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 Motor, L&T Infotech, ZEE Entertainment, RIL, Ambuja Cement, PVR, 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 ACC, MindTree, Federal Bank, JustDial, and Torrent Pharma.
The delivery
percentage was highest in stocks like Castrol India, Marico, Shree Cements, Godrej 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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