Traders’ Diary: Nifty trading range at 10,750-11,100 zone
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Nifty has seen a breakdown from the Bearish Flag formation and dashed hopes of a bounceback. The index has been facing multiple hurdles in the 11,111 -11,180 zone for last three weeks and every bounce is getting sold. It has gone to the lower band in last seven sessions and as long as it holds below 11,000, fresh weakness can drag it towards the recent swing low in the 10,800- 10,780 zone, while on the upside hurdles are seen at 11,050 and then 11,111 levels
Markets regulator Sebi on Wednesday approved several recommendations made by HR Khan Committee in a bid to simplify and rationalise the existing regulatory framework for foreign portfolio investors (FPIs) by easing operational constraints and compliance requirements.
The regulator has done away with the broad-based eligibility criteria for FPIs, simplified documentation requirements for KYC and reduced the eligibility categories for FPIs to 2 from 3 at present.
Sebi Board Meet Outcome
Sebi approves recommendations by HR Khan committee on FPI norms
Sebi allows offshore funds of Indian mutual funds to invest as FPIs
FPIs to be recategorised into 2 categories from 3 currently
Nifty managed to close above 10,900, suggesting if the index manages to hold above this zone, it can again trade in 10,900-11,200 range for some more sessions. Any decisive break below 10,900 can see sharp cuts towards 10,800. Immediate support is in 11,865-10,800 zone and resistance is coming near 10,980-11,040
- Rohit Singre, Senior Technical Analyst, LKP Securities
Investors are pinning hopes on any stimulus from the government to lift sentiment. On the global front, investors may take cues from FOMC minutes, which will be released today. Meanwhile, we continue to remain cautious on the market in the near-term. We recommend investors to utilise dips to accumulate fundamentally strong stocks
Fall in YES bank is attributed to their exposure to CG Power. It had acquired 12.8% stake in the company post invocation of pledged shares of promoters. Net realisable value from their exposure to the company would be further less given stock price has also corrected steeply. We do not know quantum of exposure to the said company. We have ‘sell’ rating on YES Bank with target of Rs 74
- Anusha Raheja, BFSI Research Analyst at LKP Securities
Sensex slips 268 pts on slowdown concerns, Nifty ends at 10,919; Tata stocks plunge up to 9%
Foreign Portfolio Investors (FPIs) bought equities worth Rs 31,700 crore in the quarter ended June 2019, broking firm Kotak Securities estimated.
Diversified financials, insurance, oil, gas and consumable fuels and telecommunication services were the top sectors that witnessed FPI buying.
ITC, Asia’s largest cigarette maker by market value, is considering a bid to buy a stake in Coffee Day Enterprises Ltd. as it seeks to diversify away from tobacco products, according to people familiar with the matter. The maker of Classic and Gold Flake cigarettes has been given access to Coffee Day’s assets and financial for due diligence, said the people, who asked not to be identified as the discussions are private. ITC could be vying with Coca-Cola.
India's economic growth is set to slow further in the April-June quarter of this year to 5.7 per cent amid contraction in consumption, weak investments and an under-performing service sector, says a Nomura report.
According to the global financial services major, even though growth is set to slow further in Q2 (April-June) the economy is expected to see some recovery in the July-September quarter.
Stocks likely to be included in Nifty (Source: ICICIDirect)
BSE advance-decline ratio at 2:5
If I break the entire Nifty into Nifty 10 and remaining Nifty 40 stocks, I agree that the polarisation has reached extreme levels. Both from the delivery and the market cap valuation perspective or the concentration risk perspective, we believe it has peaked out. So whether you talk about Titan or Bajaj Finance or some of the safer names like Berger and Asian Paints, because of the low oil prices are still holding on but most of the stocks have peaked out. In the next two or three months, time will come to buy and concentrate more on Nifty40 stocks as compared to Nifty10.
- Sandeep Tandon
India's GDP growth set to slow further in April-June quarter to 5.7%: Nomura
Bank of Baroda capital raising committee to meet next week to consider bond issue
Price as on 21 Aug, 2019 12:18 PM, Click on company names for their live prices.
I think investors with a bit of patience , with a 12-18 month view, could quite end up doing well in shares. So, we are looking at the market going up in absolute terms but keep in mind a rather cautious global equity view that Morgan Stanley has.
- Ridham Desai, Managing Director, Morgan Stanley India
Credit Suisse reverses stance, upgrades RIL on debt cut plan
Credit Suisse has upgraded Reliance Industries’ share rating and increased the target price after company’s chief Mukesh Ambani announced plans to be net debtfree in 18 months at the company’s annual general meeting, in a complete reversal of the brokerage’s stance before the event.
It is time to take risk. Unless you do that, how are you going to make money? You can either be an investor who does not want to take risks in terms of profitability, in terms of the economic environment. Then 2017 would have been best for you as the prices then were not worth taking risk for; or you can take risk now when the economy is struggling slightly and the prices of the same stocks have fallen 50-60%.
- Sunil Singhania
Dr Reddy’s Labs down after USFDA observations
Shares of Dr Reddy’s Laboratories were trading lower in early trade Wednesday as the US health regulator issued 8 observations to the company after the inspection of its Duvvada facility in Andhra Pradesh.
The audit of the company’s formulations manufacturing plant (Vizag SEZ Plant 1) at Duvvada, Visakhapatnam by the United States Food and Drug Administration (USFDA) got completed on Tuesday, Dr Reddy's said in a filing to the BSE.
Top 10 NSE gainers in early trade
Price as on 21 Aug, 2019 11:15 AM, Click on company names for their live prices.
CG Power hits lower circuit for second straight session
Shares of CG Power and Industrial Solutions hit lower circuit of 20 per cent for the second straight session on Wednesday after the company on Tuesday said an investigation by its board found major governance and financial lapses. The scrip declined 20 per cent to hit a low of Rs 11.80 in today’s trade.
IT raids send Oberoi Realty, Capacit’e tumbling up to 15%
Shares of Oberoi Realty and Capacit’e Infraprojects tumbled up to 10 per cent in Wednesday’s trade after the income Tax (I-T) Department carried out searches for suspicious transactions, including alleged purchase from dubious entities.
Capacit’e Infraprojects is Oberoi Realty group’s biggest vendor.
Clarification has been sought by stock exchanges on the development. The companies are yet to respond.
Shares of Capacit’e Infraprojects tumbled 15.06 per cent to hit a low of Rs 157 on BSE. Oberoi Realty dropped 6.25 per cent to Rs 492.
What is RSI and how to use it in stock trading?
YES Bank, NMDC, Tata Motors among most active stocks on NSE
Price as on 21 Aug, 2019 09:35 AM, Click on company names for their live prices.
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OPENING BELL: Sensex flat, Nifty slips below 11,000; CG Power tanks 20%, YES Bank 4%
Sensex rises 90 pts, Nifty above 11,050; rupee opens at 71.45 against US dollar.
Singapore trading sets stage for negative start
Nifty futures on the Singapore Exchange were trading 25 points, or 0.23 per cent, lower at 11,003.50, indicating a negative start for Dalal Street.
Tech view: Nifty forms small bearish candle
On Tuesday, the index faced resistance at 11,180 level, which is the upper end of a crucial trading range between 11,150 and 11,180 levels, which is deemed important for the bulls to take out for any upside. Unless this range is breached, analysts expect the index to consolidate with a negative bias.
Asian shares fall on recession fears
Asian shares fell on Wednesday as fresh worries about a global recession led investors to dump risky assets, with US President Donald Trump showing no signs of backing down in his trade war with China. Japan's Nikkei slipped 0.6 per cent, Australian shares were 0.8 per cent lower and South Korea's Kospi index was a shade weaker.
Brent tops $60 a barrel mark
Prices for Brent oil rose above $60 a barrel for the first time in over a week amid data that showed a larger-than-expected drawdown in US crude inventories, but ongoing worries about a global economic recession capped gain. Brent crude had risen 13 cents, or 0.2 per cent, to $60.16 a barrel.
US stocks slid in overnight trade
On Wall Street, stocks slid further after President Donald Trump once again said he was not ready to reach a trade deal with China. The Dow Jones Industrial Average lost 0.7 per cent, while the broad-based S&P 500 fell 0.8 per cent. The tech-rich Nasdaq Composite Index shed 0.7 per cent
NSE revises index inclusion criteria
The Index Maintenance Sub-Committee (IMSC) of NSE has revised the eligibility criteria for inclusion of stocks in Nifty indices. According to the revised guidelines, all equity shares that are traded (listed & traded and not listed but permitted to trade) at the exchange are eligible for inclusion in the indices.
Bond yield jumps in India on fears of stimulus
Bond yields, which fell to record lows after the Union Budget hinted at a portion of borrowing shifting to overseas markets, have jumped 37 bps in the past seven trading days on fears of a fiscal stimulus that would make the government borrow more.
FPIs buy Rs 373 cr worth equities
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 373 crore on Tuesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 296 crore, data suggests.
Sensex on Tuesday
BSE Sensex closed 74.48 points or 0.20 per cent lower at 37,328.01 while NSE Nifty ended at 11,017, down 36.90 points or 0.33 per cent.
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