May 23rd 2024 Stock Market analysis

Market Hits Record High: Nifty Surpasses 22,950, Sensex Soars 1,197 Points

Bulls returned to Dalal Street, propelling benchmark indices to fresh record highs. The Nifty closed just shy of the 23,000 mark, driven by sector-wide buying, excluding metals and pharmaceuticals, despite hawkish Fed minutes.

At the close, the Sensex surged 1,196.98 points, or 1.61 %, to 75,418.04, while the Nifty climbed 369.90 points, or 1.64 %, to 22,967.70.

Amid mixed global cues, Indian indices opened flat, with the Nifty around 22,600. However, as the day progressed, the market gained momentum, with the Nifty reaching an intraday high of 22,993.60 and the Sensex hitting 75,499.91.

The Nifty Midcap 100 index also touched a fresh high of 52,452.65 during intraday trading, closing at 52,418.55, up 0.48 %.

The top Nifty gainers included Adani Enterprises, Adani Ports, Axis Bank, L&T, and M&M, while the laggards were Sun Pharma, Power Grid Corp, Hindalco, Coal India, and NTPC. The BSE Midcap index rose 0.5 percent, and the Smallcap index increased by 0.3 %.

All sectoral indices, except metals and pharma, ended in the green, with auto, bank, and capital goods sectors up 2 % each.

Among individual stocks, GMR Airports Infrastructure, ITC, and Jubilant FoodWorks saw a volume spike of more than 300 %. A long build-up was observed in Adani Enterprises, Adani Ports, and Voltas, while a short build-up was noted in Deepak Nitrite, Lupin, and Vedanta.

More than 200 stocks touched their 52-week high on the BSE, including Adani Enterprises, Adani Ports, Ashok Leyland, Aurobindo Pharma, Bharti Airtel, Divis Labs, Eicher Motors, Indian Bank, M&M, Oberoi Realty, Solar Industries, and UNO Minda, among others.

Technical Outlook on 24th May

The Nifty is expected to find immediate support near 22,759, followed by 22,551, with resistances at 23,071 and then 23,175. Currently, Nifty is likely to experience profit booking at higher levels.

Similarly, Bank Nifty may find immediate support around 48,290, followed by 47,812, with resistances at 49,007 and then 49,246. Bank Nifty is also anticipated to undergo profit booking from higher levels.‍

Derivative Outlook on 24th May‍

PCR Analysis: Nifty PCR-OI has decreased with nifty has positive which shows CALL BUYING.

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

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

India VIX Analysis: India VIX has closed at 21.38 vs 21.47 (DoD) basis which shows Flat in volatility.‍

Mamaearth's Q4 Revenue Soars 21% to Rs 471 Crore; Net Profit Hits Rs 30 Crore‍

Honasa Consumer, the parent company of skincare brand Mamaearth, reported a 21% revenue increase to Rs 471 crore in Q4 compared to the same period last year, despite weak demand in the retail sector.

The company achieved a net profit of Rs 30 crore in Q4, a significant turnaround from a Rs 162 crore loss in the year-ago period.

With a 780-bps improvement in EBITDA margins year-on-year, Honasa Consumer recorded its highest-ever quarterly Profit After Tax of Rs 30 crore. By consistently outpacing market growth, the company reaffirms its dedication to innovation and strategic market expansion, thereby strengthening its presence in the beauty and personal care industry," the company stated.

Mamaearth shares fell 2% to close at Rs 418 apiece on Thursday.

Honasa acquired the formulations expertise, research & development lab, and a small manufacturing facility of a Thane-based company, Cosmogenesis Cosmetics, for Rs 4 crore, according to regulatory filings. Varun Alagh, Chairman and CEO of Honasa Consumer, said, “Reflecting on the quarter and year, we are extremely pleased to share that despite industry headwinds, Honasa demonstrated remarkable resilience and growth, with robust LFL growth of 23.3% for the quarter and 31.6% annually.

We have remained committed to delivering growth, improving profitability, and expanding our distribution network. Mamaearth's unwavering popularity among consumers has been a key driver of our continued success, while The Derma Co. is catching up and has recently achieved an ARR of over Rs 500 crore,” he added.

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