Traders’ Diary: Nifty may extend gains till 11,750 level
Healthy gains in shares of heavyweights such as Reliance Industries, L&T, Axis Bank and Infosys helped equity barometer Sensex close in the positive territory for the second consecutive day on Tuesday.
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Nifty could continue the momentum towards its 20-day EMA, which is placed at 11,700. “Followup gains above this level should ensure continuation of this bounce towards the hourly 200-SMA and the recent gap area between 11,770 and 11,800 levels. The lower time frame charts indicated a shift in the immediate support to 11,530 level
- Ruchit Jain, Angel Broking
A failure to take out this resistance may lead to profit booking and drag Nifty lower to 11,610, 11,570 levels. On the flip side, a sustained trade above 11,690 will extend the rally to 11,730 and 11,780, levels
- Aditya Agarwala, YES Securities
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Nifty formed a Bullish Candle on daily scale, as buying interest emerged at lower levels, and managed to close above the crucial hurdle at 11,650. As long as it holds above 11,600, Nifty could extend the gains towards 11,720 and then 11,750 levels, while on the downside supports were seen at 11,550 and then 11,500 levels
Indian market saw a broad-based rally in line with positive sentiments across Asian markets today. Benchmark indices were boosted by buying interest in FMCG companies, Tata Motors, NTPC along with consecutive second day of healthy gains in Sun Pharmaceuticals. Apart from the cues from the on-going quarterly results season, the markets would be influenced by the all important retail sales data expected to be released in US which is important given the rising expectations of a rate cut by Federal Reserves in the its forthcoming review meeting
- Gaurav Dua, Senior VP, Head – Capital Market Strategy, Sharekhan
Nifty managed to close above strong hurdle of 11,650 zone, suggesting short-covering moves towards 11,710-11,755. Holding above support of 11,600 may extend this rally further. Nifty Bank closed at 30,571 forming Doji candle pattern on the daily chart. Nifty Bank has good support near 30,400-30,200 zone and resistance is coming near 30,800-31,000 zone
- Rohit Singre, Senior Technical Analyst, LKP Securities
A slew of positive vibes from heavyweights ahead of earnings and lower domestic yield supported the market while profit booking on IT stocks and weak rupee limited gains. Earnings will be the major catalyst where investors are keen to get cues from Q1FY20 results and guidance. Sharp fall in domestic 10-year yield to 6.34% and accommodative stance by the RBI provide a hope for further monetary easing
- Vinod Nair, Head of Research, Geojit Financial Services
We expect the market to remain choppy in the near term in the backdrop of weak domestic sentiment given the on-going economic slowdown. The monsoon has shown considerable improvement over the past 1-2 weeks, which is a positive for Indian economy. However, the progress of monsoon would be actively tracked by traders and investors. Further, earnings announcement by companies is likely to lead to stock specific volatility. On the global front, ongoing geopolitical tensions between US-Iran could have a bearing on Indian market as crude prices have inched higher in the recent past and is likely to keep the market participants on edge
CLOSING BELL: Sensex jumps 234 pts, Nifty back above 11,650; YES Bank, TaMo rally up to 14%
Where do you see Nifty by December-end?
We are constructive on the markets from a one-year perspective. The way we are seeing budgets and policy announcement so far, we like the whole idea about trying to get the investment cycle going
- Saion Mukherjee, Head of Equity Research, India at Nomura
Moody's affirms ONGC's Baa1 ratings
Federal Bank Q1 profit jumps 46% YoY to Rs 384 crore
Federal Bank on Tuesday reported a 46.25 per cent year-on-year (YoY) rise in standalone profit at Rs 384.21 crore compared with Rs 262.71 crore in the same quarter last year.
Net interest income (NII) for the quarter rose 17.8 per cent to Rs 1,154 crore compared with Rs 980 crore in the year-ago quarter.
The bank made provisions worth Rs 192 crore in the June quarter compared with Rs 177 crore in March quarter.
Sebi fines GKS Properties Rs 5 lakh for fraudulent trade
Markets regulator Sebi levied a fine of Rs 5 lakh on GKS Properties for executing non-genuine trades in the illiquid stock options segment at BSE.
Hotel Leela shares trade flat
Tata Steel jumps 2% as investors shrug off Citi's concerns
Shares of Tata Steel were up 2 per cent in Tuesday's trade even as foreign brokerage Citi warned of a negative surprise in June quarter results. The brokerage is expecting Tata Steel to report weak numbers for the quarter on weak volumes.
The brokerage said it has opened a 30-day 'negative' catalyst watch on the steel maker. Tata Steel has indicated that liquidity issues in India have impacted demand, it said.
Citi said it has maintained its ‘sell’ rating on the scrip with a target of Rs 435, owing to weak steel price and China worries.
Top 10 NSE gainers in afternoon session
Price as on 16 Jul, 2019 01:53 PM, Click on company names for their live prices.
Mindtree's new promoter Larsen and Toubro (L&T) Tuesday assured shareholders that it will provide further impetus to the IT firm's growth by providing board-level oversight and relevant client connects. Earlier this month, L&T became the new promoter of Mindtree after acquiring 60.06 per cent stake in the Bengaluru-based company.
YES Bank back above Rs 100/share after 7 trading sessions
Faced with the daunting task of a higher sell-off target, the DIPAM is mulling offer for sale (OFS) for number of CPSEs like Coal India, NBCC, NLC and Hudco, official sources said. In all these CPSEs there is a scope for further government stakes to be lowered, said the sources, adding that the main purpose was to raise the funds for meeting the target of Rs 1.05 lakh crore.
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DHFL shares bounce back; jump 6%
DHFL stock on Tuesday rebounded after suffering a massive selloff in the previous day, and surged 6 per cent after the company said it was working with stakeholders and creditors to ensure resolution of liquidity issues, without any haircut to the lenders.
Some of the niche midcap IT companies could possibly have relatively better performance to talk about though on a smaller scale, but the margins could be slightly better off compared to the larger companies going forward.
Shares of YES Bank climbed over 2 per cent in Tuesday’s trade, even as the bank denied report suggesting four PE firms are looking to infuse money in the private lender.
On Monday, sources had told ET NOW that the bank has received Rs 850 million term sheet offer over the weekend from a consortium of four PE firms. According to the report, the consortium leader was to pick a 10 per cent stake in the bank, while the rest together were looking to pick another 10 per cent.
In a clarification issued on BSE, the bank said it, in the ordinary course of business, continues to explore various means of raising funds through the issuance of securities to a diverse set of investors, in order to meet its business regulatory requirements.
The bank said it is not aware of the source and that it would not like to comment on speculation.
As we are going to navigate this phase of slowdown, there are very few pockets to hide. Some of the corporate lenders, cement and some of the domestic oriented construction companies, select pharma are the areas that one can really hide in the current environment when things are not looking too great.
Suzlon Energy tumbles 6% on concerns over looming default
Shares of Suzlon Energy declined over 5 per cent in early trade on Tuesday after reports that the company is staring at a default on redemption of its foreign currency convertible bonds (FCCBs) worth $172 million, or Rs 1,200 crore, due on Tuesday. It has told bondholders that they will have to wait until banks accept its proposed one-time settlement plan.
Ashok Leyland slips 3% as plant shut for 9 days
Shares of Ashok Leyland declined over 3 per cent in early trade on Tuesday after it informed bourses that the company’s plant situated at Pantnagar will remain closed from July 16-24, owing to weak demand and outlook for the industry.
The Hinduja group flagship firm earlier posted 19 per cent fall in total vehicle sales at 12,810 units in June as against 15,792 units in the same month last year.
Shares of Dewan Housing Finance Corporation were on course to decline for the third straight session on Tuesday after reports that the troubled mortgage lender may find it difficult to remain a going concern, but the company said the reports were based on selective quotes from a regulatory filing.
It added that the company’s plans to remain solvent by selling assets were not fully disclosed in such reports.
“Some media have used select portions of our statement and created panic/ confusion especially regarding the statement on the going concern,” said DHFL in a statement. “We urge that the statement be read in entirety, so that the news is factual and not sensationalised.”
Today, USDINR pair is expected to quote in the range of 68.30 and 68.90
- Motilal Oswal Financial Services
RCom, ICICI Bank, DHFL among most active stocks
Price as on 16 Jul, 2019 09:32 AM, Click on company names for their live prices.
Nifty futures on the Singapore Exchange were trading 8 points, or 0.07 per cent, lower at 11,578.50, indicating a tepid start for Dalal Street.
Tech view: Nifty forms Hammer candle
Nifty50 on Monday formed a Hammer-like candle on the daily chart, suggesting that every selling got bought into. The index needs follow-up buying and a sustained close above the 11,600-650 range to resume an uptrend, said analysts.
Asian stocks tepid ahead of US retail data
Asian shares inched up on Tuesday as traders awaited US retail sales data and more corporate earnings to gauge the health of the world's biggest economy. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.04 per cent. US S&P500 e-mini stock futures pointed up, rising 0.07 per cent in early Asian trade. Japan's Nikkei stock index dipped 0.36 per cent.
US stocks settled marginally higher
In overnight trade, the Dow Jones Industrial Average index rose 27.13 points, or 0.10 per cent, to 27,359.16. The S&P500 index added 0.53 points, or 0.02 per cent, to 3,014.30. The Nasdaq Composite index was up 14.04 points, or 0.17 per cent, to 8,258.19.
Oil prices weak on rise in crude production
Oil prices fell for a second day as more production facilities returned to operation in the US Gulf after Hurricane Barry swept through over the weekend, while Chinese economic data dimmed the outlook for crude demand. Brent crude futures were down 10 cents, or 0.2 per cent, at $66.38 a barrel. They fell 0.4 per cent overnight.
DIIs buy Rs 592 cr worth equities
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 216.44 crore on Monday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 591.72 crore, data suggests.
India’s biz sentiment hit 3-year low
Business sentiment in India fell to its lowest level since June 2016, as companies were worried over a slowing economy, government policies and water shortage, a survey said Monday. According to the IHS Markit India Business Outlook, predictions of softer activity growth underpin the downward revisions of profit outlook, subdued hiring plans and relatively muted capital expenditure. Private sector companies foreseeing output growth in the year ahead fell from 18% in February to 15% in June.
Exports, imports shrink in ominous signs
India’s exports shrank for the first time in nine months in June as global trade tension hit shipments and the country braced for the impact of the US withdrawing some benefits. Exports shrank 9.71% to $25.01 billion while imports declined 9.06%, narrowing the trade deficit to $15.28 billion from $16.6 billion a year ago, government data showed. Exports to China fell by a sharp 14.1% as the country struggled under the impact of the trade war with the US. Its GDP growth slowed to a 27-year low of 6.2 per cent in June quarter