Trader’s Diary: Maintain caution in rate sensitive stocks
The domestic equity market ended on a positive note on Tuesday, extending its gaining streak for a third consecutive session. BSE Sensex closed at 31,497.38, up 213 points, while Nifty50 ended the day 70.90 points higher at 9,859.50.
1 New Update
08:04:12 PM IST, 03 October 2017
Banking sector will be the key
focus for tomorrow, as it takes the first reaction of the RBI's monetary policy announcement.- Rahul agarwal, Director, Wealth Discovery
- Rahul agarwal, Director, Wealth Discovery
07:50:28 PM IST, 03 October 2017
Lack of participation from FII ahead of tomorrow’s RBI monetary policy is adding some cautiousness, since interest rate is expected to be unchanged due to inching inflation
- Vinod Nair, Head of Research, Geojit Financial Services
07:48:41 PM IST, 03 October 2017
RUPEE LOSES STEAM AS FOCUS SHIFTS TO RBI MEET
The rupee today dropped by 22 paise to close at 65.50 against the resurgent dollar amid rising expectations of a rate hike by the US Federal Reserve. At the interbank foreign exchange market, the rupee opened with lower at 65.65 against last weekend close of 65.28 on heavy bouts of dollar demand, despite strong equities. The domestic currency regained some lost ground at the fag-end to settle at 65.50, showing a sharp fall of 22 paise, or 0.34 per cent.
07:35:04 PM IST, 03 October 2017
BONDS REBOUND, CALL RATES TURN LOWER
Government bonds rebounded following fresh demand from corporates and banks, while the overnight call money rates turned lower due to lack of demand from borrowing banks amid comfortable liquidity situation in the banking system. The 6.79 per cent 10-year benchmark bond maturing in 2027 were climbed to Rs 100.9875 from Rs 100.88 previously, while its yield softened to 6.65 per cent from 6.66 per cent.
07:12:32 PM IST, 03 October 2017
We have two recommendations on the buy side. The first stock is SBI, wherein we have already seen that for nine trading sessions the stock has been drifting downwards. After some kind of consolidation we are seeing some bouts of a diversions getting placed on the intraday scale. So we are recommending a long call of 260 option, a stop loss can be placed at 0.05 and we are expecting a move back to say 270-275 so probably target of around 10. The second call is a buy call on Vedanta. Recently we saw a Morningstar pattern getting occurred on the daily scale and followed up with a Rising Three Pattern, which again reinstates the bullishness in this particular counter, a stop loss now can be placed around 307, any declines towards 314 should be utilised to create long positions and a positional target is based somewhere close to 334
- Sacchitanand Uttekar - AVP - Technical (Equity), Tradebulls
07:02:45 PM IST, 03 October 2017
If you look at the pattern formation itself we have a bullish harami getting reinstated near the support zone of around 9,700-9,740, which itself is a convincing sign that the market may have already commenced a fresh up move. So what we are looking at is around 10100 on the higher side as far as this particular expiry is concerned and I think again you should look out for triggers for buying into this particular market
- Sacchitanand Uttekar - AVP - Technical (Equity), Tradebulls
06:50:10 PM IST, 03 October 2017
LOOKING TO BUY GOLD THIS DIWALI?
Rising dollar index will put pressure on gold prices in the international market, while weakness in the rupee could support gold up to some extent in the domestic market. For very short term perspective, investors could sell gold at around Rs 29,400-29,450 with a strict stop loss of Rs 29,700 for the target of Rs 29,100-29,000.
06:34:15 PM IST, 03 October 2017
If RBI does go ahead and cut the rate, banks and NBFCs should see a rally, a brief rally but there should be a rally. On the other hand, if there is kind of status quo, then I think, things will continue to drift. I do not see any major trigger in the market right now. The trigger will start emanating only when corporate result starts coming towards the end of next week but before that the market according to us will continue to remain range bound
- Sudip Bandyopadhyay, Group Chairman, Inditrade Capital
06:14:20 PM IST, 03 October 2017
Even after the recovery of last three sessions, the Nifty50 failed to surpass a big negative candle at 9,921 and 9,714 formed on September 27. Now, it has to continue to hold above the 9,820 level to extend the bounceback towards 9,900 and 9,928. On the downside, supports are seen at 9,777 and 9,720 levels
- Chandan Taparia is Technical & Derivative Analyst at Motilal Oswal Securities
06:06:25 PM IST, 03 October 2017
It all depends on the MPC's stance on key rates and its commentary, however, we feel it has limited room, citing uptick in inflation, monsoon trend and global interest rate scenario. Traders should maintain caution especially in rate sensitive pack and prefer only hedged positions
- Jayant Manglik, President, Retail Distribution, Religare Securities
05:41:35 PM IST, 03 October 2017
Any close above the 9,921 level shall be considered a sign of strength. It may bring back momentum traders, which should tilt the tide in favour of the bulls in the short term with initial targets of 9,991and 10,080 levels for the index. Any disappointment from RBI policy review shall abort the pullback attempt. Traders are advised to look for strength and remain cautious with long positions
- Mazhar Mohammad, Chief Strategist of Technical Research & Trading Advisory, Chartviewindia.in
05:22:16 PM IST, 03 October 2017
Few expect an RBI rate cut given rising inflation expectations, which has increased the surprise potential of tomorrow’s call. Nevertheless, upcoming earnings season should mean that stock specific moves should take dominance over broad market sentiments
- Anand James, Chief Market Strategist, Geojit Financial Services
04:52:51 PM IST, 03 October 2017
Nifty formed a small bearish candle with long lower shadow, indicating buying at lower levels. Nifty formed higher high-low formation compared to the previous day, which indicates gaining strength. Nifty faced resistance at (9,875) 38.5 per cent retracement of the recent fall. If Nifty manages to cross 9,875 then it may extend its pullback action towards 9,900-9,930 in the near term. However any breakdown below 9,830 can extend its downmove towards 9,800-9,765 level
- Rajesh Palviya, Head – Technical & Derivatives Analyst, Axis Securities
04:41:19 PM IST, 03 October 2017
F&O: NIFTY FAILS TO CROSS HURDLE AT 9,921; SUPPORTS SHIFT HIGHER
The Nifty50 index opened in the positive but failed to surpass the 9,900 level and remained choppy in a 30-point range for most part of the day. It continued the bounceback move for three consecutive sessions after forming a short-term bottom near the 9,685 mark. Even after the recovery of last three sessions, the Nifty50 failed to surpass a big negative candle at 9,921 and 9,714 formed on September 27. Now, it has to continue to hold above the 9,820 level to extend the bounceback towards 9,900 and 9,928. On the downside, supports are seen at 9,777 and 9,720 levels.
04:17:40 PM IST, 03 October 2017
FIIs continue to sell whereas DIIs are buying an equivalent amount. There is considerable resistance at the 9,925 level and further activity could be centered around this level. Ahead of the impending RBI policy all eyes remain on what rate action the RBI will take next. A rate cut could help the indices go over the 9,925 level. We continue to hold a short term bearish outlook on the markets for a target of 9,750
- Nikhil Kamath, Co-Founder and Head of Trading, Zerodha
03:33:46 PM IST, 03 October 2017
CLOSING BELL: SENSEX ENDS 214 PTS HIGHER
BSE Sensex closed at 31,497.38, up 213 points or 0.68 percent. Nifty50 ended the day 70.90 points or 0.72 per cent higher at 9,859.50. Shares of Tata Motors (up 3.68 per cent), Asian Paints (up 2.82 per cent), Reliance(up 2.15 per cent) and Bajaj Auto (up 1.86 per cent) were the top gainers on BSE.
03:03:51 PM IST, 03 October 2017
AMBER ENTERPRISES FILES RS 555-CRORE IPO PAPERS WITH SEBI
Appliance maker Amber Enterprises has filed preliminary papers with Sebi to raise Rs 555 crore through an initial share-sale offering, according to draft prospectus filed with the markets regulator. The IPO comprises fresh issue of equity shares worth Rs 450 crore and sale of scrips to the tune of Rs 105 crore by promoters Jasbir Singh and Daljit Singh.
02:47:44 PM IST, 03 October 2017
JSPL SURGES 7% ON FUND RAISING PLANS
Shares of Jindal Steel and Power surged nearly 7 per cent in the afternoon trade after the company informed bourses that the board has considered and approved raising of funds by way of equity shares/warrants on preferential basis.
02:02:25 PM IST, 03 October 2017
NEARLY 35 STOCKS HIT FRESH 52-WEEK LOW
Nearly 35 stocks such as Adhunik Industries, Ballarpur Industries, Educomp Solutions, Nagarjuna Oil Refinery, Piramal Phytocare, Reliance Communications, Shilpi Cable Technologies and TV Vision hit fresh 52-week low on NSE in Tuesday's trade defying the prevailing bullish market sentiment.
01:42:08 PM IST, 03 October 2017
<blockquote class="twitter-tweet" data-partner="tweetdeck"><p lang="en" dir="ltr">Many are negative because of <a href="https://twitter.com/hashtag/FII?src=hash&ref_src=twsrc%5Etfw">#FII</a> outflows<br>What they are missing out- record, more stable <a href="https://twitter.com/hashtag/FDI?src=hash&ref_src=twsrc%5Etfw">#FDI</a> inflows which contribute to Economic Growth</p>— sandip sabharwal (@sandipsabharwal) <a href="https://twitter.com/sandipsabharwal/status/915119084437610496?ref_src=twsrc%5Etfw">October 3, 2017</a></blockquote>
01:21:54 PM IST, 03 October 2017
30 STOCKS HIT FRESH 52-WEEK HIGH TODAY
GAIL, Bajaj Auto, Ashok Leyland, Avanti Feeds, Britannia Industries, Thomas Cook (India) and TVS Motor Company were among the 30 stocks that hit fresh 52-week highs on NSE in Tuesday's bullish trade. Equity benchmarks remained up, underpinned by the gains in auto, metal, pharma and metal stocks, ahead of the RBI's 2-day monetary policy review that kicks off later in the day.
12:48:55 PM IST, 03 October 2017
SBI, PNB DRAG NIFTY PSU BANK INDEX
While other sectoral indices were gaining in Tuesday's trade, reflecting the bullish market sentiment, Nifty PSU Bank index looked choppy with shares of State Bank of India (down 0.98 per cent), Punjab National Bank (down 0.27 per cent) and Bank of Baroda (down 0.07 per cent) losing in trade.
12:28:45 PM IST, 03 October 2017
GAIL JUMPS 3% ON EXPECTED EARNINGS BOOST BY UNIFIED GAS TARIFF
Shares of GAIL climbed over 3 per cent in Tuesday's trade after reports that the proposal by gas regulator Petroleum and Natural Gas Regulatory Board (PNGRB) to implement the 'unified or pooling' method for computing gas transmission tariffs could boost earnings at GAIL. Following the development, the stock gained 3.32 per cent to Rs 433 on BSE. It opened at Rs 425.10 and touched an intraday high and low of Rs 435.50 and Rs 422.55 respectively.
11:54:27 AM IST, 03 October 2017
INDIABULLS VENTURES SURGES ON ISSUE OF SHARES WORTH 2,000 CRORE
Shares of Indiabulls Ventures jumped over 3 per cent in Tuesday's trade after the company on Friday decided to raise upto Rs 2,000 crores, through issue of its equity shares to its existing shareholders on rights basis. Following the development, the stock gained 3.09 per cent to Rs 263.40 on BSE.
11:27:13 AM IST, 03 October 2017
5 STOCKS IN SPOTLIGHT THIS OCTOBER
Indian equities are likely to see more weakness in October after two months of outflows. ET takes a look at five stocks that are in the spotlight in the futures segment in the October series and how they are likely to fare in the near term.
11:06:13 AM IST, 03 October 2017
TATA MOTORS RALLIES 7% ON SECURING RS 1,120 CRORE ORDER FOR 10,000 E-CARS
Shares of Tata Motors climbed as much as 7 per cent in morning trade after the auto major has won the first contract to supply electric vehicles to replace petrol and diesel cars used by the government and its departments as part of a plan to cut demand for fossil fuels and reduce carbon emissions. The scrip was trading 4.82 per cent up at Rs 420.60. Shares of the company opened at Rs 428.25 and touched a high and low of Rs 428.25 and Rs 418.80, respectively, in trade so far.
10:49:40 AM IST, 03 October 2017
RCOM SHARES CRACK 9% AS CO CALLS OFF AIRCEL MERGER
Shares of Reliance Communications (RCom) cracked over 9 per cent in Tuesday's trade after the company called off its merger with Aircel and its tower due to delays caused by legal and regulatory uncertainties.
10:35:33 AM IST, 03 October 2017
DR REDDY’S LABS CLIMBS 3%
Shares of Dr Reddy’s Laboratories advanced over 3 per cent in early trade after the pharma company on Saturday informed bourses that it has launched Sevelamer Carbonate tablets, 800 mg, a therapeutic equivalent generic version of Renvela (sevelamer carbonate) tablets, in the US market following approval by the US Food and Drug Administration (USFDA).
10:15:08 AM IST, 03 October 2017
ASHOK LEYLAND, TATA MOTORS MOST ACTIVE STOCKS IN TERMS OF VOLUME
Shares of Ashok Leyland (number of shares traded: 0.36 crore), Tata Motors (0.27 crore) and DLF (0.16 crore) were trading as the most active stocks in terms of volume in Tuesday's early trade. ITC (0.14 crore), Bank of Baroda (0.12 crore), YES Bank (0.11 crore), Idea Cellular (0.11 crore), State Bank of India (0.10 crore), GAIL (0.09 crore), REC (0.09 crore), Reliance Industries (0.07 crore), SAIL (0.07 crore) and Vedanta (0.07 crore) were the other stocks in the league, in that order.
09:59:49 AM IST, 03 October 2017
SBI LIFE INSURANCE LISTS AT 5% PREMIUM TO ISSUE PRICE
Shares of SBI Life Insurance Company, whose Rs 8,400 crore mega issue concluded recently, made a decent debut on Tuesday, as the scrip got listed at Rs 733.30 on BSE, a premium of 4.76 to its issue price of Rs 700. On NSE, the scrip got listed at Rs 735, up 5 per cent.
09:47:17 AM IST, 03 October 2017
PNC INFRATECH SURGES 12% ON BAGGING RS 2,159 CR CONTRACT IN UP
Shares of PNC Infratech advanced as much as 12 per cent in early trade after the company informed bourses that it has bagged Rs 2,159 crore contract for six-laning a highway stretch in Uttar Pradesh.
09:20:23 AM IST, 03 October 2017
TUNE IN: WHAT LIES AHEAD FOR D-STREET
Nifty's expected bounce may be shortlived, Does it mean a dull October? Tune in to find out.
09:18:03 AM IST, 03 October 2017
OPENING BELL: SENSEX RALLIES 300 PTS
Sensex rallies 300 points; Nifty above 9,850; Tata Motors surges 6%, RCom cracks 5%.
09:04:41 AM IST, 03 October 2017
PRE-OPEN SESSION: SENSEX CLIMBS OVER 100 PTS
Sensex climbs over 100 points, Nifty50 trades above 9,850; rupee trades at 65.57 against US dollar.
08:43:19 AM IST, 03 October 2017
SIGNAL FROM SINGAPORE
Nifty futures trading on SGX were up 41.50 points, or 0.42 per cent, at 9,881, indicating a positive start for NSE Nifty index.
08:39:20 AM IST, 03 October 2017
NIFTY TECHNICAL CHARTS
The index registered a small bearish candle on the daily chart that resembles 'Shooting Star' formation. Experts believe unless the index breaks above the 9,921 level on a sustainable basis, downside chances persist. At Friday's close, the index was up 19.65 points, or 0.20 per cent at 9,788.
08:38:58 AM IST, 03 October 2017
FM HINTS AT LESSAR TAX SLABS
FM Arun Jaitley on Sunday indicated that the government would consider reducing the goods and services tax slabs and easing compliance burden for small taxpayers once revenues from GST better those from the previous tax regime.
08:38:22 AM IST, 03 October 2017
POLICY REVIEW TO KICK OFF TODAY
The two-day rate setting meeting of RBI’s Monetary Policy Committee (MPC) is scheduled to start on Tuesday. This will be fourth bimonthly monetary policy meeting of the FY2017-18. With inflation firming up and rupee coming under pressure, many economists feel that central bank will vote to keep the repo rate unchanged at 6 per cent.
08:38:00 AM IST, 03 October 2017
SBI LIFE LISTING TODAY
Reliance Communications (RCom) called off its merger with Aircel citing regulatory uncertainties and alluding to sabotage by “vested interests“, dealing a blow to the hopes of the two debt-ridden telecom companies to jointly take on stronger rivals Bharti Airtel and Reliance Jio Infocomm besides raising questions about their long-term survival.
08:37:35 AM IST, 03 October 2017
RCOM CALLS OFF MERGER WITH AIRCEL
Reliance Communications (RCom) called off its merger with Aircel citing regulatory uncertainties and alluding to sabotage by “vested interests“, dealing a blow to the hopes of the two debt-ridden telecom companies to jointly take on stronger rivals Bharti Airtel and Reliance Jio Infocomm besides raising questions about their long-term survival.
08:37:03 AM IST, 03 October 2017
GREEKO IN BID FOR RINFRA'S MUMBAI POWER BIZ
Greenko, backed by Singapore's GIC and Abu Dhabi Investment Authority, has sought to acquire Anil Ambani-led Reliance Infrastructure's flagship Mumbai electricity business for an enterprise value of Rs 13,000-14,000 crore ($2.15 billion), said people aware of the matter.
08:36:36 AM IST, 03 October 2017
'ILLEGAL' SPANISH INDEPENDENCE VOTE
The Spanish government’s borrowing costs surged and its stock market tumbled on Monday as investors weighed up the political fallout from the violent police crackdown on an independence vote in the wealthy region of Catalonia, Reuters said. Spain's benchmark IBEX closed down 1.5 per cent, its biggest one-day fall in almost two months.
08:35:33 AM IST, 03 October 2017
ASIAN MARKETS SLIDE IN EARLY TRADE
Asian shares tiptoed lower early Tuesday, pressured by weaker oil prices but supported by records on Wall Street and upbeat economic data that lifted US treasury yields and the dollar, Reuters reported. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1 per cent in early trade. Japan's Nikkei stock index added 0.3 per cent, while Australian shares slipped 0.4 per cent ahead of the Reserve Bank of Australia’s (RBA) policy decision.
08:35:14 AM IST, 03 October 2017
US STOCKS SETTLE HIGHER
US stocks started the fourth quarter on a strong note on Monday, with all three major indexes hitting record high closes as data pointed to underlying strength in the economy. The Dow Jones Industrial Average rose 152.51 points, or 0.68 per cent, to 22,557, the S&P500 gained 9.76 points, or 0.39 per cent, to 2,529 and the Nasdaq Composite added 20.76 points, or 0.32 per cent, to 6,516.
08:34:41 AM IST, 03 October 2017
LAS VEGAS CASINO SHOOTOUT TOLL RISES
A 64-year-old man armed with more than 10 rifles rained down gunfire on a Las Vegas country music festival on Sunday, slaughtering at least 58 people in the largest mass shooting in US history before killing himself, Reuters reported.
08:34:04 AM IST, 03 October 2017
SENSEX ON FRIDAY
The S&P BSE Sensex settled flat at 31,284, just 1 points up, with Bajaj Auto (up 2.4 per cent) being the top gainer and Hindustan Lever (down 2 per cent) the biggest loser on the index. The 30-share pack witnessed a 280-point swing during the day. Heavyweights HDFC Bank, Maruti and L&T help the index settle in the green.
08:32:14 AM IST, 03 October 2017
Good morning, dear reader! Here’s something to kickstart your trading day
