Traders' Diary: Nifty may face resistance in 11,600-11,690 range
Auto, bankex and finance among top sectoral gainers on BSE.
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Markets continued their positive bias for yet another session and gained nearly a percent. The first half was dull but a sharp surge in the banking index in the latter half pushed the benchmark higher. Besides, the news of Brexit deal between the UK and European Union further boosted the sentiment. All the sectoral indices, barring IT, ended in green and the broader indices too posted decent gains.
Stable flows for the economy along with improved news from global markets has helped the market move beyond and close above 11550 levels. Sensex and Nifty, closed higher sharply by more than one percent. Technically, “it was a make or break” sort of day for the market which ended positively. Although the market closed higher above 11550 with an improvement in market breadth, it has multiple hurdles at every 50 points higher from current levels. In case the market manages to cross 11700 in 3 to 4 days, it would result in re-knocking 12100 levels in coming days. Below 11550, Nifty would find support at 11500 and at 11430.
If Nifty crosses and sustains above 11,600 level, it would witness buying towards the 11,650-11,680 zone. A break below 11,550 level would take it towards the 11,520-11,480 zone.
- Rajesh Palviya of Axis Securities
Indian cos' revenue from UK (%)
Government’s intention to provide further fiscal stimulus in the future as per the needs of the economy lifted the market sentiment today. Easing trade tension & positive development on BREXIT provided further boost to the market. Risk taking ability is improving in the market with optimism over recovery in the economy led by stimulus, festive demand, good monsoon and lower interest rate
- Vinod Nair, Head of Research, Geojit Financial Services
Two major concerns for the global economy have been the trade skirmishes between US & China and a 'no deal Brexit.' Early indications are that a Brexit deal has been done. This augurs well for the global economy. If the US- China trade deal also happens that will be very good news for the global economy. Since markets are over-sold this can lift spirits in the market.
Bulls are now completely in control. We have been mentioning about slowly but steadily bulls gaining control over the market. We have continued our bullish bias since 11,150 and continue to maintain an initial target of 11,700. Overall index may hit and test previous all-time highs before the calendar year. 11,100 is a new strong base for the index. In the near term, 11,450 is the support zone and traders should continue to be positioned on the long side.
- Manav Chopra, CMT, Head Research - Equity, Indiabulls Ventures
TVS Motor Q2 profit grows 21% YoY to Rs 255 crore on exceptional gains
TVS Motor Company on Thursday reported a 20.68 per cent year-on-year (YoY) rise in profit after tax (PAT) at Rs 255 crore compared with Rs 211.30 crore in the same quarter last year.
The numbers included an exceptional gain of Rs 76 crore towards reversal of NCCD provision for Himachal plant pertaining to earlier years. This was pursuant to a favourable order from CESTAT.
Total revenue for the quarter came in at Rs 4,352.70 crore against Rs 4,994.20 crore in the corresponding quarter last year.
Sensex jumps 500 points; bank stocks drive the market rally
For the last few sessions, FIIs and DIIs are both buying. This is bringing in more conviction. The delivery volumes in top 100 companies by market capitalization is on a rise, which means market is than convinced currently and more money will flow in.
- Deven Choksey, Group MD, KR Choksey Investment Managers
Sebi rejigs primary market advisory panel
Capital markets regulator Sebi has reconstituted its Primary Market Advisory Committee (PMAC) that advises it on policy framework, development of initial public offerings and other such segments. The panel, which is chaired by TV Mohandas Pai, chairman of the Manipal Global Education Services, has now 26 members. Earlier, the panel has 23 members, according to the Securities and Exchange Board of India (Sebi).
I would say there has been some downward revision of growth rate. But I would continue to emphasise that in the long run, the fundamentals remain unchanged and therefore we will be back to the growth rate that we deserve to be at, in the near future.
- CEA Subramanian
Basant Maheshwari on stock market rally
The narrow and sharper rally continues - unabated. Either you can complain or participate. The choice is yours !
Shares of YES Bank soared over 12 per cent in Thursday's session on reports that industrialists Sunil Mittal and Sunil Munjal have shown interest in acquiring a stake in the private sector lender. However, Mittal later denied the reports.
PVR rises nearly 1% after Q2 profit surges 35% YoY
Price as on 17 Oct, 2019 01:27 PM, Click on company names for their live prices.
Sterling falters as Brexit deal hope fades, shares pause after five-day rally
Sterling faltered on fading hopes of a Brexit deal on Thursday, while a five-session rally in Asian stocks ran out of steam as weak U.S. retail sales fanned fears about the health of the world’s biggest economy, Reuters reported.
The only pocket left is tier one private sector banks and/or select midcap banks which are doing fine from asset quality perspective plus NII growth and bottom line perspective. Stay away from metal stocks for now,
Shares of infrastructure companies were trading in the red in Thursday's afternoon session.
Shares of Vodafone Idea (down 5.34 per cent), Reliance Power (down 2.63 per cent), Reliance Infrastructure (down 1.61 per cent) and Torrent Power (down 1.10 per cent) were trading with losses.
Power Grid Corporation of India (down 0.98 per cent), InterGlobe Aviation (down 0.85 per cent), Adani Ports & Special Economic Zone (down 0.67 per cent) and NHPC (down 0.64 per cent).
Major Sensex contributors in the afternoon session
Indiabulls Housing Finance shares surge more than 7% on Crisil ratings
Price as on 17 Oct, 2019 12:18 PM, Click on company names for their live prices.
BSE Capital Goods index up; Lakshmi Machine Works jumps 7%
The S&P BSE Capital Goods index was up in Thursday's afternoon session.
Shares of Lakshmi Machine Works (up 7.18 per cent), Sadbhav Engineering (up 5.37 per cent), BEML (up 1.43 per cent) and AIA Engineering (up 1.26 per cent) were trading higher.
V-Guard Industries (up 1.14 per cent), Bharat Electronics (up 1.12 per cent), HEG (up 1.09 per cent) and Finolex Cables (up 1.06 per cent) too were trading with gains.
Nalco shares slip 1.7% on coal shortage
Price as on 17 Oct, 2019 11:39 AM, Click on company names for their live prices.
We maintain our sell recommendation with a stop loss of 11,554 (Nifty) since the ‘Evening star’ pattern on the weekly chart is still intact.
On the downside, the intermediate support for the index has shifted to 11400. A move below the same might result in some profit
booking going ahead. Traders are advised to remain stock specific and follow strict stop loss in case of long positions since the
volatility is at its peak in recent times.
- IndiaNivesh Securities
BSE Oil & Gas index down; BPCL, HPCL among top losers
OMCs were trading in the red in Thursday's session with their sectoral index on BSE trading lower.
Shares of Hindustan Petroleum Corporation (down 1.45 per cent) , Bharat Petroleum Corporation (down 1.00 per cent) and Oil And Natural Gas Corporation (down 0.88 per cent) were trading lower.
Indian Oil Corporation (down 0.48 per cent) , Indraprastha Gas (down 0.19 per cent) and GAIL (India) (down 0.08 per cent) too were trading with losses.
Mindtree drops 2% on 34.6% drop in Q2 net profit
Price as on 17 Oct, 2019 10:20 AM, Click on company names for their live prices.
Earnings today: South Indian Bank, TVS Motor, PVR, DHFL, Mastek and ZEEL
Price as on 17 Oct, 2019 10:19 AM, Click on company names for their live prices.
Hathway Cable jumps 4% as consolidated net loss narrows to Rs 2.42 cr in Q2
Price as on 17 Oct, 2019 10:18 AM, Click on company names for their live prices.
Bajaj Auto takes a breather after 4-day gains
Bajaj Auto opened in the red on Thursday after the automaker launched e-Chetak on Wednesday. The stocks, with the intraday fall, also paused four day winning streak. The stock was trading 0.5 per cent down at Rs 3,004 on BSE. In the last four sessions, the stock gained 4.76 per cent. Bajaj has become the first mainstream Indian motorcycle brand to enter the electric space. The launch marks the return of Chetak – after almost 14 years.
DHFL falls 4% on links with firm under ED lens
Shares of Dewan Housing Finance Corporation (DHFL) cracked over 4 per cent after the company emerged as the mysterious lender that gave loans worth Rs 2,186 crore to Sunblink Real Estate, the firm at the centre of investigations into the financial operations of late Dubai-based gangster Iqbal Memon.
Nifty futures on the Singapore Exchange were trading 5.50 points, or 0.05 per cent, lower at 11,480, indicating a tepid start for Dalal Street.
Tech view: Nifty50 forms Doji candle
Nifty50 settled higher for the fourth successive session on Wednesday. Every dip in intraday trade got bought into, which helped the index end higher, forming an indecisive ‘Doji’ candle on the daily chart. Some consolidation looks on the cards.
Asian shares lose steam
Global stocks barely moved as soft US retail sales data raised concerns about the health of the world's largest economy and risk of global recession, while sterling was volatile as negotiations on a Brexit deal continued. Both MSCI's broadest index of Asia-Pacific shares outside Japan and Japan's Nikkei were little changed in early trade while US stock futures lost 0.15 per cent.
US stocks settled lower
In overnight trade, the Dow Jones Industrial Average was down 22.82 points, or 0.08 per cent, to 27,001.98. The S&P 500 dipped 5.99 points, or 0.20 per cent, to 2,989.69. The Nasdaq Composite Index dropped 24.52 points, or 0.30 per cent, to 8,124.18.
Oil prices fall on US inventories
Oil prices slid on Thursday after industry data showed a larger-than-expected build-up in stocks in the United States, adding to concerns that demand for oil around the world may weaken amid further signs of a global economic slowdown. Brent crude oil futures had fallen by 40 cents, or 0.7 per cent, to $59.02 a barrel.
DIIs buy Rs 1,577 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 686 crore on Wednesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 1,577 crore, data suggests.
Rupee: The rupee on Tuesday dived 31 paise to end at a nearly one-month low against the US currency due to heavy dollar buying amid fresh concerns over the progress of China-US trade talks.
10-year bonds: India 10-year bond yield fell 0.43 cent to 6.47, after trading in 6.46-6.49 range.
Call rates: The overnight call money rate weighted average was 5.05 per cent, according to RBI data. It moved in a range of 3.60-5.25 per cent.
The Day Planner
Q2 Earnings: DHFL, PVR, TVS Motor, ZEE
API Crude Oil Stock Change
US Oct Initial Jobless Claims
EU Summit on Brexit in Brussels
All eyes on EU-UK summit
There are prospects that United Kingdom and the European Union can strike a fresh deal to avoid a no-deal exit in the summit on Thursday and Friday. Investors have welcomed optimistic comments from key officials during last few days. British culture minister Nicky Morgan said late on Wednesday there is a good chance of a deal, Reuters reported.
Sebi may tighten rules for P-notes
The Securities and Exchange Board of India (Sebi) is planning to further tighten rules for participatory notes (P-notes), offshore derivative instruments issued by brokers to foreign investors not registered in the country, reports ET. The capital markets regulator has found instances where foreign brokers have issued P-notes against Indian derivative contracts to overseas clients, who don’t own the underlying local shares.
World Bank may cut global growth outlook again
World Bank President David Malpass said the development lender will likely again downgrade its global growth outlook amid uncertainty over falling trade and investment flows, but he stopped short of calling on the United States and China to resolve their trade war. “As we look at the data today, we will probably be looking at a further downgrade from our June downgrade,” Malpass said.
Singh, Rajan to blame for crippling PSU banks
Finance Minister Nirmala Sitharaman says Indian PSU banks saw their “worst phase” under the “combination” of former Prime Minister Manmohan Singh and former RBI governor Raghuram Rajan, and giving the ailing banks a “lifeline” was her primary duty now. “While economists can take a view of what prevails today or prevailed years ago, but I will also want answers for the time when Rajan was at the governor’s post," she said.
Mixed update on US-China talks
US Treasury Secretary Steven Mnuchin said on Wednesday that US and Chinese trade negotiators were working on nailing down a Phase 1 trade deal text for their presidents to sign next month. But he also said there were no plans for another high-level meeting on the trade deal outlined last week.
US economy hit by trade war: Fed survey
A Federal Reserve survey found that US economy is being hurt by trade battles and slowing global growth, AP reported. The US economy expanded at a modest pace in September and into October, despite rising trade tensions and weaker global growth that hampered manufacturing, and adverse weather hitting farmers.
IMF urges combined policy action by largest economies
The IMF on Wednesday urged the largest economies of the world, including India, to be prepared to engage in a coordinated policy action, a day after it downgraded the 2019 global growth rate to 3 per cent - the slowest pace since the 2008 global financial crisis. The remarks by Vitor Gaspar, Director of the International Monetary Fund's Fiscal Affairs Department, came a day after the IMF painted a grim picture of the global economy.
Govt may review security protocols for FDI
India is taking a fresh look at security protocols to be followed by foreign direct investors as concerns rise over money coming in from countries that New Delhi has sensitive ties with and monitors closely. The Department for Promotion of Industry and Internal Trade (DPIIT), the finance ministry’s department of revenue and the home affairs ministry are holding discussions on the matter, reports ET .
Q1 commercial credit demand dips by 2.6%
Amidst the deepening slowdown across the economy, commercial credit demand has contracted 2.6 percentage points to Rs 63.80 lakh crore in the June quarter over the three months to March period, accompanied by a steep deterioration in asset quality, a joint report by state-run Sidbi and Transunion Cibil said Wednesday. The contraction has been across the four segments of commercial credit segment, including micro, small, medium, mid and large enterprises.
Sensex on Wednesday
The Sensex closed on Wednesday 92.90 points higher at 38,598.99, while the Nifty settled at 11,471.55, up 43.25 points on its previous close. However, BSE mid-caps closed in the red.
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