Traders’ Diary: It's over to election result now
ETMarkets Evening Podcast: How to position yourself on D-Street for election results
There has neither been a follow through to the bearish pattern registered on May 21, nor has there been any continuation of euphoria on the upside, suggesting caution on the part of market participants. In case of a market-friendly election outcome, the index may head towards the major resistance zone between 12,000 and 12,100 levels after forming a short-term top around the range. Traders are advised to book profit by making use of this rally. Similarly, a negative outcome shall fill the bullish gap present between 11,591 and 11,426 registered on May 20. “In such a scenario, downside can be much higher with initial targets placed around 11,000 level
Nifty formed a Tweezers Bottom candlestick pattern, along with a Bullish Harami, which suggests the bulls are in control of the market. Moreover, the gap between 11,425 and 11,590 levels formed post exit poll results is still intact, which could act as a crucial support in the event of profit booking. A trade below the 11,680 mark being the Tweezers Bottom low can drag the index to 11,590 and 11,425 levels
Post the exit polls one can say that the market seems to have priced in a second term for Modi government, however, a lack of majority for the BJP will prove to be a dampener. Hung Parliament remains a near-term threat. Post elections the focus will revert back to the fundamental issues such as earnings growth and increase in capex
Nifty formed a small-body candle followed by a Dark Cloud Cover with higher volatility, which indicated that the bulls have to face a tug-of-war with the bears to decisively surpass its lifetime high and a major hurdle at 11,888 level. Now, it has to hold above 11,666 to extend its move towards 11,888 and then attempt to hit the psychologically important 12,000 mark while major support exists at 11,550 level
The key focus for market participants would be on the election outcome tomorrow. The markets are pricing in a clear victory for the NDA government and hence any disappointment on the result day could lead to correction. Going forward in the medium term, notwithstanding the near term rally, we expect the market to consolidate as focus would shift back to fundamentals (corporate earnings) and global cues which has been volatile due to re-escalation of trade tensions between US – China. Further, movement in crude oil prices and currency will also provide direction to the markets
Volatility index shot to a four-year high just ahead the big event. Valuation is expensive depicting the risk of the market to handle such event risk, long-term investors can stay cautious. While actual outcome being in-line with the exit poll will be a relief in the short-term. Formation of a government with strong mandate will support the undercurrent by foreign inflows
We remain structurally positive on the market and expect a positive bias post elections. Any dip or correction is expected to act as a strong buying opportunity. We expect Nifty to test 12,200-12,500 on the higher side, while meaningful support is seen at 11,400. Investors are advised to accumulate while traders can use volatility in their favor and follow a buy on dips strategy
CLOSING BELL: Sensex ends 140 pts higher, holds above 39K ahead of poll results; Nifty ends at 11,378; India VIX spikes 7%
India VIX at nearly 4 year high
Volatility index hits 30 for the first time since September 2015 | https://t.co/FVALssi3xS https://t.co/hY6lopkj0W— ETMarkets (@ETMarkets) 1558516808000
European shares dip as trade war fears weigh
Cipla Q4 net more than doubles to Rs 358 crore
The profit figure was better than Rs 320 crore estimated by analysts in an ET Now poll.
Consolidated sales for the quarter rose 22.17 per cent YoY to Rs 4,271 crore from Rs 3,495.81 crore in the same quarter last year. ET Now poll had pegged sales figure at Rs 3,983 crore.
LIVE: IndusInd Bank Q4 results
#Live: #IndusInd Bank Q4 https://t.co/84Qlr6G7gt— ETMarkets (@ETMarkets) 1558511124000
JUST IN | IndusInd Bank Q4 PAT at Rs 360 crore vs ETNow Poll of Rs 756 crore
Top 10 BSE gainers in afternoon session
The two five-year periods were differentiated by changes in central bank policies globally, wherein easy money flowed into emerging market equities under UPA-II due to quantitative easing, while the later saw a trend reversal.
JSPL tumbles 12% after weak Q4 results
Jet Airways shares jump over 8% on Hinduja stake buy buzz
Shyam Sekhar: Bad numbers can also be Buy signals
Some Q4 results are really good. Some need to be read between the lines. Some are still not showing any sign of pr… https://t.co/rFqcecL7f7— Shyam Sekhar (@shyamsek) 1558490030000
Arun Thukral says proceed with caution in this market
#Markets reaction to the #ExitPoll results is not surprising. Volatility is however expected to continue till May 2… https://t.co/dgIwfH3u0o— Arun Thukral (@arun_thukral) 1558499155000
It is important that this crisis is not allowed to become a systemic crisis. In that sense, from a timing perspective with the election results due tomorrow and with hopefully strong government in place, there will be some actions taken in term of creating a liquidity window for these housing finance companies and all of that could help us tide over.
Already, equity benchmarks Sensex and Nifty are hovering near record highs after the exit polls projected a clear mandate for the Narendra Modi-led NDA in the Lok Sabha elections.
Market experts see more legs to this rally with over 10 per cent upside in next 10 months with bullish views on sectors like private banks, textiles, chemicals, select NBFCs, capital goods, construction and infrastructure.
DLF jumps 6% on March quarter numbers
They are putting some kind of sand in the wheels for both taking deposits and also for prior repayment, etc. It is not necessarily a bad thing. If it helps to match their liquidity profile because one of the key aspects of bank or non-bank is asset liability mismatch which can cause a liquidity squeeze. If they are doing with a clean conscience, it is not a bad thing.
Nomura: Maintained its neutral view on the stock with a target price of Rs 800, implying a 4 per cent upside. It said that the weaker enterprise outlook negates progress in telecom.
Kotak Securities: Gave an add recommendation on the stock with a target price of Rs 850 while cutting the earnings per share (EPS) estimates by 5-6 per cent.
CLSA: Reiterated the outperform rating on Tech Mahindra with a target price of Rs 810 but underscored that the revenue was a miss while margins were in-line with the expectation.
IDFC First Bank falls 4% on ICRA downgrade
- Shares of IDFC First Bank declined over 4 per cent to Rs 41.50 in Wednesday's session after rating agency ICRA downgraded the long-term rating of the private lender.
- ICRA on Tuesday downgraded the long-term rating of IDFC First Bank on the back of weak earnings profile and increase in provisions due to unanticipated fresh stressed exposures identified by the bank.
- Shares of Dewan Housing Finance Corporation (DHFL) cracked nearly 18 per cent in Wednesday's trade, a day after the NBFC said it would neither accept new deposits nor allow premature withdrawals.
- Premature withdrawals would be allowed only in cases of medical or financial emergency, DHFL said.
- The decision comes just after rating agency CARE downgraded DHFL’s fixed deposit programme worth Rs 20,000 crore from A to BBB-.
- Crisil had earlier downgraded Rs 850 crore worth of DHFL commercial papers due to delays in fund inflows from asset sales and securitisation deals. About half a dozen investors have shown interest in buying stakes in DHFL.