Bulls bounced back on D-Street after getting knocked down in the previous session. The last hour surge helped benchmark indices to reclaim crucial resistance levels – Sensex is back above 39000 while Nifty50 reclaimed 11600.
The final tally on D-Street – the S&P BSE Sensex rose 94 points to 39,058 while the Nifty50 closed 15 points higher at 11,604 on Wednesday.
The index took support at its 5-days Exponential Moving Average (EMA) for the 8th consecutive day in a row. This particular short term moving average has been acting as a big support since 10 October.
Technical experts advise investors to hold positions and wait for a breakout above 11,772-11,798 to initiate fresh long positions.
The Nifty50 seems to be struggling at 11700 because it is an important swing high. The broader market indices exhibited a mixed trend wherein BSE Midcap ended with losses of 0.1% while BSE Smallcap’ closed 0.3% higher.
On the sector front, Oil & Gas, Realty, Capital Goods and Metals closed the session in the red. While Auto, IT and Consumer Durables were the top gainers, up in the range of 0.8-1.2%.
Experts feel that the market is likely to remain volatile in the near term with stock-specific opportunities. On the global front, investors will keep a close eye on US-China trade talks and progress on the Brexit deal.
Market would also react to Haryana and Maharashtra assembly election which took place on October 21. Expectations are that the BJP may see its continuing winning streak.
The counting of votes will begin at 8 am on Thursday and the result is likely to be declared by 5 pm by the Election Commission.
Volume spike was seen in stocks like Bajaj Auto, Havells India, SRF, Hexaware, and Colgate Palmolive.
Long Buildup was seen in stocks like NIIT Tech, Jubilant FoodWorks, Bajaj Auto
Short Buildup was seen in stocks like Chola Finance, RBL Bank, and Hexaware
The Indian rupee ended marginally higher at 70.91 per dollar against Tuesday's close of 70.94.
On the institutional front, FPIs were net sellers in Indian markets for Rs 213 cr, while the DIIs were net also net sellers to the tune of Rs 137 cr, provisional data showed.
As many as 87 companies on the BSE will declare their results for September quarter which include names like Alembic Pharma, Aptech, Bandhan Bank, Colgate Palmolive, Cummins India, ICRA, IDFC First Bank, InterGlobe Aviation, ITC, Maruti Suzuki, NIIT Ltd, PNB Housing, Tata Steel, United Spirits etc. among others.
ITC: PAT likely to grow by 7% YoY
Maruti Suzuki: PAT likely to fall by 59% YoY
InterGlobe Aviation: PAT likely to report a profit of Rs 620 cr
(All estimates are from Motilal Oswal)
Nifty formed a ‘Doji’ kind of pattern on daily charts
Bulls appear to have hit a pause button as they failed to decisively get past its near term critical hurdle present around 11,700 levels, experts said.
Nifty can be expected to remain sideways but weakness will be confirmed on a close below 11,550 levels which shall accentuate the selling pressure with initial targets placed around 11,400 levels, they say.
Three levels: 11554, 11651, 11700
Max Call OI: 12000, 11700
Max Put OI: 11000, 11500
Stocks in news:
Country's largest two-wheeler maker Hero MotoCorp on October 23 registered a 10.4 percent year-on-year decline in September quarter profit at Rs 874.8 crore, dented by subdued volumes amid weak demand.
Country's fourth-largest IT company HCL Technologies reported healthy growth in earnings driven by IBM deal, with September quarter profit rising 19.4 percent sequentially and an upward revision in full-year revenue guidance.
A significant write-back of the deferred tax liability – due to the lowering of corporate tax – helped JSW Steel post a 21.5 percent growth in its consolidated net profit at Rs 2,536 crore in the quarter ended September 2019.
We spoke to Bonanza Portfolio and here’s what they have to recommend:
Blue Star: Buy| LTP: Rs 858.05| Target: Rs 930| Stop Loss: Rs 815| Upside 8%
ICICI Lombard: Buy| LTP: Rs 1,311| Target: Rs 1,403| Stop Loss: Rs 1250| Upside 7%
GE Power India: Sell| LTP: Rs.710| Target: Rs 655| Stop Loss: Rs.735| Downside 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.