The Nifty 50 Index remained under pressure on Tuesday as investors waited for the upcoming corporate earnings. It retreated to a low of ₹25,000, down from the year-to-date high of ₹25,663. What is next for the index after surging by over 15% from its lowest point this year?
Top Nifty 50 Index earnings ahead
The Nifty 50 Index will be in the spotlight this week as investors react to earnings of some of the biggest companies in India.
HDFC Bank was one of the first companies to publish its earnings this week, with its net profit jumped to ₹18,155 crore, up from ₹16,175 crore in the same period last quarter.
HDFC’s net interest rose by 5.4% to ₹31,438. However, its provisions jumped sharply to ₹14,442 from ₹2,602 in the same period last quarter. This happened as the gross non-performing assets jumped by 12% to ₹37,041 crore.
The other top banks that published their earnings were ICICI and Yes Bank, which published better-than-expected earnings per share (EPS).
Looking ahead, more Nifty 50 Index companies will publish their earnings this week. Zee Entertainment, a top company offering broadcast and digital media solutions, will be one of the top ones to watch today.
Analysts expect the results to show that the earnings per share rose to ₹2.32, while its revenue jumped to ₹23.7 billion. These results come as the Zee Entertainment share price dropped by over 7% from its highest point this year to ₹140.
The other notable Nifty 50 company to publish its numbers this week is Infosys, the consulting company valued at over $74 billion. These results come as many consulting companies are under pressure as companies scale back their IT spending as the trade war continues.
The Infosys share price was trading at ₹1,573 on Tuesday, up by over 22% from its lowest point this year. It has remained on edge in the past few days as investors wait for its earnings.
Tata Consumer Products and other earnings ahead
Tata Consumer Products is a company that sells products like tea, coffee, water, salt, and organic foods. It is a 50:50 joint venture with Starbucks, the world’s largest coffee chain. It will publish its results on Wednesday, adding light on the state of the Indian consumers. Tata Consumer Products stock has jumped by 18% this year.
The other top companies to watch will be firms like Dr. Reddy’s Laboratories, Bajaj Finance, Nestle India, SBI Life, Vedanta, Bajaj Finserv, and Kotak Mahindra Bank.
Bajaj Finance and Bajaj Finserv will be in the spotlight because they are the best-performing companies in the index. They have jumped by over 38% and 30% this year as their growth continued.
Nifty 50 Index analysis
Nifty 50 Index chart by TradingView
The daily chart shows that the Nifty 50 Index has jumped in the past few months. It moved from a low of ₹21,745 in March this year to ₹25,000.
The index has remained above the 50-day and 100-day Exponential Moving Averages (EMA). It has also formed a bullish flag pattern, a popular continuation sign in technical analysis.
Therefore, the Nifty 50 Index will likely have a bullish breakout, with the next point to watch being at ₹25,663, the highest swing on June 30.
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