BangaloreBangaloreHyderabadRest of India Mon - Sun 09:00-18:00 +91-814-708-4334, +91-636-192-2946 Mon - Sun 09:00-18:00 +91-9963640037 +91-636-192-2946 Mon - sun 10:00-18:00 +34-354-5468-8

NIFTY’s expected movement for FRIDAY ANALYSED by experts, Q2 results of Axis Bank and DABUR, Indian Markets bounce back sharply as BULLS take charge…. Market updates for 02/11/18

PurpleTrades - stock market courses > News > NIFTY’s expected movement for FRIDAY ANALYSED by experts, Q2 results of Axis Bank and DABUR, Indian Markets bounce back sharply as BULLS take charge…. Market updates for 02/11/18

Report by- Sabyasachi Bhattacharya

 

Axis Bank announced their Q2 results; Profit escalates  nearly 83%-

Axis Bank Ltd, India’s third-biggest private sector lender by assets, on November 2 posted a better-than-expected 82.6 percent jump in second-quarter profit, boosted by higher interest income and as asset quality improved. Let us take a look at the key insights of their report-

  • Net profit came in at Rs 790 crore ($108.95 million) for the three months ended September 30, compared with Rs 432 crore rupees a year ago.
  • Provisions fell 6.8 percent to Rs 2927 crore. Gross non-performing loans as a percentage of total loans stood at 5.96 percent at end-Sept, compared with 6.52 percent in the previous quarter and 5.90 percent in the same period last year.
  • Analysts had expected a net profit of Rs 741 crore, according to Refinitiv data.

· Net Profit was boosted by higher interest income and as asset quality improved.

· Gross non-performing loans as a percentage of total loans stood at 5.96 percent at end-Sept, compared with 6.52 percent in the previous quarter and 5.90 percent in the same period last year

 

 

 

Let us take a look at the company’s Q2 report-

 

Source- MoneyControl, Purple Trades Research Department 

 

Dabur announced their Q2 results; Posted a Sales growth of 8.5% YoY mainly aided by 8.1% volume growth-

Dabur’s quarterly result was marked by positive trend on the volume growth and market share front. While slightly weaker margin profile was as per our expectations, moderation in management expectation for rural growth came as a surprise. Let us review some of the key points in their report-

  • Dabur posted consolidated sales growth of 8.5 per cent year on year (YoY) mainly aided by 8.1 per cent volume growth (vs. 7.2 per cent in the base quarter) in the domestic business (69 per cent of sales). International operations grew 7 per cent on a constant currency basis indicating gradual recovery in MENA market.
  • Operating margins dipped a tad (-20 bps YoY) on account higher raw material cost (50.6 per cent of sales vs. 49.9 per cent in Q2 FY18) partially offset by lower advertising spending.
  • Among three major verticals, home and personal care (HPC) and healthcare reported double digit sales growth. However, food business (17.7 per cent of domestic sales) was impacted by shifting of the festive season from Q2 to Q3.
  • In case of healthcare, the company continues to surpass unlisted and regional players with Dabur honey growing by 12.8 per cent (vs. 8.6 per cent in Q2 FY18).
  • Further, while we take note of management’s guidance for double digit volume growth in FY19, weaker commentary on rural consumption should not be missed. In the quarter under review, rural growth has been higher than urban by 3-4 per cent but, as per management, growth momentum can possibly moderate particularly in the backdrop of weaker monsoon.
  • Stock has corrected significantly (-25 per cent from 52 week high) in the recent market turmoil and also after management’s Q2 commentary. Incorporating takeaways from the result we have tweaked our volume growth and margins estimates downwards. After the correction, the stock is currently trading at 34x FY20e earnings which is at a significant discount to the market leader.
  • While management commentary on containment of competition is positive for the healthcare segment, challenges at the low priced segment in oral care is one aspect to watch out for.

 

 

 

Let us take a look at the company’s RAW material cost weighed on margins-

 

Source- MoneyControl, Purple Trades Research Department 

 

 

Indian Indices move upwards as BULLS bounced back into the game-

Chart source- Upstox

Indian markets had an amazing day as major Indices moved upwards significantly. As you can see on the chart given above Nifty had a GAP-UP starting to the day and from there on there was absolutely no sign of BEARS. Nifty was able to breach both 10,400 and 10,500 levels with ease and from thereon it went up to touch the 10,600 levels but it couldn’t breach that level as there is a heavy resistance lying there. As you can see on the chart given above Nifty incurred a resistance at the white line which is the 10,600 level. After a consolidating day yesterday this BULLISH move is seen as a major relief by many investors. Sensex ended the day at 35,011, surging 579 points or 1.68 percent, whereas the Nifty jumped 172 points to close at 10,553, 1.66 percent higher than the previous day. Both benchmark indices closed the week 5 percent higher. Auto, Banks and FMCG ended the day higher. Nifty Auto surged 4.15 percent, Nifty Bank gained 4.49 percent and Nifty FMCG jumped 1.7 percent. The corresponding sectoral indices on the BSE gained 4.05 percent, 1.42 percent and 1.52 percent, respectively. Sectoral indices for IT, Pharma and PSU banks closed the day in the red. The biggest gainers on Nifty were BPCL (6.2 percent), Maruti Suzuki (6.3 percent), Vedanta (6.2%), Tata Motors (6 percent) and IndusInd Bank (5.3 percent). Among the biggest losers on the index were Tech Mahindra, Wipro and Dr Reddy’s Lab.

 

 

Let’s take a look at the performance of major Indices-

Look below and it’s quite amazing to note that each and every market in the world moved ahead. US markets, European markets and the Asian markets were all seen in the GREEN.

Source- MoneyControl, Purple Trades Research Department 

 

 

Let’s take a look at the EXPECTED movement of NIFTY for tomorrow-

Our experts in PURPLE TRADES have done some analysis of the markets after the upwards move on Thursday and found out the key factors to watch out for on Friday-

OPTION CHAIN ANAYSIS-

  • The crucial resistance for the market if it moves upwards will be at 10,600. Because of 17 Lakh cumulative OI there.
  • The Long Term resistance will be 10,700 as there is almost 21 Lakhs cumulative OI.
  • If the market moves down then the support will be provided at the price level of 10,300. It has the highest OI and therefore the market is not expected to move below this level.
  • The short term support will be provided at 10,500 as it has a cumulative OI of 17 Lakhs.
  • Now if you see the strike price of 10,600 then you’ll see on the left side, the change in OI is negative by almost 3 Lakh contracts which tell us that people are believing that this level will soon be broken.
  • Also if you look at the Right side of the strike of 10,600 then you’ll see that the change in OI is positive by 8 Lakhs. This also indicates that people are believing that this level will soon be broken.

 

 

 

BEWARE OF BEARISH DIVERGENCE-

As you can see above there was a BEARISH DIVERGENCE seen on the 5 mins as well as 15 mins chart pattern. This can indicate that breaking 10,600 will not be an easy task but if it breaks tomorrow then surely BULLS will take charge and take the prices up to 10,700. So traders are advised that if 10,600 is not broken then be neutral about the markets but if it is broken significantly then expect BULLISH movement upwards.

 

 

 

Top sectors that moved the market today- Data source- Moneycontrol

 

 

Top Gainers for today-   Data source- Moneycontrol

 

 

Top losers for today- Data source- Moneycontrol

 

Call Now Button
Scroll Up