Inox Wind’s Stake Sale, Data Patterns’ Surge, Kalyan Jewellers’ High 

Technical Overview – Nifty 50

It was a complete turnaround from the Benchmark index after trading in a bearish bias in the first half of the trade. Index on the intraday chart has formed a V-shape reversal rally where prices moved higher rapidly after finding support near 19,500 levels.

The Nifty50 on the daily chart has formed a bullish hammer candle stick pattern near the lower band of the rising channel pattern. The prices from the last three trading sessions witnessed a close near the 19,600 mark.

Call Writers Were Killed in Action today as massive unwinding was seen in Short Calls, and OI reduced from 7.8Lk to only 1.5 Lk Technical Breakout above 19580 was seen, leading to further aggressive positions from PUT Sellers. A break below 19450 would add bearishness & take the index lower near 19300 levels while on the higher side index needs to take out 19700 levels which prove to be a strong resistance zone.

Technical Overview – Bank Nifty

It was a complete turnaround from the Banking index after trading in a bearish bias in the first half of the trade. Index on the intraday chart has formed a V-shape reversal rally where prices moved higher rapidly after finding support near 44,600 levels.

The Bank Nifty on the daily chart has formed a bullish hammer candle stick pattern near the 50-day exponential moving average. The prices from the last three trading sessions witnessed a close within the range of the 44,800 – 45,000 mark.

Maximum Call Open Interest Build Up witnessed in 45000-46000 Calls & on the Put Side Maximum Open Interest is being witnessed in 44500-44700 levels. The PCR ratio holds at 0.71. The momentum oscillator RSI (14) has drifted below its trend line support which is placed at 50 levels and closed below the same on the daily time frame. The immediate support for the Bank Nifty stands at 44,650 – 44,400 levels and the index is likely to face resistance near 45,200 – 45,400 levels.

Indian markets:

• Domestic shares experienced a volatile session on Wednesday, but ultimately closed with decent gains.
• The Nifty index started the day by dipping to 19,467.50 but managed to climb above the 19,600 level by the end of the session.
• Investors are exercising caution due to the anticipation of crucial inflation data releases for both India and the US.
• Gains were limited due to the deflationary trend observed in China and the recent downgrade of mid- and small-sized banks in the US, which had a negative impact on the market sentiment.
• The domestic stock market witnessed a late-stage recovery, attributed to a positive upward movement observed in the European market.
• Metal and oil & gas shares saw a rally, contributing to the overall market gains. However, realty and financial services stocks were under pressure during the session.

Global Markets

• Most shares in Europe and Asia advanced on Tuesday, as traders digested Chinas disinflation and Italys weakening of a surprise windfall tax on banks.
• The Italian government eased its stance and clarified that the tax levy on extraordinary profits would be caped at 0.1% of total bank assets.
• Data on Wednesday showed Chinas consumer prices fell 0.3% in July from a year ago. Producer prices dropped for a 10th consecutive month.
• Overnight in the U.S., all three major indexes saw a selloff after Moodys downgraded the credit rating on several regional banks, citing deposit risk, a potential recession and struggling commercial real estate portfolios.
• Markets are waiting for the U.S. inflation report on Thursday.

Stocks in Spotlight

• Following the sale of over 1.46 crore equity shares of its subsidiary, Inox Wind, through a block deal to institutional investors, Inox Wind’s promoters, Inox Wind Energy and Devansh Trademart LLP, also sold approximately 93.48 lakh shares via open market transactions. The shares were sold at an average price of Rs 208 per share. Notably, ICICI Prudential Mutual Fund and Nippon India Mutual Fund acquired 50.48 lakh shares and 96 lakh shares at the same price, collectively accounting for 4.49 percent of Inox Wind’s total paid-up equity. Despite an initial 4 percent surge, the stock’s gains moderated in early trading.
   
• Data Patterns‘ shares surged by almost 4 percent on August 9th following the company’s strong performance in the first quarter. As of 12:54 pm, the stock was trading at Rs 2,107.40 on the NSE, marking a 3.74 percent increase. The provider of electronics solutions for defense and aerospace reported a consolidated profit of Rs 25.83 crore for the quarter ending in June FY24, showing an impressive 81.4 percent rise compared to the same period last year. This growth was mainly driven by higher income from various sources and increased revenue.
   
• Kalyan Jewellers reached a 52-week high as the gold ornament maker from the southern region reported a significant 33.3 percent year-on-year increase in net profit, totaling Rs 144 crore for the June quarter of the ongoing financial year. Company’s revenue also experienced growth, increasing by 31.3 percent year-on-year to Rs 4,375.7 crore. Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 22.2 percent to Rs 322.8 crore. However, the EBITDA margin for the quarter slightly decreased by 50 basis points, standing at 7.4 percent.

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