Trade Setup | Things To Know Before Market Opening - 24 May 2023 Wednesday

Stock market news: Domestic benchmark equity indices Sensex and Nifty managed gains in choppy trade to extend the winning streak to a third consecutive day on Tuesday's trade, despite negative trends in the international markets and investors being cautious ahead of the release of the US Federal Open Market Committee (FOMC) meeting minutes

The Tuesday session was helped by a widespread surge across sectors that was driven by Adani group companies, but gains were limited by a decline in the high-weightage information technology (IT) stocks due to the concern surrounding the US debt ceiling talks.

The Nifty 50 index ended 0.18% higher at 18,348, while the benchmark S&P BSE Sensex rose 0.03% to 61,981.79.

Metals had a 2.59% rise and 10 out of the 13 key sectoral indices rose. Adani Enterprises Ltd, which accounts for 17% of the metals index's weight, increased by more than 13%, making it the highest gainer in the Nifty 50.

All the Adani group stocks increased between 0.3% and 14% and extended advances for a third session. IT suffered a loss of 0.5%, nevertheless, due to the uncertainty. The index was the biggest sectoral loser on Tuesday after rising 2.5% the previous day and driving the market uptick.

"The benchmark indices observed profit-taking at higher levels. While some IT stocks saw profit-booking at higher levels, the metal index continued to outperform," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.

According to Vinod Nair, Head of Research at Geojit Financial Services, the direction of the US market is anticipated to impact global equities, with investors closely monitoring upcoming events such as the release of FOMC minutes, US PMI, and progress in debt-ceiling talks.

FIIs buying slows sharply, inflow at ₹182.5 cr; DIIs outrun with ₹397 crore investment

FSN E-Commerce Ventures aka Nykaa - The company is set to announce its Q4 results for FY23. Sequentially, Nykaa is expected to report a feeble quarter. However, growth is likely to be sustainable on a year-on-year basis with surprises on the EBITDA margins front. Profit after tax (PAT) is expected to see single-digit upside.

Ashok Leyland - The company earned a net profit of ₹751.4 crore for the fourth quarter of FY23, declining by 16.6% compared to a PAT of ₹901.4 crore in Q4 of the previous fiscal. However, sequentially, the growth profitability more than doubled. The company has also announced a dividend of 260% for its shareholders.

Fortis Healthcare: The company on Tuesday reported a rise of 58.9 per cent to ₹138.3 crore for the quarter ended March 2023. This is against a net profit of ₹87 crore in the corresponding quarter last fiscal.

JSW Energy: The company reported 68.5 per cent decline in net profit to ₹272.1 crore for the quarter ended 31 March,2023. This is against a net profit of ₹864.4 crore in the corresponding quarter last fiscal.

NMDC: The company registered a growth of 22.3% in net profit to ₹2,276.9 crore on a consolidated basis for the fourth quarter of FY23 compared to a profit of ₹1,862.31 crore in Q4 of the previous fiscal.

Biocon : The company surpassed estimates by posting a net profit of ₹313.2 crore in the fourth quarter of FY23, rising by 31.3% from ₹238.6 crore in Q4 of the previous fiscal.

Q4FY23 earnings to lookout for: The list of some of the prominent companies who will release their Q4 results are as follows - Hindalco Industries Ltd, Venus Pipes & Tubes Ltd, Pennar Industries Ltd, Oil India Ltd, ICRA Ltd, Cummins India Ltd, Bayer Cropscience Ltd, Cummins India Ltd, India Cements Ltd, IRCON International Ltd, JB Chemicals & Pharmaceuticals Ltd, Life Insurance Corporation of India, National Aluminium Co Ltd, NESCO Ltd, Hitachi Energy India Ltd, Salzer Electronics Ltd, Trident Ltd, Nykaa, Titagarh Wagons Ltd, India Tourism Development Corporation, Lakshmi Machine Works, Welspun Specialty Solutions.

According to Atish Matlawala, Senior Analyst at SSJ Finance & Securities Pvt Ltd, Industries Ltd has delivered good numbers on back of strong pent up demand seen during the quarter. Stable raw material prices should help company deliver strong numbers going ahead.

"We maintain our positive view on the company and recommend 'buy' with a price target of ₹276 in next 12-18 months.

On the technical front, Sumeet Bagadia, Executive Director at Choice Broking, recommends Tata Motors at ₹528.5 with an stop loss of ₹510 for a target price of ₹555.

"The stock was forming higher high higher lows on weekly charts since last 9 weeks and trading close to 52-week high levels. Currently stock is moving above all important moving averages. After correcting from higher levels since last 4 days stock has again resumed its up-move which indicates strength. Any dip in the stock can be a buying opportunity. With a short term outlook one can buy Tata Motors," said Bagadia.

- Buy Adani Ports & Special Economic Zone with a stop loss of ₹714 for a target price of ₹780.

According to the analyst, the breakout level for the stock eas 720, and its backed by significant volumes.

- Buy Bharat Dynamics with a stop loss of ₹1,038 for a target price of ₹1,150. The analyst notices a strong positive trend and thinks that it is in a higher top, higher bottom formation.

- Buy Reliance Industries at ₹2,460 with a stop loss of ₹2,400 for a target price of ₹2,600.

- Buy Berger Paints India at ₹632 with a stop loss of ₹605 for a target price of ₹690.

- Buy Torrent Pharmaceuticals at ₹1,692 with a stop loss of ₹1,655 for a target price of ₹1,770.

- Short term cash buy Suprajit Engineering at ₹407-408 with a stop loss of ₹395 for a target price of ₹429.

According to Bhosale, the stock prices have given a pennant breakout on a daily chart that is seen with a strong bullish candle and above average volumes. Also, on the weekly chart the analyst sees a multi resistance.

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.