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Last Updated : May 28, 2019 07:15 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Market on track to hit fresh record highs, mid & smallcaps likely to outperform

Most experts feel many stocks in broader markets are available at attractive valuations.

 
 
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Benchmark indices started the week on a strong note and ended with fresh closing highs. The S&P BSE Sensex, as well as Nifty50, witnessed some profit booking at highs but experts feel that the market is on track to hit fresh record highs and mid & smallcaps are likely to outperform.

Benchmark indices rallied about 4 percent each last week and a stable day of gains on May 27 suggests continuity of the ongoing rally.

Close

The broader market outperformed benchmark indices as the S&P BSE Midcap index rose 1.1 percent while the S&P BSE Smallcap index closed 1.77 percent higher. Most experts feel many stocks in broader markets are available at attractive valuations.

India 10-year Bond Yield traded at Over 13-Month Low of 7.165% Bond yields fell on RBI’s announcement of open market operations in June.

Bank Nifty has been making higher lows from last seven consecutive sessions and managed to close near its lifetime high territory of 31650- 31700 zones.

It has formed a Bullish Candle on a daily scale as sustained buying interest was seen throughout the session. The index has to hold above 31150 zones to extend its move towards a new lifetime high of 32000, suggest experts.

At the interbank foreign exchange, the domestic unit opened higher at 69.40 and further went to touch the day’s high of 69.34

On the institutional front, FPIs were net buyers in Indian markets for Rs 1215 crore while DIIs were net sellers to the tune of Rs 327 crore, provisional data showed.

Big News:

On the earnings front, as many as 383 companies will declare their results for the quarter ended March which include names like Adani Transmission, Amtek Auto, Aurobindo Pharma, Emkay Global, JBM Auto, Jaiprakash Associates, Kwality, Max Financial Services, Pfizer, Punjab National Bank, and TeamLease Services among others.

Technical View:

The Nifty formed a bullish candle on the daily charts and ended at record closing high

On the intraday basis, if the index trades below 11,900 in the next session, for at least 30 minutes, then it can undergo profit booking with initial targets of 11,812 below which slightly larger correction can kick in, suggest experts

Three levels: 11812, 11957, 12041

Max Call OI: 12500, 12000

Max Put OI: 11000, 11700

Stocks in news:

Zee Entertainment Enterprises' fourth-quarter net profit increased 26.8 percent to Rs 292.5 crore, beating analyst estimates on every parametres.

InterGlobe Aviation, which runs IndiGo, on Monday reported a fivefold, or 401 percent, surge in profit at Rs 589.60 crore for March quarter compared with Rs 117.60 crore in the same quarter last year.

Adani Ports and SEZ on Monday reported a 38.69 percent 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.

Reliance Capital Group to divest entire stake in Big 92.7 FM Radio Business to Music Broadcast Limited. Music Broadcast Limited is a part of the media conglomerate – Jagran Prakashan Group, and the transaction will reduce reliance capital’s debt by an estimated Rs.1,200 crore.

Technical View:

We spoke to HDFC Securities and here’s what they have to recommend:

RBL Bank: Buy| LTP: Rs 697| Target: Rs 781 | Stop-Loss: Rs 638 | Upside 12%

HSIL: Buy| LTP: Rs 299| Target: Rs 345| Stop-Loss: Rs 280 | Upside 15%

Surya Roshni: Buy| LTP: Rs 262| Target: Rs 300| Stop-Loss: Rs 242| Upside 15%

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 May 28, 2019 07:13 am
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