Moneycontrol
Last Updated : Jan 11, 2019 07:00 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Q3 earnings in focus, Infosys PAT likely to grow 7% YoY

As many as 13 companies on the BSE will be reporting their results for the quarter ended December which include names like Infosys, Karnataka Bank among others.

Kshitij Anand @kshanand
 
 
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Benchmark indices consolidated after 4 straight day of gains on Thursday. But, despite profit booking at higher levels, Sensex and Nifty closed above their crucial resistance levels.

Weak global cues could be blamed from the muted performance of Indian markets. Asian markets dipped after a solid four-day rally, as lack of details on U.S.-China trade talks gave investors pause.

Beijing said the talks with Washington were extensive and helped establish a foundation for the resolution, but gave no details at end of their three-day meeting aimed at resolving the tariff dispute that has battered financial markets, said a Reuters report.

The advance-decline ratio was slightly in favor of decliners. Of the 2,065 stocks traded on the NSE, 846 advanced, 860 declined, and 359 remained unchanged.

On the sectoral front, the action was mixed. Nifty Pvt Bank (-0.9%) and Bank (-0.7%) weighed the market down. While Pharma and Auto posted 0.3% gains.

Tata Motors (+1.5%) and Titan (+1.4%) were the top gainers, while Hindustan Petroleum (-2.6%) and IndusInd Bank (-2.2%) were the major losers among Nifty50 stocks.

GST meet was in focus. The key takeaways from the meet were:

The much-needed move by GST Council in the 32nd meeting increased the threshold exemption limit was doubled for businesses with a turnover of Rs 20 lakh for northeastern states and Rs 40 lakh for rest of the country.

Allowed the Kerala government to impose 1% cess on intra-state sales for up to two years.

Snapping its two-session slide, the rupee ticked higher by 5 paise to close at 70.41 per US dollar on January 10 on increased selling of the greenback by exporters amid easing crude oil prices.

On the institutional front, FPI were net sellers of about Rs 344 crore in the Indian market while DIIs were marginal net buyers for around Rs 11 crore, according to provisional data.

Big News:

On the earnings front, as many as 13 companies on the BSE will be reporting their results for the quarter ended December which include names like Infosys, Karnataka Bank, Reliance Industrial Infrastructure etc. among others.

Infosys: PAT likely to grow by 7% on YoY basis to Rs 3954 crore

PhillipCapital, Jefferies, Emkay and Motilal Oswal expect constant currency revenue growth of around 1.5 percent and negative cross currency impact of 50bps.

Technical Views:

Nifty formed a bearish Belt Hold pattern on the daily charts

Three levels to watch: 10801, 10930, 11000

Max Call OI: 11000, 11200

Max Put OI: 10500, 10000

Technical Recommendations:

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

Divis Labs Ltd: Buy| Target: Rs 1625| Stop Loss: Rs 1468| Returns 7%

UPL: Buy| Target: Rs 825| Stop Loss: Rs 744| Returns 7%

Tata Motors Ltd: Buy| Target: Rs 199| Stop Loss: Rs 179.5| Returns 8%

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 Jan 11, 2019 07:00 am
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