Goldman Sachs ‘Buy’ rating on HDFC Bank, SpiceJet soars amidst settling agreement with major lessor, NAC

The Markets Today in a nutshell

Technical Overview – Nifty 50

The Benchmark index on 21st June opened above 18,850 levels but eventually ended on a shaky note with marginal gains. Index on the 30 mins chart has formed and cup and handle formation and the breakout of the pattern will be above 18,890 levels.

Eventually, it was a lazy day where prices traded in a specific range and continued to close above its 9 EMA which is placed at 18,747 levels. The momentum oscillator RSI (14) is hovering within the 55 – 70 range on the daily time frame. Market breadth too was marginally in favor of bulls. In the index options, FII reduced net shorts while Pro flipped to net long. Open Interest concentration in Nifty is in 18,900 CE and 18,800 PE.

Considering the overall setup, expect a range-bound movement with a bullish bias for the upcoming expiry. Immediate support for the index is placed at 18,800 and 18750 levels while resistance is capped at 18,900 and 18,950 levels.

Technical Overview – Bank Nifty

BANKNIFTY witnessed a lackluster trading day where prices were hovering within the narrow range and closed with marginal gains. Bank Nifty on the daily chart is trading in a rectangle pattern and presently prices have found support near the lower band of the pattern.

As of now the banking index is trading marginally above its 50-day exponential moving average and the momentum oscillator RSI (14) is hovering near 50 levels on the daily time frame.

Considering the overall setup, expect a range-bound movement with a bullish bias for the upcoming expiry. Immediate support for the index is placed at 43,700 and 43,600 levels while resistance is capped at 44,000 and 44,100 levels.

Day Leader Board

Capital Flows

Indian markets

• Domestic equity benchmarks ended with gains, continuing the trend from the previous session.
• Rise was moderate, with sharp gains capped due to mixed global cues and a delayed monsoon in India.
• The Nifty closed above the 18,850 mark, recovering from a day’s low of 18,794.85 in mid-morning trade.
• Sectors such as PSU banks, financials, and media witnessed an advancement in their shares.
• Conversely, there was a correction in the shares of metals, FMCG, and realty sectors.

Global Markets

• European shares fell across the board while Asian shares ended on a mixed note on Wednesday following overnight losses in US stocks amid cautiousness ahead of the Federal Reserve chiefs congressional testimony.
• UK consumer price inflation (CPI) was unchanged at 8.7% in May compared to Aprils data, figures from the Office for National Statistics showed on Wednesday.
• US Federal Reserve Chair Jerome Powell is scheduled to give his semi-annual report to Congress on Wednesday after the policymakers kept interest rates unchanged at their meeting last week.

Stocks in Spotlight

• SpiceJet shares rose by 4 percent on June 21 following its settlement agreement with Nordic Aviation Capital (NAC), a key lessor for the airline’s Q400 aircraft. This comes amid the reported difficulties SpiceJet has been facing with its lessors, which have resulted in as many as 25 of its 76 planes being grounded as of May. Despite the recent surge, the company’s stock has been underperforming, with a decline of 16 percent over the last three months and about 30 percent over the past year.
• HDFC Bank’s stock surged nearly 1.5 percent in early trading on June 21 after Goldman Sachs reconfirmed its “buy” rating and increased the target price from Rs 1,840 to Rs 2,050 per share, suggesting a 21 percent potential rise from the current market price. Goldman Sachs noted in its June 21 report that HDFC Bank, India’s largest private sector bank, is set to come out stronger post its merger with HDFC Limited.
• Blue Dart Express climbed 7 percent on June 21, propelled by an upgraded stock rating from Motilal Oswal Financial Services. This upgrade was prompted by the company’s margin expansion and increased volume in the express distribution sector. The brokerage firm suggested that higher capacity utilization, facilitated by new aircraft, is expected to drive volumes. 

News from the IPO world🌐

• Double-Digit returns for most 2023 IPOs with some surpassing 50%
• Mukka Proteins refiles DRHP with SEBI to launch IPO
• Afcons begins IPO talks with banks.

Sectoral Performance

Advance Decline Ratio

Numbers📈 that matter