Nifty index opened gap up and witnessed sustained buying throughout the day. It registered a highest daily close and formed a Bullish candle on a daily and a Bullish Engulfing candle on a weekly chart which implies that bulls are holding their grip in the market. Now till it holds above 11450 zones it could extend its gains towards new high territory at 11500 then 11550 zones while on the downside immediate support seen at 11400 zones.
Asset quality woes of PSU and corporate Banks appear to be stabilizing consumption( urban & rural) remains strong, with FMCG,Auto, Durables and Retail sectors pointing toward a healthy outlook.
Cyclicals continue leading from the front, with Metals and O&G driving more than 100% of incremental earning for the MOSL Universe.
IT delivered a healthy quarter,with improve commentaries on demand in the US BFS market.
In healthcare, pricing pressure in US generies is stabilizing even as earnings downgrades have not abated.
Total sales/ EBITDA growth was healthy/ in line; profits missed our estimates due to corporate Banks( Impacted by elevated provision).
preferred picks: ICICI Bank, Hindalco, Petronet, ACC, Ashok Leyland, Titan, Sun Pharma, Infosys, BOB, L&T Finance.