Trade Setup | Things To Know Before Market Opening - 23 May 2023 Tuesday

Stock market news: For the second straight trading session, domestic benchmark equity indices rose on Monday as market witnessed buying in index heavyweight Reliance Industries, information technology (IT) and metal counters, and Adani stocks. The US debt limit talks, which stalled last week, were still in the focus of market participants.

The 30-share BSE Sensex rose 234 points, or 0.38%, to end the day at 61,963.68. At 18,314.40, the NSE Nifty advanced 111 points, or 0.61%.

The metal index climbed by 3.19%, with Adani Enterprises Ltd's over 19% gain acting as the primary driver of the rise. The flagship business of the Adani group of companies is given a proportion of more than 17% in the index. The highly weighted IT index recorded advances in all 10 of its components, ranking it among the top gainers among sectors.

Also Read: FIIs pump in ₹933 crore in Indian stocks on 22 May; DIIs inflow at ₹605 crore

Vedanta: The company has announced its first interim dividend of ₹18.50 for financial year 2023-24. The dividend will be 1850% on the face value of ₹1 per share and amounts to a total of ₹6,877 crore.

Vedanta announces first interim dividend for FY24; check details

Bharat Petroleum Corporation Ltd (BPCL): The Government-backed oil marketing company surpassed the street's expectations in March 2023 quarterly earnings. The company posted a whopping 158.99% or 2.58 folds jump in standalone PAT to ₹6,477.74 crore in Q4FY23 as against ₹2,501.08 crore in Q4 of the previous fiscal.

BPCL Q4 results: OMC beats estimates, standalone PAT rises 159%; key highlights of earnings

Shree Cements: The company announced its Q4FY23 results on May 22, reporting a net profit of ₹546.21 crore, registering a decline of 15.3%, compared to ₹645.21 crore in the corresponding period last year.

Shree Cements Q4 Results: Net profit declines 15% to ₹546 crore, dividend declared

Dhanlaxmi Bank: The lender posted a net profit of ₹38.2 crore in Q4FY23, rising by 63.3% as against a net profit of ₹23 crore in the same quarter a year ago. 

Dhanlaxmi Bank Q4 results: PAT rises 63% to ₹38 cr; provisions, gross NPA dips sharply - key highlights here

Q4FY23 earnings to lookout for: The list of some of the prominent companies who will release their Q4 results are as follows - Ashok Leyland Ltd, Dixon Technologies (India) Ltd, JSW Energy Ltd, NMDC Ltd, Sequent Scientific Ltd, Somany Ceramics Ltd, Thyrocare Technologies Ltd, TTK Healthcare Ltd, TVS Srichakra Ltd, Unichem Laboratories Ltd, GE T&D India Ltd, Galaxy Surfactants Ltd, DCM Financial Services Ltd, Biocon Ltd, Bajaj Electrical Ltd

According to Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, if Monday’s strong session is any indication, then it appears that the benchmarks at Dalal Street are in for aiming further upside.

"The next hurdle to watch out for is at the 18,473 mark. All eyes will be on the Fed meeting minutes to trickle in on Wednesday, May 24. Also, amidst F&O expiry week, volatility is likely to be the hallmark. Staying nimble on long positions is the preferred strategy," added Tapse.

- Buy Persistent Systems with a stop loss of ₹5,041 for a target price of ₹4,910-5,300. 

- Buy Can Fin Homes with a stop loss of ₹670 for a target price of ₹640-715.

According to the chart pattern, the stocks are showing favourable signs and is set to rise in the near future. Momentum buys can be initiated in the scrip by intraday traders.

- Buy Wipro at ₹395 with a stop loss of ₹388 for a target price of ₹408

- Buy Jindal Steel and Power at ₹525 with a stop loss of ₹515.70 for a target price of ₹546

The stocks have the potential for near-term upside movement.

- Nifty Spot index to see support at 18200/18050, while resistance seen at 18450 - 18500

Analysts advise positional traders to buy dips with a suitable stop-loss close to the 18,050 support level.

- Bank Nifty spot index to see support at 43500/43300 and resistance – 44000 / 44150

- Buy Ujjivan Small Finance Bank with a stop loss of ₹31 for a target price of ₹37.

- Buy Tata Steel with a stop loss of ₹100 for a target price of ₹110.

- Buy Atul Auto at ₹369.6 for a target price of ₹410

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of PickStock. We advise investors to check with certified experts before taking any investment decisions.