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Q2 results of Wipro and Bajaj Auto announced, Indian Markets show recovery after several days of BEAR action …. Market updates for 24/10/18

PurpleTrades - stock market courses > News > Q2 results of Wipro and Bajaj Auto announced, Indian Markets show recovery after several days of BEAR action …. Market updates for 24/10/18

Report by- Sabyasachi Bhattacharya

 

Bajaj Auto announced their Q2 results; Profit rises 4% but margin weakens-

Two-wheeler and three-wheeler maker Bajaj Auto’s second quarter (July-September) standalone profit grew by 3.65 percent YoY on weak operating margin performance and higher tax cost, but revenue clocked double digit growth. Let us take a look at the company’s Q2 financial report-

  • Profit during the quarter increased to Rs 1,152.48 crore against Rs 1,111.9 crore in corresponding period last fiscal.
  • The company has registered a healthy 63 on year growth in second quarter revenue at Rs 7,986.8 crore with sales volume growth of 25 percent.
  • The company sold 39 lakh units, the highest ever, in the quarter ended September 2018 against 10.71 lakh units sold in same period last year.
  • About 39 percent YoY growth in the three-wheeler segment, 19 percent growth in domestic bike volumes led by strong growth in CT100, and 30 percent growth in two-wheeler export volumes (which contributed around 40 percent of total sales) boosted total sales volume of the company in Q2. Total motorcycle volume increased 22.6 percent YoY.
  • Overall share in the domestic motorcycle market increased to 6 percent as against 16.9 percent in Q2FY18.
  • EBITDA (earnings before interest, tax, depreciation and amortisation) increased 3.4 percent on year to Rs 1,343 crore but margin contracted 296 basis points to 16.8 percent on inferior product mix and increase in discounting.
  • Bajaj Auto’s other income during the quarter jumped 70 percent on year to Rs 381.52 crore while tax cost increased 23.34 percent to Rs 500.17 crore YoY.

Source- MoneyControl, Purple Trades Research Department       

 

WIPRO announced their Q2 results; Profit declines 10% as margin weakens-

Indian IT bellwether Wipro has registered a 10 percent fall (QoQ) in second quarter net profit to Rs 1890 crore against Rs 2120.8 crore in quarter ended June 2018. Let us take a look at the company’s report-

  • Company’s revenue rose by 2.3 percent to Rs 14,567.9 crore from Rs 14,230.6 crore.
  • Company’s IT services revenue increased by 5 percent to Rs 14,377.3 crore.
  • The company’s IT service EBIT was down 3 percent at Rs 2072.7 crore, while margin was down at 14.4 percent.
  • The company has concluded the divestment of its hosted data center business in Singapore and United Kingdom, also it has reduced its equity holding from 74% to 11% in Wipro Airport IT Services. Shares of Wipro ended at Rs 309.25, down 0.02 percent on the BSE.

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

 

Source- MoneyControl, Purple Trades Research Department       

 

 

Volatile Wednesday on Dalal Street as Indian Indices move forward-

Chart source- Upstox

Indian Markets continue yesterday’s move today as Nifty and Sensex were seen in the Green for the second consecutive day. Nifty as you can see in the chart opened with a GAP-UP after which it wasn’t able to sustain those levels and fell sharply throughout the morning session. After the downtrend, market consolidated for a significant amount of time after which it fell again to reach today’s low. But because of a sudden injection of bulls due to a fall in crude prices to USD 75 per barrel boosted sentiment on D-Street in the last hour, which led to the market making a complete turnaround, in the last hour of the day the Index was able to close in the green. Barring pharma, all the sectors ended in the green, with infrastructure and metals ending the day at high points. The Nifty Midcap index also ended a percent higher. At the close of market hours, the Sensex was up 186.73 points or 0.55% at 34033.96, while the Nifty shut 78.00 points or 0.77% higher at 10224.80. The market breadth was narrow as 1,345 shares advanced, against a decline of 1,203 shares, while 1,045 shares were unchanged. The major Indices of the European Markets, DAX and CAC, were seen in the green. The Asian markets also moved forward as Nikkei and Straits Times were in the Green. But the US market Index NASDAQ was seen in the red.

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

Source- MoneyControl, Purple Trades Research Department   

 

Expected movement of Nifty tomorrow. How Nifty will move on the day of expiry-

Chart source- NSE India

Let us do some analysis on how Nifty is EXPECTED move tomorrow. As we know tomorrow is the expiry date hence all the contracts will be terminated. Let us take a look at the option chain of Nifty and understand which are going to be the major Support and Resistance levels for Nifty tomorrow. If you look at the chart given by NSE India, we can see that 10,200 strike price is ATM for us right now. If you see the figures given on the right, check the 2nd circle, the Change in OI is at almost 6 lakhs in positive which shows that there has been a lot of PUT writing at that strike price, hence writers are expecting Nifty to go up. Now if you look at the 1st box, you’ll see that about 5 lakh contracts have been opened today by the writers. This 10,100 will prove to be a crucial support for Nifty tomorrow in case market falls. Now let us talk about the alleged resistance level, the support level can be seen at 10,300 strike price as 5 lakh contracts have been opened at that level. The CALL writers are expecting Nifty to stay below that level, hence Nifty might incur a major resistance at that level. Now if you see the rectangular box in the right side i.e. the PUT side, you’ll see a lot of PUT contracts were closed, which in turn tells us that Option traders are not expecting Nifty to move lower than the current levels. All this analysis is just a tentative analysis which means as we all know nothing is sure shot in the market. It is a circle of probabilities.

Source- Purple Trades Research Department   

 

 

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

 

 

Top Gainers for today-                                                                                        Data source- Moneycontrol

 

 

Top losers for today-                                                               Data source- Moneycontrol

 

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