Today's Market Influencer :
Today Movement - Negative to Neutral
US market Future Indices and Asia are mixed with US closing near 1% close. The oil prices are at $65.94/bbl(-0.27%) the drop was due to big broker short selling algorithms which were hedging there own positions and USDINR at 72.07( -0.17%) has opened higher due to crude impact on the currency.
We expect today to be Neutral to Negative, Crude has given upside risk but we believe it is algorithm led which will adjust post OPEC+ announcements on cut and today being Bank Nifty expiry second half will be unexpected.
Important Day Close Level is 10472/10710
Stock of the Day :
Mahindra & Mahindra Ltd. - Down Level 762/755 & Up Level - 775/782
Q2 Results were below estimates as consolidated revenue grew 6.4% YoY and Raw Material cost which came at 67.61% of sales vs 65.88% of sales last year was main cause of lower margins.
Segment wise results were disappointing as Automotive EBIT margins came at 5.2% vs 6.7% QoQ as the raw material cost and R&D cost increased. Farm Equipment (Tractors) EBIT margins were slightly lower 20.2% vs 20.8%. Revenue growth YoY was 9% in Auto & 2% in Tractors.
Balance sheet on consolidated basis is stressed further as receivables days have increased from 36 days to 52 days and inventories days have increased from 30days to 42 days. This has reduced cash and current investments on books from 6832 cr to 5845 cr.
We would be negative for intraday trade.
POSITIONAL NIFTY LEVEL :
ALERT : PREVIOUSLY NIFTY CLOSED BELOW 1WEEK ,1DAY BUT CLOSE TO 2 MIN AND 30 MIN SUPPORT WHICH INDICATES A SLIGHT REVERSAL. BUT WE BELIEVE CLOSE OF BELOW 10027 WILL BRING NEW LEVEL OF SHORT AND CAN EXTEND THE FALL. WE WOULD ADVISE TO INVEST 5-8% OF CASH LEVELS HERE IN ADVISED PORTFOLIO.
Note : These are derived from an Internal Indicator and any movement or close below/above Support/Resistance of one time period moves the Support/Resistance to next time period.
Example : if current market levels is below or above 2 min levels then immediate levels to keep watch are 30 Min levels.