Nifty Last Close – 19527 “Entered into bearish territory”

Based on our mid-tier IT assessment framework, client cohort analysis and industry checks, we are positive about BSOFT’s growth prospects. We initiate on BSOFT with a BUY recommendation and a TP of INR 530, based on 21x Jun-25E with 20% EPS CAGR over FY23-26E

We upgrade our rating to BUY from ADD and assign a TP of INR 1,470, based on 37x June-25E EPS. The stock has traded at an average 3Y/5Y 1-year forward P/E multiple of 42/32x.

Primary trend of the Nifty is bullish as it is trading above all its important moving averages. Breadth of the market is very strong, which indicates higher probability of Nifty breaking out from the range of 19300 to 19500 levels on the upside. Therefore, we expect Nifty to trend higher in the coming week till 20 July 2023 expiry

Historically Nifty has never risen for four series on the trot since June 2017 and therefore history suggests, there is a higher possibility of profit booking in the July series after three series of consecutive gains. Therefore our advise is to book profits in long positions on any rally towards 19200-19500 levels to re-enter at lower levels

table of companies (CNX 500 stocks) that offer dividend yield of 3.00% and above

We believe there will be no more pressure on earnings for FMCG companies in FY24 (earnings cut cycle is behind) while both revenues and margins should see an uptrend. We remain cautious and selective on valuation for the medium term (do not see rerating as a story); however, earnings pick-up in FY24 will continue to support FMCG stocks. We rate ITC, Dabur, GCPL, Marico, UNSP, and Colgate as ADD and HUL, Nestle, Britannia, Emami, and Radico as REDUCE

Higher open Interest in the Nifty Futures’ as compared to last series (long rollover), Lower stock Futures’ Open Interest (compared to all time highs) despite sharp rise in the Nifty from March 2023 lows, FIIS long to short ratio in the Index Futures at 1.36 (Long build up by FIIS in the Index Futures segment) and aggressive Put writing at 18000 levels indicates that downside is limited in the Nifty and one should continue to remain optimistic for the June series.

India’s hotel industry has witnessed a robust turnaround in demand after the pandemic, led by the rising discretionary spending on tours and travels, revenge tourism, improving economic environment fuelling corporate travels and revival of mega wedding season and other cultural events

Bajaj Finance (BAF) delivered a strong operating performance, with steady NIMs in a rising interest rate and strong AUM growth (+27% YoY) environment.