Traders’ Diary: Nifty may face resistance at 10,547 level
Indian stock market staged a smart comeback on Friday with the BSE benchmark Sensex posting its biggest point-wise gain in over two years amid global markets’ recovery from the severe selloff in the previous session.
Nifty seems to be in a range for 10,200-10,250 on the downside to 10,650 on the upside. It is a wider range while it may be narrowed to nearer levels once it sets the tone for the week on Monday. One must not be aggressive to go out for a bottom fishing as confirmation is not yet seen on charts which indicates a bounce to be as prudent as previous ones. We remain cautious since the medium-term trend seems to be in favor of bears
- Mustafa Nadeem, CEO, Epic Research
Broader markets look attractive while investors may seek more clarity from upcoming quarterly results. The continuity of this trend largely depends on stability on bond yields and the rupee. However, worries about the US Fed rate hike, US-China trade dispute and political uncertainties in India on account of upcoming state elections may impact the sentiment in the short-term
- Vinod Nair, Head of Research, Geojit Financial Services
Sensex and Nifty posted their biggest intraday percentage gain in over two years, as market sentiment was lifted by a rebound in the rupee, easing crude oil prices and recovery in the global markets as well. Healthy-buying was witnessed across all sectors barring the IT index led by banks, auto, realty, metals and oil and gas. The BSE market breadth was bullish with 2,043 companies advancing against 628 declines
- Rahul Sharma, Senior Technical Research Analyst, Equity99
Momentum traders are advised to ride this relief move with strict stop losses. It would be a prudent strategy to focus on midcap universe, which has taken a u-turn from important supports and is now likely to witness further relief. But having said that, we would like to give a piece of advice to momentum traders, it’s better to adopt a stock centric approach and look to take timely profits off the table
- Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking
Overall market valuation has corrected in recent months and is trading at 20/16x FY19/20 estimated earnings, but volatility is likely to remain owing to negative global cues as well as domestic factors such as elections, pressure on CAD and fiscal deficit from higher crude prices. Ideal approach is to use this volatility to add stocks that are likely to benefit from currency depreciation as well as healthy growth in respective domains (IT and Pharma), consumption growth as well as various defensives that have corrected in recent months and available at attractive valuations
Stocks traded on a firm note on Friday after witnessing intense selling pressure over the last few days. Market sentiment was upbeat on recovery in global stocks. Additionally, traders took to buying at lower levels as well, hoping for a short-term pullback. However, investors continued to tread on the side of caution after Wall Street shares crumbled and expectations of market volatility shot up to an eight-month high. Barring IT index, which lost nearly 1%, all other sectoral indices closed with sharp gains
- Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas MF
Market is extremely volatile these days, but indications are in the favour of further rebound in Nifty. We advise focusing on earnings, global markets and currency movement for further cues. Traders should prefer hedged trades in such scenario and maintain extra caution in stock selection
- Jayant Manglik, President, Religare Broking
Recent drop in valuation kept the stocks attractive while investors may seek more clarity from upcoming quarterly results. Investors are also keen on today’s CPI inflation data in the context of volatility in the rupee and oil prices. Worries about the US Federal Reserve rate hike, US-China trade dispute and political uncertainties in India on account of upcoming state elections may impact sentiment in the short-term
- Vinod Nair, Head of Research, Geojit Financial Services
FMCG major Hindustan Unilever on Friday reported 23 per cent jump in profit after tax (PAT) at Rs 1,522 crore for September quarter, which was higher than Rs 1,445 crore net estimated by analysts in an ET Now poll.
CLOSING BELL: Sensex jumps 732 pts to record biggest single-day gain in two years; Nifty tops 10,450; VIX eases 8%
From around those levels, the next leg down takes the Nifty to around 9900 which is our working target for this leg of the down move. One has to be conservative at these levels. If you look at the global set up, it looks very negative because the global markets have started a multi-week, multi-month downtrend.
Capital outflows picked up pace amid the domestic equity selloff as these overseas investors pulled back Rs 10,825 crore from India. In the process, their portfolio value took a beating as it shrank to Rs 27,30,061 crore (roughly $390 billion at 70 per dollar) as of September-end, from Rs 30,13,040 crore ($430 billion) at August-end.
Shares of Tata Power Company (up 13.95 per cent), Reliance Infrastructure (up 9.32 per cent) and Adani Power (up 8.85 per cent) surged in Friday's session amid reports that the Supreme Court agreed to examine tariffs for Adani and Tata Power.
The National Stock Exchange of India (NSE) launched its commodity derivatives segment on Friday. Earlier, the exchange had received Sebi's approval for introducing futures contracts for Gold 1 kg, Gold Mini 100 gram and Silver 30 kg on its commodity derivatives segment.
HNI investors much better off in this selloff: Umang Papneja
Check out the top 10 BSE losers
Price as on 12 Oct, 2018 01:14 PM, Click on company names for their live prices.
Do you think gold is finally out of its long slump and ready to rally as uncertainties rise in global economies and markets?
Auto stocks jump up to 5%; M&M, Maruti in top gear
Most auto & auto ancillary stocks were trading with decent gains in Friday's session. The Nifty Auto index was trading 3.34 per cent up at 9,031 around 12:15 pm. Mahindra & Mahindra (M&M) (up 5.22 per cent) was the top gainer in the auto pack.
United Breweries falls; CCI raids offices of top 3 brewers
Shares of liquor company United Breweries fell as much as 3 per cent to Rs 1,152.55 in Friday's trade The stock dropped after a search and seizure operations were conducted at offices of United Breweries, Denmark's Carlsberg A/S and Anheuser-Busch InBev NV in at least two Indian cities, the report said.
Zydus Cadila gets tentative USFDA nod for diabetes drug
Drug firm Zydus Cadila Friday said it has received tentative approval from the US health regulator to market Linagliptin and Metformin Hydrochloride tablets, used to control of blood sugar levels in diabetic patients.
Seasoned investors offer five basic thumb rules to avoid major losses, protect profit and try and make money in such market conditions.
Don’t get carried away
The most important thing for an investor is to avoid getting carried away by such swings in market sentiment.
Don’t speculate, but calculate
Most investors fall prey to speculation. After observing a trend in a particular sector, they start speculating the prospects of a business and let their speculation dominate rational calculation.
Patience does pay
Like in other walks of life, patience is among the most crucial factors for success in stock investing.
Diversify your portfolio
Don’t keep all the eggs in one basket. Your portfolio should be diverse, a mix of largecap, midcap and smallcap stocks. Your basket may have commodities as well.
Don’t book profit in haste
Hitting the panic button the moment you get a negative news is one of the worst decisions.
Unpredictability is the nature of the stock market. It is possible that despite all the alertness and calculations, you may suffer a loss. View that as a learning and move ahead. Like the wise man says, “Pain is inevitable, but suffering is always optional."
ET Markets Boot Camp: What is asset allocation?
Top 5 NSE gainers
Price as on 12 Oct, 2018 11:18 AM, Click on company names for their live prices.
PNB Housing jumps 7% on fund raising plan
Shares of PNB Housing Finance jumped nearly 7 per cent in Friday’s trade amid reports that the company is looking to raise another $250-300 million through external commercial borrowing by November amid market turmoil and fear of a further squeeze in the liquidity system. The stock rose 6.7 per cent to hit a high of Rs 925 on BSE.
TCS stock drops 3% as brokers turn cautious post Q2
Shares of TCS dropped 3 per cent on Friday after a host of brokerages slashed target price of the stock after its second quarter results. India's biggest software exporter Tata Consultancy Services posted 22.57 per cent YoY rise in profit at Rs 7,901 crore for July-September. The numbers were largely in line with Rs 7,929 crore as estimated by analysts in an ET NOW poll.
Tata Consultancy Services said it was confident it would end FY19 with doubledigit growth and enter the next financial year with strong growth momentum, as a slew of large deal wins boosted the IT player’s second-quarter results.
Sandip Sabharwal on TCS's share price movement
For those intrigued by TCS Stock price move after results Nothing wrong with the results and outlook. Its just th… https://t.co/kRU4MRvAxJ
High net worth (HNI) investors are choosing simple products over complex and exotic instruments in a falling and volatile market. Mid-cap and small-cap portfolio management schemes (PMS), perpetual bonds, preference shares, and credit risk funds are clearly not favoured by the rich now.
Rupee opens 33 paise up at 73.80 against dollar
The rupee on Friday opened 33 paise up at 73.80 against dollar on account of some selling of the American currency by banks and exporters. The local currency advanced 9 paise to end at 74.13 per dollar on Thursday after falling to a fresh lifetime low in intra-day trade amid a sharp sell-off in global markets.
According to Motilal Oswal Financial Services, the rupee rose primarily on back of weakness in the US dollar after US President criticised the Federal Reserve for raising rates aggressively.
Check out the most active stocks on NSE
Price as on 12 Oct, 2018 09:23 AM, Click on company names for their live prices.
OPENING BELL: Sensex climbs nearly 400 pts, Nifty50 tops 10,350; OMCs rally up to 16%
Sensex gains nearly 200 pts, Nifty nears 10,350; Rupee opens at 73.83 against US dollar.
Singapore trading sets stage for positive start
Nifty futures on the Singapore Exchange were trading 16.50 points, or 0.16 per cent, higher at 10,296.00, indicating a positive start for the Nifty50.
Tech view: Nifty50 outlook negative
The index looks on course to hit the short-term target of 10,016. One can adopt a sell-on-rise strategy as long as the index trades below its swing high of 10,482, said
Asian shares mixed
Asian shares appeared tentative on Friday, holding steady after a nine-day losing streak, but sentiment was frail after Wall Street shares crumbled and expectations of market volatility shot up to an eight-month high, Reuters reported. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent after the opening of the South Korea and Australian markets, a day after it fell 3.6 per cent to hit 1-and-a-1/2 year low. Japan's Nikkei fell 0.6 per cent.
Oil prices edge higher
Brent crude futures edged up 13 cents to $80.39 a barrel. The contract fell 3.4 per cent on Thursday, after hitting a low of $79.80, its weakest since September 24, Reuters reoirted US West Texas Intermediate (WTI) crude futures were up 11 cents at $71.08 a barrel, after falling 3 per cent in the previous session to the lowest since September 21.
US stocks end lower
The S&P500 index declined 57.31 points, or 2.06 per cent, to close at 2,728.37. The Dow Jones Industrial Average index lost 545.91 points, or 2.13 per cent, to settle at 25,052.83. The Nasdaq Composite index ended 92.99 points, or 1.25 per cent, lower at 7,329.06.
EM to US market ratio lowest since 2008
For the emerging markets, the current equities weakness doesn’t feel as hopeless as the 2008 meltdown — at least on paper. But stock valuations at EMs, relative to the US, show that Wall Street’s price-earnings multiples have climbed more than in emerging economies, and that the aggregate valuation ratio is at its lowest since the subprime crisis. The relative PE reading of the MSCI EM index, compared with the S&P 500, has dropped to 0.64 this month, the lowest since October 29, 2008.
HUL to report Q2 earnings
Kotak Securities is expecting the company to report 15 per cent revenue growth in domestic FMCG business, aided by 10 per cent underlying volume growth and 5 per cent price-led growth. On a segmental basis, it is baking in 17 per cent and 14 per cent YoY revenue growth for home care and personal care segments.
TCS stock to react on Q2 nos
The second quarter performance of Tata Consultancy Services (TCS) shows that the country’s largest software exporter is on a solid footing. For the first six months of the current fiscal, the company delivered a double- digit topline growth in dollar terms for the first time in four years. And, this was without sacrificing operating profitability.
“We expect Ebitda margin to expand 230 bps YoY aided by 100 bps expansion in GM. Impact of higher A&P intensity will be partly offset by cost efficiencies and operating leverage benefits,” it said.
NSE in pact with LME on metal pricing
NSE and NSE IFSC, the international bourse at GIFT City in Gujarat, have entered into a licensing agreement with the London Metal Exchange (LME) to source its base metal prices for settlement of futures contracts. This comes a day before NSE is to launch trading in commodity derivatives.
BSE ties up with Dubai exchange
The Bombay Stock Exchange on Thursday said it has signed a pact with Dubai Mercantile Exchange (DME), international energy futures and commodities exchange in the Middle-East, to explore ways in maximising the potential of the commodities market in India.
FIIs sell Rs 2,869.41 cr worth of equities
Foreign portfolio investors (FPIs) sold Rs 2,869.41 crore worth of domestic stocks on Tuesday, provisional data available with BSE suggested. DIIs were net buyers to the tune of Rs 1,888.18 crore, data suggested.
Sensex on Thursday
The BSE Sensex tanked 759.74 points, or 2.19 per cent to 34,001.15 while its NSE counterpart Nifty closed the day at 10,234.65, down 225.45 points, or 2.16 per cent. Fall in IT and bank stocks were the major contributors to Sensex's decline
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