Wednesday, October 16, 2019

Taking Stock: Volatile Wednesday! Time to book profits and buy at lower levels?

share market

The short term momentum indicators are overbought and hence some consolidation is playing out.
October 16 was a volatile day for the Indian markets but bulls managed to steal the day in the last hour of the trading session. The S&P BSE Sensex rose more than 100 points, while the Nifty50 closed above 11,450 levels.
The final tally on D-Street – the S&P BSE Sensex rose 112 points to 38,618 while the Nifty50 added 40 points to close at 11,469 which is higher than Tuesday’s intraday high of 11,462.
The short-term momentum indicators are overbought, hence, some consolidation is playing out. Experts suggest buying on dips with support of 11,050. Traders are advised to hold long positions, if any, with a stop below 11,400 on a closing basis, suggest experts.
Broader markets underperformed with both BSE Midcap and Smallcap index ending on a flat note. Sectoral indices exhibited a mixed trend.
Shares of insurance companies gained after SBI Life reported consistent growth in September quarter earnings and an increase in premium collections during the first half of FY20.
Market participants would keep a close watch on trade talk developments between the US and China, currency and crude oil price movement and September quarter earnings.
The earnings season is likely to gain momentum as some of the frontliners would be declaring their results in the next few days. Over 40 companies will declare their numbers for Q2 in the next two days which include names like – TVS MotorL&T InfotechZEE EntertainmentRILAmbuja CementPVR, among others.
Sectors and stocks:
Sectorally, the rally was seen in the S&P BSE Oil & gas index which rose 1.2 percent, followed by the Realty index which gained 1.09 percent, and Energy stocks rose nearly 1 percent.
On the losing front, the S&P BSE Power index was down 1.06, followed by the Metal index which fell 0.42 percent, and the Capital Goods index fell 0.27 percent.
Volume spike was seen in stocks like ACCMindTreeFederal BankJustDial, and Torrent Pharma.
The delivery percentage was highest in stocks like Castrol IndiaMaricoShree CementsGodrej Consumer Products, and HCL Tech.
More than 300 stocks hit fresh 52-week low which includes names like PNB Housing, Dhanuka Agri, Va Tech Wabag, Indiabulls Housing Finance, Rushil Décor, etc. among others.
Top Nifty gains: Bajaj Finance (up 3.75 percent), Grasim Industries (up 3.7 percent), and BPCL (up 4.1 percent)
Top Nifty Losers: Indiabulls HF (down 10 percent), Hero MotoCorp (down 3 percent), and Hindalco (down 2.6 percent)
Stocks in news:
Shares of Federal Bank declined nearly 3 percent on October 16 despite the company reporting better numbers in the quarter ended September 2019. The Bank reported a 56.7 percent jump in its Q2FY20 profit to Rs 416.7 crore against Rs 266 crore in the same period last year.
Shares of PNB Housing Finance touched its 52-week low of Rs 373.80, after the company said it is going to consider raising funds on October 24. The stock closed 13 percent lower at Rs 380.
Shares of Bajaj Consumer Care rose 20 percent after the company's promoter offloaded their stake in the company. The research house Macquarie has maintained an outperform call on the stock with a target at Rs 592 per share.
Global brokerage firms remain mixed on ACC post-September quarter results but most of them have maintained their rating with just one exception. HSBC upgraded the stock to buy from hold and raised the target price to Rs 1,690 from Rs 1,660 earlier. The stock closed 1.5 percent higher at Rs 1,521.
Global brokerage houses maintained bearish stance on Wipro, the country's fourth-largest IT company by market cap, citing continued underperformance compared to peers even though third-quarter guidance was better. The stock closed with gains of over 2 percent.
Source: https://www.moneycontrol. com/news/business/markets/taking-stock-volatile-wednesday-time-to-book-profits-and-buy-at-lower-levels-4540071.html

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