Declining issues outnumbered advancers for a 1.87-to-1 ratio on the NYSE and for a 1.45-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and four new lows, while the Nasdaq recorded 16 new highs and 40 new lows.
On Friday, if Nifty fails to take support around its 100-day simple moving average of 11,560, a fresh breakdown can drag the indices lower. Nifty upsides will remain capped around 11,700 level. Traders can make use of any bounce to create fresh short positions and look for an initial target of 11,510
- Mazhar Mohammad, Chartviewindia.in
Thursday's weak close could set the ball rolling for a deeper correction. The next significant support is around 11,461. This is a market for traders with a short-term perspective. Keep your stop losses in place and trade both sides of the market
The Securities and Exchange Board of India (Sebi) on Thursday issued a consultative paper on policy proposals with respect to resignation of statutory auditors from listed entities. The policy proposals aim to strengthen disclosures to investors and clarify the role of the audit committee.
On the daily chart 100-DMA is placed at 11,560, suggesting immediate good support for the index. The next support will come near the 11,500 level. Resistance is at 11,650-11,700 zone. Trading below the said levels can see some pressure on every rise
- Rohit Singre, Senior Technical Analyst, LKP Securities
Nifty couldn’t surpass its crucial hurdle at 11,700 and lost nearly a per cent. We do not see this pressure easing anytime soon, citing mixed earnings announcements and not so supportive global cues. Traders have no option but to align their positions accordingly and use rebound to create shorts in the benchmark index. Also, we suggest preferring hedged bets instead of naked trades on stock specific front, especially before the result announcement
Nifty formed a Bearish Belt Hold candle on the daily scale as it erased the gains of last two sessions. As long as it holds below 11,650, Nifty may remain under pressure for its next support at 11,550 and then 11,520 levels, while on the upside, a hurdle is seen at 11,650 and then 11,720 levels
The market’s underlying sentiment is fragile due to lack of individual liquidity. Barring 15 stocks in the Nifty pack, others have been under pressure. Midcaps and smallcaps, too, have not been performing, which has resulted in a massive wealth erosion in the broader market. The sentiment further deteriorated after the Budget
- Chokkalingam, Founder & MD, Equinomics Research & Advisory
Nifty, though far from the swing low (11,461), has kick started the next leg downturn today. On the hourly chart, it has broken lower end of a rising channel, which has resulted in a bearish flag breakout. On the higher side, the 40-day exponential moving average and the 50% retracement of the post Budget fall proved to be a strong barrier. The bulls surrendered over there thus marking end of the pullback at Wednesday's high of 11,706. Overall, the Nifty looks set to hit the swing low of 11461 in the coming sessions and is expected to breach the level on the downside. Subsequent target area on the downside will be 11,330-11,300
Global central banks, including RBI are cutting their rates to support the economy, however, markets are not yet convinced given the weak demand scenario, extension in trade war and lack of revival in corporate earnings. FIIs’ are in a risk-off mode, while domestic mutual funds are providing marginal support to the market. On a one-year-forward basis the market is trading at a P/E of 19 times, which is at a premium. It remains to be seen whether or not this premium valuation will sustain. Gut feeling is that easy liquidity might limit downside, but we may see a lack of direction or indecisiveness in the market for some more time
- Vinod Nair, Head of Research, Geojit Financial Services
Consumption is a basket. If I just look at the defensives part of it, given that there is no long-term-ish view, they are building some defensive positions. Likes of HUL, ITC is being added to portfolio on the basis of valuations. It is not a very large position but you can clearly see that is another trend that has added some exposure to that sector.
A 78 per cent drop in Yes Bank shares since August has left founder and former chief executive officer Rana Kapoor some $1 billion poorer.
The Indian lender, which late Wednesday reported earnings that showed its capital buffers had weakened and bad loan ratio widened, plunged as much as 20 per cent on Thursday. That’s contributed to a drop in Kapoor’s net worth to $377 million from $1.4 billion on Aug. 20, according to the Bloomberg Billionaires Index.
Top 10 NSE gainers in afternoon session
Price as on 18 Jul, 2019 01:32 PM, Click on company names for their live prices.
Flows to equity fund have increased significantly from the February-March low. We are actively deploying money in this correction. MFs are likely sitting on less cash than before
- Nilesh Shah, Managing Director of Kotak Mahindra Asset Co
Barclays on Thursday lowered its oil price forecasts for the second half of this year and 2020, saying it expected slower demand growth due to a weaker-than-expected global macroeconomic backdrop. The bank cut its 2019 Brent and U.S. West Texas Intermediate (WTI) price forecasts by $2 to $69 per barrel and $61 respectively. It also cut its 2020 view for Brent by $6 to $69 and by $5 to $62 a barrel for WTI.
If mentha manages to sustain above Rs 1,280 on daily charts, traders can buy in mentha oil July futures
- Romesh Tiwari, Head of Research, CapitalAim
Caplin Steriles gets USFDA nod for injection to prevent excessive blood loss from trauma
Price as on 18 Jul, 2019 12:22 PM, Click on company names for their live prices.
would say that for the next couple of quarters at least, it is going to be very stock specific market. I do not think you will see a broad-based rally at this point of time and when there is a likelihood that the economy is going to turn around maybe over the next three or six months, that is when people will start building in some risk in the portfolios and start looking at some of the names which are beaten down today, but have a little risk in terms of funding etc.
- Harsha Upadhyaya, Kotak AMC
Punjab & Sind Bank drops 6% after lender flags Rs 238-crore fraud
Shares of Punjab & Sind Bank Thursday fell over 6 per cent after the lender reported over Rs 238-crore fraud by Bhushan Power and Steel (BPSL). The state-owned bank Wednesday reported over Rs 238-crore fraud by Bhushan Power and Steel, a third such instance after similar disclosures made by PNB and Allahabad Bank recently.
Edelweiss in talks with strategic investors to off-load stake in wealth biz
Edelweiss Financial Services Thursday said it is in discussions with a few strategic investors to off-load part of its stake in its wealth business. The company, however, did not share any details about the said investors or the quantum of stake it intends to divest.
Shares of Housing Development Finance gained as much as 1.78 per cent to hit a record high of Rs 2,327.45 on Thursday.
The stock broke above a resistance at Rs 2,309.02, the 76.4 per cent Fibonacci projection level of the uptrend from December 5, 2016 low to July 30, 2018 high (wave 2).
The breakout suggests in the near term the stock may test the next resistance at Rs 2,396, the 86.4 per cent projection level.
Trend intensity (TI) indicator rose to 25, which suggests the prices are trending upwards.
MACD was positive and above its signal line.
HDFC shares have gained 16.2 per cent this year as of last close, outperforming the broader NSE Index's 7.6 per cent gains in the same period.
YES Bank, DHFL, RCom most active stocks on NSE
Price as on 18 Jul, 2019 11:43 AM, Click on company names for their live prices.
Wipro advances over 3% post Q1 results; should you buy?
Shares of Wipro were trading over 3 per cent higher during Thursday's session after the IT firm posted a 12.5 per cent rise in consolidated net profit at Rs 2,387.6 crore for the April-June quarter. Wipro guided for up to 2 per cent sequential revenue growth for the July-September period.
Brokerage firm Sharekhan said that Wipro delivered lower-than-expected revenue performance for Q1FY2020. However, adjusted EBIT IT margin remained a tad ahead of estimates. Management highlighted that the capital return policy would be maintained at 40-50 per cent of net profit despite change in taxation policy, as free cash flow to net profit remains strong at 98 per cent.
Shares of IT player Mindtree plunged over 10 per cent to hit their 52-week low of Rs 675.05 in Thursday's session, a day after it posted a 41.4 per cent decline in consolidated net profit at Rs 92.7 crore for the June quarter.
Motilal Oswal Securities maintained a 'neutral' view on the stock with a target price of Rs 750.
Kotak Institutional Equities retained 'reduce' call on the stock with a target price of Rs 725.
BNP Paribas maintained 'reduce' recommendation on the stock, cutting the target price to Rs 670.
Shares of Care Ratings declined over 4 per cent in early trade on Thursday after the company sent its managing director (MD) and CEO on leave after an anonymous complaint was filed against him at the Securities and Exchange Board of India (Sebi). In his absence, the company has appointed TN Arun Kumar, now executive director (Ratings), as interim CEO of the company.
Shares of YES Bank tanked nearly 15 per cent in Thursday's session after the lender posted a 91 per cent year-on-year (YoY) fall in net profit at Rs 113.76 crore for the quarter ended June 2019, on account of Rs 6,232 crore addition to the non-performing assets.
It had posted a net profit of Rs 1260.36 crore in the corresponding quarter last year and a loss of Rs 1,506.64 crore in the preceding quarter.
The scrip hit a fresh 52-week low of Rs Rs 83.70 on BSE.
India is expected to grow by 7 per cent in 2019 (FY20) and 7.2 per cent in 2020 (FY21), slightly slower than projected in April because the fiscal 2018 outturn fell short
Today's calls from ICICIDirect
India gets rainfall 20% below average in latest week: IMD
India’s monsoon rains were 20% below average in the week ending on Wednesday, as rainfall was scanty over the central, western and southern parts of the country, the India Meteorological Department (IMD) said, raising concerns over the output of summer-sown crops. Monsoon rains are crucial for farm output and economic growth, as about 55% of India’s arable land is rain-fed, and agriculture forms about 15% of a $2.5 trillion economy that is the third biggest in Asia.
Sensex gains 70 pts, Nifty slips below 11,700; rupee trades at 68.76 against dollar.
Singapore trading sets stage for negative start
Nifty futures on the Singapore Exchange were trading 28 points, or 0.24 per cent, lower at 11,645.50, indicating a negative start for Dalal Street.
Tech view: Spinning Top show D-St indecisiveness
Nifty advanced to hit the 11,700 level on Wednesday saw selling pressure, as investors turned indecisive at higher levels. This eventually led the index to form a ‘Spinning Top’ candle on the daily chart. A higher high and low pattern for past three sessions suggested that support has shifted higher. But a weak advance-decline ratio remained a concern. Analysts said should Nifty fail to regain 11,720, it may trigger profit taking.
Asian stocks wobbly on trade war woes
Asian shares wobbled in early Thursday trading as Wall Street stocks dropped on early signs that the US-China trade war could hurt corporate earnings, helping to underpin solid demand for safe-haven US Treasuries. MSCI's broadest index of Asia-Pacific shares outside Japan was down a touch, while Japan's benchmark Nikkei fell 1.3 per cent and Australian shares dropped 0.4 per cent. South Korea's market was off 0.4 per cent.
Oil prices drop for 4th day on US output
Oil prices fell, extending declines into a fourth day, after official data showed US stockpiles of products like gasoline rose sharply last week, suggesting weak demand during the peak driving season. Brent crude futures were down 15 cents, or 0.2%, at $63.51 a barrel. They fell 1.1 per cent on Wednesday.
US stocks ended lower
US stocks closed lower as investors digested a batch of earnings reports. The Dow Jones Industrial Average index was down 115.78 points, or 0.42 per cent, to 27,219.85. The S&P500 index fell 19.62 points, or 0.65 per cent, to 2,984.42. The Nasdaq Composite index decreased 37.59 points, or 0.46 per cent, to 8,185.21.
Higher MSCI EM weight to bring $25 bn equity inflows
Morgan Stanley estimates inflows of $25 billion into the Indian equity market and sees the country’s weightage in the MSCI Emerging Market index going up 146 basis points (bps) as the government has started to address the country’s free float problem and proposed changes in the recent budget.
DIIs buy Rs 209 cr worth equities
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 17 crore on Wednesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 209 crore, data suggests.
Sensex on Wednesday
BSE Sensex closed 84.60 points, or 0.22 per cent, higher at 39,215.64. While NSE Nifty ended at 11,687.50, up 24.90 points or 0.21 per cent.
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