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.
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.
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)
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.
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
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