HDFC Bank strong Q1 results drive optimism, Vedanta recoups semiconductor plans

Technical Overview – Nifty 50

Following its past few day’s trends, Nifty50 witnessed another gap-up opening and recorded a fresh lifetime high at 19,819 levels and the index traded in the green shade in the initial trading hours. Post-recording its life high an index witnessed an aggressive profit booking with high volatility but manages to close above 19,700 levels.

The momentum oscillator on the lower panel continues to stay in a bullish range shift zone and hovers near 70 levels. Similarly, the short-term EMA continues to act as immediate support for the index.

The highest call side open interest is at 20,000 & 19,800 and the highest put side open interest is at 19600. Aggressive call writing is witnessed in the range of 19800-20000 indicating a profit-booking scenario or sideways trend. Technically speaking, Nifty’s technical landscape is now suggesting a desired consolidation with interweek support at the 19500 mark. Nifty’s immediate hurdles are placed at the 19827 mark and then at the 20000 mark.

Technical Overview – Bank Nifty

The Bank Nifty recorded life-high levels at 45,905 levels in the initial minutes of the trade and post decorated by the shape profit booking witnessing in the prices. Prices traded in a consolidated lower-low formation but continued to hold above 45,300 levels.

The highest call side open interest is at 45,500 & 46,000 and the highest put side open interest is at 45,000. Aggressive call writing is witnessed in the range of 45,500-46,000 indicating a profit-booking scenario or sideways trend. The momentum oscillator on the lower panel continues to stay above 60 levels on the daily chart. Similarly, the short-term EMA continues to act as immediate support for the Banking index which is placed at 45,000 levels. Technically speaking, Bank Nifty’s technical landscape is now suggesting a desired consolidation with interweek support at the 45,000 mark. Nifty’s immediate hurdles are placed at the 46,000 level.

Indian markets:

• Domestic benchmarks extended their gains for the fourth consecutive trading session.
• The Nifty index closed near the 19,750 level after briefly touching a low of 19,690.20 during early afternoon trade.
• The market drew support from the weakening dollar and the increased flow of funds from foreign institutional investors (FIIs) towards emerging markets.
• HDFC Bank’s positive Q1 performance added to the optimistic sentiment in the market.
• Stocks in the IT, oil & gas, and private banking sectors were in high demand.

Global Markets

• Most shares in Europe and Asia declined on Tuesday with investors look forward to more corporate earnings while worries over the Chinese economic recovery continue to linger.
• With little in the way of economic data due in Europe Tuesday, worries over the health of the Chinese economy, the worlds second-largest, in the wake of its disappointing growth data have continued, especially given European consumer, technology, industrial and materials sectors all have significant exposure to China.
• US stocks ended higher Monday as Wall Street braced for quarterly reports from some of the biggest companies in the world.

Stocks in Spotlight

• IndusInd Bank, a private sector lender, announced its financial results for the April-June quarter. The bank reported a net profit of Rs 2,124 crore, marking a significant 33% increase compared to the previous year’s net profit of Rs 1,631 crore. The reported profit was slightly lower than the estimated figure of Rs 2,127 crore according to a CNBC TV-18 poll. The total income for the quarter rose by 28% year-on-year to Rs 12,939 crore, driven by a net interest income of Rs 5,863 crore, reflecting an 18% increase from the previous fiscal year.
• Vedanta’s semiconductor division head, Akarsh K Hebbar, stated that the company remains fully committed to establishing India’s first semiconductor and display fabs in Gujarat’s Dholera Special Investment Region. This announcement follows the termination of the joint venture between Vedanta and Foxconn, which aimed to invest $19.5 billion in a semiconductor manufacturing unit. Despite Foxconn’s withdrawal, Vedanta intends to proceed with its semiconductor business venture and has made substantial progress in securing technology and equity partners. An official announcement regarding this is expected in the near future.
• Infosys witnessed a nearly 4 percent increase in its share price on July 18 following the announcement of a multi-year agreement with a strategic client for AI and automation services. The company is set to disclose its first-quarter results for the period ending June 30, 2023, on July 20, 2023.

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