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Last Updated : Oct 14, 2019 07:29 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Nifty may test 11,400 if it stays above 11,189; HUL in focus

The critical support on downsides continues to remain around 11,090 levels, for short term traders, 11,189 which was the intraday low of Friday will be important.

 
 
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The Indian market rebounded in the second half of the previous week and managed to close in the green for the week ended October 11. However, the smallcaps took a beating as the profit-booking in these stocks continued.

The S&P BSE Sensex rose 1.2 percent, while the Nifty50 closed 1.17 percent higher compared to 0.4 percent rise in the S&P BSE Midcap index, and 0.28 percent fall in the S&P BSE Smallcap index for the week ended October 11.

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As many as 64 stocks fell 10-50 percent for the week ended October 11 including names like Sintex Industries, Cox & Kings, Lakshmi Vilas Bank, State Trading Corporation, Jain Irrigation System, Jaiprakash Power Ventures, DHFL, and Century Textiles among others.

Investors will react to IIP data which contracted by 1.1 percent month-on-month (MoM) in August, according to the Index of Industrial Production (IIP) data released by the government on October 11.

The country's foreign exchange reserves surged by $4.24 billion, to touch a record high of $437.83 billion in the week to October 4, according to the latest data from the Reserve Bank of India. In the previous week, the reserves had surged by massive $5.02 billion to $433.59 billion.

The rupee pared early morning gains to settle higher by 5 paise at 71.02 against the US dollar on Friday as a sudden spike in Brent crude prices, following missiles attack on an Iranian oil tanker, weighed on investor sentiment.

On the institutional front, FPIs were net buyers in Indian markets for Rs 749 crore, while DIIs were net sellers to the tune of Rs 703 crore, provisional data showed.

Not to forget, Indian Railway Catering and Tourism Corporation (IRCTC) will make its grand debut on October 14 after its initial public offering (IPO) received the highest ever subscription among PSUs.

The Rs 638-crore public issue, which was subscribed 112 times, could list at a hefty premium. Experts who spoke to Moneycontrol said the listing price is likely to be more than Rs 500, a premium of 56 percent over the issue price.

Big News:

As many as 7 companies will declare their numbers for September quarter which include names like HUL, GTPL Hathway, Delta Corp.

HUL: PAT likely to grow by 6.1 percent YoY

Delta Corp: PAT likely to grow by 12.4 percent YoY

(All estimates are from Motilal Oswal)

Technical View:

Nifty formed a bullish candle on the weekly charts while forming a Spinning Top on the daily charts. A Spinning Top is often regarded as a neutral pattern, which suggests indecisiveness.

The critical support on downsides continues to remain around 11,090 levels. For short term traders, 11,189, which was the intraday low of Friday, will be important.

In the next session, if the index trades above 11,189, it could lead to the test of 11,400; whereas, breach of the said level can increase selling pressure.

Three levels: 11,189, 11362, 11400

Max Call OI: 11500, 12000

Max Put OI: 11000, 11200

Stocks in news:

Avenue Supermarts, which owns and operates the D-Mart supermarket chain, on October 12 posted a 47.54 percent YoY rise in net profit at Rs 322.63 crore for the quarter ended September 2019.

Lupin, India’s third-largest drugmaker, said it plans to file two biosimilar drugs Etanercept and Pegfilgrastim in the US market by the fourth quarter of FY20.

Infosys reported a 5.8 percent sequential growth in Q2 FY20 with its net profit at Rs 4,019 crore. The management, on October 11, also revised its full-year constant currency revenue growth guidance to 9-10 percent, up from 8.5-10 percent earlier.

Technical Recommendations:

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

Bharti Airtel: Buy | LTP: 382.65 | Target: Rs 412-422 | Stop Loss: Rs 361 | Upside 10 percent

Amber Enterprises: Buy | LTP: Rs 928.50 | Target: Rs 995 | Stop Loss: Rs 880 | Upside 7 percent

Hindustan Unilever: Buy | LTP: Rs 2,004.75 | Target: Rs 2,110 | Stop Loss: Rs 1,925 | Upside 5 percent

Disclaimer: The views and investment tips expressed by investment experts 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.

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First Published on Oct 14, 2019 07:25 am
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