Global index provider MSCI has announced significant changes to its India Index for August, adding seven stocks while removing one. The additions include Rail Vikas Nigam Limited (RVNL), Vodafone Idea, Dixon Technologies, Oil India, Prestige Estates, Oracle Financial Services, and Zydus Lifesciences. Bandhan Bank will be the sole stock removed from the index. Additionally, MSCI will be increasing HDFC Bank’s weightage in two phases, starting with the August review and potentially extending into November.
Following these updates, Nuvama Alternative and Quantitative Research estimates suggest that HDFC Bank could attract inflows of around $1.5 billion. The newly added stocks are expected to receive inflows ranging from $170 million to $281 million. Dixon Technologies is projected to receive the highest inflow at up to $281 million, followed by Vodafone Idea at $278 million, and RVNL at around $219 million. These adjustments will be implemented on August 30, 2024.
Stock Analysis and Strategy
- HDFC Bank:
- Current Price: ₹1,622
- Upside Potential: 8.5%
- Support: ₹1,625; ₹1,590
- Resistance: ₹1,685; ₹1,700; ₹1,725
- Commentary: Testing support at ₹1,625; could bounce back with a potential target of ₹1,760 if it breaks above resistance levels.
- RVNL:
- Current Price: ₹591
- Upside Potential: 26.9%
- Support: ₹514; ₹490
- Resistance: ₹625; ₹650
- Commentary: Positive bias expected if it remains above ₹490; potential target of ₹625 to ₹650.
- Dixon Technologies:
- Current Price: ₹11,919
- Bias: Range-bound
- Support: ₹11,585; ₹11,300
- Resistance: ₹11,945; ₹12,225
- Commentary: Consolidation phase; expect range-bound movement between ₹10,900 and ₹12,600.
- Vodafone Idea:
- Current Price: ₹15.70
- Upside Potential: 14.7%
- Support: ₹15.19
- Resistance: ₹17.15
- Commentary: Support at ₹15.19; potential upside to ₹18 if sustained.
- Oil India:
- Current Price: ₹687
- Upside Potential: 24.8%
- Support: ₹669; ₹645
- Resistance: ₹730; ₹747
- Commentary: Positive outlook if above ₹669; potential to reach ₹730 and ₹747.
- Prestige Estates:
- Current Price: ₹1,749
- Support: ₹1,670; ₹1,585
- Resistance: ₹1,805; ₹1,895
- Commentary: Faces resistance at ₹1,805 and ₹1,895; needs to break these levels for a positive trend.
- Oracle Financial Services Software (OFSS):
- Current Price: ₹10,780
- Downside Risk: 16.5%
- Support: ₹10,725; ₹10,000
- Resistance: ₹11,300; ₹11,600
- Commentary: Limited upside with stronger support around ₹10,000; watch for potential downside risks.
- Zydus Lifesciences:
- Current Price: ₹1,220
- Downside Risk: 7.4%
- Support: ₹1,218; ₹1,193
- Resistance: ₹1,304
- Commentary: Weakness below ₹1,218; potential downside to ₹1,130.
- Bandhan Bank:
- Current Price: ₹192
- Upside Potential: 7.8%
- Support: ₹191; ₹181
- Resistance: ₹201
- Commentary: Testing support at ₹191; possible rebound to ₹207 if support holds
