Market Analysis
The Nifty Index opened negative and after the recovery in the initial tick, it slipped lower and moved in the lower band with swings. The second half of the session witnessed a lacklustre move.
It formed a Doji candle on the daily frame with a longer upper shadow, indicating pressure on the higher zones. Now till it holds below 25850 zones, some weakness could be seen towards 25,650, then 25,500 zones, whereas hurdles are placed at 25,950, then 26,150 zones.
On option front, Maximum Call OI is at 26000 then 26500 strike while Maximum Put OI is at 25000 then 25800 strike. Call writing is seen at 25,800, then 26,500 strike while Put writing is seen at 25,600, then 25,000 strike. Option data suggests a broader trading range in between 25400 to 26,200 zones while an immediate range between 25,600 to 26,100 levels.
The Bank Nifty Index opened marginally lower but quick recovery was seen from lower levels towards 53,200 zones in the initial hour of the session. However, it failed to hold at higher levels and gradually drifted towards 52800 levels in the latter part of the day.
It formed a small bodied candle on a daily scale with a long lower shadow as selling pressure is seen at higher zones but holding near its 20 DEMA. Now till it holds below 53,250 zones, some weakness could be seen towards 52,750, then 52,500 levels while on the upside hurdle is seen at 53,250, then 53,357 zones.
The Fin Nifty Index opened on a negative note but witnessed a sharp uptick from its opening low as it tested 24,600; however, it failed to sustain at higher level and drifted towards 24,450. Post the swing in the first half of the session, it consolidated in a narrow band of 50 points for the entire trading session.
It formed a small bodied candle on the daily scale as it continued the lower highs, lower lows sequence of the last three trading sessions. Now till it holds below 24,600 zones, some weakness could be seen towards 24,350 then 24,250 levels while on the upside hurdle is seen at 24,600 and then 24,700 zones.
Nifty futures closed negative with losses of 0.16 per cent at 25,949 levels. Positive setup in Nationalum, Poly Cab, Tatachem, Siemens, Balramchini, Coromandel, Chamblfert, Lal Path Labs, Dixon, Metropolis, ABB, AB Capital, M&M, Sun TV, UPL, Coforge, Britannia, Syngene and Tatacomm while weakness in Muthootfin, Indusind Bank, ONGC, Indus Tower, PNB, Auro Pharma, BSoft and Tata Motors.
CHAMBEL FERT - TECHNICAL CALL OF THE DAY
Stock has broken out of a consolidation zone with the recent candle being a large bodied bullish candle.
It is given consolidation breakout on weekly chart. The mechanical indicator RSI is positively placed which has bullish implications.
Buy CHAMBLFERT CMP 547 SL 530 TGT 582
Top Stocks To Watch Out For October 3
Stock broking stocks:
SEBI has released a circular on tightening of equity index derivative framework, mandates upfront option premium collection from index option buyers. SEBI also tightens F&O rules, effective in phases starting 20th November 2024. Further, SEBI has also mandated additional margin requirement of 2 per cent for short option contracts on day of expiry.
V-Mart Retail:
The company has released its quarterly business update wherein revenue have increased 20 per cent YoY to Rs 661 crore as compared to Rs 549 crore in Q2FY24. The same store sales growth (SSSG) stood at +15 per cent for the quarter (V-Mart at +16 per cent and Unlimited at +11 per cent). The Company has opened 21 new stores and closed 2 stores during the quarter. With this the total number of stores now stands at 467 as at 30th September 2024.
Dabur India:
The company expects to post a mid-single digit decline in consolidated revenue for Q2FY25. While this correction has happened in Indian business, the international business is expected to register double digit constant currency growth in the topline. Badshah Masala business continued to perform well, growing in double digit during Q2FY25.
While demand trends were witnessing some improvement, heavy rains and floods across parts of the country impacted out of home consumption and consumer offtake during the quarter. Due to this, Dabur saw some impact on its business, especially in the beverage category.
Varroc Engineering:
The company, along with its wholly owned subsidiary, viz. Varroc Polymers has entered into Power Purchase Agreement with AMPIN Energy C&I Thirty Three Private Limited, AMPIN Energy C&I Thirty Four Private Limited referred to as “SPVs”) respectively, for acquisition of 26 per cent stake in the said SPVs for establishing Renewable Power Plants in Maharashtra having combined captive capacity of 27 MWp / 17.6 MWac, under Captive Power Scheme.
Investment in Equity of SPVs for establishing Renewable Power Plants in Maharashtra having a combined captive capacity of 27 MWp / 17.6 MWac under Captive Power Scheme which will enable Varroc Engineering to source solar power from the said SPVs for its manufacturing plants located in the State of Maharashtra.
JB Chemicals:
The Board at its meeting held on 1st October 2024 have approved capacity addition to its existing IV manufacturing facility at Panoli, Gujarat and establishment of dedicated manufacturing line for Povidone/Iodine liquid and Ointment. The rationale behind capacity expansion is to meet the increased demand.
The existing capacity stands at 55 lakh bottles per month while the existing capacity utilisation is 52 lakh bottles per month. Now the board has proposed capacity addition of 20 lakh bottles per month taking the total capacity to 75 lakh bottles per month.
For the said capacity expansion, the company will invest Rs 49.49 crore excluding GST through internal accruals and the same is expected to be added by 31st December 2025.
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