Business News

Benchmark indices Sensex and Nifty bounced back on Tuesday after four days of sharp decline on easing retail inflation and a rebound in global markets.Stocks that were in focus include names like Angel One, which fell 3.1% and HDFC Life, which rose 0.2% and Network18, whose shares gained 3% on Tuesday.Here's what Kushal Gandhi, Technical Analyst at StoxBox, recommends investors should do with these stocks when the market resumes trading today.Angel OneRecently, the price action of Angel One has been influenced by profit booking, resulting in a correction of nearly 35%. However, it has been observed that the stock is finding support at its fair value gap area around the 2340 level. The candlestick pattern formed during the previous trading session is a doji, which signals indecision amid the ongoing selling pressure—an encouraging sign.With the earnings per share (EPS) strength remaining notably robust and technical indicators indicating oversold conditions, in anticipation of a notable pullback we recommend purchasing Angel One with a target price of 2675, while maintaining a stop loss near 2254.HDFC LifeThe share price of HDFC Life has faced significant selling pressure, declining over 20% from its highs in October 2024. Shorter-term moving averages have become immediate resistance levels, hindering any potential price recovery, which is a concerning development.Currently, the stock is trading below the crucial 50-day moving average and 200 DMA, exhibiting a negative crossover that suggests further bearish implications. Additionally, the RSI on daily and higher timeframes is positioned below median levels with a downward trajectory, indicating a loss of positive momentum.Therefore, we advise against purchasing the stock at its current market price.Network18The current price action of Network18 suggests that it is in a distribution phase, which signals a negative trend. The stock has fallen below significant moving averages, including the 50-day and 200-day Daily and Weekly averages, and has experienced a negative crossover on the daily timeframe, indicating a continued weakening of the price trend.Furthermore, the stock demonstrates extremely poor EPS strength, price strength, and sectoral strength, leading to a lack of buying demand.Overall, the stock shows limited strength and momentum across various timeframes. Therefore, we advise against attempting to catch a falling knife at the present market price.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

The third quarter earnings season is underway and about 24 companies will announce their quarterly numbers on Wednesday. Key results to watch out include from HDFC Life, L&T Tech and Bank of Maharashtra.Apart from the above, companies like CEAT, Nelco, Oriental Hotels, Indiabulls Enterprises, Aeroflex Industries, Oracle Financial and several others will also declare their results.HDFC Life Q3 expectationsLeading life insurance company HDFC Life is expected to report healthy growth in its profitability during the third quarter. The profit is seen rising 21% year-on-year (YoY) to Rs 443 crore, according to estimates from Emkay. Meanwhile, Motilal Oswal expects the profit growth to be 19% YoY during the reporting period.There are no other estimates on the company's third quarter profit and net premium income. However, the value of new business (VNB) growth is likely to be anywhere between 19-21% YoY during the quarter. Most estimates predict a decline in VNB margins on a YoY basis.Investors will watch out for product mix, impact of change in surrender value regulations on the margins and any guidance on sales through bank channels.In the recent second quarter, HDFC Life posted a 15% YoY increase in standalone net profit, reaching Rs 433 crore, while the net premium income during the July-September 2024 period grew 12% YoY to Rs 16,570 crore."New business premium to maintain growth momentum, driven by the Annuity and Par segments. Improvement in persistency ratio and commentary on growth outlook are the key monitorables," Motilal Oswal said.L&T Tech Q3 expectationsMid-tier IT services company L&T Tech is expected to reported 3% YoY drop in its net profit, while revenues may grow 10% YoY in the third quarter.Kotak Equities is estimate QoQ revenue growth of 3.2% in constant currency terms, led by sustainability and hi-tech verticals. Mobility segment's QoQ growth could be weak post consecutive quarters of strong and industry-wide weakness."We expect 40 bps QoQ improvement in EBIT margin to 15.5%, led by reduced S&M intensity and partly offset by the two-month impact of wage hikes. We expect LTTS to revise revenue growth guidance to 7-8% for FY2025E," the brokerage said.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Nifty formed a small positive candle on the daily chart on Tuesday with a gap-up opening and a long upper shadow. Technically, this indicates an upside bounce in the market with a lack of strength to sustain the highs.The negative chart pattern like lower tops and bottoms is intact on the daily chart and the current upside bounce could possibly open another lower top formation in the short term. On further upside, Nifty could encounter a strong hurdle at the recent down gap of January 13 around 23,350 levels. The near-term trend of Nifty remains weak and we expect this upside bounce could be a sell-on-rise opportunity around 23,350 levels. Immediate support is at 23,050 levels, said Nagaraj Shetti of HDFC Securities.According to the open interest (OI) data, the highest OI on the call side was observed at 23,200 and 23,400 strike prices, while on the put side, the highest OI was at 23,200 strike price followed by 23,050.What should traders do? Here’s what analysts said:Jatin Gedia, Mirae Asset SharekhanNifty is in a temporary relief rally after a sharp decline in the previous couple of trading sessions. During the fall the Nifty faced selling pressure from the 20-hour moving average, which is placed at 23,277. The downtrend is still intact and hence minor degree pullbacks towards the resistance zone (23,270 – 23,300) should be considered as a selling opportunity. On the downside, we expect the Nifty to drift lower towards 23,000 – 22,670 from a short -term perspective. A move above 23,340 shall lead to a further short covering otherwise the downtrend is intact.Rupak De, LKP SecuritiesThe Nifty remained choppy during the session, forming a bullish Harami Cross pattern on the daily chart. A bullish Harami pattern, especially after a significant correction, often signals a potential short-term recovery. The Nifty appears positive for the short term as long as it remains above 23,135. On the upside, it could move towards 23,400, and a decisive move above 23,400 may lead to higher levels.Praveen Dwarakanath, Hedged.inThe Nifty, after a 6-day streak of breaking its previous day's low, closed above without breaking its low, indicating a recovery in the fall. The index has formed an insider candle, indicating non-decisiveness. The momentum indicators are well below the oversold region, which can act as a reason for a bounce in the index from the current level. Options writer's data for the January monthly expiry showed increased writing of the calls at the 23,200 and above levels and a short covering of puts at the 23,500 level, indicating mild bullishness.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)