Traders’ Diary: Nifty trading range at 11,500-11,800
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
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
ETMarkets Evening Podcast: Was Thursday’s fall a temporary blip?
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
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
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
CLOSING BELL: Bank stocks drag Sensex 318 points down, Nifty below 11,600; YES plunges 13%, Tata Motors 4%
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.
Top 10 NSE gainers in afternoon session
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
Majority of those who are opening accounts with us at Zerodha are in the 25-35 age group. We are seeing a lot of new people enter the market and if you had to take an average income bracket for this group, it is people who have been working for five to 10 years and in Rs 5-15 lakh a year salary bracket.
If mentha manages to sustain above Rs 1,280 on daily charts, traders can buy in mentha oil July futures
Caplin Steriles gets USFDA nod for injection to prevent excessive blood loss from trauma
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.
Punjab & Sind Bank drops 6% after lender flags Rs 238-crore fraud
Edelweiss in talks with strategic investors to off-load stake in wealth biz
- 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
Wipro advances over 3% post Q1 results; should you buy?
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.
- 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.
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
OPENING BELL: Sensex drops 80 pts, Nifty tests 11,650; YES Bank plunges 13%, Mindtree 9%
Top stocks that are likely to buzz in trade today
Here are a few stocks which may buzz the most in today’s trade | https://t.co/bnD8qaEcfd #ETMarkets #Markets… https://t.co/ls4kcgN52W— ETMarkets (@ETMarkets) 1563420929000