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Wall Street stocks slump as investors absorb 75 bps rate hike, hawkish Fed message

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Wall Street’s main indexes see-sawed before slumping in the final 30 minutes of trading to end Wednesday lower, as investors digested another supersized Federal Reserve hike and its commitment to keep up increases into 2023 to fight inflation. All three benchmarks finished more than 1.7% down, with the Dow posting its lowest close since June 17, with the Nasdaq and S&P 500, respectively, at their lowest point since July 1, and June 30. At the end of its two-day meeting, the Fed lifted its policy rate by 75 basis points for the third time to a 3.00-3.25% range. Most market participants had expected such an increase, with only a 21% chance of a 100 bps rate hike seen prior to the announcement.

Also Read: Wipro, Tech Mahindra, Punjab National Bank, IDBI Bank, Century Ply stocks in focus on weekly F&O expiry

“Chairman Powell delivered a sobering message. He stated that no one knows if there will be a recession or how severe, and that achieving a soft landing was always difficult,” said Yung-Yu Ma, chief investment strategist at BMO Wealth Management. Higher rates and the battle against inflation was also feeding through into the U.S. economy, with the Fed’s projections showing year-end growth of just 0.2% this year, rising to 1.2% in 2023. “Markets were already braced for some hawkishness, based on inflation reports and recent governor comments,” said BMO’s Ma. “But it’s always interesting to see how the market reacts to the messaging. Hawkishness was to be expected, but while some in the market take comfort from that, others take the position to sell.

Also Read: Sensex, Nifty snap 2-day gaining streak ahead of US Fed outcome; here’s how to trade on F&O expiry day

The Dow Jones Industrial Average fell 522.45 points, or 1.7%, to 30,183.78, the S&P 500 lost 66 points, or 1.71%, to 3,789.93 and the Nasdaq Composite dropped 204.86 points, or 1.79%, to 11,220.19. All 11 S&P sectors finished lower, led by declines of more than 2.3% by Consumer Discretionary and Communication Services. Volume on U.S. exchanges was 11.03 billion shares, compared with the 10.79 billion average for the full session over the last 20 trading days. The S&P 500 posted two new 52-week highs and 70 new lows; the Nasdaq Composite recorded 44 new highs and 446 new lows.

Properties registration in Mumbai up 11% at 8,628 units in Sep: Report

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Registration of properties in Mumbai rose 11 per cent last month to 8,628 units — highest in the past 10 years for September — despite rise in prices as well as mortgage rates, Knight Frank said.

Mumbai city (BMC area) saw property sale registrations of 8,628 units in September 2022 as against 7,804 units in the same month last year and 8,552 units in the previous month, the property consultant said in a statement.

Also Read | NCR records 21% YoY growth in housing unit sales in Q3 2022

“Despite the fresh rise in repo rate which has further hit affordability in the market, we remain in the affordable threshold and can expect positive sales for some more time,” Baijal added.

As per the data, 57 per cent of all registrations were in the price band of over Rs 1 crore. In terms of apartment size, homes between the size of 500-1,000 square feet were the most preferred in this month.

The consultant highlighted that 96 per cent of all property sales registrations in September 2022 were for properties transacted in the same month.

Residential properties valued up to Rs 1 core continued to be the demand driver in September, having a share of 43 per cent, followed by Rs 1 – 2.5 crore with share of 42 per cent.

Also Read:How will rate hike impact homebuyers, and what should they do now?

The government revenue collection has also recorded its all-time high during January-September 2022.Implementation of additional 1 per cent metro cess coupled with price rise and sale of higher ticket size units led to a YoY rise of 57 per cent in revenue collection to Rs 6,658 crore from January to September 2022.

The major players in Mumbai’s primary housing market include Macrotech Developers (Lodha group), Godrej Properties, Oberoi Realty, Hiranandani group, Kalpataru Ltd, Tata Housing, Shapoorji Pallonji Real Estate, Piramal Realty, Mahindra Lifespace Developers, Indiabulls Real Estate, D B Realty, Rustomjee group, K Raheja group and Runwal Developers. Bengaluru-based Prestige Estates and Puravankara Ltd have also entered the Mumbai market. DLF too has land in the city.

Will bulls manage to push Nifty past 18000 amid uncertainty? 5 things to know before market opening bell

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Domestic equity market is expected to open on a positive note as trends in the SGX Nifty indicated a firm opening for NSE Nifty 50, BSE Sensex, with a gain of 131.50 pts. “While the undertone of the market remained volatile, a strong relief rally after the recent slump helped benchmark indices to rebound on Monday. While European markets and most of the Asian pack continued their downward spiral, the underperformance of the Indian markets last week prompted investors to buy the beaten-down stocks. Despite the recovery, markets may gyrate sharply intra-day amid global uncertainty,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

Also Read: Share Market LIVE: SGX Nifty hints at positive start for Nifty, Sensex; global cues strong, US Fed meet eyed

Nifty technical view: A small positive candle was formed on the daily chart with minor lower shadow. Technically, this pattern indicates minor upside bounce in the market. The Nifty is currently placed within a broader range of 18000-17500 levels and it was seen showing minor upside bounce from the lower range. Hence, any sustainable upside bounce from here could encounter hurdles around 17750, 17860 and 18050 levels. The short term trend of Nifty continues to be negative. Monday’s upside bounce could be a cheering factor for the bulls to make a comeback. Further sustainable upmove from here could pull Nifty towards 18K mark again, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Levels to watch for: Nifty managed to close above the upward sloping trend line adjoining the daily lows of 20 June and 1 July 2022. Resistance for the Nifty are seen at 17760 and 17826, which happens to be 50% and 61.8% retracement of the entire fall seen from 18088 (recent swing high made on 13 Sep 2022) and Monday’s low of 17429. Below 17429, Nifty is expected to enter short term down trend. On the higher side, 18100 seems to be have become ceiling for the short term,” said Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities.

FII and DII data: Foreign institutional investors (FIIs) net bought shares worth Rs 312.31 crore, whereas domestic institutional investors (DIIs) net offloaded shares worth Rs 94.68 crore on Monday, according to the provisional data available on the NSE.

Also Read: Adani Group, Dish TV, Natco Pharma, Bombay Dyeing, CEAT stocks in focus on 20 September

Stocks under F&O ban on NSE: Delta Corp, Escorts, Indiabulls Housing Finance, India Cements, PVR, and RBL Bank are the six stocks in the NSE F&O ban list for September 20. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.

Tax incentives unlikely for sovereign green bonds

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The Centre is unlikely to offer any tax incentives for its maiden green bonds to be issued in the second half of the current financial year as it reckons that investor interest in them comes from green pledges by businesses and funds, rather than profit motives.

The rupee-denominated bonds, through which the government plans to raise Rs 20,000 crore-Rs 25,000 crore, will carry a coupon rate marginally lower than comparable government securities (G-secs).

“We are sure businesses and funds who want to invest in green technologies and ventures for their ESG (Environmental, Social, and Governance) goals will lap up the issue,” an official said, adding that higher interest rates and tax incentives would defeat the objective of such bond issuance to raise low-cost funds for long-term climate financing.

Despite lower returns, many investors set aside funds for investing in green projects as part of their ESG obligations. As sustainability disclosures by companies grow, such information could be used by banks, credit rating agencies and other financial institutions, along with financial information to assess the credibility of a business.

“As a part of the government’s overall market borrowings in 2022-23, sovereign green bonds will be issued for mobilising resources for green infrastructure. The proceeds will be deployed in public sector projects which help in reducing the carbon intensity of the economy,” finance minister Nirmala Sitharaman said in her Budget speech earlier this year.

Of the annual borrowing plan of Rs 14.31 trillion in FY23, the Centre was to borrow Rs 8.45 trillion from the market through dated securities in the first half of FY23 and the rest in the second half of the year. The second half borrowing calendar is expected to be announced by end-September and the green bonds will be part of it.

At the 26th Session of the Conference of Parties to the UNFCCC in Glasgow in November 2021, Prime Minister Narendra Modi declared that India will achieve the target of net-zero emissions by 2070, meaning its greenhouse gas emissions will be less than the total removal and absorption of emissions.

Also Read: Mcap of 7 of top 10 most valued firms climb over Rs 1.33 lakh crore; TCS, Reliance lead gainers

According to CEEW Centre for Energy Finance, India would need cumulative investments of $10.1 trillion to achieve net-zero emissions by 2070. Of this, $8.4 trillion would be required to significantly scale up generation from renewable energy and associated integration, distribution and transmission infrastructure. Another $1.5 trillion need to be invested in the industrial sector for setting up green hydrogen production capacity to advance the sector’s decarbonisation.

Recently, Reserve Bank of India (RBI) governor Shaktikanta Das said the central bank and the government are working on a framework to issue sovereign green bonds in line with global standards.

Given the nascent green bond market of India, the sovereign green bond issuance will likely set a benchmark for corporates raising ESG funds for their green projects as well.

“The sovereign green bond auction results are likely to act as a benchmark for the future issuance by the private sector entities in the domestic green bond market,” said Anil Gupta, vice-president, Icra.

Globally, investors are following United Nation’s suggested Sustainable Development Goals (SDG) for assessing the right kind of returns on their investments.

Green bonds are meant for institutional investors, including mutual funds that have a mandate to invest in sustainable projects and companies around the world.

Under the Securities and Exchange Board of India’s (Sebi) norms, 1,000 top listed companies are required to prepare “Annual publishing of Business Responsibility Report”, covering their activities related to environment and stakeholder relationships. Not necessarily these companies will invest in bonds as they have their own green projects and raise funds through private green bonds as well.

US Stocks: Wall Street ends higher, gains driven by banks, healthcare

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Wall Street‘s main indexes posted gains on Thursday mainly lifted by financial institutions and healthcare companies, as investors digested hawkish remarks from policymakers that cemented bets of a large interest rate hike later this month. Indexes bounced back and forth in a choppy trading as concerns over Federal Reserve’s next steps to tame a surging inflation remain.

“There’s just a lot of uncertainty and I think people aren’t going to really make up their minds for longer than five minutes or five seconds, you know, until there’s a little bit more clarity or light at the end of the tunnel,” said Grace Lee, an equity income senior portfolio manager at Boston-based Columbia Threadneedle Investments.

Also read| IndiGo, Vodafone Idea, Jet Airways, Future Lifestyle, Adani Group stocks in focus on September 9, 2022

Federal Reserve Chair Jerome Powell said the central bank is “strongly committed” to bringing inflation down and needs to keep going until it gets the job done.

Chicago Fed President Charles Evans joined his fellow policymakers in saying that reining in inflation is “job one. “Investors are also awaiting the U.S. August inflation report next week for fresh clues on whether the Federal Reserve will hike rates by half or three-quarters of a percentage point at the next policy meeting due Sept. 20-21.

Also read| Share Market LIVE: Nifty, Sensex stare at positive start; ECB raises rates by an unprecedented 75 bps

Worries over aggressive monetary tightening across the globe stalled equity markets on Thursday after the European Central Bank hiked interest rates by an unprecedented 75 basis points and signaled further hikes. Meanwhile, data showed the number of Americans filing new claims for unemployment benefits fell last week to a three-month low, underscoring the robustness of the labor market even as the Fed raises interest rates.

With increasing odds of another outsized rate hike, both the rate-sensitive S&P 500 bank index and the S&P 500 healthcare sector rose 2.8% and 1.8%, respectively. The healthcare sector was boosted by news that Regeneron Pharmaceuticals Inc’s anti-blindness treatment Eylea was shown to work as well when given at a higher dose at a longer interval between injections. The drugmaker’s shares jumped 18.8%.

“People are embracing safety. Healthcare is a very safe sector and it’s still fairly cheap, the same way with the broader financial sector,” said Lee.The Dow Jones Industrial Average rose 193.24 points, or 0.61%, to 31,774.52, the S&P 500 gained 26.31 points, or 0.66%, to 4,006.18 and the Nasdaq Composite added 70.23 points, or 0.6%, to 11,862.13.

GameStop Corp surged 7.4% after the video game retailer reported a smaller-than-expected quarterly loss.American Eagle Outfitters Inc tumbled 8.7% after the apparel maker missed second-quarter profit estimates and said it would pause quarterly dividend as it fortifies its finances against a hit from inflation.Volume on U.S. exchanges was 10.19 billion shares, compared with the 10.37 billion average for the full session over the last 20 trading days.

On Wednesday, Wall Street’s main indexes climbed the most in about a month as bond yields retreated after a recent surge that was driven by expectations of higher interest rates. Still, the benchmark S&P 500 is down over 16% year-to-date. Advancing issues outnumbered declining ones on the NYSE by a 1.34-to-1 ratio; on Nasdaq, a 1.48-to-1 ratio favored advancers. The S&P 500 posted 7 new 52-week highs and 8 new lows; the Nasdaq Composite recorded 37 new highs and 153 new lows.

Patanjali eyes 5 IPOs in 5 years

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Patanjali, the FMCG brand started by Baba Ramdev, will announce its initial public offering (IPO) plans for five group companies on Friday at a press conference. The IPO plan includes Patanjali Ayurved, Patanjali Wellness and Patanjali Medicine and Patanjali Lifestyle, according to some news reports. The company said the move is to scale new heights of corporate performance.

In 2016, according to CLSA and HSBC, Patanjali was one of the fastest-growing FMCG companies in India. It was valued at `3,000 crore. India Infoline (IIFL) had also said that at least 13 listed companies, including Hindustan Unilever, Colgate, Dabur, ITC and Godrej Consumer Products, will be affected by Patanjali’s success.

Also Read: KEC International order book robust, net working capital to improve

In 2019, Patanjali Ayurveda bought Ruchi Soya for Rs 4,350 crore under the IBC process and named it Patanjali Foods, which is already listed on the stock exchange. Ruchi Soya sells its products under brands like Ruchi Gold, Mahakosh, Sunrich, Nutrela, Ruchi Star and Ruchi Sunlight, which compete with brands from Adani Wilmar and Emami Agrotech in the edible oil space. It is also into oil palm plantations and renewable wind energy business.

Diversifying from the edible oil business and expanding its presence into FMCG, Patanjali Foods acquired biscuits, cookies and rusk businesses in May 2021, and breakfast cereals and noodles business in June 2021 from Patanjali Ayurved. It also launched nutraceutical products in June 2021. Further, during April-June, the company also acquired PAL’s food business, which has over 500 SKUs across eight product categories, including ghee, honey, spices, juices and atta.

According to analysts, this move will reposition Patanjali Foods from a largely commodity-based company to a leading FMCG and FMHG company in India. The company’s strategy to leverage the Patanjali brand and enhance synergies with PAL will further boost the growth, said a recent report from a domestic brokerage. The company is also a market leader in the branded TSP (textured soya protein) space, under Nutrela brand.

“Going ahead, we expect the company to achieve a 22% CAGR growth in its revenues, largely driven by the food business, which is expected to grow nearly 4x on the account of the recent acquisition and scaling up of the same. This shall increase the contribution of the food business to about 20% in FY24 from 14% in FY22. Oils business is expected to grow by 14% CAGR over FY22-24E with higher realisations. The volume growth is expected to be in mid-single digits and better than industry growth as it piggybacks on Patanjali’s vast distribution network,” said the brokerage.

With manufacturing units and headquarters in the industrial area of Haridwar, Patanjali Food and Herbal Park is its main production facility. In 2020, the production capacity of the facility was pegged at Rs 35,000 crore and it had plans of expanding it to a capacity of Rs 60,000 crore through new production units in Noida, Nagpur and Indore.

For the full-year ended March 30, 2022, Patanjali’s revenue rose nearly 9% to Rs 10,664.46 crore against Rs 9,811 crore a year ago. However, net profit was marginally lower by 0.6% to Rs 740.38 crore against Rs 745.03 crore in FY21. The FMCG business revenue climbed to Rs 9,241 crore in FY22 against Rs 8,778 crore in FY21. The ayurvedic products business rose to Rs 1,274 crore versus Rs 925 crore in FY21.

Daily gold price, silver, petrol, diesel rates: Everyday updates on FinancialExpress.com commodities pages

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FinancialExpress.com has launched commodity price pages to provide daily updates on petrol rate, diesel rate, gold rate, and silver rate in India. The price pages are updated everyday according to the market price revisions. PSU oil marketing companies including Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise fuel prices daily in line with international benchmark prices and foreign exchange rates, under the ‘dynamic fuel price mechanism’.

Any changes in petrol and diesel prices are implemented from 6 am every day. The prices of petrol and diesel may vary in each state, or even in each city, depending upon several factors such as the local taxes, Value Added Tax (VAT), freight charges, etc. The dynamic fuel price method has been in practice since June 2017. Before that, fuel prices used to be revised every two weeks.

Gold is also purchased and sold in accordance with gold futures contracts at a future date. In contrast to most other commodities, gold futures are traded at spot prices. The National Spot Exchange (NSEL) offers E-series products such as E-Gold and E-Silver, allowing people to trade or invest in silver in the same way they do in equities. Investors can purchase a minimum of one unit of silver equivalent to 100 grams of silver in demat form at real-time Indian prices that track international gold/silver prices. By trading in NSEL, investors can convert their e-Silver into physical silver or cash.

Check the gold, silver, petrol, and diesel prices here

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Gold Price Today, 22 Sep 2022: Gold falls on strong dollar after US Fed’s rate hike, MCX support at 48800

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Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver rate were trading weak in India on Thursday, on the back of strength in US Dollar. On Multi Commodity Exchange, gold October futures were trading flat to negative at Rs 49,439 per 10 gram, as against the previous close of Rs 49,443. Silver December futures were ruling Rs 96 or 0.2 per cent down at Rs 57,202 per kg on MCX. Globally, yellow metal prices fell 1% as the dollar rose sharply after the US Federal Reserve increased interest rates by another 75 basis points and flagged more hikes, according to Reuters. Spot gold dropped 1% to $1,656.97 per ounce, and U.S. gold futures fell 0.5% to $1,667.30.

Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services

Tapan Patel, Senior Analyst — Commodities, HDFC Securities

Gold prices traded lower on Thursday with COMEX Spot gold prices were trading 0.87% down near $1660 in the morning trade. MCX Gold October futures opened lower near Rs. 49330 per 10 gram following weak global cues. Gold prices decline post US FOMC rate decision and stronger dollar. The US FED hiked key interest rates by 75 bps, in line with market expectations. However, the more hawkish comments from Fed chair pushed dollar index higher denting demand for gold. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1640 and resistance at $1676 per ounce. MCX Gold October support lies at Rs. 48800 and resistance at Rs. 49500 per 10 gram.

Also read: Rupee hits lifetime low on strong dollar, risk aversion in equities after another US Fed jumbo rate hike

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities

COMEX gold trades modestly lower near $1668/oz weighed down by firmness in the US dollar post Fed decision. The US dollar index jumped to a fresh 2002 high as the US central bank projected the possibility of another 0.75% hike this year and no cut in interest rate until 2024. The US dollar is also supported by safe haven buying and no major change in monetary policy stance of other central banks. The persistent strength in the US dollar may continue to weigh on gold however Fed’s move was well expected so market reaction may subside.

Abhishek Chauhan, VP — Commodities & Currencies, Mandot Securities

US interest rate hike and hawkish message from the Federal Reserve boosted the dollar and weighed heavily on metal markets. Dollar index made a high of 111.445(+1.107) Metal Prices witnessed some selling pressure pre and post FED decision. Gold has support at $1660-1650, while resistance is placed at $1690-1700.Silver at COMEX has support at $19.00-19.10, while resistance is at $19.90-20.00. In rupee terms gold at MCX has support at Rs 49050-48930, while resistance is at Rs 49,600-49,660. Silver has support at Rs 56100-56300, while resistance is at Rs 57600–57800.

Also read: Nifty must hold 17667 for upmove towards 18000; buy these stocks to pocket short-term gains

(The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)

Sensex, Nifty fall for 6th day straight ahead of monthly F&O expiry; Rupee at new low, Nifty support at 16800

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BSE Sensex and NSE Nifty 50 settled in red for the 6th straight day on Wednesday, one day ahead of weekly and monthly F&O expiry. BSE Sensex plunged 509 points or nearly 1 per cent to 56,598, while NSE Nifty 50 crashed 0.9 per cent or 149 points to settle at 16589. Also, Indian rupee ended at a record closing low of 81.94 per dollar on Wednesday. Index heavyweights such as Reliance Industries Ltd (RIL), HDFC Bank, ITC, Housing Development Finance Corporation (HDFC), Axis Bank, and State Bank of India (SBI), among others contributed the most to the indices’ fall. Broader markets too fell in line with equity frontliners. S&P BSE Midcap index fell 0.5 per cent or 166 points to end at 24438, while S&P BSE SmallCap index lost 0.4 per cent or 120 points to settle at 27871.

Also read: Major headwinds for Indian economy; RBI intervention to curb rupee fall, slowing exports may derail recovery

Investors continue to be sceptical of the domestic market’s higher premium amid the ongoing global deceleration while foreign investors are fleeing emerging economies in search of safer havens. Although the domestic economy is buoyed by solid fundamentals, the stock market’s appetite for risk has been hindered by the rising worries of a worldwide recession. Domestic investors are turning to IT and pharma companies, which have been in a consolidation phase for the past year and are now gaining from the INR depreciation. The RBI policy meeting is currently underway, and the central bank is likely to raise repo rates by 35-50 basis points, however, the inflation outlook may soften in reaction to declining commodity prices.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

Markets remained choppy with a sharply downward bias, as investors exited banking and metal stocks ahead of the monthly F&O expiry with the likely rate hike by the RBI & other central banks indicating that bearish sentiment could continue going ahead. Technically, we are of the view that 17000 would act as an immediate resistance level. Below which, the correction wave is likely to continue till 16700-16650. On the flip side, a short recovery rally is possible only after the dismissal of 17000. Above the same the index could move up to 17100-17200. The Nifty is having major support between 16700-16650 (which is important retracement support level). Buying is advisable in index heavyweight stocks if Nifty falls to 16700 levels.

Also read: Govt further extends deadline for broken rice export in-transit before ban

Mohit Nigam, Head – PMS, Hem Securities

Investors should remain cautious ahead of RBI’s monetary policy meeting later this week. A 50 bps interest rate hike is expected from RBI. On the technical front, immediate support and resistance in Nifty 50 are 16800 and 17200 respectively. Immediate support and resistance in Bank Nifty are 37250 and 38750 respectively.

Ashwin Pal, Senior Technical Analyst, Mandot Securities

We are expecting high uncertainty and very high volatility in the upcoming sessions on the back of weak global cues, fear of recession, and other important upcoming events. Investors and traders are advised to remain calm and patient in intraday trading. On Wednesday, Nifty settled at 16858.60, with major support levels at 16700-16500 and major resistance at 17000-17180. Nifty Bank ended at 37759.85, with major support levels at 37400-37180 and resistance levels at 38000-38300.

The recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.

Sun Pharma, Jindal Steel among top stocks to buy, sell; intraday chart suggests Nifty may fall up to 14,130

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By Shrikant Chouhan

The market registered an extremely volatile session, the Nifty/ Sensex closed 63/243 points lower. The Nifty/ Sensex failed to sustain above the 14500/48400 resistance mark and due to consistent selling pressure at higher levels along with tepid global cues the benchmark index corrected sharply. Among sectors, profit booking was seen in IT stocks whereas, Auto, Pharma and selective Media stocks witnessed buying interest.

Jindal Steel and Power Ltd BUY, CMP: Rs 431.55, TARGET: Rs 455, SL: Rs 420

On the daily time frame, after the sharp up move, the stock was into a consolidation phase and finally, it has given a breakout from its Flag chart pattern with incremental volume activity indicating further up move in the coming horizon.

Sun Pharmaceutical Industries LtdBUY, CMP: Rs 645.15, TARGET: Rs 675, SL: Rs 630

The stock is trading into a rising channel pattern making the higher top and higher bottom series on weekly and monthly charts, therefore all major technical trend indicators such as MACD and ADX are strong and intact. Thus upward movement from the current level is very likely to remain in the near term.

Bata IndiaSELL, CMP: Rs 1,297.65, TARGET: Rs 1,230, SL: Rs 1,330

The stock is in a downtrend where the bears are quite strong at the moment as bulls are not able to gain strength, on the monthly scale as well the stock is trading below its rising trend line and short-term moving averages which indicates bearishness in the counter.

RBL Bank SELL, CMP: Rs 174.55, TARGET: Rs 165, SL: Rs 180

Bearish continuation formation is evident in the counter as it is continuously making lower high and lower lows, hence the overall structure of the stock suggest that it is heading to its previous demand zone on the downside

(Shrikant Chouhan is Executive Vice President (Equity Technical Research), Kotak Securities. Views expressed are the author’s own.)