The breakdown is likely to threaten the recent bottom of 10,637 level registered in August. The upside remains capped around 11,084 level. Positional traders with high risk appetite are advised to create short positions now and on rallies towards 11,000 level with a stop loss above 11,100 on a closing basis and a target of 10,637
- Mazhar Mohammad, Chartviewindia.in
60% of Nifty stocks and 70% of Nifty500 stocks have witnessed Death Cross formations on daily charts. This is what we have seen lately as in terms of a measure which checks the breadth structure of Nifty components 50 components and other broader market indices. This largely doesn't mean there is a shorting opportunity in that particular stock as there may be some different play on Weekly or Monthly time frame. But it doesn't indicate cautiousness and overall weakness. But it has, more importantly, to do with overall breadth of the market which is very bearish
- Mustafa Nadeem, CEO, Epic Research
GST rate cut from 28% to 18% can definitely drive demand in the near term. However, if the cut is only till March 31, FY21 could see another period of slowdown as BS VI price hike along with reversal in GST cuts will lead to a sharp jump in vehicle prices. A longer term approach is required. Two-wheelers below 150cc and CVs are not luxury items and hence can attract lower GST rates
- Prayesh Jain, Lead Analyst, Yes Securities
Nifty showing a sharp weakness, indicates a reversal of a recent upside bounce. The 11,100 level has acted as a strong resistance for the fourth occasion and resulted in a sharp decline. As per its previous reversal from the highs, one may expect further weakness in the next 1-2 sessions. The next lower levels to be watched at 10,700
- Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The breakdown from the lower end of the pattern on a closing basis suggests Nifty has a significant downside on the cards. The benchmark index is now set to test the August low of 10,637 with potential to tumble towards 10,455 level in the short term. Hence, any bounce towards the 10,880-10,900 zone can be seen as an opportunity to initiate fresh short positions
- Gaurav Ratnaparkhi, Sharekhan
Auto stocks led the downside followed by banking putting pressure on Nifty. The 10,600 zone is the next downside support. It will be interesting to see if Nifty breaches 10,740 in the near term. The index is likely to face resistance near 10,970-11,000
- Amit Shah, Technical Research Analyst, Indiabulls Ventures
Nifty has broken its rising support trend line by connecting the swing lows of 10637, 10,746 and 10,880 levels. Nifty has broken its immediate support at 10,950 after completing its NR4 pattern. It has started forming lower highs for last two sessions. As long as it holds below 10,880, weakness could continue till 10,750 level. On the upside, a major hurdle is seen at 10,950 level
- Chandan Taparia, Motilal Oswal Securities
Nifty could not sustain above 11,000 and tested important support around 10,800 level, below the 20-day moving average. RSI looking weak on the daily chart and currently placed at 41.42. Along with this, in the weekly chart, Nifty seems to be consolidating between 50-day DMA with resistance around 11,150 and 200-DMA as support at 10,750. This week, if the index moves below the range of 10,800-10,750 on a closing basis, then we could witness a more severe bearish move that may take it down to 10,500 level. On the other hand, if 10,750 levels remain intact then the market may trade 10,750 to 11,150
- Romesh Tiwari, Head of Research, CapitalAim
The sharp rise in crude oil prices has impacted domestic sentiment. Market participants would keep a close watch on geopolitical developments as further escalation would have an adverse impact on the market and economy. Apart from this, the FOMC meet outcome would also be on investors’ radar as there are expectations of a rate cut. However, commentary on growth and rate outlook would be a key factor to watch out for. On the domestic front, the recent measures announcement are positive, but it failed to lift market. In the near term, the GST meet would be on investors’ radar as expectations of rate cut are high, especially for the auto sector. The above crucial events in the near term is likely to induce volatility in the market
Oil prices slid on Tuesday, although the market remains on tenterhooks over the threat of a military response to attacks on Saudi Arabian crude oil facilities that halved the kingdom's output and prompted a price spike not seen in decades.
Surge in crude oil prices may be the reason behind crash in auto stocks
- Gautam Duggad, Head Of Research - Institutional Equities, MOFSL
Worries over crude oil spike and its further impact on current account and fiscal deficit hit the market
The bears tightened their grip on Dalal Street on Tuesday as benchmark indices fell over a per cent as crude oil prices continued to gain in the aftermath of drone attacks on Saudi Arabia oil establishments. A poor set of macro data from China also stoked further hit sentiment.
BSE Sensex fell about 1.79 per cent or 660 points to 36,459. NSE Nifty plunged to 10,813, down 1.70 per cent or 190 points.
Sensex heat map
Sensex tanks 500 pts; top banking losers
Price as on 17 Sep, 2019 01:41 PM, Click on company names for their live prices.
Investec initiates coverage on FMCG sector, recommends buy on HUL, TCS and Dabur
Investec has initiated coverage on the FMCG sector with a BUY on Hindustan Unilever, Dabur, ITC and Jyothy Labs, with a 'HOLD' on Godrej Consumer, Marico, Britannia, Emami and Nestle India and a 'SELL' on Colgate Palmolive.
IT services FY20 growth likely at 6-8% in dollar terms: ICRA
The rating agency said that the margin contraction in June quarter was largely due to higher onsite hiring and sub-contracting costs. It expects FY20 IT services sales growth to remain at 6-8 per cent in dollar terms.
Expect 4-5% price growth, flat demand in FY20: CS on cement sector
Credit Suisse said that the domestic cement sector continues to see slow demand growth. The sector took a large price hike of Rs 50-70 per bag (15-20 per cent) in February-March in the face of weak demand and low capacity utilisation, it said. “This helped the sector report strong profitability in Q1FY20. Our channel checks and demand outlook suggest that a large part of this may be difficult to sustain. We build 4-5 per cent price growth and nil demand growth in this FY20.
Temporary cut in GST rate may not revive auto demand: Kotak Securities
Kotak Securities said that a temporary cut in GST rate, say for six months, is not going to revive industry demand and the government may need to extend the GST rate cut for an extended period of time for the revival in auto demand. "Given limited fiscal space, we ascribe very low chances for a GST rate cut. However, the positive impact on auto companies’ financials could be significant if 10% GST rate cut in the auto sector is given for an extended period of time," it said.
IndiaMART, HDFC AMC and CESC hit fresh 52-week highs
YES Bank, SAIL and RCom among stocks trading above 20-day moving averages
NBCC flat depsite order win
The stock was trading flat at Rs 37.65 even as the state-owned bagged a Rs 390- crore contract from Utkal University, Odisha for constructions in the existing campus as well as for building a new campus. The company informed exchanges about the order win post market hours of Monday.
CG Power climbs 5% as KKR India picks 10% stake
Shares of CG Power were trading 4.95 per cent higher at Rs 15.69 as private equity giant KKR India has picked up 10 per cent stake in the company for over Rs 89 crore through open market transactions.
MMTC, STC plunge up to 14% as govt plans to shut operations
Shares of MMTC and State Trading Corporation (STC) tumbled up to 16 per cent in Tuesday’s trade as the government is looking to shut operations at the state-owned trading firms. The government owns about 90 per cent stake in MMTC and STC. Following the report, MMTC plunged 14 per cent to Rs 21.25, down Rs 3.50 on BSE. STC plummeted 16 per cent to Rs 112.50, down Rs 21 on BSE in early trade on Tuesday.
Rupee trades 23 paise higher at 71.83 against dollar
The rupee on Tuesday opened 23 paise higher at 71.83 against the US dollar after falling 68 paise against the greenback in the previous session. The sentiment improved as oil prices retreated over 1 per cent in early trade after spurting 14 per cent on Monday following drone attacks on two of Saudi Arabia's major facilities. It was the first fall for the rupee in the last eight sessions.
Sensex gains 100 pts, Nifty above 11,000; rupee trades at 71.84 against dollar.
Singapore trading sets stage for negative start
Nifty futures on the Singapore Exchange were trading 16 points, or 0. 15 per cent, lower at 10,989, indicating a negative start for Dalal Street.
Tech view: Nifty forms Doji candle
Nifty50 on Monday saw a gap-down opening, but managed to restrict losses, as it ended up forming an indecisive ‘Doji’ candle on the daily chart. Analysts said despite Monday’s fall, the bulls seem to have got an upper hand, even though multiple hurdles are placed in the 11,050-11,150 range.
Asian shares trade sideways
Asian investors broadly remain on the sidelines ahead of an expected rate cut from the US Federal Reserve on Wednesday. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1 per cent. Japanese stocks slid 0.48 per cent, while Australian shares were down 0.18 per cent.
Oil retreats after 14% rally
Brent crude, the international benchmark, fell 1.2 per cent to $68.18 per barrel in Asia on Tuesday. On Monday, Brent surged by 14.6 per cent for its biggest one-day percentage gain since at least 1988. U.S. President Donald Trump has authorised the release of emergency crude stockpiles if needed, which could ease some upward pressure on crude futures, but risks to the outlook abound, Reuters reported.
US stocks settle lower
US stocks broadly lower on Monday after an attack on Saudi Arabia's biggest oil processing facility sent crude prices soaring. The S&P 500 fell 9.43 points, or 0.3 per cent, to 2,997.96, AP reported. That's the index's largest loss since September 3. The Dow Jones Industrial Average slid 142.70 points to 27,076.82. The Nasdaq lost 23.17 points, or 0.3 per cent, to 8,153.54.
US, China trade talks from Thursday
Deputy-level US-China trade talks are scheduled to start in Washington on Thursday, the US Trade Representative’s office said on Monday, paving the way for high-level talks in October aimed at resolving a bitter trade war.
FIIs buy Rs 751 crore worth equities
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 751.26 crore on Monday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 308.56 crore, data suggests.
Sensex on Monday
BSE Sensex closed 261.68 points, or 0.70 per cent lower, at 37,123.31, while NSE Nifty ended at 11,003.50, down 72.40 points or 0.65 per cent.
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