Moneycontrol Be a Pro
Get App
Last Updated : Nov 04, 2019 07:15 AM IST | Source: Moneycontrol.com

Early on D-Street: Momentum slowly dwindling down; above 11,950 levels Nifty may head to life time highs

Indecisive formations for 3 consecutive sessions on daily chart is suggesting that momentum in the market is slowly dwindling down

November 1 turned out to be a day of some more consolidation on the D-Street. However, benchmark indices managed to close above crucial support levels for the week.

The S&P BSE Sensex rallied 2.83 percent while the Nifty50 closed with gains of 2.65 percent for the week that ended on November 1.

Close

Investors’ wealth in terms of average market capitalisation of BSE-listed companies rose by Rs 4.78 lakh crore to Rs 154.09 lakh crore recorded on November 1 from Rs 149.31 lakh crore registered on October 25.

Muted auto sales data, as well as GST data, along with disappointing core sector data weighed on sentiment, and investors preferred to book profits at higher levels. But, the momentum is likely to continue in the near-term, and investors should use the dip to buy.

Goods and Services Tax (GST) collections for the month of October 2019 stood at Rs 95,380 crore, down 5.29 percent, Ministry of Finance data showed.

The rollover figures for Nifty stand at 84.09 percent for the November series which is higher if we compare it with the 6-month average of 74.87 percent. Rollovers for BankNifty stand at 63.59 percent against a six-month average of 73.22 percent.

Higher rollovers were witnessed in specific sectors compared to the 6-month average for a couple of sectors: Auto 95.79 percent (vs 91.95 percent), banking & finance 94.82 percent vs (91.79 percent), consumer products 95.16 percent (vs 92.65 percent). So these sectors could be in focus.

The rupee appreciated by 11 paise to close at 70.81 against the US dollar on Friday due to fag-end selling of the greenback by banks and importers amid persistent foreign fund inflows.

On the institutional front, FPIs were net buyers in Indian markets for Rs 533 crore while the DIIs were net sellers to the tune of Rs 136 crore, provisional data showed.

Big News:

On the earnings front, as many as 82 companies will report their earnings for the quarter that ended on September which include names like Ajanta Pharma, Apollo Tyres, Berger Paints, Birla Corp, Dabur India, Divis Laboratories, Gillette India, HCL Infosystems, Jindal Steel and Power, REC, Tech Mahindra, and VST Tillers etc, among others.

Ajanta Pharma: PAT likely to fall by 14 percent YoY

Birla Corp: PAT likely to grow by 276 percent YoY

JSPL: Likely to report a loss of Rs 469 cr

(All estimates are from Motilal Oswal)

Technical View:

The Nifty50 formed a Doji candle on the daily charts and a bullish candle on the weekly charts

Indecisive formations for three consecutive sessions on daily chart is suggesting that momentum in the market is slowly dwindling down.

However, weakness shall get more pronounced on a close below 11,800 levels.

A strong close above 11,950 levels then it may head to test life time highs placed around 12,103 levels but that rally

Three levels: 11,843, 11,918, 12,103

Max Call OI: 11,800, 12,000

Max Put OI: 11,600, 11,500

Stocks in news:

Tata Motors on Friday reported a 33.58 percent decline in total sales at 41,354 units in October.

Private sector lender Yes Bank posted a loss of Rs 600.08 crore during July-September period, dented by higher provisions with a sharp increase in non-performing assets.

The government has ordered an SFIO probe into the alleged financial irregularities at mortgage lender DHFL after finding instances of suspected fund diversions, according to a source.

Bajaj Finance will look to issue its qualified Institutional placement (QIP) next week, according to a CNBC-TV18 flash.

Technical Recommendations:

We spoke to ICICI Direct.com Research and here’s what they have to recommend:

KEC International: Buy| LTP: Rs 271| Target: Rs 334| Stop Loss: Rs 248| Upside 23 percent | Time Frame 6 months

Pidilite Industries: Buy| LTP: Rs 1,397| Target: Rs 1,680| Stop Loss: Rs 1,282| Upside 20 percent| Time Frame 6 Months

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.

 

Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Nov 4, 2019 07:15 am
Loading...
Sections
Follow us on
Available On