Weekly Update

NIFTY50

The Nifty traded within a restricted range this week, as a consequence of increased volatility witnessed last week upon the release of the government’s budget. This week Nifty made an inside candle with a high of 17917 and a low of 17652. Breakout on either side can lead to good momentum.

Nifty is currently in the neutral trend. To move into an uptrend, a strong follow-through day with at least a 1.5% gain with trading volumes higher than the previous day would be needed. And upon breaking its recent low of 17353, Nifty would move into a downtrend.

The Nifty index is expected to have a support level of 17400 in the upcoming week, with 18250 projected to act as a resistance.

Nifty50 Weekly Chart

BANK NIFTY

Bank Nifty traded in a small range this week and ended flat. Bank Nifty made an inside candle with a high of 41800 and a low of 41100. Just like Nifty, a breakout on either side can lead to good momentum. We can keep a focus on HDFC Bank as it is in a small range and can lead the rally on both sides.

The Bank Nifty index is expected to have a support level of 39900 (which is also its 200 EMA) in the upcoming week, with 43000 can act as a resistance.

Bank Nifty Weekly Chart

Top Performing Sector of the Week

• Nifty Realty 2.2% Up

–    Godrej Properties 5.05% Up

–    Prestige Estate 4.14% Up

–    Oberoi Realty 3.58% Up

(Nifty Realty Weekly Chart)

Worst Performing Sector of the Week

• Nifty Metal 2.2% down

–    Tata Steel 12.92% down

–    Ratnamani Metal 8.38% down

–    Hindalco Industries 5.77% down

(Nifty Metal Weekly Chart)

Key Results 

• West Coast Paper Q3 FY23 revenue increased 42.1% y/y to Rs 1,239 crore. PAT increased 238% y/y to Rs 78 crore. Margin expanded 1,880bps y/y to 37.2%.
• Abbott India Q3 FY23 revenue increased 8.3% y/y to Rs 1,326.5 crore. PAT rose 24% y/y to Rs 246.8 crore. Margin expanded 190bps y/y to 23.9%.
• Beml Q3 FY23 revenue declined 11.7% y/y to Rs 1,037 crore. PAT fell 15.5% y/y to Rs 66.3 crore. Margin contracted 100bps y/y to 8.8%.
• Satia Industries Q3 FY23 revenue increased 125% y/y to Rs 486.8 crore. PAT was up 124% y/y to Rs 64.8 crore. Margin expanded 460bps y/y to 22.7%.
• Alkem Laboratories Q3 FY22 results beat estimates. Revenue increased 16.1% y/y to Rs 3,041 crore. PAT declined 13.5% y/y to Rs 454.7 crore. Margin expanded 70bps y/y to 19.7%.

Results to watchout this week

13th Feb

• Nykaa – Will it be able to improve its profitability this quarter ?

16th Feb

• Adani Enterprises – Post the Hindenburg issue, how will the markets react to the numbers?
• Siemens – Will this quarter continue to see growth ?
• Nestlé – Expected to have a good run in line with other FMCG players

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

You may also like: Adani counters the Hindenburg narrative supported by strong rally of its stocks