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Early on D-Street: Hold long positions in Nifty with a stop below 11,553

Nifty gained for the sixth consecutive session to end at a 3-month closing high and formed a bullish candle on the daily as well as weekly charts.

October 22, 2019 / 07:23 AM IST
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Todays L/H

Brushing aside slowdown fears, bulls charged ahead on D-Street, helped by consistent buying from foreign institutional investors (FIIs) for the past 6 trading sessions which helped Sensex climb Mount 39K while Nifty50 also closed above 11,600 for the week ended October 18.

Foreign portfolio investors (FPIs) have infused a net sum of Rs 5,072 crore into the Indian capital markets in October so far amid the government's efforts to revive domestic demand.

The S&P BSE Sensex rose 3.07 percent while the Nifty50 added 3.15 percent compared to 2.7 percent gain seen in the Smallcap index, and 4.6 percent rally witnessed in the Midcap index, for the week ended October 18.

Small & midcap stocks witnessed continued buying as more than 60 stocks in the S&P BSE500 index rose 10-50 percent in the same period.


Stocks that gave a double-digit return include names like Fine Organic, Avanti Feeds, TVS Motor, GIC Housing, Emami, MMTC, BHEL, YES Bank, The New India Assurance, etc. among others.

On the institutional front, FPIs were net buyers in Indian markets for Rs 36 crore while the DIIs were net also net buyers to the tune of Rs 586 crore, provisional data showed.

Big News:

As many as 74 companies will declare their results for the September quarter which include names like Asian Paints, Axis Bank, CEAT, Indiabulls Ventures, ICICI Securities, Jubilant FoodWorks, Kotak Mahindra Bank, M&M Financial Services, OBC, RBL Bank, and Welspun India.

Asian Paints: PAT likely to grow by 10 percent YoY.

Kotak Mahindra Bank: PAT likely to grow by 35 percent YoY.

Axis Bank: PAT likely to fall by more than 90 percent YoY.

(All estimates are from Motilal Oswal)

Technical Recommendations:

The index gained for the sixth consecutive session to end at a 3-month closing high and formed a bullish candle on the daily as well as weekly charts.

There could be further upside in the coming session if the index decisively crosses 11,700 levels, experts feel.

Traders are advised to hold their long positions with a stop below 11,553 on a closing basis and should book profits close to 11,770 levels, suggest experts.

Three levels: 11553, 11684, 11700-11750

Max Call OI: 12000, 11700

Max Put OI: 11000, 11400

Stocks in news:

Reliance Industries, the country's most valued company by market capitalisation, reported the highest every quarterly consolidated profit in the September quarter. The net profit rose 18.34 percent year-on-year in second-quarter consolidated profit to Rs 11,262 crore. The sequential increase was 11.46 percent.

HDFC Bank on Saturday reported a 26.8 percent year-on-year (YoY) rise in standalone net profit at Rs 6,345 crore for the September quarter after providing Rs 2,652.40 crore for taxation.

Oberoi Realty on October 20 posted a 35.4 percent decline in consolidated net profit at Rs 138.07 crore for the quarter ended September 30, 2019.

Technical Recommendations:

We spoke to Narnolia Financial Advisors and here’s what they have to recommend:

Bharat Heavy Electricals: BUY | LTP: Rs 54.45| Buy around: Rs 52.50 |Target Rs 61| Stop Loss Rs 47.50| Upside 12%

Power Grid Corporation of India: Buy| LTP: Rs 202| Buy above: Rs 205 |Target Rs 230| Stop Loss Rs 191| Upside 13%

Hexaware Technologies: Buy| LTP: Rs 378| Buy around: Rs 370 |Target Rs 405| Stop Loss Rs 350| Upside 7%

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.
Kshitij Anand is the Editor Markets at Moneycontrol.
first published: Oct 22, 2019 07:23 am

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