Indian Markets Tumble I ZEE Ltd I Heromotocop I Persistent I ICICI Bank I Elecon Engineering I Cipla I Oberoi Realty

Market Recap:

·  Indian benchmark indices, Nifty 50 and Sensex, witnessed a sharp decline, closing at their lowest levels in over a month.

·  HDFC Bank, Reliance Industries, and State Bank of India led the fall, dragging down the broader market.

·  Media sector took the biggest hit, plummeting 12.87%, marking the worst performance in five years.

·  Midcap and Smallcap indices underperformed even further, highlighting broad-based selling pressure.

Technical Analysis:

·  Short-term outlook: Weak and oversold. Key support levels lie at 21,350/70,700. A break below could lead to further correction towards 21,100-21,000/70,000-69,750.

·  Resistance levels: 21,350/70,700. A breakout above could trigger a minor pullback rally to 21,425-21,445/70,900-71,000.

·  Technical indicators:

o RSI: Currently oversold, suggesting potential for a short-term bounce. However, confirmation of trend reversal is needed.

o MACD: Negative with downward momentum. A bullish crossover or flattening of the signal line could indicate a trend change.

o Bollinger Bands: Narrowing Bollinger Bands suggest possible breakout or breakdown soon.

   Key Observations:

·  The current price action reflects a continuation of the downtrend that began in late October 2023.

·  Oversold conditions suggest a potential short-term bounce, but sustained weakness remains likely.

·  Sectoral rotation is evident, with Media taking a heavy beating while some stocks like ICICI Bank and Bharti Airtel providing support.

·  Broader market weakness indicates underlying selling pressure and risk aversion among investors.

Trading Recommendations:

·   Short-term traders: Remain cautious and wait for confirmation of a trend reversal before making any significant moves.

·   Long-term investors: Use the current weakness as an opportunity to accumulate high-quality stocks at attractive valuations, but maintain a stop-loss strategy.

Overall:

The Indian markets are likely to remain volatile in the near term, influenced by global cues, corporate earnings season, and domestic economic data. Careful technical analysis and risk management are crucial for navigating this uncertain landscape.

Indian Stock Market News 

1. Zee Entertainment fell more than 30.47 percent as it hit a series of lower circuits after Japan’s Sony Pictures’ Indian arm scrapped its $10-billion merger with the Indian media giant. A number of brokerages also downgraded the stock.

2. VST Industries fell 3.74 percent after the company’s net profit tanked 32 percent YoY in the December quarter to Rs 53.72 crore. Its revenues grew 6 percent YoY to Rs 468.42 crore.

3. Finolex Industries  stock fell 3.91 percent after the company’s Q3 results disappointed the markets. Its net profit grew 24 percent YoY to Rs 89.21 crore and sales revenue fell 9.3 percent to Rs 1,019.69 crore in the quarter.

4. Kotak Mahindra Bank stock fell 1.27 percent after the bank’s Q3 results missed market estimates. The bank reported lower-than-expected 7.6 percent increase in net profit at Rs 3,005 crore for the December quarter. The market had pegged net profit at Rs 3,243 crore.

5. Oberoi Realty slumped 9.12 percent after the real estate developer’s net profit declined 49 percent to Rs 360 crore in the December quarter. Revenue fell 35.3 percent to Rs 1,054 crore.

6. Cipla stock jumped 6.97 percent after the company reported strong performance in Q3. Net profit grew 32.7 percent to Rs 1049 crore. Revenue also went up by 14.2 percent to Rs 6,544 crore.

7. Persistent Systems surged 4.53 percent after reporting healthy Q3 earnings. The company reported a 20 percent growth in net profit at Rs 286.1 crore. This growth was delivered by a strong order book, the company said.

8. Hero Motocorp gained 3 percent intraday after the company announced the launch of two new bikes, the Xtreme 125R and a special collector's edition Hero Forever for its 40th anniversary. The stock pared some of the gains to close 0.71 percent higher.

9. ICICI Bank surged 1.9 percent, continuing the winning streak for the second consecutive session after the private lender reported a 23.5 percent increase in net profit at Rs 10,271.54 crore in Q3.

10. Elecon Engineering fell 6.11 percent despite the company winning a Rs 82-crore project from ArcelorMittal Nippon Steel India. The contract is to be executed in 10 months.

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