May 17th 2024 Stock Market analysis

Sensex Gains 253 Points, Nifty Surpasses 22,450; BSE Midcap Reaches New Peak, Smallcap Near Record Close

Indian markets rose for the second consecutive session, with Nifty closing above 22,450 and broader markets also gaining. The BSE MidCap hit a new record high while the BSE SmallCap was just 100 points shy of its all-time peak.

At close, the Sensex reached 73,916 points, up by 0.34 %, while the Nifty closed at 22,464 points, a 0.27 % increase. The BSE MidCap surged 1.2 %, and the SmallCap ended 1.4 % higher.

Among sectoral indices, Nifty Consumer Durables led with a 2.8 % increase, followed by Nifty Realty, Metal, and Auto, each up by 1.7 %. However, the Nifty IT index was the top loser, dropping 0.9 %.

Globally, markets ended marginally lower as investors monitored comments from Federal Reserve officials. Three officials suggested maintaining high borrowing costs until there's more evidence of easing inflation, signaling no rush to cut interest rates. Cleveland Fed President Loretta Mester, New York Fed President John Williams, and Richmond Fed President Thomas Barkin emphasized patience in reaching the 2 percent inflation target.

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Technical Outlook on 21st May‍

Nifty is expected to find immediate support around 22,325, followed by 22,247, with resistance at 22,481 and then 22,559. Currently, Nifty is likely to see profit booking from higher levels.

Bank Nifty is expected to find immediate support around 47,763, followed by 47,549, with resistance at 48,191 and then 48,405. Currently, Bank Nifty is also likely to experience profit booking from higher levels.‍

Derivative Outlook on 21st May‍

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

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

Cost of Carry Analysis: Nifty MAY month contract has ended in low compare with JUNE contract and low range compare with previous session which indicates a profit booking.

India VIX Analysis: India VIX has closed at 19.80 vs 20.00 (DoD) basis which shows decrease in volatility.‍

Zydus Life Q4 Results: Net Profit Soars Fourfold to Rs 1,182 Crore‍

The company reported a net profit of Rs 296 crore in the same period a year ago.

Revenue came in at Rs 5,533 crore, marking a 10 percent increase from the previous year, according to the pharma company's exchange filing.

The Ahmedabad-based company reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of Rs 1,629.8 crore, up from Rs 1,257 crore. The EBITDA margin rose to 29.5 percent from 25 percent a year ago.

The board declared a final dividend of Rs 3 per equity share. Chronic therapies accounted for 41.2 percent of the total India business during the year, with their contribution increasing by 360 basis points over the last three years.

The India branded business outpaced the market with 8 percent year-over-year growth. The FMCG sector saw a gradual recovery in demand, particularly in rural areas.

During the quarter, the company launched 5 new products and received approval for 12 new products (including 4 tentative approvals) in the US. For the full year, Zydus Life filed 20 ANDAs, received approval for 46 new products (including 5 tentative approvals), and launched 29 new products. In emerging markets, the company is focusing on scaling up operations in the UK by leveraging its global R&D portfolio of differentiated and niche generics as well as specialty products.

In April, the company received an inspection report from the US FDA for its injectable manufacturing site in Jarod, near Vadodara in Gujarat, which closed with 10 observations.

Founded as Cadila Laboratories in 1952, Zydus Life has grown to become one of the top five pharmaceutical companies in India. It has a significant presence in overseas markets and is among the top five players in the US generic market.

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