

Downgrade to Underperform from Neutral; Cut target price to Rs 330 from Rs 336,  It’s tough out there… Risk-reward unfavorable,  Stock rally more than prices in mid-term business upsides, Street earnings estimates may still need a reset lower, Pizza Hut maintains a dominant position in Sri Lanka.

NOMURA ON DR LAL PATHLABS:

Maintain Buy with target price of Rs 3,720,  Expect steady performance despite modest seasonal demand,  Q2 is seasonally strong quarter for the diagnostic industry driven by rise in acute ailments,  Had a relatively high base last year with strong flu/dengue season.

International Markets:

U.S & Europe:

Particulars     21st  Oct   Chg. Chg.(%)
Nasdaq 18,540 50.45 0.27
Dow 42,931.60 -344.31 -0.80
FTSE 8,318.24 -40.01 -0.48
CAC 7,536.23 -76.82 -1.02
DAX 19,461.19 -196.18 -1.01
Dow Fut.* 43,140 -37 -0.09

*As per 22nd October.

Asian markets:

Particulars   22nd  Oct Chg. Chg.(%)
GIFT Nifty                  24,813.50 24.70 0.10
Nikkei 38,461.03 -493.57 -1.27
Straits Times 3,608.60 -5.98 -0.17
Hang Seng 20,572.02 93.56 0.46
Shanghai                               3,277.81 9.70 0.30

Stocks strong on Chart:

Index F&O Cash
RIL ICICI LIFE MAX ESTATE
L&T APOLLO TRY JIO FINANCE
BAJAJ AUTO TATA POWER JK LAKSHMI
HERO MOTO   BAYER CROP
    BLUE STAR
    CEAT

Commodities & Currency:

Particulars Current Price Chg.(%)
USD/INR 84.077 00
Brent 73.98 -0.07
Gold 78,030 -0.01
Silver 97,360 -0.09

FIIs & DIIs:

Particulars        21st Oct        18th Oct
FIIs                          -2,261.83 -5,485.70
DIIs 3,225.91 5,214.83

News Update:

Company

Epack Durable: The company entered into an agreement with a global leader in consumer electronics and home appliances, Hisense, to manufacture air conditioners and home appliances in India for the world.
Eicher Motors: Royal Enfield began operations in Bangladesh and inaugurated its flagship showroom in Dhaka. Royal Enfield launches the Hunter 350, Meteor 350, Classic 350, and Bullet 350 in Bangladesh.
Arkade Developers: The company launched residential and commercial projects in Bhandup, Mumbai, with an estimated sales value of Rs 760 crore.
Lemon Tree Hotels: The company signed a license agreement for a 72-Room Hotel in Karnataka.
Nelco: The power outage experienced by Intelsat’s IS33E satellite on Oct. 19 disrupted customer traffic. The satellite operator confirmed on Oct. 20 that Intelsat’s IS33E satellite will not be recovered.
Shriram Finance: The company received RBI’s nod to sell Shriram Housing stake to Warburg affiliate Mango Crest.

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