Traders' Diary: Nifty remains in a structural uptrend
Sensex surrendered early gains as energy, auto and financial stocks came under pressure.
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Nifty can continue to slide towards the daily lower Bollinger Band near the 12,000 mark. The 12,000-11,930 range will be a major support zone to watch out for. From a trading perspective, sell on rise will continue to be the preferred strategy with key resistance zone at 12,200-12,220
- Gaurav Ratnaparkhi, Sharekhan
A long negative candle was formed, which sent Nifty to the gap area between 12,044 and 12,132 levels formed on January 9. Technically, today's pattern indicates continuation of a downtrend. But the longer-term uptrend that resulted in higher tops and bottoms still remains intact. Nifty sustaining above its key support at 12,044 could be a part of higher bottom formation
- Nagaraj Shetti, HDFC Securities
After relentless selling pressure in last three sessions that brought down the index from a high of 12,430, Nifty appears to have reached an oversold zone. A mild pullback can’t be ruled out, but strength should not be expected unless it closes above the 12,225 level. If selling continues, a level below 12,070 should trigger a correction up to 11,990 level
- Mazhar Mohammad, Chartviewindia.in
Nifty formed a Bearish Candle on the daily scale, as the bears continued to dominate and resistances shifted lower gradually. Nifty corrected by around 330 points in last few sessions and now hovers near its 50 DEMA. It has been forming lower highs and lows since last two sessions and needs to negate the same to get short-term stability. As long as it holds below the 12,150 mark, Nifty could drift towards its previous gap area at 12,044, while hurdles are seen at 12,225 and then 12,250 levels
Nifty fell for a fourth straight session and wiped out gains of prior eight days. The near-term oscillators continued to be in sell mode and the index has also tested its medium-term average at 12,105. Any counter trend move could face headwinds around 12,160-12,200. While the next support falls near 12,000. Traders can use rallies towards 12,160-12,200 to reduce their leveraged long positions
Larsen & Toubro (L&T) on Wednesday reported a 15.2 per cent year-on-year rise in consolidated profit at Rs 2,352 crore for December quarter. The company had reported Rs 2,041.62 crore profit in the same quarter last year.
The capital goods major misses Street estimates on key parameters -- revenue and PAT. The company attributed it to lacklustre growth in the economy.
Nifty continued to consolidate in 11,800-12,500 range. Since the index was trading near the upper band of the range, selling pressure has pushed the index towards 12,100. We believe the index is in a structural uptrend and the current correction is a buying opportunity. Volatility is expected to remain high on account of Budget. Traders are advised to maintain stop loss of 11,800 on Nifty and accumulate on longs. Investors can consider increasing positions in high quality frontline and midcap stocks
- Sahaj Agrawal, Head of Research- Derivatives, Kotak Securities
Axis Bank on Wednesday posted 4.53 per cent year-on-year rise in profit at Rs 1,757 crore for the quarter ended December 31. The private lender had posted a profit of Rs 1,680.85 crore in the same period last year.
Analysts in an ET NOW poll had projected the number at Rs 2,250 crore.
Net interest income (NII) of the bank increased 15 per cent to Rs 6,453 crore on a yearly basis.
Banks, auto and midcaps are consolidating due to marginal slippage in NPAs and weak earnings growth. The Q3 results had solid expectations, but actual results are marginally below expectations for sectors such IT and banks; this is impacting the market. A lot will depend on Budget announcements for further direction. Dalal Street is turning cautious before the big event
- Vinod Nair, Head of Research, Geojit Financial Services
Asian Paints posted good set of results amid a slowdown in the economy where it comes out with double-digit growth with better-than-expected Ebitda margin of 21.9%. There is a slight miss on revenue front, but profit was in line with expectations. Valuations are on the expensive side, but growth perspectives are still bright. Technically, Rs 1,760-1,740 is an immediate support zone and any dip will be a buying opportunity. On the upside, Rs 1,835-1,860 is a resistance zone; above this we can expect a move towards Rs 1,950 level
- Santosh Meena, Senior Analyst, TradingBells
CLOSING BELL: Sensex falls for 3rd day, down 208 pts; Nifty ends a tad above 12,100; HDFC drops 2%, IT stocks rally
Adani Power drives Indian utilities' coal imports to 4-year high
Indian utilities’ coal imports rose to their highest levels since 2015 and reversed a three-year slide, government data showed, mainly due to increased imports by a major plant run by Adani Power Ltd. Imports rose 21% in 2019 to 69.51 million tonnes, data from the Central Electricity Authority showed. Adani’s “Ultra mega” power plant in Mundra in western India accounted for a fourth of the imports, with its shipments rising 75% to 17.35 million tonnes. (Source: Reuters)
Sebi to hire independent agencies to dispose of attached assets
To help it recover pending dues from defaulters, Sebi has decided to rope in independent agencies for conducting valuation and sale of assets attached by the capital markets watchdog. Inviting bids from the interested parties, Sebi said it has been initiating proceedings against various defaulters for their failure to refund money to investors or failure to pay the penalty, fees and disgorgement money from time to time.
UBS turns bullish on earnings growth after 5 years
UBS Securities on Wednesday said it sees a 20 per cent upside in Nifty by December 2021 in its base case scenario, driven by strong foreign fund inflows. The broking firm has also turned bullish on earnings growth after five years on the basis of its four parameters -- exports, policy, capex and credit growth. From an average 6 per cent earnings growth over FY15-19, UBS estimates Nifty earnings could grow around 15 per cent in FY21-23 in its base case.
ALERT: Rane Engine Valve's December quarter loss widens
Price as on 22 Jan, 2020 02:18 PM, Click on company names for their live prices.
Use all your entitlement to save on taxes and this is the only methodical window available to individuals. They do not have much room to plan their taxes; this is the only way to go about it.
- Dhirendra Kumar
Power Mech Projects bags orders worth Rs 351 crore
Price as on 22 Jan, 2020 01:48 PM, Click on company names for their live prices.
Earnings cycle will probably run a little ahead of what market expects: Taher Badshah, Invesco
Removal of the long-term capital gains tax and measures to boost consumption are high on equity investors’ wish list from India’s federal budget due Feb. 1.
With the economy facing its worst growth, investment and jobs crisis in more than a decade, Finance Minister Nirmala Sitharaman needs to offer support for individuals and businesses. The scope may be limited, however, amid concern over a larger than projected deficit.
Asian stocks arrest slide but investors on edge over China virus
Asian share markets steadied on Wednesday as investors took stock of the spread of a new strain of coronavirus from China and weighed the possible consequences of a global pandemic, Reuters reported.
Mass jobs can be created in sectors such as textile, leather and garments etc
- Sunil Sinha, principal economist, Indian Ratings
Zee Entertainment falls post disappointing Q3 results; but analysts say valuations compelling
Price as on 22 Jan, 2020 12:38 PM, Click on company names for their live prices.
Key themes for the budget as highlighted by Morgan Stanley:
Focus on credible fiscal numbers and gradual consolidation
Continue to favour investment-driven growth with redistributive spending likely to remain in line with nominal GDP growth
Provide strong intent to raise additional resources through strategic divestment and asset monetization
Provide a credible medium-term fiscal consolidation plan and improve the health of the public sector balance sheet
Rupee may depreciate marginally to 73 against the Us dollar in FY 21 against 71.1 in FY 20
- India Ratings
Some of the challenges for economy are: How to manage fiscal deficit, job creation, how to fix woes of banking and non banking, how to revive private corporate investment, how to fix the rural distress and how to push exports amidst rising global protectionism
- India Ratings
Infra stocks mixed; Reliance Power slumps 5%
Shares of infrastructure companies were trading on a mixed note in Wednesday's afternoon session.
Shares of CG Power & Industrial Solutions (up 4.97 per cent), Reliance Infrastructure (up 4.87 per cent), Torrent Power (up 1.26 per cent) were the top gainers.
On the other hand, Vodafone Idea (down 6.72 per cent), Reliance Power (down 4.55 per cent), NTPC (down 3.33 per cent), IRB Infrastructure Developers (down 2.69 per cent), Power Grid Corporation of India (down 2.59 per cent), Suzlon Energy (down 1.96 per cent) were the top losers.
UPL shares skid after reports of I-T raid at its premises
Price as on 22 Jan, 2020 12:02 PM, Click on company names for their live prices.
Credit growth in the current fiscal will be around 8-9 per cent
- Sunil Sinha, principal economist, Indian Ratings
We see FY21 real GDP at 5.5 pct against 5 pct in FY20
- Sunil Sinha, principal economist, India Ratings
Fiscal year 20 has been an unusual year in terms of growth revision on the downward side
- Devendra Pant, chief economist, India Ratings and Research
Global funds have turned net sellers of India’s sovereign bonds for the first time in four months, as expectations grow of a wider budget deficit.
Foreign investors sold 110.2 billion rupees ($1.5 billion) of government bonds so far in January, set for its first sell-off in four months, according to data from Clearing Corp. of India, compiled by Bloomberg. An increasing number of analysts predict that Prime Minister Narendra Modi will again announce a record borrowing plan at the Feb 1 Budget.
HDFC AMC shares rise 2% on strong Q3 results
Shares of HDFC Asset Management Company on Wednesday rose over 2 per cent after the company posted 45 per cent jump in profit after tax for the December quarter. The stock gained 2.59 per cent to trade at Rs 3,261.30 on the BSE. On the NSE, the scrip traded higher by similar margins at Rs 3,262.
Anand Rathi maintains Buy rating, raises target price for Granules India
Granules India’s topline continues to be boosted by strong traction in formulations. Its Q3 FY20 sales grew 11% to Rs 700 crore. Formulations (FD) grew 23% to Rs 400 crore, PFI sales were up 8% to Rs 100 crore while APIs declined slightly (3%) to Rs 200 crore. The higher contribution from formulations and softening API prices helped to a record 23% EBITDA margin. Adjusted for an impairment charge of Rs 3200 lakh on the Biocause JV, PAT shot up 44% to Rs 8710 lakh.
We expect revenue and PAT CAGRs over FY19-22 of respectively ~17% and ~25%. We maintain our Buy recommendation and raise our target to Rs 181 (earlier Rs 172).
Karvy sets deadline of Feb 15 to pay clients’ dues
Troubled Karvy Stock Broking has set a February 15 deadline to pay all its dues to clients, which includes stocks and funds worth several crores of rupees. With a new man at the helm, the brokerage house is also going in for a restructuring of its financial services business and there are rumours that this may include sale of some assets and subsidiaries.
Major Q3 results today
Price as on 22 Jan, 2020 10:42 AM, Click on company names for their live prices.
IndiaMart spikes 13% as Q3 profit more than doubles
Shares of IndiaMart Intermesh surged 13 per cent in Wednesday's session after the company reported over 100 per cent growth in its December quarter profits.
The B2B online marketplace said its consolidated net profit for October-December quarter was at Rs 62 crore against Rs 23 crore in the same quarter, last year, a jump of 124 per cent. The profit was aided by a tax credit of Rs 8.8 crore.
The total revenue of the company edged higher to Rs 181 crore from Rs 147 core, registering a growth of 23 per cent, year on year.
Bharti Airtel gains 2% on receiving DoT nod for hiking FDI limit
Shares of Bharti Airtel gained 2 per cent in Wednesday’s trade after the telecom operator received nod from department of telecom (DoT) for increasing FDI (foreign direct investment) limit in the company to 100 per cent from 49 per cent earlier.
However, the scrip erased gains as the session progressed. At 10 pm, it was trading 0.15 per cent lower at Rs 510.60 on BSE. The stock jumped 2.47 per cent in early trade to hit a high of Rs 524.
The company also has the approval of the RBI that allowed foreign investors to hold up to 74 per cent stake in the company.
Sensex gains 200 points, Nifty reclaims 12,200
Podcast: What might matter on D-Street today
Vodafone Idea, YES Bank, Airtel among most active stocks on NSE
Price as on 22 Jan, 2020 09:30 AM, Click on company names for their live prices.
Pre-open session: Sensex gains 165 points, Nifty at 12,230; rupee trades at 71.18 against dollar
BSE to open on Budget Day
BSE in a circular on Wednesday said that the stock exchange would open for trading on February 1, Saturday, on account of Union Budget 2020-21.
ETMarkets.com had last week quoted a BSE spokesperson saying that BSE was indeed looking to open for trading on the Budget Day this time, and a circular would be out regarding the same within a week.
Singapore trading sets stage for positive start
Nifty futures on the Singapore Exchange traded 21.50 points, or 0.18 per cent, higher at 12,212.50, indicating a positive start for Dalal Street.
Tech view: Nifty forms small bearish candle
The upward momentum has weakened, and Nifty50 is vulnerable to further downside in the near term, said Amit Shah of Indiabulls Ventures. “A trade below 12,150 level will accentuate the decline, dragging the index lower to the 12,130-12,040 zone. A sustained trade beyond the 12,230 mark, the 20-DMA, will resume the upward journey and take the Index higher to 12,300-12,370 zone,” said Aditya Agarwala of YES Securities.
Asian stocks arrest slide
Asian share markets steadied on Wednesday as investors took stock of the spread of a new strain of coronavirus from China and weighed the possible consequences of a global pandemic. Japan's Nikkei opened 0.1 per cent lower, before steadying to trade flat, as did Korea's Kospi index. Australia's S&P/ASX 200 inched 0.3 per cent higher, while the safe havens of gold and US 10-year government bonds handed back some gains.
US stocks settled lower
US stocks settled lower
Wall Street's three main stock indices closed lower amid investors' concerns over a new coronavirus outbreak in the US. The Dow Jones Industrial Average index fell 152.06 points, or 0.52 per cent, to 29,196.04. The S&P 500 fell 8.83 points, or 0.27 per cent, to 3,320.79. The Nasdaq Composite index was down 18.14 points, or 0.19 per cent, to 9,370.81
Oil prices drop in early trade
Oil prices edged lower on Wednesday, extending the previous session's drops, as investors continue to shrug aside the impact of almost all of Libya's crude production being off-line amid plentiful supplies elsewhere. Brent crude was down 13 cents, or 0.2 per cent, at $64.46 a barrel
DIIs sell Rs 308 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 50 crore on Tuesday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 308 crore, data suggests.
Sensex on Tuesday
The 30-share Sensex dropped 0.49 per cent or 205 points to close at 41,324, while the 50-share Nifty shed 0.45 per cent or 55 points to close at 12,170.
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