Nifty may retest record highs in the coming session. Contrary to this, a close below 11946 levels can bring back bears back into the game.
After a stable Wednesday, we witnessed a terrific Thursday. The S&P BSE Sensex hit a fresh record high of 40,688 while the Nifty50 is just 91 points away from its record high of 12,103.
Positive cues from both global as well as domestic markets helped the markets move up higher. On the global front, sentiment got a boost after the news that US and China have agreed to proportionally roll back tariffs on each other’s goods in phases, said, experts.
Other factors are also encouraging like strong FII buying interest, good quarterly results and expectation of further stimulus from the government, they say.
Sectorally, the S&P BSE Energy index was up 0.9 percent, followed by the Metal index which was up 0.95 percent, and the S&P BSE Realty index gained 0.78 percent.
On the losing front, the S&P BSE Public Sector index was down 0.76 percent, followed by the S&P BSE Oil & Gas index which was down 0.62 percent, and the S&P BSE Capital index fell 0.5 percent.
Broader markets outperformed – the S&P BSE Midcap index rose 0.69 percent, and the S&P BSE Small-cap index rose 0.54 percent.
The rupee pared its initial losses to settle flat at 70.97 against the US dollar on Thursday after the US-China trade deal hopes enthused investor sentiments.
On the institutional front FPIs were net buyers in Indian equity markets for Rs 926 cr while DIIs were net sellers to the tune of Rs 635 cr, provisional data.
On the earnings front, as many as 180 companies will declare their results for the September quarter that include names like Allahabad Bank, Ashok Leyland, Bank of Baroda, Bharat Forge, CRISIL, Eicher Motors, GAIL India, IDBI Bank, IDFC Ltd, Jaypee Infra, Dr Lal Pathlabs, M&M, Max India, MRF, Nestle India, Novartis India, Religare Enterprises, and Tata Power etc. among others.
Nestle India: PAT likely to grow by nearly 10% YoY
Eicher Motors: PAT likely to fall by 20% YoY
M&M: PAT likely to fall by over 12% YoY
(All estimates are from Motilal Oswal)
Nifty formed a Dragon Fly Doji kind of formation on daily charts
It took support near its 5-Days EMA at 11,941 before bouncing back
5-Days EMA has been acting as crucial support for the index since October 11
Nifty may retest record highs in the coming session
Contrary to this, a close below 11946 levels can bring back bears back into the game
If the index manages to sustain above 12021 zone then we may see good recovery towards 12100-12200 zone in near term.
Three levels: 11946, 12021, 12103
We spoke to IndiaNivesh Securities Limited and here’s what they have to recommend:
Bharat Electronics: Buy| LTP: Rs.108.90| Target: Rs 118 |Stop Loss: Rs.103 | Upside 8%
Apollo Hospitals: Buy| LTP: Rs.1467| Target: Rs 1550| Stop Loss: Rs.1400 | Upside 5.6%
Reliance Industries: Sell| LTP: Rs.1458 | Target: Rs 1390| Stop Loss: Rs 1500 | Downside 4.6%
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