Weekly Setup (23rd Jan-27th Jan)

NIFTY50

The Nifty50 index had a mixed week, starting on a positive note but unable to maintain gains by the end. The market trend is currently in a rally attempt, but for the market trend to shift from a rally attempt to a confirmed uptrend, a strong follow-through day is required. Conversely, if the Nifty index falls below the low of 17,761, the market trend will be considered to be in a downtrend. The Nifty index has a first level of support at 17,800 and if it falls below that, the final support level will be at 17,430. If the index manages to rise, the final resistance level is expected to be at 18,300, after which it may reach new highs.

BANKNIFTY

The Bank Nifty index saw a slight gain of 0.32%, with private banks performing well but PSU banks seeing a decline. Private players such as ICICI Bank and Kotak Bank posted impressive results with a YoY net profit growth of 34% and 31% respectively during the weekend. The Bank Nifty index is expected to show good upward movement if it rises above 42,750, with a final resistance level projected at 43,600. On the downside, a major support level is expected to be at 41,600.

Top Performing Sector of the Week

⦁ Nifty IT 2.06% Up
- Persistent Systems 7.93% Up
- Coforge 5.6% Up
- Tech mahindra 4.32% UP

Worst Performing Sector of the Week

⦁ Nifty Auto 1.03% down
- Motherson Intl 5.5% down
- Sonacoms 4.16% down
- TVS 3.32 % down

Important News

⦁ ICICI Bank’s Q3FY23 PAT grew by 34% y/y to 8311 Crore. Revenue grew by 24% to 33529 Crore. NIM was 4.65% versus 3.96% a year ago.
⦁ Kotak Bank’s Q3FY23 PAT grew by 31% y/y to 2792 Crore. Revenue grew by 34% to 11098 Crore. NIM was 5,47 % versus 4.62% a year ago.
⦁ Heritage Foods’s Q3 FY23 PAT was down 32% y/y to Rs 13 crore. Revenue grew 17% y/y to Rs 785 crore. Margin was at 10% versus 15.1% a year ago.
⦁ Ramkrishna Forgings’s Q3 FY23 PAT grew 34% y/y to Rs 61 crore. Revenue grew 29.3% y/y to Rs 777 crore. Margin was at 22.2% versus 23.5% a year ago.
⦁ Union Bank Of India reported its Q3 FY23 NIM at 3.21% (best in eight years). CASA deposits grew 8.4% y/y. PAT doubled y/y to Rs 2,244 crore. NII grew 20.3% y/y. NNPA was at 2.14% versus 2.64% q/q.
⦁ Dcm Shriram Cons. (Nse)’s Q3 FY23 PAT was down 1.2% y/y to Rs 342 crore. Revenue grew 21% y/y to Rs 3,383 crore. Margin was at 16.4% versus 21.1% a year ago.
⦁ Hdfc Life Insurance Co’s Q3 FY23 PAT grew 15% y/y to Rs 315 crore. VNB grew 30.4% y/y to Rs 694 crore. VNB margin contracted 170bps y/y to 25%.

ABOUT THE AUTHOR

Sagar Wadhwa

Sagar Wadhwa is a Senior Equity Research Analyst who is a key member of the research team at Univest. He has extensive knowledge and expertise in the stock market, financial analysis, and investing and uses this expertise to provide valuable insights to the research team.

Note – This channel is for educational and training purpose only & any stock mentioned here should not be taken as a tip/recommendation/advice

Note – This channel is for educational and training purpose only & any stock mentioned here should not be taken as a tip/recommendation/advice

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