The Indian equities ended the week on a negative note, diverging slightly from global markets. The trading range widened as Nifty oscillated in a 398-point range, facing resistance in the 18,350-18,500 zone, whereby no runaway rally can be expected unless this zone is taken out. Derivative data shows next week will be influenced by expiry and rollover-centric activities. Nifty Realty, NiftyBank, Consumption, and Financial Services indices are inside the leading quadrant, which are expected to show relative outperformance against the broader Nifty 500 Index.

Rule-based trading is a mechanism that enables traders to overcome behavioural biases and emotional inclinations. It involves setting a written set of rules from start to end, which define which stocks to enter, when to enter, how much money to place, and when to exit. Once these rules are defined, the trader only has to wait for the target to be achieved or until the stop loss is hit. This approach is suitable for every type of trader, and the selection of rule-based strategies depends greatly on experience and temperament. The frontline index remained bearish on a weekly closing basis at 18,203 levels with a 0.61% fall.

Fineotex Chemical, a smallcap speciality chemical company, has seen its shares rise by 10,837% over the last decade. The company has a market capitalisation of around INR2,800 crore ($383m) and has seen its sales grow from INR96 crore in 2013 to INR368 crore in 2022. The firm makes specialty chemicals and enzymes for various industries and also produces adhesives used in the wood and paper industry.

Like every other industry, home building products like ceramic tiles and laminates witnessed headwinds when commodity prices including natural gas witnessed a sharp rise last year. Despite those pressures on margins, the topline numbers were much better than expected. Now with softening of some of the raw materials, the pressure on margins has come down, while the demand tailwind continues. For this report, we have selected stocks from the latest Stock Reports Plus report dated 20th May 2023 with an analyst count of at least 9 and a minimum average Stock Report Plus score of 5.

ETMarkets did a quick analysis to filter stocks available below Rs 2,000 for Dalal Street investors to pick. Nineteen Sensex stocks, including ICICI Bank, Axis Bank, and State Bank of India, are available below INR 2,000. Additionally, about 406 stocks that are part of the BSE 500 index trade below INR 2,000.

Many investors, especially the ones sitting on cash, get confused about what they should do in the market which is being bombarded with bad news or sudden unexpected developments. Should they – buy the dip or not, the answer lies in looking at fundamentals. Refinitiv’s Stock Report Plus which lists stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or "strong buy".

After a phase of consistent upward movement at the start of FY24, broader market indices have once again witnessed a phase of volatility in the last two weeks. The selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame.

Efficiency ratios are key for investors to analyse a company's overall efficiency and understand how efficiently a company uses its resources to generate revenue. Efficiency ratios, including inventory turnover ratio, asset turnover ratio and accounts receivable turnover ratio, offer insights into different aspects of a company's efficiency. A high inventory and asset turnover ratio indicate efficient management and strong product demand while a higher accounts receivable turnover ratio indicates that the company can collect payments more quickly. It is important to compare a company's efficiency ratios with its peers in the same industry to make informed investment decisions.

Investors are showing greater confidence in the market, causing them to slow down inflows into cash funds, according to a BofA report. A total of $25.1bn went into cash in the past week, but only $151bn has gone into money market funds in the past four weeks compared to $404bn after the collapse of Silicon Valley Bank. The report also showed U.S. Treasuries clocking up 14 weeks of inflows. Investors preferred investment grade bonds to high yield bonds and invested $1.1bn into tech stocks but pulled $700 million from financial funds.

Artificial intelligence (AI) is boosting the US stock market, with megacap stocks such as Microsoft, Google parent Alphabet, Nvidia, Apple and Meta platforms responsible for the majority of the S&P 500's 9% year-to-date return. About 25% to 50% of the gains are due to optimism around AI, according to DataTrek Research. Societe Generale has predicted removing the top 20 stocks linked with AI from the S&P 500 would reduce the index's performance by 10%. Analysts view AI as a major driver of future productivity and profit, citing generative AI as producing margin-expanding productivity gains.

In the financial year 2023, the top 10 Indian companies earned a total profit of Rs 3,56,652 crore, according to Ace Equity Data. Meanwhile, Reliance Industries remained the highest profit-earning firm with Rs 74,131 crore in FY23. Here is a list of the top 10 companies that earned over Rs 3.5 lakh crore profit in FY23 so far, according to Ace Equity Data:

Shares of SBI rose as much as 2.1% before giving up most of their early gains in a choppy trade. The stock eventually closed at ₹575.65 apiece on the NSE, up 0.25% from the previous close.

While Adani Group's market capitalisation plunged nearly ₹65,000 crore between Monday and Thursday, it gained ₹33,445 crore on Friday. Four stocks-Adani Green, Adani Power, Adani Transmission and Adani Wilmar-recovered more than 10% from the day's low.

ITC shares fell as much as 2% in early trade before recovering all its losses to end marginally in the green. The stock closed at ₹420.10 apiece on the NSE, up 0.10% from the previous close.

Several smallcap stocks in India have offered double-digit weekly returns amidst weak global cues. Repro India has offered the highest returns at nearly 45%, followed by Aurionpro Solution and Shakti Pumps. The midcap segment has not witnessed any stock rising in double digits, but Ramco Cements led the segment with 9.66% gains. Despite the lack of decisive direction, the Indian domestic market closed positively. Investors would continue to look for global cues to understand market direction and earnings growth. The market is expected to resume its upward journey, supported by positive global cues.

The Sebi found entities that took short positions in Adani Group stocks before the publication of the Hindenburg report and profited from squaring off their positions after the price crashed, says the Supreme Court-appointed panel. Sebi observed suspicious trading by six entities prior to the Hindenburg report; a detailed investigation is being carried out. The Enforcement Directorate found intelligence about potentially violative and concerted selling by specific parties prior to the report's publication and Sebi ought to be probing such actions under securities laws. No pattern of abusive trading came to light.

US stocks closed lower on Friday after negotiations to raise the US debt ceiling in Washington were paused, denting optimism for a deal. The two previous sessions had seen stock market rallies due to growing confidence in reaching an agreement but the optimism was reversed on Friday after talks were halted and Federal Reserve Chair Jerome Powell spoke at a monetary policy panel, raising uncertainty about interest rates. For the week, the Dow gained 0.38%, the S&P 500 climbed by 1.65% and the Nasdaq advanced by 3.04%, with the S&P 500 and Nasdaq posting their biggest weekly percentage gains since March.

Wall Street's main indexes retreated early gains on Friday as debt ceiling talks between White House and House of Republican lawmakers were paused, damaging hopes of an earlier deal to steer clear of a catastrophic default. But news of the pause dampened the indexes, Federal Reserve Chair Jerome Powell’s speech added to the weary trading, while Treasury Secretary Janet Yellen believed more bank mergers may be in sight after a sequence of bank failures to shore up sectors.

Federal Reserve Chair Jerome Powell suggested he might pause interest rate increases at next month's policy meeting. Powell said that after a series of hikes, he was keen to assess the data before making a decision. His comments reinforced earlier guidance this week from other members of his leadership team. The US central bank has increased interest rates 5 percentage points in little more than a year, aiming to contain inflation. Many investors reduced their expectations of a June rate rise after Powell's remarks.

In addition to the issuance of convertible securities and non-convertible debentures, the board also approved raising Rs 3,000 crore through private placement and/or public issuance. The funds will be used to replace short-maturity loans, meet working capital requirements, reimburse capex, and for general corporate purposes. A fresh approval is being sought from shareholders for its previous plan to raise Rs 14,000 crore through the issuance of non-convertible debentures and convertible securities.

Earnings before interest, taxes, depreciation and amortisation (ebitda) turned positive at Rs 28 crore, excluding the quick commerce business. The company said it aims to achieve net profit on a consolidated level in the next four quarters.

On March 17, both the bourses moved NDTV from the second to the first stage of the long-term Additional Surveillance Measure (ASM) framework.

Federal Reserve Chair Jerome Powell suggested that the bank is willing to stop interest-rate increases next month, and said tighter credit conditions could mean the peak in policy will be lower. He said, "having come this far we can afford to look at the data and the evolving outlook to make careful assessments."

Talks between US House Republicans and President Biden's administration about raising the debt ceiling have paused, risking a catastrophic default. The Treasury Department has warned that the government could be unable to pay all its bills by June 1st if a deal is not agreed. The lead Republican negotiator stated talks were unproductive and have decided to “press pause”. Biden was in Japan attending a meeting of the Group of Seven wealthy nations as Republicans criticised his decision to leave during such a sensitive time. The debt limit needs to be lifted regularly because the government spends more than it takes in taxes.

"Our policy rate may not need to rise as much as it would have otherwise to achieve our goals," Powell said at a central bank conference in Washington

The meeting with more than two dozen executives convened by the Bank Policy Institute came as the banking sector is endeavoring to shake off several weeks of turmoil spurred by the sudden failure of Silicon Valley Bank, which led to regulators seizing two more failing institutions and backing uninsured depositors in an effort to tamp down fears of broader contagion

Wall Street's major indexes gained as talks between top U.S. lawmakers for an agreement on raising the $31.4tn US debt ceiling progressed. President Joe Biden and Republican U.S. House Speaker Kevin McCarthy have expressed growing confidence about striking a deal soon, although they could face opposition from the hardline House Freedom Caucus. The Dow Jones Industrial Average was up 0.24%, while the S&P 500 was up 0.33%, at 9.54 am ET. But shares of Foot Locker plunged 25.2% after the company cut its annual sales and profit forecasts.

Intellect Design Area's stock is likely to be excluded from the futures and options derivatives segment due to non-compliance with the minimum criteria for three consecutive months. The exclusion is methodologically driven, and the announcement could be expected in as soon as 10 days, according to Nuvama Institutional Equities. In the past, excluded stocks' price performance just before the announcement was mostly poor, with an average decline of 1.9%. Intellect Design Area is a small-cap financial technology firm that caters to banks, insurance companies, and other financial services firms.

The decision, which follows the RBI halting printing the notes in 2018-19, is viewed as a positive move for banks, which could experience a marginal uptick in deposit accretion in the short-term.

The European Central Bank (ECB) must keep interest rates high to control inflation in the medium run, according to its President, Christine Lagarde, who hinted that there would be more monetary tightening. While it slowed rate hikes this month with a 25-basis-point rise, Lagarde remarked that "we still have to have sustainably high interest rates, so it's a time when we have to really buckle up and look at this target that we have and deliver on it." With a medium-term inflation target of 2%, the ECB is expected to implement at least one more rate increase, according to market predictions.

From July 1, all stockbrokers in India will have to display the risk disclosures for individual traders trading in the Futures & Options segment on their websites and inform their customers in the specified manner. After logging into their accounts, clients may be prompted to read the 'risk disclosures', which should be displayed prominently, covering at least 50% of the screen. Additionally, Qualified Stock Brokers have been asked to keep the Profit and Loss data of their clients, and all stock exchanges and depositories to display the risk disclosures with a link to a study conducted by Sebi.

ET Market's analysis, through the ET Mutual Fund screener, has highlighted top 7 hybrid mutual funds that have recorded over 15% growth in the past year. Hybrid funds invest in both equity and debt with the goal of balancing risk & reward and optimizing investment returns. The tax treatment of equity-oriented hybrid schemes is similar to that of equity schemes, while debt-oriented hybrid schemes are taxed in the same way as debt schemes.For more details on Hybrid MF click here- https://economictimes.indiatimes.com/mutual-fund-screener/best-hybrid-funds

The Dow Jones Industrial Average rose 47.04 points, or 0.14%, at the open to 33,582.95

Morgan Stanley's CEO, James Gorman, announced that the company will likely name its next CEO in the next 12 months. Gorman stated that the bank's board has identified three suitable candidates to succeed him. Ted Pick and Andy Saperstein, the company's co-presidents, are seen as top contenders for the job along with Dan Simkowitz, the head of investment management. Once the new CEO is appointed, Gorman will become the executive chairman of the company. Since taking charge in 2010, Gorman has transformed Morgan Stanley into a less trading-reliant, more diversified firm.

Revenue from operations fell 10% to Rs 1,860 crore for the quarter under review. It was Rs 2072 crore in the same quarter a year ago.

On Friday, the Sensex concluded the day with a rise of 298 points, reaching the 61,730 level. As a consequence of this upward movement, six stocks in the BSE financial services index reached new 52-week highs, which holds significant importance as a technical indicator for numerous traders and investors. This indicator assists them in evaluating the current value of a stock and predicting its future price fluctuations. The term "52-week high" represents the highest price at which a stock has traded over the past year

Jefferies analyst Christopher Wood has added Axis Bank to his India Long-only portfolio, and reduced the investments in HDFC Bank Limited and Reliance Industries Limited by 1 percentage point in the May edition of 'Greed & Fear' report. Wood's India Long-only portfolio comprises 18 stocks from financials, energy, real estate, infrastructure, transport, logistics and power equipment sectors. The stocks in his India Long-only portfolio include ICICI Bank, Bajaj Finance,

Nifty today formed a bullish hammer pattern on the daily chart while a bear candle with upper and lower shadows were seen on the weekly scale. Normally formation of such hammer patterns post a reasonable decline signal possible reversal on the upside post confirmation, said Nagaraj Shetti of HDFC Securities. However, a decisive move above 18450 levels is likely to negate the bearish effect of this pattern, he said.

Closing Bell: Fag-end buying drives Sensex 298 pts higher; Nifty above 18,200; Tata Motors gains 3%, TechM 2%

The Indian equity markets closed higher on Friday after a volatile session, led by stocks of Reliance Industries, ICICI Bank, and IT companies. The benchmark S&P BSE Sensex rose 298 points or 0.48% to settle at 61,729. The blue-chip Nifty 50 index gained 73 points or 0.41% to end at 18,203. From the Sensex pack, Tata Motors, Tech Mahindra, and Infosys were the top performers

The Indian equity market has undergone a significant transformation over the last decade, with increased liquidity and participation from domestic and foreign institutional investors. This has helped improve the efficiency and accessibility of the market for investors.

The panel said currently it cannot be concluded that there has been a regulatory failure on the part of SEBI on the allegation of price manipulation in the Hindenburg report. The panel report said it’s too early to conclude whether share price manipulations took place in Adani stocks.

The United States, the largest economy in the world, is not doing so well. Why you may ask? You must have recently heard about updates on the US debt ceiling. So what is this debt ceiling? Neha Vashishth from ETMarkets decodes.

The Sebi investigation into the Adani vs Hindenburg saga has found that some entities profited from the massive rout in stocks of billionaire Gautam Adani's companies, while retail investors suffered a loss of Rs 3,700 crore. The panel said since the issue is still under investigation, it can't express any opinion on merits.

Nexus Select Trust is a REIT that is backed by rental yielding assets. The trust is listed at a mild premium of 3% over the issue price on Friday. Analysts advise investors to hold on to the stock and even accumulate at the listing price for the long-term considering the growth visibility.

The Adani Group has seen its stock prices fall this week as two of its subsidiaries, Adani Transmission Ltd. and Adani Total Gas Ltd., were dropped from the MSCI India gauge. This move is likely to trigger around $390 million of selling by passive funds, Brian Freitas, an independent equities analyst who publishes on Smartkarma, predicted earlier. Adani Enterprises Ltd., the flagship of the group, is also set for a weekly loss of almost 4%.

Interglobe Aviation Ltd. (IGL) reported Q4FY23 consolidated net profit of Rs 919 crore, up from a loss of Rs 1,682 crore in Q4FY23. The company's stock was trading at Rs 2,269 on the NSE at 12:50 pm and was up by 4.35 or 0.19% from Thursday's closing price.

"Sebi has found that some entities have taken short positons prior to the publication of the Hindenburg report and have profited from squaring off their positions after the price crashed upon publication of the report," a Supreme Court-appointed panel said in its report which was made public on Friday.

State-run Life Insurance Corporation of India (LIC) has invested in Nifty stock ITC and has reaped a rich dividend of around Rs 2,940 crore in FY23. ITC is LIC's second largest bet and comprises around 15% of its Rs 10 lakh crore stock portfolio. The PSU insurer holds over 189.68 crore equity shares (15.27%) in ITC according to latest public shareholding data available on the BSE.

Decline in oil prices, increased economic activity are tailwinds. Will the step taken by RBI to control inflation show an impact on overall economic growth this quarter and that is what may turn out to be a headwind. The list of the logistic companies is based on upside estimated by the analysts, with the highest potential stock coming on the top of the list.