5 Minutes Read

Market outlook by Anuj Singhal: Why SBI, HDFC Bank and the likes may lead the next leg of the rally

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

It is possible that the Nifty Bank can lead the next round of the rally as it has shown signs of fresh expansion. Banking heavyweights like HDFC Bank, Kotak, SBI have all gained between 1-3 percent so far in September.

The Nifty 50 is now less than a percent away from the 20,000 mark, which demands the question that is 21,000 the next level on the benchmark index that needs to be watch out for?

From the lows of 19,230, the index has gained nearly 600 points since the start of the September F&O series.

The heartening bit is that banking stocks are finally contributing to the rally, as evident from the Nifty Bank’s surge over Thursday and Friday. The index closed above 45,000 for the first time since August 1.

It is possible that the Nifty Bank can lead the next round of the rally as it has shown signs of fresh expansion. Banking heavyweights like HDFC Bank, Kotak, SBI have all gained between 1-3 percent so far in September.

Broader markets are continuing to make new highs and have entered overheated zones. However, they are not completely in “euphoria” territory yet.

The basic strategy is simple – Remain long and keep trailing your stop losses.

Outlook for the Nifty 50:

  • First Resistance Zone: 19,850 – 19,950
  • Biggest Resistance Zone: 19,950 – 20,000
  • First Support: Friday’s low of 19,727
  • Bigger Options-based support: 19,580
  • The trade remains to buy on all dips

For the Nifty Bank, Friday’s high of 45,383 will be the first resistance for the index, while the bigger, options-based resistance stands at 45,600.

A Sensex call option gathered a lot of interest last week over a trade that went from Rs 4 to well over Rs 200 in a fraction of a second. Read more about that here.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Where are the Nifty 50, Nifty Bank headed in the July series? A chartist shares his take and top picks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

The Nifty 50 is within striking distance of the 19,000 levels and is expected to test levels of 19,200 in the coming days, where the ascending triangle resistance is placed.

What a series the June one turned out to be. Expiry session took the Nifty 50 past its previous record high and the index ended with gains of 650 points for the series.

Can this continue for the July series as well? Lets find out:

The July F&O series is starting off on the back of strong rollovers. Nifty 50’s rollovers are seen at 76 percent compared to a three-month average of 70 percent. The index will also start the new series with a high Open Interest base, which signals fresh long positions being built and carry over, which can keep the trend strong.

Nifty 50’s trend has been strong and it is constantly forming higher highs and higher lows on the daily timeframe, something that is characterstic of an uptrend. The index has taken strong support from its 21-EMA and has managed to make a fresh swing high. The most recent fall towards 18,650 halted at the 21-EMA support on the daily chart, which pushed the index towards its lifetime high. The Nifty 50 is within striking distance of the 19,000 levels and is expected to test levels of 19,200 in the coming days, where the ascending triangle resistance is placed.

The Nifty Bank index has been an underperformer over the last few weeks. It is facing a tug-of-war at levels of 44,200. Unlike the Nifty 50, the Nifty Bank closed below its 21-EMA for a couple of days before finally breaking past that level on expiry day. The index has given a breakout from ascending channel pattern on the daily charts, suggesting that it can make an attempt towards levels of 45,000 – 45,300 during this series, as long as it sustains above the breakout levels. The immediate support is seen at levels of 43,900, where the 21-EMA and the Ichimoku Kijun is placed.

An index that can outperform in the July series is the Nifty Financial Services index which is currently seeing a multi-month high Open Interest base, which reflects strong interest from market participants. The index has given a breakout from the cup and handle pattern, which will be confirmed in case of a weekly close above levels of 19,500. The continuation pattern breakout can push the index higher by another 5-7 percent and also provide lucrative buying opportunities in the midcap financial space for the next few weeks. Critical support on the downside is placed at levels of 19,000.

Top Stock Picks For The Series

The Nifty Pharma index has been one of the outperformers over the last few weeks. The index has gained strength, which has pushed midcaps and selective largecap stocks higher. Among them, Dr Reddy’s has given a consolidation breakout on the daily and weekly charts with incremental volumes, which can push the stock higher. The stock is showing strong relative strength charts, which reflects continued outperformance in the coming days. One can buy with a target of Rs 5,350 for the series and a stop loss of Rs 4,950.

On the other hand, the Nifty Metal index has been muted for a while, but JSW Steel has been a consistent outperformer. The stock is on the cusp of a major breakout on the weekly charts, which will get confirmed on a weekly close above 785 levels. The stock has already confirmed a breakout on the point and figure charts on the daily timeframe, cluster targets of which come up to Rs 860. One can buy for the series with a target of Rs 840 and a stop loss of Rs 740.

Gaurav Bissa is Vice President of Equity Advisory at InCred Equities.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Macro data, quarterly results, crude, global trade trends to guide markets this week: Analysts

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

In addition to FIIs’ actions, other crucial market-determining variables include the movement of crude oil prices, the dollar index, and US bond yields.

Industrial production and inflation data, quarterly earnings from IT majors and global trends would drive the equity markets in a holiday-shortened week, analysts said.

Moreover, foreign fund trading activity, movement of the rupee and global crude oil prices would also dictate terms in the market, they added.

Equity markets would remain closed on Friday for ‘Dr Baba Saheb Ambedkar Jayanti’.

“Leading IT companies TCS and Infosys will report their results this week. Due to concerns about a worldwide recession, markets will pay close attention to management commentary. US inflation and non-farm payroll figures will be important things to keep an eye on the global front.

“In addition to FIIs’ actions, other crucial market-determining variables include the movement of crude oil prices, the dollar index, and US bond yields,” Santosh Meena, Head of Research at Swastika Investmart Ltd, said.

TCS will announce its quarterly earnings on Wednesday and Infosys on Thursday.

Ajit Mishra, VP – Technical Research at Religare Broking Ltd, said the stability on the global front has eased some pressure and now the focus would shift to earnings for cues.

Among macroeconomic data, industrial production data for February and March inflation rate are scheduled to be announced on Wednesday.

WPI inflation data for March would be announced on Friday.

“Federal Open Market Committee (FOMC) meeting minutes are to be announced this week, which can have an impressive effect on the global market. Investors are looking for signs of a future FED interest rate pause, which can have a positive impact on the global market else vice versa,” Vinod Nair, Head of Research at Geojit Financial Services, said.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said that FPI investment is showing a positive trend.

FPIs were continuous buyers during the last six trading days having invested Rs 4,738 crores. The basic reason for the change in FPI stance is the declining dollar index and falling bond yields in the US.

Also read: Good time to invest in debt market as RBI hits pause button: Trust Mutual Fund’s Sandeep Bagla

Also the rupee has been appreciating in recent days from around Rs 82.75 to 81.74 now. This trend is likely to gather momentum. FPIs have turned buyers in automobiles, financial services, capital goods, power and metals and mining. They have been selling in IT.

Last week, equity markets were closed on Tuesday (April 4) for “Mahavir Jayanti” and on Friday (April 7) on account of “Good Friday”.

The 30-share BSE benchmark climbed 841.45 points or 1.42 per cent in the holiday-shortened week.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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 5 Minutes Read

Markets keeping it light today with all eyes on the FOMC meeting

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

Overnight the cues from the U.S. markets were positive while indices closed higher for the second straight session. The S&P500 has managed to end above it’s 200 day moving average which is an important signal.

ITS GAME DAY !

Markets are keeping it light today given the fact that later in the day we have the FOMC decision. The Nifty and the Bank Nifty are trading flat to slightly higher.

Overnight the cues from the U.S. markets were positive while indices closed higher for the second straight session. The S&P500 has managed to end above it’s 200 day moving average which is an important signal. Bond yields jumped higher on the back of strong existing home sales data in the month of February. Asian markets & our markets responded well early in the session but have since come off the day’s highest point.

Sectors like PSU banks and autos are doing well. Broader markets are also in fine shape with Smallcap Index up over 0.8%. Insurance stocks are doing well on the back of a CLSA note which says that all negatives for the sector are in the price.

Fed March OIS is pricing >80% chance of a 25bps hike but how Chair Powell Fed balances stability vs inflation in the press conference looks key for market reaction.

Also read: Experts say halt in interest rate hikes not a solution to the banking crisis

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

Next Article

Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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 5 Minutes Read

Bottomline | Business isn’t booming, but there’s hope

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

The third quarter earnings reveal a mixed trend in growth and profitability across sectors, not a broad earnings upcycle.

Numbers tell the true story. And the numbers for the third quarter of fiscal ending March 2023 are anything but inspiring, to say the least. You could cheer the big earnings surprise delivered by banks and financials, or you could sulk over the disappointing show of steel, cement and pharmaceuticals. There are pockets of cheer and concern, depending on where you are looking. What this doesn’t clearly make for is a picture of an economy chugging along nicely, as some might suggest.

But let’s take a closer look at the numbers to get a better sense. We reviewed results of companies in the BSE-500 index that have reported earnings so far.

WHAT THE NUMBERS REVEAL

We segregated the non-financial businesses (351 of a total 423 reviewed) to assess their performance and found that in aggregate incomes were up a healthy 15.7 percent year-on-year, but profits were down by 11 percent, with interest costs far outpacing growth. On a quarter-on-quarter basis, while incomes rose less than 2 percent, profits improved sharply by near 21 percent as lower input costs likely helped. This is also suggested by the margins (PBIDT percentage) that improved by 70 basis points (or 0.7 percent) quarter-on-quarter, though this was 1.2 percent lower than a year ago.

Q3 REVIEW (Non-Financials BSE-500)
Particulars YoY QoQ
Operating Income 15.7% 1.8%
Employee Exp 16.4% 4.4%
Operating Profit -0.5% 14.3%
Other Income 21.4% 7.9%
Interest 26.8% 10.6%
PBDT -4.1% 14.2%
Depreciation 11.5% 3.8%
PBT -9.6% 19.45
Tax -4.8% 15.2%
PAT -11.1% 20.9%
PBIDTM % -1.2% 0.7%

(Source: ACE Equity)

The picture for financials is very different, aided by the favourable early effects of an interest rate upcycle where assets get repriced ahead of liabilities and with credit costs yet to pick-up after a significant balance sheet clean-up. Incomes were up over 25 percent year-on-year, a step ahead of interest costs, this and better operating leverage led to profit growth of 41 percent. The quarter-on-quarter numbers were equally healthy as credit costs remained in check with income and profit growing 9 percent and 13 percent, respectively.

BANKS Q3 REVIEW
Particulars YoY QoQ
Operating Income 25.4% 9.1%
Employee 19.6% 11.3%
Other Income 15.0% 8.9%
Interest 25.2% 9.4%
PBT 39.4% 13.5%
Tax 34.4% 14.8%
PAT 41.25 13.0%

(Source: ACE Equity)

The NBFCs also mostly fared well, seeing strong growth and incomes and profits.

SOME WORRy, SOME HOPE

Some of the core sectors linked closely to the growth in the economy failed to deliver. Cement was a weak spot with sales growing a healthy 15 percent year-on-year, but profitability seeing a significant deterioration, though there was some improvement on this front quarter-on-quarter. Will the government’s big push to capital expenditure and focus on affordable housing provide a fillip to the fortunes of cement makers remains the big question. In steel, both the year-on-year and quarter-on-quarter performances were uninspiring with sharp declines in profitability noted, but there is now hope that China’s economy reopening will aid fortunes.

The other worry spot is the slow growth in what has been often referred to as the fast-moving consumer goods (FMCG) industry. The household and personal care segment (includes, HUL, Colgate etc) saw profits grow just 5 percent year-on-year and 1 percent quarter-on-quarter, with margins down 1.8 percent year-on-year but higher 1.1 percent quarter-on-quarter, as some input cost pressure eased. A revival in consumption, especially in the inflation-impacted lower income segments remains the big hope for the industry.

Pharmaceuticals was the other prominent sector with disappointing results. Profits were down 5 percent year-on-year and 1.4 percent quarter-on-quarter. Chemicals too saw margin pressures emerge, though there was some improvement quarter-on-quarter. These companies, though, a sharp jump in interest costs, which dented cash profitability.

IT Services managed to eke out good growth quarter-on-quarter and year-on-year, at 8.2 percent and 19.8 percent, respectively, but profitability remained impacted. Profits grew at a slower pace of 10 percent year-on-year, but improved to 9.6 percent quarter-on-quarter as some attrition pressure eased. The hope here is of a soft landing in the US, which could keep the business momentum from slowing too much and transformation projects coming back sooner than expected.

HOPE FLOATS

In a nutshell, therefore, other than the superlative performance of banks in the quarter, which could also wane as we move deeper into the credit cycle, the performance has been lackluster. And unless hopes of a China resurgence fillip for commodities, a boost from Government capex, a revival in consumption and a soft landing in the US economy translate into reality, the earnings momentum of India Inc could be significantly dented in the coming quarters.

Hope for the best, but don’t invest in hope. Invest in value if you would like to emerge unscathed from this hope-fueled market.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

Next Article

Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
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Should Elon Musk be able to buy Twitter?

 5 Minutes Read

Russia to increase oil supply to meet Asia demand, prices fall in US

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

Oil prices reversed earlier gains on Friday as indications of strong Russian oil supply offset better than expected US economic growth data, strong middle distillate refining margins and hopes of a rapid recovery in Chinese demand.

Oil prices reversed earlier gains on Friday as indications of strong Russian oil supply offset better than expected US economic growth data, strong middle distillate refining margins and hopes of a rapid recovery in Chinese demand.

Brent futures were down 51 cents, or 0.6%, at $86.96 a barrel by 11:29 am EDTand US crude fell 65 cents, or 0.8%, to $80.37. Both benchmarks rose by more than $1 earlier in the session but are now poised to break a three-week run of gains.

Oil loadings from Russia’s Baltic ports are set to rise by 50% this month from December as sellers try to meet strong demand in Asia and benefit from rising global energy prices, traders said and Reuters calculations showed.

Urals and KEBCO crude oil loadings from Ust-Luga over Feb. 1-10 may rise to 1.0 million tonnes from 0.9 million in the plan for the same period of January, traders also.

”If Russian supply remains strong heading into next month, oil is probably going to continue to trend lower,” said John Kilduff, partner at Again Capital LLC in New York.

He added that profit taking ahead of the weekend may also have driven prices lower.

OPEC+ delegates meet next week to review crude production levels, with sources from the oil producer group expecting no change to current output policy.

The US Federal Reserve’s next decision on interest rates will be made at meeting over Jan. 31 and Feb. 1 against a backdrop of a dip in inflation and gross domestic product that grew by a faster than expected 2.9% in the fourth quarter.

”The positive batch of data gave oil prices a lift,” said PVM analyst Stephen Brennock.

A 4.2 million barrel build this week in stocks at Cushing, the pricing hub for NYMEX oil futures, also weighed on the market.

”We believe soaring middle-distillate prices and cracks are mostly behind crude’s bullish price action,” JPMorgan said in a note, pointing to heavy refinery maintenance and outages, plus the European ban on Russian refined products from Feb. 5.

In China, critically ill COVID-19 cases are down 72% from a peak early this month while daily deaths among COVID-19 patients in hospitals have dropped by 79% from their peak, pointing to a normalisation of the Chinese economy and boosting expectations of a recovery in oil demand.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Key investment strategy when market is at all-time high

stock market, stocks, investing

In this episode of ‘Mutual Fund Corner’, Kirtan Shah, Founder & CEO of Credence Wealth Advisors talked about investing at all-time highs and how to look at sectoral funds at this juncture.

Shah said, “As we are talking about markets at life high, I think this is not really a point where you would want to aggressively try and invest everything that you have as a lump sum. A better way, probably to invest at this point in time is to kind of try and stagger your investments over the next three or six months. So, probably if there is some volatility over the next three or six months, you will largely be able to take advantage and average that out.”

He advised that long-term investors should have 5-10 percent of portfolio for tactical allocation and that investors should not try and experiment and stick to the basics, specifically at search market levels.

He added that individuals should remain invested across large, mid and small market caps.

“Try and make sure that while you are trying to build a strategy, you have some element of value investing, some element of growth investing that will also help you diversify in terms of strategy,” he said.

Watch video for more.

ALSO READ | Zerodha CEO Nithin Kamath’s ‘saving mindset’ response to Merc top exec’s view on SIP

 5 Minutes Read

Gold prices drop amid choppy trade as markets recover initial loss

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

Gold prices today: MCX Gold Futures drooped by Rs 130 to Rs 49,250. Meanwhile, Silver futures gained 0.26 percent, surging to Rs 56,868 at around 10:24 am on Monday.

Domestic gold prices fell by 0.26 percent amid choppy trade on Monday. MCX Gold Futures dropped by Rs 130 to Rs 49,250. Meanwhile, Silver futures gained 0.26 percent, surging to Rs 56,868 at around 10:24 am on Monday.

This comes as a weaker US dollar makes dollar-denominated commodities less expensive for holders of other currencies. As of 10:30 am on Monday, the US Dollar Index Futures traded 0.09 percent lower at 109.6.

Rahul Kalantri, VP Commodities, Mehta Equities, said, “Gold and silver prices are likely to remain volatile ahead of the Fed policy meeting and fear of global recession, as the Fed is widely expected to hike rates by 75 basis points with traders also pricing in the possibility of a 100 basis point hike.”

“Gold has support at $1662-1650, while resistance is at $1686-1798. Silver has support at $19.18-18.95, while resistance is at $19.62-19.85. In INR terms, gold has support at Rs 49,020-48,810, while resistance is at Rs 49,480, 49,640. Silver has support at Rs 55,750-55,240, while resistance is at Rs 57, Rs 180–57, Rs 510,” he said.

Amid this, the rupee gained by six paise to 79.68 against the US dollar, supported by a fall in the greenback overseas though rising crude oil prices limited the upside.

Global crude oil rates rose amid supply concerns ahead of a European Union embargo on Russian oil in December and fears of a global recession that could dampen demand. Brent crude futures and WTI futures jumped 1.3 percent each to $92.6 and $85.9 a barrel.

Meanwhile, Indian equity benchmarks BSE Sensex and NSE Nifty50 recovered initial losses to rise about half a percent in a choppy session on Monday. Broader indices Nifty Midcap 100 and Nifty Smallcap 100 mirrored the gains in headline gauges in morning deals.

Besides this, equities in other Asian markets fell following two-month lows on Wall Street amid recession warnings from the IMF and the World Bank. Investors are bracing for a widely-expected 75 basis-point hike in key US interest rates by the Fed this week.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
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10 Questions · 5 Minutes
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Win WRX (WazirX token) worth Rs. 1500.
Question 1 of 5

What coins do you think will be valuable over next 3 years?

Answer Anonymously

Should Elon Musk be able to buy Twitter?

 5 Minutes Read

Diagnostics firms say top 50 laboratory health tests could become 30% cheaper

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

CNBC-TV18 spoke to Gaurav Agarwal, Co-founder at Tata 1MG and Devendra Rajput, National Head and Director at Apollo Diagnostics, to discuss fear of disruptive pricing, and rising competition.

Stocks of diagnostic companies have corrected sharply over the past few months, with falling around 40-50 percent from their 52-week highs. This is reflected in their valuations, which have halved from their peaks over the past year.

Some reasons for this selling is the fear of disruptive pricing. For example, Tata 1mg advertisements indicate they offer popular lab tests at just Rs 100 versus the Rs 500 to 650 earlier.

Stock Return (%) PE (TTM)
Three months One year
Thyrocare -21.9 -33.7 24
Dr Lal Pathlabs -20.1 -21.2 51.4
Metropolis -3.4 -15.9 44.7
Vijaya Diagnostics 5
Krsnaa -11.2

Additionally, we are also seeing rapidly rising competition. Several pharma companies have entered the space, while hospital chains have increased investments.

Read Here: Why diagnostic stocks have corrected around 50% from their 52-week highs

Speaking to CNBC-TV18, Gaurav Agarwal, co-founder of Tata 1mg, said as the firm continues to innovate, it can drive the prices down further. “Today, we can offer 30-40 percent cheaper prices than what exists in the market,” he said.

Devendra Rajput, National Head & Director at Apollo Diagnostics, said, “With the competition as well as the pricing pressure, there will be a definite price correction in a top 50 or 30 tests where the utilisation is more, there we will be able to pass on the additional margins to the consumer. Definitely, it will be competitive going forward.”

Watch video for more

Catch all the stock market live updates here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

Next Article

Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
Powered by
Are you a Crypto Head? It’s time to prove it!
10 Questions · 5 Minutes
Start Quiz Now
Win WRX (WazirX token) worth Rs. 1500.
Question 1 of 5

What coins do you think will be valuable over next 3 years?

Answer Anonymously

Should Elon Musk be able to buy Twitter?

Why diagnostic stocks have corrected around 50% from their 52-week highs

Diagnostic stocks have corrected sharply over the past few months with stocks down between 40 and 50 percent from their 52-week highs.

The market is fearing disruptive pricing emerging in the diagnostic industry. Tata owned Tata 1MG has published an advertisement indicating that they are offering popular lab tests for consumers at just Rs 100 as they enter the Bengaluru market. The same tests cost anywhere between Rs 500 and Rs 650 in the market.

The stocks have also corrected in the last one year due to rapidly rising competition with many bigger and smaller companies entering the segment. This competition is also resulting in lower pricing power which is expected to reflect in earnings and especially in margins.

Watch video for more.