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Last Updated : Oct 25, 2019 07:13 AM IST | Source: Moneycontrol.com

Early on D-Street | Nifty may come under selling pressure if it closes below 11,550

For time being 11700 looks like a cap and hence strength shall not be expected in the index unless it closes above the said level.

 
 
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Indian markets consolidated for the second day in a row on Thursday but managed to hold above crucial support levels.

Sensex managed to hold on to 39000 while the Nifty50 closed below 11600 levels, but above 11550 levels.

Close

The final tally on D-Street – the S&P BSE Sensex fell 38 points to 39,020 while the Nifty50 closed 21 points down at 11,582 on Thursday.

Investor sentiment was roiled by trends of Maharashtra and Haryana assembly poll results in which there is no landslide victory for the ruling BJP which even markets were factoring.

The broader market ended lower. Amongst the sectoral indices, Realty, Consumer Durables and Healthcare were the top gainers. While sectors such as Banks, Power and IT were the laggards.

Experts are if the view that consolidation in the market is likely to continue as we head towards a long weekend. But, stock-specific volatility is likely to continue, as market movement will be driven by the on-going Q2 earnings season.

On the global front, while positive developments on US-China trade deal is good for the global markets, other factors such as Brexit deal progress, crude oil prices, and currency movement would also influence market trend, suggest experts.

Gold prices rose more than Rs 100 ahead of Dhanteras. Gold rate for December future was hovering around Rs 38,200 per 10 gm on MCX

On the macro front, Fitch Ratings has lowered India's FY20 GDP growth forecast to 5.5 percent and said a large credit squeeze emanating from non-banking financial companies (NBFCs) has pushed economic growth to a six-year low.

On the institutional front, FPIs were net sellers in Indian markets for Rs 72 cr while the DIIs were also net sellers to the tune of Rs 738 cr, provisional data showed.

Big News:

As many as 54 companies will declare their results for the September quarter which include names like Aavas Financiers, Arvind, HDFC AMC, ION Exchange, Jubilant Life, Marico, Reliance Capital, State Bank of India, Strides Pharma, Tata Motors, and V2 Retail.

State Bank: PAT likely to grow by 60% YoY

Tata Motors: Likely to report a net loss of Rs 1480 cr

Marico: PAT likely to grow by 17% YoY

(All estimates are from Motilal Oswal)

Technical View:

Nifty formed a bearish candle on the daily charts

Nifty consolidated for the 2nd consecutive day in a row

It took support near its 5-DEMA for the 9th Day in a row and bounced back

It fell nearly 100 points from its intraday high of 11,679 but held on to its support of 11550.

If bears manage to push the index below 11550 levels on a closing basis then selling pressure may get accelerated further, suggest experts.

For time being 11700 looks like a cap and hence strength shall not be expected in the index unless it closes above the said level.

Max Call OI: 12000, 11700

Max Put OI: 11500, 11600

Stocks in news:

Losses at Interglobe Aviation, which operates India's largest airline IndiGo, widened to Rs 1,062 crore in the quarter ended September 2019, from Rs 651.5 crore loss in the same quarter last fiscal.

Beating street estimates, ITC on October 24 reported a 36.16 percent year-on-year (YoY) jump in its standalone net profit at Rs 4,023.1 crore for the quarter ended September 30, 2019.

Liquor major United Spirits Ltd (USL) on October 24 reported a 28.59 percent decline in consolidated net profit at Rs 157.6 crore for the second quarter ended September on consumption slowdown and liquidity challenges.

Technical Recommendations:

We spoke to IndiaNivesh Securities Ltd and here’s what they have to recommend:

Motherson Sumi Systems: Buy| LTP: Rs 111| Target: Rs 127| Stop-Loss: Rs 101| Upside +14.4%

Jay Bharat Maruti: Buy| CMP: Rs214| Target: Rs 256| Stop-Loss: Rs 187 | Upside +19.6%

Bharat Forge: Buy| LTP: Rs 451| Target: Rs 530| Stop-Loss: Rs 413| Upside +17.5%

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.

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First Published on Oct 25, 2019 07:13 am
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