December 1, 2022

Nifty Nears 19,000!

Tale of the Tape

Hola Amigos. One more day to go for the weekend. 😇

Nifty and Sensex extended their record-breaking rally after the US Federal Reserve hinted at smaller rate hikes going forward. Midcaps (+0.8%) and Smallcaps (+0.4%) also climbed higher. 📈

Most sectors ended in the green. IT, PSU Banks and Real Estate stocks rallied +2% each. Energy (-0.6%) stocks closed down for the first time in 7 days. 🔥

In high demand! This midcap stock hit a new all-time high. Know more below. 🚀

IT stocks were lit. L&T Tech, Mphasis and Birlasoft rallied between 6%-9% each. Check out their charts below. 💯

Zomato closed up 3% after Temasek picked up a 1.1% stake in the company. 😋

Bandhan Bank dropped 5% intraday after the lender said it expects bad loans to rise to Rs 8,000 cr by FY23-end; +58% from current levels. 🤯

Likhita Infrastructure rallied +4% intraday after ace investor Ashish Kacholia bought nearly 4 lakh shares (2% equity). 💯

Tamilnad Mercantile Bank received the RBI approval to undertake government agency business. The stock jumped 4%. ✅

Cosmo First will buy back 10 lakh shares at Rs 1,070 apiece, +30% from today’s closing price. 💸

Uniparts India IPO got fully subscribed on day 2. 👍

Cryptos inched higher. Bitcoin and Ethereum rose +1%. Matic rallied +5% as NFT sales on the polygon network +3x since the September-end, as per reports. 😇

Here are the closing prints:

Nifty	18,812	+0.3%
Sensex	63,284	+0.3%
Bank Nifty	43,260	+0.1%

Top Of The World!

Varun Beverages is on fire! The stock hit a new all-time high after rallying +115% in 2022. I know what you’re thinking: what the hell is going on here? 🤨

Varun Beverages bottles and distributes PepsiCo’s range of beverages like Pepsi, 7UP, and Mirinda in India. As we all know, out-of-home consumption has gone through the roof since the removal of Covid-related restrictions. Hotels and bars are packed on weekends, and parties and celebrations are even grander these days. This in turn has boosted cold drink sales which is a big positive for the company. PS – they did record business in the first six months of FY23. 📊

Also, Varun Beverages (VBL) recently became a part of the MSCI global standard Index. This is a pretty big deal. FYI – Global Index provider, MSCI rejigs indices every six months based on a fixed set of rules. This means new stocks are added in place of existing ones or in some cases just a change in the weightage. Based on these changes, fund managers adjust their portfolios which could trigger millions of $$$ of buying and selling. Analysts estimate VBL’s inclusion in the MSCI Index triggered a massive $160 million of buying. 🤑

VBL is also in an expansion phase and will invest Rs 3,740 cr to set up 4 new plants in Uttar Pradesh. Their entry into the energy drinks, juices and dairy beverages market has witnessed a solid response, said experts. Lastly, the huge growth potential in its export business (mainly Africa) is also aiding the optimism. 💯

Chartbusters

Midcap IT stocks were lit AF! L&T Tech, Mphasis and Birlasoft rallied between 6%-9% each. But, why so? 🤔

For starters, The tech-focused Nasdaq 100 Index hit a two-month high after the US Federal Reserve hinted at slowing down the pace of interest rate hikes. Most IT companies reported decent quarterly results and maintained their full-year revenue guidance despite recession fears. 💪

Solid order book and easing margin pressure are also key positives, said experts. Valuations have also cooled off after the sharp 30%-50% correction since the start of the year. 💰

Winner Winner Chicken Dinner

Congratulations Sampath Kumar for winning the Community Star of the Month! ⭐

Sampath’s top idea, Rashtriya Chemicals & Fertilizers, is up 11% in the past week. Here are a few investment & trading ideas shared by him on Stocktwits that you must check out: 😎

Sampath started his trading journey after the Covid-19 pandemic. While he does give out ideas for the short term on Stocktwits, he identifies as a medium to long-term investor. Follow him for more awesome insights like these. Here’s the link: https://stocktwits.com/sampathgreen