Traders’ Diary: Adopt 'sell on rise' strategy
US delays 10% China tariffs, drops others; Dow rallies 2%, gold dives
On the hourly chart, the trendline has been acting as a stiff barrier for the last couple of sessions while the index appeared to have completed the Three Wave pullback at the Friday’s high of 11,181. Nifty seems to have started the next down leg. Going ahead, the recent low of 10,782 will be on the bears’ radar, below which Nifty can roll towards 10,455, which is the 78.6 per cent retracement of the October-June rally
The internals of Nifty remain weak, with the near-term oscillators losing most of their bullish momentum. The index could retest its recent swing low of 10,782 initially and any incremental selling pressure could make Nifty test the support zone at 10,500-10,600
Nifty failed to cross its 200-DMA at 11,170, leading to a massive decline. A sustained trade below 10,900 level will trigger a breakdown from a Bear Flag pattern, dragging it lower to 10,780 and 10,700 levels. On the flip side, a sustained trade above 10,900 can trigger a short-covering rally to 11,060-11,140 levels
A long negative candle was formed on Tuesday, which signals a formation of bearish engulfing type pattern, after a small rise (not a classical one). Today's sharp negative reversal after a small rise signals more weakness ahead in the coming sessions. The crucial lower supports to be watched at 10,782
RSI on the daily chart is now placed at 36.01 level, indicating a sell signal. If Nifty sustains below the 11,000 level, the index could further move to 10,850. With no clarity about the relief measures on surcharge tax on FPIs and stimulus for other sectors, including auto, the market may see further selling with negative global markets. Auto, pharma, and finance sectors are looking weak and could show more fall
Selling like hotcakes
In deep pain
Nifty formed a Bearish Marubozu on the daily chart, which implied bear dominance as the index erased half of the recovery of last week. Now, as long as the index holds below 11,111 level, it could retest multiple support at 10,850 and then 10,780 levels, while on the upside hurdles are seen at 11,111 and then 11,150 levels
We expect the markets to remain volatile and choppy in the near term in the backdrop of weak domestic sentiments given the on-going economic slowdown. Further, on the global market front, market participants would keep an eye on US-China trade tensions, fluctuations in crude oil and currency movement
We believe the bears are here to stay for awhile and it won't be easy and quick for the market to recover anytime soon. We remain cautious and maintain our sell on a rising approach
Indian markets have been tagging along global markets in palpable risk-off sentiment due to multiple challenges of intensification of US-China trade war, selloff in Argentina and Hong Kong markets. Reliance stock’s best day in a decade performance on the back of pro-investor statements in its AGM couldn’t save the day for market
Gold hits over six-year peak on risk-off sentiment
Spot gold rose 0.7% to $1,521.98 per ounce as of 0715 GMT, its highest since April 2013.
US gold futures rose 1% to $1,533 an ounce.
CLOSING BELL: Sensex plummets 624 points, Nifty below 10,950; RIL surges 10%; YES Bank tanks 11%
Sun Pharma Q1 results at a glance
Sun Pharma Q1 profit surges 31% to Rs 1,387 crore, beats estimates https://t.co/LUNPMfOa08 #ETMarkets… https://t.co/aDRTxuvK7v— ETMarkets (@ETMarkets) 1565690414000
Sandip Sabharwal calls for some action from govt
Markets continue to crash as no visible action except for some statements which doesn't change anything. Subdued Ec… https://t.co/jspExINXhO— sandip sabharwal (@sandipsabharwal) 1565687854000
Top 10 NSE losers in afternoon session
There is a complete fear factor in the market today where everybody wants to avoid taking decisions and buyers actually spending money
Top 5 NSE gainers
China central bank official says yuan at right level
The yuan has weakened nearly 2.4 per cent since US President Donald Trump threatened earlier this month to impose more tariffs on Chinese goods from Sept. 1, though there are signs China is trying to stem the declines.
Sandip Sabharwal on YES Bank
#YesBank QIP was apparently oversubscribed 3 times. Stock is now 15-20% below QIP prices. The investors who bid ag… https://t.co/GFvdgkw0Dw— sandip sabharwal (@sandipsabharwal) 1565679995000
YES Bank hits fresh 52-week low of Rs 75.25
May have to cut FY20 sales estimates if slowdown continues
Passenger vehicle sales fall for 9 consecutive months, drop 31% in July
Domestic car sales were down 35.95 per cent at 1,22,956 units as against 1,91,979 units in July 2018, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Tuesday.
Motorcycle sales last month declined 18.88 per cent to 9,33,996 units for the month as against 11,51,324 units in the year-ago period.
Bharat Forge Q1 net profit falls 28% to Rs 171.92 crore
Siam says auto sector needs revival package from govt
ONGC shares up ahead of Q1 results
- KR Choksey Shares and Securities believes that ONGC is likely to report healthy performance owing to rise in crude prices on a sequential basis coupled with rising gas production. However, declining gas production can be a slight negative. Average realisation is estimated at $67 per barrel for the quarter.
- Kotak Institutional Equities sees 10.90 per cent YoY and 21.70 per cent QoQ rise in net profit during the quarter. It sees 6 per cent YoY and 9.50 per cent QoQ rise in net sales in June quarter.
Alembic Pharma gets USFDA nod for ophthalmic solution
Kotak Institutional Equities projected 15.20 per cent YoY rise in net profit for Coal India in Q1FY20. On the other hand, it sees 27.70 per cent QoQ dip in net profit.
Motherson Sumi slips 5% post Q1 results
Brokerage firm Nomura maintained ‘Buy’ rating on the stock with a target price of Rs 156.
"Revenue was largely in line with our estimate and consensus. The demand outlook for both global luxury and domestic passenger vehicle industry remains weak and is a matter of concern. US Class 8 truck industry is also likely to enter a sharp downturn in FY21. New order wins and ramp up in SMP revenue and margins are the key points to monitor,” Nomrua said in a report.
ICICIdirect.com said that Motherson Sumi Systems reported steady performance in Q1FY20 and was above their estimates on all fronts. “Key surprise however was 35 per cent YoY growth in revenues at its arm SMP along with 7.5 per cent EBITDA margins on the consolidated basis, up 24 bps QoQ,” it said.