While valuation comfort, robust balance sheets, and strong order inflows determined stock-specific rerating till now, the way forward will move on easing inflation concerns, cooling commodity prices, and peak-out in interest rates being in sight

Many analysts are cautious about high valuations amid looming demand slowdown but say there are enough stock picking opportunities in the broader market as several pockets have not participated in the rally.

ICICI Direct recommended hold rating on Elgi Equipments with a target price of Rs 520 in its research report dated November 08, 2022.

Global brokerage firm Haitong Securities has initiated coverage on state-owned lenders Canara Bank and Indian Bank with 'outperform' ratings. It has a target price of Rs 290 and 255 on these stocks, respectively.

Kirloskar Ferrous Industries has seen breakout of a parallel channel pattern after 13 months on the daily timeframe whereas on the weekly timeframe the stock has made a double bottom pattern which can be used as a confluence towards the bullish view.

The rally in these boring sectors was because of the revival in the capex cycle. After a long time, there has been capacity expansion in these sectors. The earnings visibility has improved. As all the macro factors are coming together, these sectors are going to benefit because of the uptick in the overall economic activity,” equity strategist Kranthi Bathini of Wealth Mills Securities told ETMarkets.

Infosys, MindTree, Angel One, Cyient, Anand Rathi Wealth, Den Networks, Aditya Birla Money, Roselabs Finance and more are among the companies that will announce their results for September 2022 quarter today.

Infosys, MindTree, Angel One, Cyient, Anand Rathi Wealth, Den Networks, Aditya Birla Money, Roselabs Finance and more are among the companies that will announce their results for September 2022 quarter today.

Infosys, MindTree, Angel One, Cyient, Anand Rathi Wealth, Den Networks, Aditya Birla Money, Roselabs Finance and more are among the companies that will announce their results for September 2022 quarter today.

Infosys, MindTree, Angel One, Cyient, Anand Rathi Wealth, Den Networks, Aditya Birla Money, Roselabs Finance and more are among the companies that will announce their results for September 2022 quarter today.

IT stocks were the worst hit as the BSE IT index slumped over 22% during the period amid worries around the impact of the recession on margins as well as demand. The realty index was hit equally badly as interest rates began to rise.

Vanguard bought shares of Elgi Equipments in 2 lots. In the first batch, it bought over 28 lakh shares, while the second lot was of about 27 lakh shares. The average price for the deal was at Rs 489.2. The stock ended Friday with a fall of close to 7 per cent at Rs 489.05 per share.

Analysts expect mid and smallcaps to continue their outperformance in the short to medium term as they are trading reasonably well compared to largecaps and are at a discount to their historic valuation trend.

Analysts attribute ‘growth as one common theme or factor for the stocks which are on retail investors buying list. A steep correction in the past few months and economic recovery are some of the other factors supporting the sentiment.

Ujjivan Financial Services rose nearly 2 percent to Rs 210, the highest closing level since August 13, 2021 and formed decent bullish candlestick pattern on the daily charts, while Elgi Equipments jumped more than 2 percent to end at record closing high of Rs 551 and formed small bodied bullish candle on the daily scale.

Rupak De, Senior Technical Analyst at LKP Securities, said the trend remains positive as the index closed above the short-term support of 17,400. “The daily RSI is in a bearish crossover. A decisive move above 17,700 may induce a rally in the market,” he said.

After a troublesome summer in June, July and August both proved positive for the equity market. In August, Nifty Smallcap and Nifty Midcap indices gained 5 per cent and 6 per cent, respectively, for the month.Nifty Energy and Metal were the top sectoral performers gaining over 8 per cent each during the month.

BEML rose 44.87 per cent for the month to Rs 1,846.50 from Rs 1,274.55 level in June end. Analysts have been positive on the stock as the demerger process has picked up pace and strategic disinvestment is on the cards. Analysts noted that the companys order book of Rs 9,100 crore provides revenue visibility for the next 2-3 years. JSW Energy soared 43.11 per cent for the month to Rs 341.05 against Rs 238.30 level last month.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the short term trend of Nifty is range bound with volatility and the consolidation movement is expected to continue for the next week. “We expect Nifty to trade in a range of 17,800-17,300 levels by next week. Any decisive breakout on either side is likely to accelerate momentum in the market.”

In the BSE500 index, 290 stocks settled in green, whereas others posted losses for the week. About 15 stocks were able to rise 10 per cent or more, whereas only three stocks logged double digit cuts.

Hitachi Energy India was in a clear uptrend while forming higher high, higher low formation. The stock is currently trading near its record high level which tells that the stock already is in a good momentum.

Shares in European tech companies were underperforming the wider market, with the tech index of shares approaching its August low, down 1.7%. Meanwhile the STOXX 600 fell 0.8%. So far this year, European tech shares are down 24% while the wider index has lost 10.3%.

The Nifty Realty index closed 2.51 per cent down at 439.1.

ICICI Direct recommended hold rating on Elgi Equipments with a target price of Rs 475 in its research report dated August 15, 2022.

Tata Chemicals share price jumped 12.2 percent to Rs 1,074, the highest closing level since October 19, 2021. The stock had a robust gap up opening and large bullish candlestick pattern formation on the daily charts with significantly higher volumes. It has decisively broken the long down sloping resistance trend line, adjoining October 18, 2021 and May 5, 2022, may be indicating bullish phase. Now the stock is around 7-8 percent away from its record high of Rs 1,158.

“Oscillators are overbought, but they have been so for some time already now, and have been less effective because of the directional nature of the index,” Anand James - Chief Market Strategist at Geojit Financial Services, said.

Stocks that were in focus include names like Fine Organic which rose over 15 per cent, Elgi Equipments which added over 3 per cent, and Eicher Motors which gained nearly 2 per cent.

The rebound in the market helped new age stocks recover, sending PB Fintech 21.82 per cent higher for the week. Zomato shares were in news, jumping 16.32 per cent to Rs 54.50. Uber Technologies sold its entire 7.78 per cent stake in Zomato in a bulk deal on the BSE, in which two institutional investors - Fidelity and ICICI Prudential Life Insurance - bought stakes in the new-age stock. US hedge fund Tiger Global also sold 184.4 million shares in Zomato between July 25 and August 2, as the one year lock-in period ends.

Ajit Mishra, VP - Research, Religare Broking, suggests maintaining focus on identifying stock-specific opportunities and utilizing any dip to accumulate. “At the same time, we recommend keeping a check on leveraged positions and preferring a hedged approach.”

Navneet Education, Vadilal Ind, Elgi Equipments, Ruchira Papers and Radhika Jeweltech, hit their fresh 52-week highs during the day.

The Nifty Auto index closed 0.8 per cent down at 12919.4.

In the Nifty50 index, 25 stocks closed in the green, while 25 stocks ended in the red.

The Nifty IT index closed 1.35 per cent up at 29416.95.

In the Nifty 50 index, 25 stocks ended in the green, while 25 stocks closed in the red in today's trade.

In the Nifty pack, 25 stocks closed in the green, while 25 stocks ended in the red.

Maruti Suzuki, Sun Pharma, Kotak Bank, Tata Motors and Coal India Ltd were among the top losers on NSE in today's trade.

The Nifty Pharma index closed 0.77 per cent down at 12682.0.

The Nifty Realty index closed 0.76 per cent down at 441.6.

The Nifty Bank index closed 0.09 per cent down at 37989.25.

The Nifty IT index was trading 0.82 per cent down at 28980.85.

The Nifty Bank index was trading 0.54 per cent down at 37699.25.

Deepak Jasani, Head of Retail Research, HDFC Securities, said going by the current momentum, Nifty could test 17,457-17,651 band over the next few days. “A lot of up gaps on the way up also raise the possibility of these gaps being filled after Nifty makes an intermediate top.”