A volatile day for Indian markets -- but, both Sensex and Nifty managed to hold on to their crucial support levels which is a positive sign. Last hour selling pulled benchmark indices lower from their respective intraday highs.
The final tally on D-Street -- the S&P BSE Sensex rose 87 points to 38,214 while the Nifty50 ended 36 points higher at 11,341 on Monday.
Positive commentary on the trade war between the US and China, the stellar debut of IRCTC, and fall seen in crude oil prices lifted sentiment. Auto and banking stocks gained amid expectation of festival demand while PSU banks declined due to liquidity issues, suggest experts.
A blockbuster listing set the trend for equity markets as we kick-started yet another week.
The stock was listed at Rs 644 on the BSE, a 101.25 percent premium over its issue price of Rs 320 per share. The stock finally closed 127% higher at 727.75 on the BSE.
After a dazzling debut, the road ahead for the Indian Railways’ catering and tourism arm will not be free from obstacles, suggest experts. Booking partial gains is advisable.
Anecdotal evidence suggests that 8 of the 10 stocks, which witnessed the best debuts in the last 10 years, are trading below their listing price.
The two exceptions are Avenue Supermarts, trading 205 percent higher against its listing open price of Rs 604, and Rushil Decor, trading 44 percent higher against its listing open of Rs 81.25.
More than 300 stocks on the BSE hit fresh 52-week low which includes names like IIFL Wealth Management, PNB Housing, Century Textiles, LIC Housing Finance, Repco Home Finance, Bajaj Corp, etc. among others.
Addressing liquidity and credit crunch in the banking system, Finance Secretary Rajeev Kumar said, "Rs 81,781 crore was disbursed in the outreach programme. Of these, new loans accounted for Rs 34,342 crore."
On the macro front – after dismal IIP data for August, India's retail inflation rate in September grew 3.99 percent, almost breaching Reserve Bank of India's (RBI) target level of 4 percent. Wholesale prices based inflation eased to 0.33 percent in September, as against 1.08 percent in August.
The rupee declined by 21 paise to close at a three-week low of 71.23 against the US currency on Monday.
On the institutional front, FPIs were ney buyers in Indian markets for Rs 895 cr while the DIIs were net sellers to the tune of Rs 425 cr, provisional data showed.
As many as 17 companies will declare their results for the September quarter which include names like Karnataka Bank, Wipro, SBI Life Insurance, ACC etc. among others.
ACC: PAT likely to grow by 43% YoY
Wipro: PAT likely to fall by 2.1% YoY
(All the estimates are from Motilal Oswal)
Nifty formed a ‘Doji’ kind of pattern on daily charts
It witnessed selling pressure near 100-DMA placed at 11,408 and took support near 200-DMA placed at 11297
Experts feel that for the time being upsides shall continue to remain capped around 11420 levels unless a decisive breakout is registered above the said level.
Traders are advised to remain neutral on the long side whereas intraday shorting can be considered if index trades below 11290 for at least 30 minutes with a stop above intraday high.
Three levels to watch out for on Tuesday – 11,290, 11,420, 11,554
Max Call OI: 11500, 12000
Max Put OI: 11,000, 11200
Stocks in news:
FMCG major Hindustan Unilever (HUL) on October 14 reported a 21 percent year-on-year (YoY) jump in its net profit at Rs 1,848 crore for July-September quarter of the financial year 2019-20 on the back of better volume growth.
Leading stock exchange BSE will suspend trading in shares of as many as 16 firms, including Manpasand Beverages and Binani Industries, from November 4 for not complying with listing norms pertaining to submission of quarterly financial results, among others.
Betting on India’s clean energy push, French oil and gas major Total SA has acquired a 37.4% stake in Adani Gas Ltd, promoted by the Adani Group, for Rs5,662 crore, the company said in a statement on Monday.
We spoke to HDFC Securities and here’s what they have to recommend:
Bharat Electronics: Buy| LTP: Rs 108.90| Target: Rs 120|Stop-Loss: Rs 104| Upside 10%
Britannia Industries: Buy| LTP: Rs 3107| Target: Rs 3310| Stop-Loss Rs 2980| Upside 6%
Fine Organic Industries: Buy| LTP: Rs 1853| Target: Rs 1,980| Stop-Loss: Rs 1,800 | Upside 7%
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