Trade Setup For March 27: Nifty50 Support Seen At 22,000
The GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India, was trading 0.1%, lower at 22,044.50 as of 8:24 a.m.
Indian equity markets will remain range-bound given the truncated trading week, with key support for the Nifty 50 seen at 22,000, which has the most open interest.
Public-sector banks will be the key sector to watch out for, as there is a lot of optimism in the space. Further, hotel stocks could have some positive surprises with the potential uptick in wedding season-led businesses.
The shortened trading week in India will result in the headline Nifty 50 being rangebound in a consolidated set-up, according to market analyst Kunal Shah.
Nifty may trade in the 21,850–22,200 range, he said. For the Bank Nifty, Shah pegged resistance at 47,000, a breach of which will lead to short covering towards 48,000.
The GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India, was trading 23 points, or 0.1%, lower at 22,044.50 as of 8:24 a.m.
FII And DII Activity
Overseas investors turned net buyers on Tuesday after three days of selling. Foreign portfolio investors mopped up stocks worth Rs 10.1 crore, while domestic institutional investors remained net buyers for the sixth day and mopped up equities worth Rs 5,024.4 crore, the NSE data showed.
Market On Tuesday
Benchmark equity indices snapped their three-day rally and ended lower on Tuesday weighed by losses in heavyweights stocks even as the broader indices closed mixed.
The Nifty lost 75.90 points, or 0.34%, to close at 22,020.85, while the Sensex ended 357.98 points, or 0.49%, lower at 72,473.96.
Shares of HDFC Bank Ltd., Reliance Industries Ltd., ICICI Bank Ltd., Infosys Ltd., and Bharti Airtel Ltd. dragged the indices. Meanwhile, those of Larsen and Toubro Ltd., Bajaj Finance Ltd., NTPC Ltd., Axis Bank Ltd., and Hindalco Industries Ltd. minimised the losses.
Most sectoral indices were lower, with Nifty Media losing the most. On the other hand, Nifty Realty gained over 1%.
Broader markets ended on a mixed note. The S&P BSE Midcap ended 0.71% higher, and the S&P BSE Smallcap closed 0.11% lower.
Major Stocks In News
CDSL: Standard Chartered plans to sell the entire stake of 7.18% via a block deal. The floor price is set at Rs 1,672 per equity share.
Wipro: The company has transferred its entire shareholding by Wipro Holdings (UK) in Wipro Gulf LLC to Wipro IT Services UK Societas.
Mankind Pharma: Investment company, Beige, sold 1.16 crore shares (2.9%) at Rs 2122.51 apiece.
Titan: TCL Watches Switzerland AG ceased to be a wholly owned
subsidiary after liquidation.
Top Brokerage Calls
Goldman Sachs On Reliance Industries
The brokerage maintains 'buy' on Reliance Industries and raised the target to Rs 3400 per share.
It expects cash return on cash invested to expand by 270 bps to 12% in FY27.
Goldman Sachs believes that the capital expenditure will fall sequentially.
The company will grow a 17% Ebitda CAGR over FY24-27.
Reliance Industries investments in the next three years are to be less capex-heavy, and higher in returns with a short gestation period.
Motilal Oswal On Shree Cement
Motilal Oswal maintains 'neutral' on Shree Cement at Rs 27,700 target price.
Cut Ebitda estimates for FY25/26 by 5% due to pricing pressure
Majority of future expansions to be focused on existing markets
Large part of central, western regions to remain untapped till FY27
The company now focusing on improving brand equity
Expect capacity/volume CAGR of 11%/10% over FY24-26.
UBS On ABB India
UBS retains 'buy' on ABB India. With a price target of Rs 7,550; upside potential of 26%.
Electrification and motion to drive growth and margins
Believe ABB is the best play on infrastructure scale-up in voltage electrification.
Expects significant scope to ramp up voltage electrification portfolio where it trails Schneider and SIEM.
Assume better growth in export orders with premium product mix & operating leverage.
Expect improvement in margins, which should support premium valuation.
Global Cues
Stocks in Asia were higher in early trade on Wednesday after the Wall Street lost gains during the final hour to extend losses for the third consecutive day.
The Nikkei 225 was trading 0.61% higher at 40,644.45, and the S&P ASX 200 was trading 0.33% higher at 7805.7.
U.S. stocks wiped out gains in the final 30 minutes of Wall Street trading, with investors rebalancing their portfolios after a rally that’s already topped $4 trillion this year.
The S&P 500 index and Nasdaq Composite fell by 0.28% and 0.42%, respectively, as of Tuesday. The Dow Jones Industrial Average ended 0.08% lower.
Brent crude was trading 0.64% lower at $85.70 a barrel. Gold was higher by 0.04% at $2,179.59 an ounce.
Rupee Update
The Indian rupee closed stronger on Tuesday after the dollar index came off its one-month high.
The local currency appreciated 14 paise to close at Rs 83.29 against the U.S. dollar after opening at Rs 83.36 on Tuesday.
