Trader’s Diary: Prudent level to initiate fresh shorts
Spurred by the government’s mega plans to boost economy via recapitalisation of public sector banks and massive road building programme, benchmark equity indices Sensex and Nifty scaled fresh record closing highs on Wednesday.
1 New Update
07:59:11 PM IST, 25 October 2017
The indices are likely to pause in the next trading session. Even market breadth suggests the same thing. We can expect the Nifty50 to target the 10,380-10,430 levels, whereas weakness shall re-emerge if it closes below the 10,237 mark
- Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
07:54:47 PM IST, 25 October 2017
Traders are advised to stay light on positions. If you are not going long on PSBs, it’s understandable; but one needs to strictly avoid going short on them
- Sameet Chavan, Chief Analyst for Technical, and Derivatives, Angel Broking
07:36:12 PM IST, 25 October 2017
Nifty’s near-term chart suggests if the Nifty50 manages to cross the 10,320 level on a closing basis, it may trigger short covering, which could lift it towards the 10,380-10,420 range in the near term
- Chandan Taparia of Motilal Oswal Securities
07:19:24 PM IST, 25 October 2017
Nifty formed a hammer kind of formation with long lower shadow, indicating buying at lower levels. Nifty managed to give breakout of its last 2-month consolidation on weekly chart. Nifty near term chart suggests that if it manages to cross the 10,320 level then it may witness short covering action, which could scale up towards 10,380-10,420 in the near term, however, 10,220 is likely to act as support for minor corrective action ahead of expiry
- Rajesh Palviya, Head – Technical & Derivatives Analyst, Axis Securities
06:56:13 PM IST, 25 October 2017
Major PSU banks had unprecedented one-day movement; though private banks did not participate in the rally it was enough to push Bank Nifty upwards of 25,000 levels. Going forward we expect this trend to continue and remain bullish overall on the Banking sector. All focus now shifts to tomorrow’s expiry which we expect would be upwards of the current Bank Nifty levels. Yes Bank and Vijay Bank also will be on our radar for tomorrow’s trading
- Rahul Agarwal, director wealth discovery
06:19:38 PM IST, 25 October 2017
Government’s recapitalisation plan sparked astonishingly steep gains in PSBs, while short covering ahead of F&O expiry also added momentum. Giddy levels, though saw profit booking in sectors other than banks, as investors continued to mix and match the earnings and valuations with more key earnings still to play out
- Anand James, Chief Market Strategist, Geojit Financial Services
05:53:07 PM IST, 25 October 2017
The weight of the banking and financial services sector in the Nifty index is around 37%, of which the share of the PSU bank segment had fallen to below 5%. Today’s move will see this number moving up with the PSU banks taking the indices to new highs. Unfortunately, the same bump up did not happen to so many stocks, especially in the non-PSU BFSI stocks. This possibly was because of the money rotation from non-PSU stocks to PSU stocks, led by under ownership as well as undervaluation
- Kunj Bansal, Executive Director & CIO – Equity, Centrum Wealth Management
05:39:54 PM IST, 25 October 2017
Market touched a new high led by the Government’s ideal plan to fix the credit growth and lack of private investment in the country, which was a key drag on the broad economic system. Ultimately it is giving a remedy to the NPA issues and capital adequacy of banks, which is an essential for credit growth
- Vinod Nair, Head of Research, Geojit Financial Services
04:42:28 PM IST, 25 October 2017
The recapitalization should now allow public sector banks to come back and lend to compete with all the NBFC s that were taking away market share from them. Stellar rally in most PSU banks has completely re-rated this sector. This move also took away most of the shorts in market, which were invariably stopped out in this move. FIIs continue to sell and we feel this could be a prudent level to initiate fresh shorts or stay away from entering fresh longs at this level
- Nikhil Kamath, Co-Founder and Head of Trading, Zerodha
04:21:40 PM IST, 25 October 2017
CLOSING BELL
Nifty- 10,295 (+88) | Sensex- 33,043 (+435) | Gold- 29,411 (-130) | Silver- 39,521 (-201) | Crude Oil- 3,411 (-20) | Nymex Crude- $52.22 | Dollar/Rupee- 65.13 | Biggest Gainers- Canara Bank, PNB, SBI, IndusInd Bank | Biggest Losers- Cholamandalam Investment and Finance, Can Fin Homes, Edelweiss, Bajaj Finance | Most Active- SBI, ICICI Bank, PNB, Bank of Baroda | Advances- 1,148, Declines- 1,530, Unchanged- 137
03:34:46 PM IST, 25 October 2017
CLOSING BELL: MODI BOOSTER LIFTS SENSEX 435 PTS
Nifty near 10,300; PNB rallies 50%, SBI 27%.
03:08:37 PM IST, 25 October 2017
<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Don’t get excited with immediate, unexpected gains after investing - be sober and monitor the business you own?? Courtesy <a href="https://twitter.com/hiddengemsindia?ref_src=twsrc%5Etfw">@hiddengemsindia</a> <a href="https://t.co/kmijVv7xGl">pic.twitter.com/kmijVv7xGl</a></p>— Porinju Veliyath (@porinju) <a href="https://twitter.com/porinju/status/922684462785290240?ref_src=twsrc%5Etfw">October 24, 2017</a></blockquote>
03:07:55 PM IST, 25 October 2017
IDFC BANK REPORTS 40% YoY FALL IN Q2 NET PROFIT
IDFC Bank of Wednesday posted 39.74 per cent drop in net profit at Rs 233.66 crore for the quarter ended September 30, 2017 against Rs 387.76 crore in the corresponding quarter last year. Net interest income of the bank slipped 6.80 per cent year-on-year to Rs 461.88 crore during the quarter under review. It had reported net interest income of Rs 495.60 crore in the same quarter last year.
02:14:18 PM IST, 25 October 2017
10 PSU BANKS TO GET ADDITIONAL CAPITAL
The consolidation in the PSU banking sector will continue, finance ministry sources told ET Now on Wednesday. The sources told the agency that around 10 PSU banks will be given additional capital for growth beyond their immediate requirement. Stronger banks such as Vijaya Bank and Indian Bank will be given growth capital, they said.
01:51:28 PM IST, 25 October 2017
NIFTY BANK JUMPS OVER 700 POINTS
01:22:27 PM IST, 25 October 2017
12:50:47 PM IST, 25 October 2017
PESO FALLS TO 11-YEAR LOW
Most emerging Asian currencies weakened on Wednesday, with the Philippine peso skidding to its lowest in more than 11 years, as the dollar held firm on reports of Republican senators leaning towards John Taylor to be the next Federal Reserve chief. The dollar index which tracks the greenback against six major currencies rose as much as 0.25 per cent to 94.008.
12:34:20 PM IST, 25 October 2017
RS 70,000 CR WEALTH CREATED WITHIN MINUTES!
After a long depression, the Modi government has given
investors of PSU bank stocks a day in the sun. A Rs 2.11 lakh crore bank
recapitalisation scheme that the Union Cabinet cleared on Tuesday sent the PSU
bank stocks soaring on Wednesday morning. Within minutes, India’s largest
lender SBI and four other top PSU lenders in terms of market capitalisation
added nearly Rs 70,000 crore to stock investors’ wealth.</p>
11:50:56 AM IST, 25 October 2017
RCOM PLUNGES 5% AS OPERATOR LOOKS TO SHUT DOWN OPS
Shares of Reliance Communications |(RCom) were trading 3 per cent lower in Wednesday's trade after ET reported that the telecom operator was looking to shut down major parts of its wireless business in the next 30 days, blaming among other factors, the “creative destruction” brought in by new entrant Reliance Jio’s free voice and cheap data services. According to the ET exclusive story, the incumbent has told its employees that their last date of employment will be November 30.
11:36:37 AM IST, 25 October 2017
UNION BANK ADDS RS 1,990 CR IN M-CAP, PNB RS 8,770 CR
10:58:45 AM IST, 25 October 2017
HCL TECHNOLOGIES SHARES TRADE LOWER POST Q2 RESULTS
Shares of HCL Technologies slipped over 1 per cent in the early trade on Wednesday after the IT firm posted a 0.8 per cent quarter-on-quarter (QoQ) rise in net profit at Rs 2,188 crore for the September quarter. The company had posted a net profit of Rs 2,171 crore in the June quarter. The scrip was trading 1.08 per cent down at Rs 903.60. Shares of the company opened at Rs 900 and touched a high and low of Rs 923.35 and Rs 889, respectively, in trade so far.
10:34:48 AM IST, 25 October 2017
RELIANCE NIPPON LIFE IPO SUBSCRIBED FULLY IN ONE MINUTE
Initial public offering (IPO) of Reliance Nippon Life Asset Management got fully subscribed within one minute on Day 1. High net worth investors (HNIs) as well as qualified institutional investors quota got oversubscribed within a minute. At 10.01 am (IST), HNI quota subscribed nearly 6 times, while QIB quota got subscribed by 1.66 times. Retail quota got subscribed by 0.02 times at around the same time. The offer has received bids for 8,77,46,747 shares till 10.15 am (IST) against 4,28,40,000 shares offered by the company.
09:55:19 AM IST, 25 October 2017
PSU BANK BULLS ROAR; PNB, BOB, SBI ZOOM UP
PSU bank stocks such as Punjab National Bank (up 30.82 per cent), Bank of Baroda (up 26.51 per cent), Bank of India (up 24.97 per cent), Union Bank of India (up 24.58 per cent) and State Bank of India (up 20.65 per cent) were soaring high in Wednesday's morning trade on NSE.
09:19:14 AM IST, 25 October 2017
OPENING BELL: SENSEX RALLIES NEARLY 500 PTS TO HIT FRESH RECORD HIGH
Nifty surpasses 10,300 for the first time ever; PNB zooms 24%, SBI 20%.
09:04:18 AM IST, 25 October 2017
PRE-OPEN SESSION: NIFTY AT 10,400
Nifty climbs above 10,400, Sensex up over 150 points; Rupee opens at 65.14 against US dollar.
08:50:47 AM IST, 25 October 2017
08:49:14 AM IST, 25 October 2017
RELIANCE NIPPON IPO KICKS OFF TODAY
Reliance Nippon Life Asset Management plans to raise up to Rs 1,542 crore from the primary market. Of this, Rs 165 crore will be used for acquisitions and strategic initiatives. The issue includes offer for sale of 3.67 crore shares by the promoter and a fresh issue of 2.44 crore shares.
08:49:04 AM IST, 25 October 2017
ASIAN MARKETS FLAT
Asian shares trod water in early trade on Wednesday. MSCI’s broadest index of Asia-Pacific shares outside Japan was flat in early trade. Japan's Nikkei stock index was up 0.5 per cent in early trading, on track for an unprecedented 17th straight session of gains after the victory of Prime Minister Shinzo Abe's coalition in Sunday's election raised investors' hopes of continued yen-weakening stimulus.
08:48:56 AM IST, 25 October 2017
US STOCKS SETTLED AT RECORD HIGH LEVEL
The Dow Jones Industrial Average rose 167.8 points, or 0.72 per cent, to end at 23,441.76, a record-high close. The S&P500 index gained 4.15 points, or 0.16 per cent, to 2,569.13 and the Nasdaq Composite index added 11.60 points, or 0.18 per cent, to 6,598.43.
08:48:45 AM IST, 25 October 2017
EARNINGS TODAY
Hindustan Unilever, Kotak Mahindra Bank, IDFC Bank, Exide Industries, Emami, MindTree, Engineers India and PNB Housing are some of the companies scheduled to announce quarterly results on Wednesday.
08:48:38 AM IST, 25 October 2017
MARKET-WIDE ROLLOVERS AT 35%
Market-wide rollovers till Tuesday stood at 35 per cent compared with an average rollover of 31 per cent seen in the last three F&O series. Nifty futures rollovers at 32 per cent were higher than 28 per cent rollovers seen on an average in last three series.
08:48:31 AM IST, 25 October 2017
NIFTY50 FORMS DOJI CROSS-LIKE PATTERN
The index has been finding strong resistance around 10,240-50 range and analysts believe the range needs to take out the level for Nifty50 to see any sustainable move in the short term. “There has been a tug of war between the bulls and the bears for past four sessions. The index is facing a stiff resistance around 10,240 and needs to break the hurdle for a potential up move towards 10,290-10,320 range. The 10,120-10,105 bullish gap area formed on October 13 is likely to act as support zone for any minor corrective action in near term,” Rajesh Palviya, Head of Technical & Derivatives Analyst, Axis Securities said.
08:48:24 AM IST, 25 October 2017
SINGAPORE TRADING SETS STAGE FOR POSITIVE START
At 6.25am, Nifty50 futures on the Singapore Stock Exchange were trading 81.50 points, or 0.79 per cent, higher at 10,305, indicating a strong start for the domestic market.
08:44:39 AM IST, 25 October 2017
GOOD MORNING, DEAR READER!
Here's something to kickstart your trading day...
