SEBI Chairperson Madhabi Puri Buch reiterated that “There are sections of froth in the market and it is not appropriate to keep the bubble building. Proactive steps need to be taken to ensure the bubble is not fuelled further.”

SME IPOs: SEBI working at greater disclosures

Referring to investor security and signs of manipulation in SME IPO space, “malpractices at IPO and trading stage is under consideration in SME section. SEBI us working on greater disclosures to enable greater information dissemination. It is also ensuring adequate and appropriate disclosures at the time of listing of SME IPOs and even exploring deploying AI usage in bringing greater transparency.”

The market regulator further noted that it has been closely monitoring potential price manipulation in case of some IPOs and looking to introduce disclosures at every step with respect to the SME IPO space.

Courtesy: NSE

Courtesy: NSE

Apollo Hospitals, Nestle India, Cipla, Bajaj Finserv, and Dr Reddy’s Laboratories were the top gainers in the Nifty 50. While Tata Consumer, Power Grid, Tata Steel, Bajaj Auto, and SBI were the major losers in the Nifty 50 on March 11.

Commenting on the Dollar-Rupee outlook Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas said, Indian Rupee gained by 0.05% on upbeat domestic markets and robust macroeconomic data from India. Domestic markets are up by ~1.5%. India’s GDP expanded unexpectedly by 8.4% in Q3 FY2024 vs 7.6% in Q2 FY2024 beating all projections. Fiscal deficit widened to Rs. 11.03 lakh crore in April-January, at 63.6% of budgeted estimate. India’s manufacturing PMI expanded to 56.9 in February vs 56.5 in January.

US Dollar rose on month-end rebalancing. However, Core PCE price index slowed to 2.8% in January 2024 vs 2.9% in December 2023 and in line with estimates. Weekly unemployment claims jumped to 215,000 as compared to forecast of 202,000. Pending home sales declined by 4.9% in January 2024 vs forecast of increase by 1.4%.

We expect Rupee to trade with a slight positive bias on improved risk sentiments in the domestic markets following stellar GDP data and positive domestic equities. However, strong US Dollar and elevated crude oil prices may cap sharp upside. Traders may remain cautious ahead of ISM manufacturing PMI and construction spending data from US. USDINR spot price is expected to trade in a range of Rs 82.60 to Rs 83.10.

Commenting on the derivative outlook Anand James, Chief Market Strategist, Geojit Financial Services said that, Nifty weekly contract has highest open interest at 22500 for Calls and 22450 for Puts while monthly contracts have highest open interest at 23000 for Calls and 21000 for Puts. Highest new OI addition was seen at 22500 for Calls and 22450 for Puts in weekly and at 23000 for Calls and 21500 for Puts in monthly contracts.

“FIIs decrease their future index long position holdings by 2.68%, decreased future index shorts by 11.01% and in index options by 10.55% increase in Call longs, 3.94% decrease in Call short, 6.70% increase in Put longs and 4.35% decrease in Put shorts,” added James.

Madhabi Puri Buch, SEBI Chairperson, announces the introduction of T+0 settlement on an optional basis starting March 28. To address concerns related to price and trading manipulation in SME IPOs, SEBI is considering additional disclosures, she added.

REC stock has increased by 1.92% on the NSE, reaching Rs 482, following the signing of a Memorandum of Understanding (MoU) with Rajasthan. The agreement entails REC offering financial support to government undertakings for the state’s infrastructure development. The company is set to provide loans amounting to Rs 20,000 crore annually to various departments, undertakings, institutions, and schemes of the state government.

Commenting on the Bank Nifty technicals today, Rupak De, Senior Technical Analyst at LKP Securities said, Bank Nifty faced resistance at the 48,000 level, finding support at 47,750. Nevertheless, the weekly closure indicates a resilient bullish momentum, with pivotal support identified at 47,500 and resistance at 48,200. A conclusive breach above the 48,200 threshold, confirmed by a closing basis, could catalyze a bullish upswing towards levels of 48,500 and 48,800.”

Shares of SBI fell 2.16% to the intraday low of Rs 771 after the SC verdict on electoral bonds. The stock has a lower circuit limit of Rs 709.25 and a 52-week-low of Rs 501.55, which it touched on March 27, 2023.

Nestle India, Bajaj Finserv, Cipla, Apollo Hospitals, and Dr Reddy’s Laboratories were the top gainers in the Nifty 50. On the flip side, Tata Consumer, Tata Steel, Power Grid, SBI, and Bajaj Auto were the key laggards in the Nifty 50 on March 11.

In the abbreviated trading week, the combined market capitalization of seven among the top-10 most valued companies surged by Rs 71,301.34 crore. Bharti Airtel led the gainers, while Tata Consultancy Services (TCS), HDFC Bank, ICICI Bank, State Bank of India, Hindustan Unilever, and ITC also recorded positive movements.

On Saturday (March 2), both BSE and NSE organized a special trading session to assess their readiness in handling significant disruptions or failures at the primary site. However, Reliance Industries, Infosys, and Life Insurance Corporation of India (LIC) experienced a dip in their market valuations.

Power Grid Corporation of India Ltd has signed an MoU with Rajasthan Rajya Vidyut Prasaran Nigam Ltd (RRVPNL) to establish a Joint Venture (JV) Company for constructing an Intra State Transmission System in Rajasthan. The equity participation will be 74% by Powergrid and 26% by RRVPNL. The planned JV company is set to undertake phased projects totaling up to Rs 10,000 crore. On the NSE, Power Grid stock experiences a 2.12% decline, trading at Rs 286.45.

Oil India Ltd. (OIL) has announced a second interim dividend of Rs 8.50 per share for the financial year 2023-24, constituting 85% of the paid-up capital. The record date for eligible shareholders is March 18, with dividend payments scheduled on or before April 7. Demonstrating a robust dividend track record, the company has consistently declared dividends over the past five years. In a meeting on March 8, 2024, the Board of Directors endorsed the second interim dividend, affirming OIL’s dedication to rewarding its shareholders.

In February 2024, JASH Engineering secured consolidated orders totaling Rs 72 crore. On the NSE, the stock experienced a 2.73% decline, trading at Rs 1,697.50.

The NSE Nifty 50 was down 100 points or 0.44% at 22,394.05. While the 30-stock BSE Sensex was down 364.82 points or 0.49% at 73,754.57.

Courtesy: NSE

Cipla, Bajaj Finserv, SBI Life Insurance, Adani Ports, and Nestle India were the top gainers in the Nifty 50. While Tata Consumer, BajaJ Auto, Tata Steel, Power Grid, and Infosys were the major losers in the Nifty 50 on March 11.

Courtesy: BSE

Analyzing the Nifty technical, Anand James from Geojit Finances remarks that the platform is set for an ascent towards the 23000-23500 range. A potential obstacle might arise in the 22550-600 region, with a direct decline below 22410 indicating a move towards 22260. A close below this level could result in a descent towards 21860, though less favored, given the increasing prominence of oscillator divergences, it’s a factor to consider.

Tata Chemicals shares witnessed a 10% decline, falling to Rs 1,183.75, while Tata Investment shares are in a 5% lower circuit, settling at Rs 9,269. This follows recent developments related to the listing of Tata Sons.

Shares of JM Financials slipped 9.8% to Rs 79.30 after the market’s regulator barred the company from being the lead manager for debt securities. The company has a price band of 20% and has a lower band at Rs 70.40. The stock has a 52-week-low of Rs 57.85, which it touched on March 29, 2023.

SBI Life Insurance, Ultratech Cement, Hero MotoCorp, Cipla, and Bajaj Finance were the top gainers in the Nifty 50. While Tata Consumer, Tata Steel, Power Grid, Tata Motors, and Infosys were the major losers in the Nifty 50 on March 11.

The NSE Nifty 50 opened 0.09% or 21.10 points lower at 22,472.45. While the 30-stock BSE Sensex opened 0.15% or 111.16 points lower at 74,008.23.

In Friday’s trading session, the Nifty saw a positive trend, reaching a new record high of 22525.65, buoyed by dovish remarks from Fed Chair Powell, though the expected rally’s spark seemed absent. The Gift Nifty indicates challenges for bulls, but optimism is fuelled by the US’s latest NFP data, hinting at potential Fed rate cuts in June despite mixed job reports and upcoming inflation data points. Market focus is now on the upcoming US CPI and PPI reports, ahead of the crucial Fed FOMC meeting, said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.

“Despite potential early tremors at Dalal Street, it’s seen as an opportunity for long positions. Nifty technicals suggest a trading range between 21500-23000, with critical support and resistance levels identified. The market is also watching several IPOs launching this week amidst a backdrop of record SIP inflows, a weaker US dollar, and falling treasury yields,” said Tapse.

Bank Nifty closed in the negative on Thursday however the correction has halted at the support zone 46400 – 46500 where the hourly lower Bollinger band and the 40-hour exponential moving average were placed. “we expect the Bank Nifty also to continue with the upmove till 48000 – 48300 from short term perspective,” said Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas.

Commenting on the technical outlook Jatin Gedia, a technical research analyst at Sharekhan by BNP Paribas, said that the Nifty opened on a flat note and dipped during the first half of the trading session while a strong recovery during the second half helped the Nifty to close on a strong note up ~180 points.

“On the daily charts, we can observe that the Nifty has found support in the zone 21890 – 21840 which coincides with the 50% Fibonacci retracement level (21890) and the 20-day moving average (21838). The hourly momentum indicator has triggered a fresh positive crossover and with the daily momentum indicator already having a positive crossover should provide speed to the upmove. Both price and momentum indicator is suggesting continuation of the positive price action. On the upside immediate hurdle is placed at 22460 – 22500 and on the downside today’s low (21875) shall act as a crucial support level from a short-term perspective,” said Gedia.

Foreign institutional investors (FII) bought shares net worth Rs 7,304.11 crore. Similarly, domestic institutional investors (DII) bought shares net worth Rs 2,601.81 crore on March 07, 2024, according to the provisional data available on the NSE.