Posts in category: BUSINESS

The Nifty 50 recorded selling pressure throughout the week, achieving the first downside target of the Head and Shoulders pattern (around the 24,200-24,250 zone) on October 25, with the formation of a bearish candlestick pattern on the daily charts accompanied by above-average volumes. Hence, experts expect the index to breach its August low (23,894), which is a crucial support level in the coming sessions. Below this level, the 200-day EMA (Exponential Moving Average) at 23,455 cannot be ruled out. However, any bounce that occurs towards the 25,600-25,700 zone is unlikely to be sustainable. For the Bank Nifty, the next support is expected to be around the 50,200-50,000 area; below this, the 200-day EMA (49,668) is a possibility, while resistance lies at 51,100.

On Friday, the Nifty 50 plunged 219 points to close at 24,181, and the Bank Nifty dropped 744 points to close at 50,787, with overall market breadth favouring bears. Approximately 2,138 shares declined compared to 376 advancing shares on the NSE.

Waaree Energies Ltd, a prominent player in India’s solar energy sector, is set to make its stock market debut on October 28 with analysts predicting a substantial premium on listing day, buoyed by robust demand during its IPO. The share sale closed with a notable 76.34 times subscription, highlighting strong institutional investor interest and positioning the company for a favourable listing.

The IPO, priced between Rs 1,427 and Rs 1,503 per share, garnered Rs 1,277 crore from anchor investors prior to the issue opening. Analysts are optimistic, with expectations that Waaree Energies shares could debut with a premium close to or exceeding 100 percent, driven by the company’s leading role in the solar photovoltaic (PV) module manufacturing sector.

Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares and Stock Brokers, noted the intense demand and high subscription rate, suggesting a likely premium on listing. “Given the strong fundamentals and market position, the stock could see a significant jump,” Solanki said, adding that Waaree’s extensive market reach and consistent growth prospects contribute to its appeal.

Adding to the optimism, Sagar Shetty, Research Analyst at StoxBox, estimated a debut premium of about 102% over the IPO’s upper price band. “Waaree’s solid footprint in solar PV manufacturing, with an aggregate installed capacity of 12 GW, coupled with its competitive edge in the sector, sets it up for a strong stock market entry,” said Shetty.

Vijay Bharadia of Wallfort PMS sees that valuations of several automobile stocks have become expensive. “But there is still a lot of growth to come because we still sell much less four-wheelers compared to many countries,” he said in an interview with Moneycontrol.

According to the Managing Parter & CIO, while electric vehicle segment surely is moving at a very slow pace as charging infrastructure is yet to gain scale, demand for auto sector in the internal combustion engine vehicles will continue for a few more years till EV infra is built or some revolution happens in battery storage systems.

The selling pressure intensified again, driving the benchmark indices down by more than 2 percent in the week ended October 25 as ongoing geopolitical tensions, muted September quarter earnings with tepid demand environment and margin pressure, and significant FIIs outflow dented sentiment. The market extended southward journey for fourth consecutive week and reached to four-month low.

In the (Diwali) week ahead starting from October 28, the sentiment is expected to remain in favour of bears with focus on corporate earnings, and bunch of US economic data (including GDP), while the market participants maintained caution ahead of US presidential elections scheduled on November 5. The monthly Futures & Options contracts will get expired next week on Thursday.

The BSE Sensex closed below psychological 80,000 mark, down 2.24 percent during the week at 79,402, while the Nifty 50 plunged 2.7 percent or 673 points to 24,181 (the lowest level since the week ended June 28), taking the total loss to 8 percent from its record high of September 27.