Nifty 8699 /Sensex 28130/ Bank Nifty 19659
29 Advances / 20 Declines/ 2 Unchanged
“Sensex gains 145 pts, Nifty fails to hold 8700; ICICI Bank up 5%"
Equity benchmarks recouped previous day's losses on thursday with the Nifty reclaiming 8700 level intraday but failed to hold the same level in late trade. Banking & financials, infra and oil & gas stocks aided the momentum but the sell-off in Infosys, Tata Motors, HDFC Bank and ITC limited upside.
Positive Asian cues also lifted the market sentiment.
The 30-share BSE Sensex was up 145.47 points at 28129.84, and the 50-share NSE Nifty gained 40.30 points at 8699.40 after hitting an intraday high of 8727. The market breadth continued to be positive as about 1589 shares advanced against 1231 declining shares on the BSE.
Global factors such as the possibility of December Federal Reserve hike could cause volatility in the market. However, he does not see any local negative triggers.
European stocks were mixed as investors remained cautious ahead of European Central Bank policy meeting later today and quarterly earnings. Asia ended higher with the Japan's Nikkei rising 1.4 percent and the Mexican peso strengthened against the dollar following the conclusion of the final US Presidential debate.
ICICI Bank and Adani Ports were top gainers on the Sensex, rising 5 percent each followed by HDFC, SBI and ONGC with 1-2 percent upside. Infosys, Tata Motors, HDFC Bank, Lupin, ITC, HUL and Sun Pharma were down 0.2-0.7 percent.
Key Results Awaited Today
Unichem Labs
Mindtree
V-Guard Ind
Kirloskar Oil
State B Bikaner
Oberoi Realty
SKF India
Trident
Atul
Result 21st October: Mindtree
Expectation: Mindtree Q2 PAT seen down 11% at Rs 110 cr: Kotak Sec.
-Net Sales are expected to decrease by 1.3 percent Q-o-Q (up 12.1 percent Y-o-Y) to Rs 1310.6 crore, according to Kotak Securities.
-Kotak Securities has come out with its second quarter (July-September) earnings estimates for the Technology sector. The brokerage house expects Mindtree to report net profit at Rs 110 crore, down 11 percent quarter-on-quarter.
-Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 4.8 percent Q-o-Q (down 14.1 percent Y-o-Y) to Rs 185.8 crore.
-Expect organic c/c revenue decline of 1.1% and cross-currency headwind of 40 bps. Revenues would be impacted by project cancellations, slower ramp-ups and weakness in Bluefin acquisition.
-Expect EBIT margin to decline 70 bps led by wage hike (200 bps impact on margin) partly offset by the absence of visa costs (+100 bps tailwind) and operating efficiencies.
Technical Levels of Mindtree
Mindtree has support at 475 levels and resistance is at 485 levels.
A break below 475 can take it to 465--450 levels and it will be positionally weak below 450 levels.
Else if breaks above 485 level it can test its next hurdle of 500—510 levels .Further positionally strong on close above (525 --530) levels only.
Our recommendations
Our Call to buy VEDL (Fut) around 203--202.50 proved good as VEDL made high of 208.45 before settling at 207.95.We booked part profit around 207.
Our Call to buy Camlinfine (Cash) around 86--85.50 proved good as camlinfine made high of 112.80. before settling at 107.20.We booked full profit at 108.
Our Call to buy CAPF (Cash) around 755 proved good as CAPF made high of 773 before settling at 764.20.We booked full profit above 760.
Now what to expect??
Nifty and Bank Nifty levels
Nifty has support at 8620---8550 and resistance is at 8730 level.
Above 8730 will see more upside move till 8780---8850 mark in days to come
Else....
Below 8680 it can test 8650—8620 levels and then to 8550 mark.
Today's Top Pick
VEDL, Made a fresh 52 weeks high. Rally remain continue....
Above 207. We will expect sharp upside move till 213---218+++ mark
Support and stop loss below 200.
