{
“headline”: “Nifty 50 and Bank Nifty Face Test Amid Rising VIX: What Analysts Say”,
“content”:
Narayana Health’s Q2FY23 earnings were largely in line with estimates, but the company announced a one-time payment of Rs 35 crore towards its outstanding dividend liability. The company also announced an interim dividend of Re 1 per share, payable on October 20, 2023, for shareholders eligible to receive dividends.
The earnings report showed revenue and profit growth in line with management’s expectations. Revenue grew by 21% YoY, driven primarily by a surge in hospital services. Adjusted operating profit also grew by 22% YoY, largely due to operational efficiencies and better margins. The company reported a net profit of Rs 1,136 crore for Q2FY23.
Analysts at Empees Wealth Management have placed an add on NCLT (National Company Law Tribunal) assets after the recent acquisition by Adani Group. They expect NCLT to sell these assets in the near future and expect a return of around 25%.
On the macroeconomic front, inflation has remained above target levels for several quarters. The Reserve Bank of India’s (RBI) latest policy review also saw no major changes to monetary policy stance. However, RBI Governor Shaktikanta Das hinted at a possible rate hike in the next review meeting if inflation does not show signs of abatement.
On the global front, the US Federal Reserve raised interest rates by 75 basis points last week, citing a strong labour market and rising inflation concerns. This move has led to significant sell-off in equity markets globally and is expected to have a bearing on Indian stock markets as well.
The VIX index rose sharply last week to its highest level since March 2020. This indicates heightened volatility and uncertainty in global financial markets, which may impact Indian stock markets.
Market experts expect Nifty 50 to face resistance at 61,000 levels due to high trading volumes while the support is placed at 60,500 levels. The Bank Nifty index may also test its lower levels around 15,700 if it fails to break above 16,200.
The rising VIX index suggests that investors are becoming more cautious and this may impact market sentiments for the rest of the week. Traders need to be on high alert with respect to volatility as it can affect trading decisions.
However, if Nifty 50 manages to break above 61,000 levels, traders can look for buying opportunities in stocks which are underlaid by strong fundamentals and have shown good growth potential.
For the Bank Nifty index, a close above 16,200 will signal a positive trend but any failure to break this level may send the index into a bearish mode. Therefore, traders should be cautious with their trading strategies during this period.
With rising VIX and inflation concerns still prevalent in the economy, market experts expect volatility to continue in the coming week. Investors are advised to remain cautious while making any investment decisions.
This will be an interesting week for traders and investors as Nifty 50 and Bank Nifty test their lower levels. With a slew of economic data releases lined up this week, including inflation figures, we can expect market movements based on the outcome of these reports.
Traders can look at stocks which are showing strong growth potential but have been underpriced due to recent volatility and can offer good upside in case of a recovery. However, traders should also remain cautious with their trading strategies given the rising VIX and inflation concerns.
A sustained break above 61,000 levels will be required for Nifty 50 to continue its upward trend while any failure to break this level may lead to selling pressure in the market. Traders can look at stocks which are underlaid by strong fundamentals and have shown good growth potential.
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