New Year Continues to Bring Cheer to Indian Stocks: Sensex Reclaims 60k Mark

Indian stock markets continue to maintain their positive streak in the second week of 2022 with Nifty crossing 18k levels and Sensex regaining 60k+ closing the week with 2.4%+ gains.

Nifty gained 443.05 points, closing at 18,255.75, up 2.49% while Sensex closed 1478.38 points, closing at 61,223,03, up 2.47%.

From the fundamental desk:

Result season to get traction next week post stable numbers from IT companies which has delivered strong numbers amongst results declared so far. Next week ICICI bank, Bajaj finance will be in action. Among banks, we like Axis Bank and Indian Bank. One can keep both stocks on radar for next week.

🔭Market Outlook

NIFTY

If we look at the daily chart of the Nifty series, a narrow range body formation is visible with a higher high. On the weekly front, the index has given a consolidation breakout. This indicates positive momentum; we advise investors to follow the buy-on-dips strategy.

For Nifty to bounce towards 18,450 and 18,600 levels, it has to cross the 18,325 level. On the downside support if it crosses below 18,125 then it can test 18,020 and 17,880 levels.

BANK NIFTY

On the daily chart of Bank Nifty, it seems Bank Nifty has traded near the channel line and on the weekly chart shooting star candle-pattern is visible. This indicates that Bank Nifty may pause the momentum, signaling some consolidation. This week Bank Nifty closed at 38,446 levels. In the coming trading session if it holds below 38,150 then weakness could take it to 37,700 and 37,500 whereas minor resistance on the upside is capped around 38,750-39,100 levels.

💰Stock Recommendations

BUY DLF  CMP 417, TGT 442/450, SL 400; DURATION 1-2 WEEK

DLF counter is witnessing downward sloping channel breakout on a weekly time frame. On a daily chart bouncing from 10 DMA and forming Bullish piercing line candlestick formation signifying potential upward reversal. Leading indicator RSI also shows surging price strength.

BUY CHAMBALFERT CMP 468, TGT 530, SL 450; DURATION 1-2 WEEK

The counter is developing higher peaks and higher trough formation and witnessing symmetrical triangle breakout on the weekly chart. Fertilizer stocks are in momentum up move in the proximity of upcoming budget session 2022. Price projections suggest a target price of 530 on charts.

📺Quick bites

Few Headlines That Should Be on Your Radar

• Government to become largest shareholder in Vodafone Idea, after company’s board approved the conversion of AGR dues and spectrum instalments into equity owned by the government. This bring government’s holding in the company to 35.8%.
• Tata Teleservices becomes the second telecom player after Vodafone Idea to opt for converting its spectrum and AGR dues into equity. The government will own around a 9.5% stake in Tata Tele.
• Tata Group will replace Vivo as the Indian Premier League’s (IPL) title sponsor for the next two years.
• Mother­son Sumi Systems (MSSL) is looking to expand business in four key non-automotive areas – aerospace, logistics, technology and industrial solutions and health and medical. It eyes 25% revenue from these segments.
• CRISIL reaffirms Mahindra and Mahindra credit rating at ‘AAA / Stable/A1+. It expects the shortage of semiconductors to ease, and this, along with healthy demand from its new launches, particularly the XUV 700 and Thar, should support volume growth in the UV segment.
• Tata Motors Group global wholesales were 2% up in Q3 FY22, including Jaguar LandRover, as compared to Q3 FY21, at 2,85,445 units.
• India’s trade deficit for December 2021 is at $21.7 billion. Imports rose 38.6% to $59.48 billion and exports were up 39% to $37.8 billion.
• The World Bank noted that India’s economic growth is expected to be 8.3% in the current financial year and 8.7% in 2022-23
• JSW Steel posted a 28% year-on-year growth in group combined steel production at 5.35 million tonnes (MT) during the quarter ended December 30, 2021.
• Sandhar Technologies has applied under the Production Linked Incentive (PLI) Scheme for Automobile and Auto components of the Ministry of Heavy Industries, Government of India.
• India’s retail inflation rose sharply to 5.59% in the month of December from 4.91% in November, pushed up by rising prices of manufactured items, according to data released by the government.

Key Results:

• Wipro Q3FY22 net profit remained flat at ₹2,972.3 crore. Last year same quarter, it reported a net profit of ₹2,996.5 crores. Total revenue, for the December quarter of FY21, stood at ₹20,313.6 crore, a growth of 29.63% when compared to the same quarter last year (₹15,670 crore).
• TCS net profit for Q3FY22 grew 12.36% to ₹9,806 crore compared to ₹8,727 crore reported in the corresponding quarter a year ago. Revenue from operations for the December quarter of FY21, stood at ₹48,885 crore, a growth of 16.35% YoY. During the same quarter last year, the revenue was at ₹42,015 crore. The board of the company has announced a buyback of shares valued at Rs 18,000 crore.

• Mindtree reported a consolidated net profit of ₹437.5 crore, up 9.7% quarter-on-quarter and 34% year-on-year.
• Infosys profit jumps 12% YoY to ₹5,809 crore. Its revenue from operations increased 22.91% YoY to ₹31,867 crore. The company raised FY22 revenue guidance.

🚀 IPO Corner

• Go Airlines has put its ₹3,600-crore initial public offering (IPO) on hold, as per media reports.

Upcoming IPO:

AGS Transact Technologies Ltd IPO Opening Date– Jan 19, 2022 Closing Date– Jan 21, 2022 IPO Price– ₹166 to ₹175 per equity share Issue Size– ₹680.00 Cr

🔌EV and Sustainability Corner

• Hero MotoCorp invests ₹420 crore in Bengaluru-based electric vehicles company Ather Energy.
• According to BP, its electric vehicle chargers are on the cusp of becoming more profitable than filling up a petrol car.
• Quiklyz today to offer the widest range of electric vehicles (EVs) for leasing and subscription to potential customers. Quicklyz is the vehicle leasing and subscription business vertical of Mahindra & Mahindra Financial Services Limited (Mahindra Finance/ MMFSL).
• Hero Electric has tied up with Shriram City Union Finance to facilitate loan schemes for its electric two-wheeler buyers.
• Mercedes-Benz aims accelerating sales of electric vehicles in India, plans to essemble them locally.
• Tata Power leads S&P Global’s ESG Score for Power Utilities in India. It secured the highest score among its peers in the Indian Power sector in S&P Global’s recently released Corporate Sustainability Assessment (CSA) results.
• TVS Motor has tied-up with Swiggy to enable the adoption of electric vehicles (EVs) in its delivery fleet.
• Reliance Industries will invest ₹5.95 lakh crores ($80.49 billion) in green energy and other projects in Gujarat.
• Indian EV Start-Ups plans to break World Record for longest EV motorcycle ride. Startupnrev, a collaboration of two riders, John Kuruvilla and Gautam Khot from Brigade REAP and four Indian start-ups including Orxa Energies, SpareIt, Pothole Raja, and Charzer have come together to attempt to break the current world record for the longest EV motorcycle through a 14,216km route planned under ‘Electric-BharatMala’.
• MG Motor India electric vehicle sales up 145% to 2,798 units in 2021