February 6th 2024 Stock Market analysis

‍Market Bounces Back: Sensex Surges by 450 Points, Nifty Climbs Above 21,900‍

The Indian equity benchmarks maintained their early gains and concluded the session near the day's peak on February 6, as investors disregarded concerns regarding a delay in rate cuts by the US Federal Reserve. Despite subdued global cues, with the exception of China and Hong Kong closing higher, the market opened on a higher note and managed to sustain and build upon its upward momentum throughout the session. At close, the Sensex surged by 454.67 points or 0.63 percent, reaching 72,186.09, while the Nifty rose by 157.70 points or 0.72 percent, closing at 21,929.40.

In today's trading session on the NSE, the top gainers were BPCL, trading at 610.5 with a 6.22% increase, HDFCLIFE, traded at 592.2 with a 5.12% rise, and HCLTECH, traded at 1623.8 with a 4.40% uptick. Conversely, the top losers included POWERGRID, trading at 275.2 with a 2.72% decline, BRITANNIA, traded at 5015 with a 2.14% loss, and INDUSINDBK, traded at 1513.2 with a 1.60% decrease. Among the most active stocks by volume was TATASTEEL, traded at 144.6, with a total volume of 5,31,92,936 shares traded.

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Technical Outlook on 7th February

Nifty is anticipated to find immediate support levels around 21,823 followed by 21,717, while resistance levels are projected at 22,036 and then 22,089. Currently, Nifty is experiencing a mixed trading sentiment.

For Bank Nifty, immediate support levels are expected around 45,488 and then 45,286, with resistance levels at 45,892 and 46,094. Bank Nifty is also observing a mixed trading scenario at present.

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Derivative Outlook on 7th February

PCR Analysis: Nifty PCR-OI has increased with nifty has positive close which shows PUT WRITING.

Open Interest Analysis: Nifty future Feb contract OI has increased with positive close which shows Long Buildup.

Cost of Carry Analysis: Nifty FEB month contract has ended in low compare with MARCH contract and high range compare with previous session which indicates a mixed trade.

India VIX Analysis: India VIX has closed at 15.79 vs 15.62 (DoD) basis which shows increase in volatility.

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Bharti Airtel's Q3 Triumph: Net Profit Surges by 54%, ARPU Hits Rs 208

Bharti Airtel, on February 5, revealed a consolidated net profit of Rs 2,442.2 crore for the October-December quarter, marking a robust 54 percent growth compared to the corresponding quarter a year earlier. Despite this impressive growth, its revenue of Rs 38,339 crore for the quarter, while showing a 6.3 percent increase from the year-ago period, fell slightly short of street estimates. Analysts had anticipated a net profit rise of 47 percent year-on-year and 14 percent sequentially to Rs 3,308.50 crore. Factors contributing to the revenue included a net subscriber addition of 3.6 million and an ARPU of Rs 205, up 1.1 percent quarter-on-quarter. However, the mobile ARPU stood at Rs 208, slightly outperforming estimates, driven by the consistent strategy of acquiring high-value customers and improved realizations. The stock closed the day at Rs 1,113.60 on the National Stock Exchange, reflecting a 3.23 percent increase.

Gopal Vittal, MD of Bharti Airtel, commented, "Revenue from the India business continued its upward trajectory, growing sequentially by 3 percent. However, the consolidated revenue was affected by the devaluation of the Nigerian Naira and Malawian Kwacha."

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