Moneycontrol
Last Updated : Oct 15, 2018 07:59 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | India Inc’s corporate show holds the key

Investors tried to shrug off all the negativity that it has been undergoing for the past few weeks. There was some resilience to the global selloff observed during the last week.

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Bulls must have heaved a sigh of relief last week, having ended with gains of 1-1.5 percent on the Sensex and Nifty. Mid- and small-cap indices too rose up to 3 percent on BSE and NSE as intense buying dominated cues.

Investors tried to shrug off all the negativity that it has been undergoing for the past few weeks. There was some resilience to the global selloff observed during the last week.

The rout in international equities weighed on crude prices as well, as they cooled off to USD 80 per barrel levels as well. A steady rupee also aided sentiment.

After the drubbing seen on Thursday, where indices lost over 2 percent in a single session, equity benchmarks reversed almost all of those losses and saw a strong end to the week on Friday. The Sensex ended over 700 points higher, while the Nifty ended above 10,450-mark.

Investor wealth soared by Rs 2.98 lakh crore. In fact, the Sensex posted its biggest single-day gain in 19 months. For the week ended on October 12, 2018, both Sensex and the Nifty gained 1-1.5 percent. Meanwhile, BSE 500, mid- and small-cap indices rose 1-3 percent.

“We advise focusing on earnings, global markets and currency movement for further cues. Traders should prefer hedged trades in such scenario and maintain extra caution in stock selection,” Jayant Manglik, President, Religare Broking had said in a statement last week.

Big News:

Today, the key earnings to watch out are Indiabulls Housing Finance, Delta Corp, IndusInd Bank, and South Indian Bank, among others. Around 21 BSE companies will be declaring their earnings. A Reuters poll estimates 23 percent YoY jump in its net profit for the September quarter.

Along with it, investors may bet on earnings-related reactions from the past week; Hindustan Unilever posted its September quarter numbers after the market hours on Friday. Its profit jumped 20 percent for the second quarter of this fiscal to Rs 1,525 crore and volume growth beat expectations.

For the rest of the week too earnings remain the key. Big names such as Reliance Industries, HDFC Bank, IndusInd Bank, Infosys and Hero MotoCorp will be announcing their September quarter figures. Their trends remain the key for the market’s course.

Technical View:

Technically, the Nifty formed a strong bullish candle on the daily charts on Friday and a hammer kind of formation on weekly candlestick charts.

It is important to hold above multiple hurdle of 10,450-10,480 to witness an upmove towards 10,600-10,650 zones.

Supports are placed at 10,350

Three levels: 6,825, 7,893 and 10,200

Max Call OI: 11000, 10800

Max Put OI: 10000, 10200

Technical Recommendations:

We spoke to 5nance.com and here’s what they have to recommend:

Zee Entertainment | Rating: Buy | Target: Rs 495| Stop-loss: Rs 430 | Upside: 6%

Bajaj Finance | Rating: Buy | Target: Rs 2,392 | Stop-loss: Rs 2,260 | Upside: 5%

HCL Tech | Rating: Sell | Target: Rs 956 | Stop-loss: Rs 1,010 | Downside: 3%

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Oct 15, 2018 07:55 am
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