Pre-market trade setup on Wednesday 8th April, 2024
With immediate support at 22,150, the lower end of the rising channel, and key support at the 22,000 mark, the ongoing consolidation is expected to continue in the upcoming sessions. However, experts said that if the Nifty 50 is able to defend 22,300, then 22,400 is likely to be an immediate hurdle on the higher side, followed by 22,500 levels.
The increasing volatility that has left bulls in an uncomfortable situation should also be watched by market participants as it is not a positive indicator. The fear index, known as the India VIX, increased by 2.5 percent to 17.01 levels on Tuesday and has increased by over 67 percent over the previous nine sessions.
On May 7, the Nifty 50 declined 140 points to 22,303 and produced a lengthy bearish candlestick pattern on the daily charts with a slight lower shadow. The BSE Sensex also slid 384 points to 73,512. This market’s behavior suggests that the market is still correcting down.
Senior technical research analyst at HDFC Securities Nagaraj Shetti stated, “We observe overlapping negative candles on the downside in the last couple of sessions as per the daily chart which signals the absence of sharp selling momentum in the market.”
“Immediate resistance is at 22,400 levels and the next lower levels are to be watched around 22,100-22,000,” Nagaraj stated.
As long as it stays below 22,400, more selling pressure is expected, possibly extending into 21,980–22,000 in the near future, according to Rupak De, senior technical analyst at LKP Securities.
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Stocks in News-pre-market trade setup
Dr. Reddy’s Labs
The pharmaceutical firm reported a net profit of Rs. 1,307 crore for the quarter that ended in March of FY24, up 36.3 percent from the same period last year. Other income also increased by 133 percent year over year to Rs. 656 crore. The quarter’s revenue from operations increased by 12.5% year over year to Rs 7,083 crore, with the global generics business growing by 13% to Rs 6,119.1 crore.
PB Fintech
In comparison to a loss of Rs 9.34 crore during the same period in the previous fiscal year, the Policybazaar operator reported a profit of Rs 60.19 crore for the quarter that ended in March of FY24. The quarter saw a 25% year-over-year growth in revenue to Rs 1,090 crore and a 43% increase in premium to Rs 5,127 crore.
Pidilite Industries
Despite an exceptional loss of Rs 71.7 crore, the adhesive manufacturing company reported net profit of Rs 304.3 crore for the fourth quarter of the 2024 fiscal year, up 6.4 percent from the same period in the previous fiscal year. The company also reported strong operating numbers due to lower input costs. Operating revenue for the quarter increased to Rs 2,901.9 crore, a 7.9% year-over-year increase.
JSW Energy
Despite a slow top line, the JSW Group company reported a consolidated net profit of Rs 345.3 crore for the March FY24 quarter, up 22.4 percent over the same period in the previous fiscal year. This was fueled by robust operating results and decreased fuel costs. For the quarter, revenue from operations increased by 3.2% year over year to Rs 2,755.9 crore.
Dixon Technologies
Dixon Electro Appliances, a subsidiary, and Nokia Solutions and Networks OY (Nokia) have reached a deal for the development and production of telecom products.
Further Read: Nestle India declares Rs. 8.5 dividend
