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Economic Times | 21 Jan, 2020 | 08.43AM IST

Traders’ Diary: Nifty to test 12,100-12,150 zone

Sensex slumped on sell-off in RIL, Kotak Bank, HDFC Bank and TCS following their Q3 results.

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06:38 PM

Nifty took strong resistance form upper band of the channel on the weekly chart and witnessed selloff to close the day at 12,225, forming a bearish engulfing candle pattern on the daily chart, which is a bearish reversal candle by nature. If the index manages to sustain below 12,210, we may some more cuts. The immediate support is coming near 12,155-12,100 and resistance is in 12,280-12,350. Until we trade below 12,400, we may see profit booking on every rise

- Rohit Singre, Senior Technical Analyst, LKP Securities

06:31 PM

Was Monday’s fall a temporary blip?

06:29 PM

The upside for Nifty will remain capped at 12,400 level. Traders can create fresh shorts either on bounce into the 12,250–290 zone or if Nifty trades below the 12,200 level for more than 30 minutes on Tuesday and look for a target close of the 12,050 level with a stop loss above 12,350 on a closing basis

- Mazhar Mohammad,

06:29 PM

A large negative candle formed after an opening gap-up suggests that Monday’s swing high will be a crucial top reversal pattern. Follow-through weakness could confirm the reversal. Nifty’s short-term trend seems to have turned down and more weakness could be in store in the short term. The next lower level to be watched is at 12,100, which could be reached in the next few sessions

- Nagaraj Shetti, Technical Research Analyst, HDFC Securities

05:12 PM

Looking at the current chart structure, Nifty may see further correction towards next support at 12,150 and 12,050 levels. Now, the immediate resistance for Nifty is shifting lower to 12,330 level; while major resistance is placed in the 12,400–12,450 zone

- Chandan Taparia, Technical & Derivative Analyst, MOFSL

04:09 PM

The support in 12,100-12,150 zone is likely to get tested, which is a very crucial range. Sustained breach below the mentioned support zone will weaken the near term trend and in that case, the index is likely to test 11,800. Traders should lighten up their long positions in the current scenario. Support at 12,150-12,000 and resistance is in 12,300-12,400

- Manav Chopra, Head Research - Equity, Indiabulls Ventures

04:03 PM

The market witnessed selling pressure despite positive global cues. The disappointing earnings announcement by select Nifty majors led to the decline in the markets. We continue to remain cautious on the market given that the indices are near peak levels. The expectations from Budget are high this time around given the current economic slowdown. This is likely to drive momentum across sectors. Further, the earnings announcements from corporates is likely to induce stock specific volatility in the coming sessions. We would recommend traders to remain cautious and hedge their risky leveraged positions

- Ajit Mishra, VP - Research, Religare Broking

04:02 PM

The market is consolidating due to mildly subdued Q3 results in banking and heavyweights. It is fair to expect this consolidation to continue in the short-term after the solid performance of the last one month with fantastic gains in midcaps & smallcaps. For further direction, a lot will depend on Budget announcements and broader performance in Q3 result, showing gain across the economy

- Vinod Nair, Head of Research, Geojit Financial Services

03:35 PM

CLOSING BELL: Not-so-impressive Q3 results, oil spike send Sensex tumbling 416 pts; Nifty below 12,250; Kotak Bank drops 5%

CLOSING BELL: Not-so-impressive Q3 results, oil spike send Sensex tumbling 416 pts; Nifty below 12,250; Kotak Bank drops 5%
03:12 PM

Brokerages on TCS post Q3

Macquarie on TCS
Macquarie lowers TCS Macquarie FY20-21 EPS estimates by 0.6-3.5 per cent. The brokerage said, "TCS missed Q3 consensus estimates marginally, and the EBIT margin level was a beat. Commentary on BFS vertical remains subdued, however, TCS maintains 'Outperform' rating with a target price of Rs 2,240 per share.

BofA-ML on TCS
BOFA-ML maintains a 'Neutral' rating for TCS with a target price of Rs 2,150 per share. Banking and Financial Services slows down further but market expansion could help, TCS added. The brokerage also anticipates stock trades at fair valuation of 24 times 1 year EPS.

CITI maintains 'Sell' rating for TCS with a target price of Rs 1,975 per share. The brokerage said, 'BFS/retail/UK has decelerated over the past few quarters and weak Q3 results led to a 'Sell' rating,' it added. Infosys trades at ~25% discount to TCS.
02:56 PM

DoT seeks Rs 48,000 cr from Oil India in telecom dues

The telecom department has slapped a Rs 48,000 crore demand notice on Oil India in past statutory dues, an order which the country's second-biggest state oil producer plans to challenge in Telecom Disputes Settlement and Appellate Tribunal (TDSAT). Following a Supreme Court ruling that non-telecom revenues should be included for considering payments of government dues, the Department of Telecommunications (DoT) has asked Oil India to pay Rs 48,000 crore in principal dues together with interest and penalty for using optic fibre network for internal communication. The dues sought are double the net worth of Oil India.
02:32 PM

USFDA in active mode, issues obersvations to 4 drug makers in 3 days

The US Food and Drug Administration (USFDA) seems to be in action again as at least five companies filed corporate announcements on the stock exchanges related to the health regulator over the past three days.
02:00 PM

IRFC files IPO draft papers with Sebi

Indian Railway Finance Corporation has filed draft papers with markets regulator Sebi for its initial public offering (IPO). The public issue is of up to 140,70,69,000 equity shares of which up to 93,80,46,000 equity shares are fresh issue, and up to 46,90,23,000 equity shares are offer for sale, according to the draft red herring prospectus (DRHP).
01:50 PM

Kotak Mahindra Bank Q3 profit jumps 24% YoY, misses Street estimates

Kotak Mahindra Bank Q3 profit jumps 24% YoY, misses Street estimates
01:19 PM

Federal Bank, Kotak Mahindra Bank fall ahead of Q3 numbers

Price as on 20 Jan, 2020 01:19 PM, Click on company names for their live prices.
01:17 PM

Middle East share of India's oil imports falls to four-year-low in 2019

India’s imports of Middle Eastern oil plunged to a four-year low in 2019, tanker data obtained from sources shows, as the energy-hungry nation diversifies its supplies to cut costs and help shield itself from geopolitical tensions. (Source: Reuters)
01:12 PM

Crude oil futures rise Rs 49 to Rs 4,211 per barrel

Crude oil prices on Monday rose Rs 49 to Rs 4,211 per barrel as speculators created fresh positions amid positive trend at the spot market. On the Multi Commodity Exchange, crude for February delivery traded higher by Rs 49, or 1.18 per cent, at Rs 4,211 per barrel in 21,729 lots. Crude oil for March delivery was quoting lower by Rs 50, or 1.2 per cent, at Rs 4,218 per barrel with an open interest of 389 lots.
12:51 PM

Cochin Shipyard, NMDC, NHPC rally on inclusion in Nifty CPSE ETF

Price as on 20 Jan, 2020 12:51 PM, Click on company names for their live prices.
12:48 PM

Biocon Bengaluru unit pre-approval inspection by USFDA concludes with zero observations

Price as on 20 Jan, 2020 12:48 PM, Click on company names for their live prices.
12:04 PM

We can debate whether things have changed in the mid- & smallcap basket or not, but clearly the valuations were removing all the entry-level risk for this segment and that is what some of the investors have utilised, putting money into this basket. While the market may still consolidate at current levels, when you look ahead, the mid and smallcap basket can give relatively better returns than the largecap basket.

- Harsha Upadhyaya, Kotak AMC

11:53 AM

Adani Enterprises denies wrongdoing amid allegations of coal supply contract irregularities

Adani Enterprises on Monday said that it has not done anything wrong in supply of the dry-fuel amid reports that the CBI registered a case against the company for alleged coal supply contract irregularities. In its FIR filed last week after a detailed preliminary enquiry in the matter, the CBI booked Adani Enterprises Ltd, the then NCCF chairman Virender Singh, the then managing director G P Gupta and senior advisor SC Singhal under IPC sections related to alleged criminal conspiracy, cheating under Indian Penal Code and Provisions of Prevention of Corruption Act, officials said on Thursday.
11:36 AM

Anand Rathi maintains Buy rating on Karnatak Bank post Q3 results

Slippages in Q3 FY20 for Karnataka Bank were Rs 640 crore, of which Rs 250 crore came from the previously disclosed stressed accounts. Now, with most of the stress from the corporate book recognized, we expect the slippage run rate to be modest ahead. With stable asset quality, we expect credit cost to moderate in coming quarters leading to RoE normalisation. We retain our Buy recommendation, with a higher target of Rs 95 (earlier Rs 90) at 0.4x P/ABV of its FY22e book.
11:23 AM

Bharti Airtel, Vodafone Idea plan to approach SC soon: Agencies

Bharti Airtel, Vodafone Idea said to seek more time from court on fees, ET NOW reported agencies as saying. Shares of Vodafone Idea were trading nearly 6 per cent higher while those of Bharti Airtel were up 1 per cent on BSE.
Bharti Airtel, Vodafone Idea plan to approach SC soon: Agencies
11:13 AM

L&T Finance Holdings slips 5% post Q3 results

Shares of L&T Finance Holdings (LTFH) retreated over 5 per cent despite the company on Friday posted a marginal 1.8 per cent growth in consolidated net profit to Rs 591.47 crore for the quarter ended December 31. It had reported a net profit of Rs 580.96 crore in the same period last year.
11:07 AM

Here's what brokerages are saying on RIL post Q3 results

Axis Capital maintains Buy rating on RIL with a target price of Rs 1,900 per share. The brokerage said, "Consumer businesses is going from strength to strength, while Reliance Jio increased churn." Its cyclical businesses saw a marginal miss, it added.

CLSA maintains Buy rating with a target price of Rs 2,010 per share. The brokerage said RIL posted first positive FCF in over six years and progress on projects and deals continue. Its petchem business drives a 6% cut in our FY20 EPS.

Morgan Stanley maintains Overweight rating with a target of Rs 1,75 per share. Its numbers from refining business were reasonable despite challenges faced in the quarter. The telecom business numbers were weaker than expected and deleveraging continues at RIL.

JP Morgan maintains Neutral rating on RIL with a target price at Rs 1,560 per share. RIL posted weak petchem, strong retail and mixed Jio numbers in Q3, the brokerage said. On balance, we see downside risks to FY21. It cut FY20-22 EPS estimates by 4-5%.

UBS maintains Buy rating with a target price at Rs 1,750 per share. Robust consumer business led to another strong quarter for RIL. GRMs premium over Singapore benchmark improved, it said.
11:03 AM

Cipla announces closure of USFDA inspection at Patalganga facility

Cipla on Monday announced the closure of inspection by the US health regulator at its Patalganga manufacturing facility in Maharashtra. Shares of Cipla were trading 0.40 per cent lower at Rs 478.35 apiece on the BSE in the morning trade.
10:45 AM

OMCs mixed as crude oil spikes

Price as on 20 Jan, 2020 10:45 AM, Click on company names for their live prices.
10:43 AM

Brokerages find TCS expensive post Q3 results

  • Edelweiss Securities maintained ‘Hold’ rating on the stock with a target price of Rs 2,175. “We reiterate TCS has best-in-class execution capabilities, but its expensive valuation and lack of margin levers keep us wary on the stock,” Edelweiss said.

  • HDFC Securities maintained ‘Neutral’ rating on TCS post Q3 results with a target price of Rs 2,025. “While TCS’ supply-side metrics continue to be industry leading (margins, attrition, offshore leverage), risks on the demand side with macros (Brexit) and client specifics across core verticals remain,” the brokerage house said.

  • Kotak Institutional Equities maintained ‘Reduce’ rating on TCS with a fair value of Rs 2020. However, it said that TCS is a must have in the portfolio at the right valuation.
10:13 AM

D-Street biggies' Q3 show disappoints!

HDFC Bank, Reliance Industries, TCS, Kotak Mahindra Bank and HCL Tech were the top drags on Sensex in Monday's session.
D-Street biggies' Q3 show disappoints!
10:10 AM

Brokerages bullish on HDFC Bank post Q3 results; stock flat

  • Edelweiss Securities introduced FY22 estimates and roll forward valuations by one quarter, leading to revised target price of Rs 1,520 from earlier Rs 1,456.

  • Nomura brokerage has a target of Rs 1,475 on the stock. JP Morgan also maintained 'overweight' rating on the stock with a target of Rs 1,600.

  • Nirmal Bang has retained its ‘accumulate’ stance on the stock with a revised target price of Rs1,358 from Rs 1,322 earlier.
10:04 AM

Lenders' exposure to Vodafone Idea

Lenders' exposure to Vodafone Idea
09:52 AM

The upside looks capped on the higher side. Sharp profit booking could be witnessed below 12,200 levels as it will turn the monthly candle negative and breakdown of the 20-day average.

- Vikas Jain, Senior research analyst, Reliance Securities

09:37 AM

Vodafone Idea, NHPC, YES Bank, IOC among most active stocks on NSE

Price as on 20 Jan, 2020 09:37 AM, Click on company names for their live prices.
09:20 AM

OPENING BELL: Sensex rises 300 pts to hit record high of 42,273, Nifty hits 12,400 for first time

OPENING BELL: Sensex rises 300 pts to hit record high of 42,273, Nifty hits 12,400 for first time
09:02 AM

Pre-open session: Sensex jumps 280 points, Nifty nears 12,500; Rupee trades at 71.07 against dollar

08:27 AM

Singapore trading sets stage for positive start

Nifty futures on the Singapore Exchange traded 20 points, or 0.13 per cent, higher at 12,402.50, indicating a positive start for Dalal Street.
08:27 AM

Tech view: Nifty forms small bullish candle

Nifty’s immediate support at 12,280 level stays intact, said analysts, who felt the momentum on the index is fading through it is yet to show any weakness. The next hurdle for Nifty50 as per weekly timeframe is placed at the 12,400 mark, analysts said.
08:27 AM

Asian shares near 20-month highs

Asian shares neared a 20-month top on Monday as Wall Street extended its run of record peaks on solid US economic data and lashes of liquidity from the Federal Reserve. MSCI's broadest index of Asia-Pacific shares outside Japan firmed 0.1%, after notching its highest close since June 2018. Japan's Nikkei added 0.2 per cent to be near its highest in 15 months.
08:27 AM

US stocks settled higher on Friday

US stocks ended week on a positive note as Wall Street digested a slew of economic data. The Dow Jones Industrial Average was up 50.46 points, or 0.17 per cent, to close at 29,348.10 on Friday. The S&P 500 rose 12.81 points, or 0.39 per cent, to 3,329.62. The Nasdaq Composite Index increased 31.81 points, or 0.34 per cent, to 9,388.94.
08:26 AM

Kotak Mahindra Bank to announce Q3 nos today

Kotak Mahindra Bank is likely to report 25-30 per cent surge in net profit and a solid 4.4-4.6 per net interest margin (NIM) in December quarter. Hindustan Zinc, ICICI Securities, Federal Bank, Bank of India, Just Dial and Can Fin Homes will be other companies which will announce quarterly results today.
08:26 AM

Oil gains on Libyan pipeline shutdown

Oil prices jumped on Monday after two large crude production bases in Libya began shutting down amid a military blockade, setting the stage for crude flows from the OPEC member to be cut to a trickle. Brent crude futures were up by 75 cents, or 1.2 per cent, to $65.60.
08:26 AM

DIIs sell Rs 500 crore worth stocks

Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 264.26 crore on Friday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 500.17 crore, data suggests.
08:25 AM

Sensex on Friday

The BSE benchmark Sensex was up 12.81 points or 0.03 per cent at 41,945.37. The index also marked its new all-time high of 42,063.93 in intraday trading, before surrendering some of its gains. The broader Nifty settled 3.15 points or 0.025 per cent lower at 12,352.35.
08:24 AM

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Good morning, dear reader! Here's something to kickstart your trading day
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