February 9th 2024 Stock Market analysis

Indian Equities Close the Week Higher, Aided by Rebound in Banking Stocks

After a volatile session on Friday, Indian indices settled in the green amid subdued global cues, with both BSE Sensex and NSE Nifty closing higher, buoyed by a resurgence in banking stocks. The Sensex concluded with a gain of 204.46 points, or 0.3%, at 71,632.89, while the Nifty rose by 68.50 points, also 0.3%, reaching 21,786.50. Grasim Industries led the gainers, surging by 5%, followed by State Bank of India and Apollo Hospitals Enterprise. Conversely, Mahindra & Mahindra, Oil & Natural Gas Corp., and Bharti Airtel were among the top laggards.

Technical Outlook on 12th February 

Nifty is anticipated to find immediate support levels around 21,696 and 21,610, with resistances at 21,868 and 21,954. Currently, profit booking is expected at higher levels for Nifty. Similarly, Bank Nifty may find immediate support around 45,205 and 44,776, while resistance levels are seen at 46,064 and 46,493. Profit booking from higher levels is anticipated for Bank Nifty at the moment.

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Derivative Outlook on 12th February

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

Open Interest Analysis: Nifty future Feb contract OI has decreased with positive close which shows Short Covering.

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

India VIX Analysis: India VIX has closed at 15.45 vs 15.83 (DoD) basis which shows decrease in volatility.

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Zomato's Q3 Performance: Profit Surges 283% Quarter-on-Quarter to Rs 138 Crore, Exceeding Estimates

Zomato's third-quarter results surpassed expectations, with a remarkable 283% quarter-on-quarter surge in net profit to Rs 138 crore, outperforming the anticipated Rs 36 crore. This impressive performance was underpinned by robust growth in food delivery and hyperpure businesses. Revenue from operations also saw a substantial 69% year-on-year increase to Rs 3,288 crore. The food delivery segment's gross order value (GOV) grew by 27% year-on-year, with expectations of continued growth surpassing 20% if market share gains and consumer demand revival exceed projections. Quick commerce GOV more than doubled year-on-year, and Blinkit's narrowing losses are in line with the goal of achieving Adjusted EBITDA break-even by Q1FY25. Both food delivery and quick commerce revenues witnessed significant increases, with food delivery revenues rising by 29% year-on-year to Rs 2,025 crore and quick commerce revenues surging by 114% to Rs 644 crore. The substantial growth in the quick commerce business was driven by heightened demand during events like the festive season and the World Cup, complemented by a well-curated assortment to meet customer needs effectively. In Q3FY24, nearly 70% of stores were contribution-positive, with 20% operating at a 5%+ contribution margin, indicating a growing pool of contribution profit. Hyperpure revenue experienced a notable 104% year-on-year increase to Rs 859 crore, propelled by growth in both core restaurant supplies and the emerging quick commerce opportunity. Additionally, the monthly active restaurant base on Zomato expanded by over 20% year-on-year in Q3FY24, driven by new restaurant openings and increased coverage of existing ones.