Equity benchmarks Sensex and Nifty scaled record closing highs on Monday, extending their gains into the second consecutive session, on strong gains in banking, financial and metal stocks.
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Nifty reached the 78.6 per cent retracement mark on Monday and formed a small distribution over there. Hence, the upside looks limited from current level. On the other hand, the risk-reward ratio is pretty attractive at this level to initiate a short position
- Gaurav Ratnaparkhi, Sharekhan
Nifty has managed to close beyond a trendline resistance, confirming the bull dominance. A sustained trade above 11,950 can take the index higher to 12,060-12,120 levels. On the flip side, a trade below 11,850 may trigger profit booking. The RSI on the daily time frame suggests that bullishness in intact and the rally has more legs on the upside
- Aditya Agarwala, YES Securities
Post elections expect the market to revert back to the fundamental issues such as earnings growth. Slowdown in global growth, US-China trade wars along with rise in oil prices pose an immediate threat to domestic markets. Continue to remain optimistic on the equity markets and prefer private banking stocks
- Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas
Adani Ports and SEZ on Monday reported a 38.69 per cent year-on-year rise in consolidated profit at Rs 1,285.38 crore for the quarter ended March 31. The port operator had posted a net of Rs 926.77 crore (attributable to shareholders) in the corresponding quarter last year.
Analysts in an ET NOW poll had projected a profit of Rs 1,384 crore.
Total income, however, stood flat Rs 3,492.72 crore against Rs 3,487.29 crore in the same period last year.
The chart pattern suggests that if Nifty crosses and sustains above 11970 levels it would witness buying which would lead the index towards 12000-12050 levels. However, if the index breaks below 11900 levels it would witness selling which would take the index towards 11850-11820. The daily strength indicator RSI is moving upwards and above its reference line indicating a positive bias
- Rajesh Palviya, Head Technical & Derivative Research, Axis Securities
ETMarkets Special Podcast: Mobius offers Modi his word of caution
Nifty formed a bullish candle with higher lows on the daily scale but traded inside the trading range of results day. Now it has to continue above 11,850 to extend its move towards 12,000 and then 12,040 levels, while support is seen at 11,761
Technically, with the markets surging higher, the underlying trend remains up. Markets are trying to revisit Nifty highs of 12041 made last week. Further upsides are likely in the near term once the immediate resistance of 11957 is taken out. Crucial supports to watch for resumption of weakness is at 11812-11658.
- Deepak Jasani, Head of Retail Research, HDFC securities
The US isn’t ready to make a trade deal with China, President Donald Trump said while on a state visit to Japan.
“I think they probably wish they made the deal that they had on the table before they tried to renegotiate it,” Trump said Monday at a joint press conference in Tokyo alongside Japanese leader Shinzo Abe. “They would like to make a deal. We’re not ready to make a deal.”
As far as levels are concerned, 12000 – 12041 would be seen as immediate hurdles whereas on the lower side, 11859 – 11812 are likely to provide support on an intraday basis.
As a trader, one needs to focus more on individual stocks from the broader market as we expect lethargic moves from previous index drivers (mentioned in the earlier report as well). The way overall ‘Midcap’ index is shaped up, we do not expect this optimism to halt anytime soon as they seem to have come out of their slumber after a long time.
- Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking
With the general elections behind us, the focus would return to earnings, upcoming macroeconomic data and global cues. We advise maintaining positive bias and suggest adding quality counters on dips. Volatility will remain high due to scheduled derivatives expiry
- Jayant Manglik, President - Retail Distribution, Religare Broking
It is very attractive to invest in midcaps and small caps in spite of runaway in prices during the last few trading sessions. The economy is expected to revamp from the second half of FY20 led by growth agenda. On average they are available at one year forward P/E of 15x compared to an average of 18x in the last 5-year with a peak of 25x. The undercurrent is expected to be buoyant with hope over the upcoming final budget
- Vinod Nair, Head of Research, Geojit Financial Services
CLOSING BELL: Sensex climbs for 2nd day, gains 249 pts; Nifty tops 11,900; Smallcap index outshines, rises 1.8%
The landslide victory for Prime Minister Narendra Modi-led BJP in the general election is likely to improve the flow of foreign capital for corporates in India.
In the first back-to-back majority for a single party in over three decades, the Modi-led BJP on May 23 won 303 out of 542 Lok Sabha seats that went to polls, handing out a crushing defeat to the Congress and many other political opponents.
I think we are back to the 2009 to 2015 era where a handful of 20-30-40 companies would do well, liquidity would chase growth and if there is growth people will say okay let me put a pie of it in.
State-run GAIL on Monday reported a 9.92 per cent year-on-year (YoY) rise in profit at Rs 1,122.23 crore for March quarter.
The company had reported Rs 1,020.92 crore profit in the same quarter last year.
Revenue rose 21.6 per cent to Rs 18,764 crore compared with Rs 15,431 crore in the corresponding quarter last year.
Ebitda came in at Rs 1,684 crore against year-ago quarter's Rs 1,695 crore. Margin for the quarter stood at 8.9 per cent against 10.9 per cent on a yearly basis.
What do you think is the biggest concern in the economy that Modi govt will have to address quickly?
These stocks defy market trend & slump up to 58%
Price as on 27 May, 2019 01:34 PM, Click on company names for their live prices.
BHEL posts 49% YoY jump in Q4 profit at Rs 683 crore
Price as on 27 May, 2019 01:09 PM, Click on company names for their live prices.
Warren Buffett has raised close to $30 million for a San Francisco charity with 19 years of annual auctions, and he’s not finished yet. Bidding on EBay Inc.’s website opened Sunday evening in the US at $25,000 as the billionaire investor is again offering a chance to pick his brain over lunch at a New York steakhouse.
Suffering its biggest intraday fall in over a decade, shares of Page Industries plunged 11 per cent to Rs 19,527.55 in Monday's session on weaker-than-expected March quarter numbers.
The company, last Friday, reported a 20.42 per cent fall in its March quarter profit at Rs 74.98 crore against Rs 94.22 crore in the corresponding quarter a year ago.
The recorded sales stood at Rs 607.86 crore for the quarter ended March 31, 2019, with nil growth over the corresponding quarter of the previous year.
Its total income came at Rs 616.56 crore against Rs 615.70 crore in the same quarter of the financial year 2018, the company said in a BSE filing.
India's crude steel output almost flat at 8.662 MT in April
India's crude steel output remained almost flat at 8.662 million tonne (MT) during April 2019, according to official data. The domestic crude steel production stood at 8.653 MT during April 2018, according to a report by the Joint Plant Committee (JPC), which comes under the Ministry of Steel. "Crude steel production stood at 8.662 MT in April 2019, up by 0.1 per cent over April 2018," the report said.
10-year bond yield at over 1-year low; sentiment bullish
India's benchmark 10-year bond yield dropped to its lowest level in more than a year on Monday buoyed by a fall in global crude oil prices and announcement of another round of open market operations by the central bank.
"There is also possibly some foreign portfolio investor buying happening in the market," a senior trader at a private bank said.
India's benchmark 10-year bond yield at 7.16 per cent, its lowest level since April 9, 2018. It had ended at 7.23 per cent on Friday.
Top 10 NSE gainers
Price as on 27 May, 2019 12:30 PM, Click on company names for their live prices.
DLF cuts net debt by 34% in Q4 to Rs 4,483 crore
Realty major DLF reduced its net debt by 38 per cent during the fourth quarter of last fiscal to Rs 4,483 crore with the help of funds raised from selling shares to institutional investors.
DLF's net net debt would further come down during the current quarter with likely infusion of Rs 2,250 crore into the company by promoters.
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Shares of Manpasand Beverages hit lower circuit limit of 20 per cent in Monday's session after the company MD and CFO were arrested on allegations of GST fraud.
In a regulatory filing on Saturday, the company said that the Commissioner of Central GST and Customs has carried out search and seizure proceedings at various premises of the company on May 23, 2019, and a further inquiry was conducted on May 24, 2019, at GST Bhavan office of Vadodara.
Ruchir Sharma explains reasons for global slowdown
What are the three key reasons for global slowdown? Ruchir Sharma explains! @nikunjdalmia #Slowdown https://t.co/yGEMmoh716
Sensex climbs 300 pts; Nifty above 11,850; rupee trades at 69.39 against dollar.
Singapore trading sets stage for negative start
Nifty futures on the Singapore Exchange were trading 32.50 points, or 0.27 per cent, higher at 11,845, indicating a negative start for the Nifty50.
Tech view: Nifty forms Inside Bar candle
On Friday, the index rose 187 points, or 1.6 per cent, to 11,844. The Fibonacci retracement reveals the pullback fell short of the 61.8 per cent retracement mark, said Gaurav Ratnaparkhi of Sharekhan. “The Golden Ratio level, which is at 11,878 in this case, shows a high probability of the next downward leg,” Ratnaparkhi said.
Asian shares edge higher
MSCI's broadest index of Asia-Pacific shares outside Japan added 0.1 per cent. Gains were limited by persistent concerns that the China-US trade conflict was fast turning into a technology cold war between the world's two largest economies. Japan's Nikkei climbed 0.2 per cent.
Oil prices jump 0.6%, still below $70 a barrel
Oil prices rose on Monday as ongoing supply cuts led by producer club OPEC kept markets relatively tight, but Brent remained below $70 per barrel on concerns over an ongoing trade US-China war. Front-month Brent crude futures stood at $69.10 per barrel, up 41 cents, or 0.6 per cent.
US stocks settled higher on Friday
Dow Jones Industrial Average rose 95.22 points, or 0.37 per cent, to 25,585.69, the S&P500 index gained 3.82 points, or 0.14 per cent, to 2,826.06 and the Nasdaq Composite added 8.73 points, or 0.11 per cent, to 7,637.01.
European Parliamentary elections conclude
The elections concluded on Sunday. Estimates showed that the two largest centrist groups - EPP to the right and the S&D on the left - will no longer hold a majority in the new 751-seat chamber. Analysts told Reuters that the euro’s muted reaction to the preliminary vote outcome showed populist and far-right parties in some countries were unlikely to have gathered as much support as anticipated.
5-10% gains likely by Union Budget: ET poll
The majority of participants in an ET poll of 31 money managers, heads of research and market strategists said the Nifty could gain 5-10% in the runup to the Union Budget in July.
Rupee likely to trade in 66-75 range by December
The rupee is expected to trade in a wide range of 66-75 to a dollar till December end, showed an ET survey that polled 24 market participants. The local unit could either strengthen up to 5% or lose more than 7% if global growth shrinks in the aftermath of tariff wars involving the world’s two biggest economies.
China regulator warns against yuan shorting
The US escalation of trade tensions won’t solve any of its problems but will create volatility in global markets and hurt the world economy, according to China’s top financial regulator, Guo Shuqing. His speech warned speculators that shorting the yuan would cause them to suffer great losses.
FIIs buy Rs 2,026 cr worth equities
Foreign portfolio investors (FPIs) bought Rs 2,026 crore worth of domestic stocks on Friday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 195.35 crore, data suggested.
Sensex on Friday
BSE Sensex ended 623 points or 1.61 per cent higher at 39,434.72. While NSE Nifty closed the day at 11,844, up 187 points or 1.60 per cent. The rally was broad-based with all indices in the green. Midcaps and smallcaps too jumped in line with benchmark Sensex, rising nearly 1.50 per cent, each.
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