"Reversal of downtrend will be seen once Nifty starts to trade above 10,640 levels on a sustainable basis. On the downside, immediate support is seen at 10,360 and then at 10,300 levels," says Ashish Chaturmohta, Head Technical and Derivatives, Sanctum Wealth Management.
"Nifty moved higher to test its short term moving averages of 20 EMA while strong hurdle comes around 10,460 levels. It has to cross this level for further upside," says Rajesh Agarwal of AUM Capital.
"Sustained closing may take the Benchmark index towards 10,440 and 10,470. Further, stock specific recovery in the oversold ones might be the key feature," says Jaydeb Dey, Technical Analyst at Stewart & Mackertich Wealth Management Ltd.
The Nifty Energy index gained 2 percent as stocks like NTPC added 3.4 percent closely followed by Indian Oil Corporation which was up 3.3 percent. HPCL and Oil & Natural Gas Corporation were the other performing stocks.
From the Nifty the stocks which gained the most were HCL Tech which jumped 3 percent while ITC was up close to 3 percent. Wipro, Infosys and Vedanta were the other top performing stocks.
Ashwani Gujral of ashwanigujral.com recommends buying Tech Mahindra with a stop loss of Rs 614 and target of Rs 635 and has a buy also on Tata Consultancy Services with a stop loss of Rs 3000, target of Rs 3150.
"Nifty patterns on multiple time frames show, this pullback towards 10,340, 10,400 in an extreme case, may again find sellers. Hence, staying cautious on rise is advised," according to Jaydeb Dey of Stewart & Mackertich Wealth Management Ltd.
Moreover, higher volumes are coming at a time when the lignite prices are higher as a result of firm international coal prices.
The government is proposing to cut the price of the BT cotton seeds (Bollgard II) from Rs 800 to Rs 740 per packet (450gm packets). While the move would provide some respite to cotton farmers, it stands to eat away margins of seed companies.
The house has raised HDFC Bank's estimates by over 1 percent for FY19-20 and see 21 percent CAGR in profit over FY17-20 adding that planned capital raise will lift Tier-I capital adequacy ratio (CAR) by + 300 bps to 17 percent.
"Derivative data indicates that selling pressure on higher levels may remain intact. On technical charts, the major support is placed around 10400 while 10,600 should act as major resistance for Nifty," says Shitij Gandhi of SMC Global Securities Ltd.
The market breadth was in favour of the declines with 696 stocks advancing while 847 declined and 463 remained unchanged. On the other hand, in the BSE, 949 stocks advanced and 868 declined and 87 remained unchanged.
"The real test of the recovery swing would be seen between 10653 and 10736. This range getting taken out would tell us that a probable retest of the all-time-high of 11171-mark," says Rajat Bose of rajatkbose.com.
This move is aimed at facilitating and encouraging participation by retail investors in financially sound companies.
"ICICI Lombard has been able to generate an average investment yield of 10 percent in last three years, it said. The research firm feels that non-life insurance industries' gross written premium can rise at CAGR of 19 percent in five years," said the HSBC report.
Hindustan Aeronautics, ICICI Securities, Barbeque-Nation Hospitality and Flemingo Travel Retail are among the names that plan to launch share-sale offers in the coming months.
"We are taking slightly contra view on index and expect Nifty index to see a short-term pullback from current level. Till the time Nifty is trading above 10033.35, the Higher Top Higher Bottom formation on weekly chart remains intact. On weekly charts, RSI (14), has signaled an oversold condition post the formation of a bearish divergence," says Aditya Agarwal, Head Technical Research at Way2Wealth Brokers Pvt. Ltd.
Assuming the growth rate suggested by Nasscom is realistic, it still is not good enough to justify higher valuations for IT stocks.
The house expects strong growth of 10-12 percent in FY19 as well with the near-term outlook for the auto and tractor businesses appearing positive. Strong rural demand and good CV growth and upside from new launches are the positive for the auto company.
These companies, doubled their assets without much leverage and were able to maintain a double-digit sales and profit CAGR.
JSW Steel, which was the favourite till the end of the race, was second placed with a bid of Rs 29,700 crore.
"The weekly Bearish Engulfing pattern is still intact. Considering the evidence, we reiterate our cautious view on the index and expect it to correct in the near term," says Aditya Agarwal, Head Technical Research, Way2Wealth Brokers Pvt. Ltd.
Fund managers added as many as 9 stocks to their portfolio for the first time which include names like Orient Electric, followed by Amber Enterprises India, Galaxy Surfactants Ltd, Newgen Software, Emami Paper, Nath Bio-Genes, Apollo Micro, HOEC, and Pilani Investment.
The banking stocks were under pressure after the Reserve Bank of India revised the new stressed assets framework asking banks to resolve defaults within 180 days with Bank of India, Syndicate Bank, Union Bank of India, IDBI Bank and OBC trading weak in the morning trade.
The situation on ground is improving with companies indicating an improvement in traffic in Q3 FY18.