Nifty /Sensex 28091/ Bank Nifty 19834
20 Advances / 31 Declines/ 0 Unchanged
“Sensex, Nifty edge lower amid Tata-Mistry row, mixed earnings”
Equity benchmarks erased some previous day's gains on Tuesday, with the Nifty slipping below 8700 level amid mixed set of earnings and ambiguity over Tata-Mistry issue. FMCG, IT, HDFC and Tata Group stocks kept the market in negative terrain.
The 30-share BSE Sensex was down 87.66 points at 28091.42 and the 50-share NSE Nifty declined 17.65 points to 8691.30. The market is expected to be range bound for some more time as the current earnings season is not likely to be surprising one and October derivative contracts will expire on Thursday, feel analysts. According to them, earnings recovery is likely at the end of Q4FY17.
Major Tata Group stocks caught in bear grip today after Tata Sons sacked Cyrus Mistry as chairman and appointed Ratan Tata as interim chairman. Committee has been formed to select new chairman of the group. Tata Motors, Tata Steel, TCS, Tata Power and Tata Communications were down 1---2.5 percent.
Our Recommendations...
We booked full profit in our cash recommendation Aptech Ltd around 220. It was advised to buy around 170.
Another Cash recommendation proved great as we booked part profit in V Guard around 212---215 and it was advised to buy around 190.
We booked part profit in KPIT around 145 and it was recommended to buy around 142—140.
Last but not the least we booked full profit in Federal Bank future around 81.00 and it was recommended to buy around 78.00---78.50
Results 26th October 2016
AJANTPHARM
IIFL
HINDUNILVR
HEROMOTOCO
HDFC
EXIDEIND
DABUR
CANBK
BPL
BLISSGVS
CADILAHC
ITC
JKLAKSHMI
JSWENERGY
JUSTDIAL
JUBLFOOD
RAYMOND
RELIGARE
Important result : HDFC Ltd
HDFC Q2 profit seen up 16%, net interest income may grow 15%
India's largest housing finance company HDFC is expected to report a 16.4 percent growth in second quarter profit at Rs 393.5 crore on yearly basis.
Net interest income, the difference between interest earned and interest expended, is likely to grow by 14.7 percent year-on-year to Rs 1,369.7 crore in July-September quarter. Key things to watch out for would be net interest margin, dividend income from HDFC Bank and asset quality.
Analysts say if net interest margin comes above 3.75 percent (against 3.8 percent in Q1) and gross non-performing assets below 0.85 percent (against 0.75 percent in Q1) then that will be positive. They expect asset under management growth at 15 percent YoY.
Technical Levels of HDFC
HDFC has support at 1330 level and resistance is at 1350, Above 1350 it can test its next hurdle of 1370, Else below 1330 it can test its support of 1300. It will be positionally weak on close below the level of 1300.
Now what to expect next??
Nifty and Bank Nifty future levels
Nifty levels..
A move and sustain below 8680 will take to 8630—8580 and then to 8500 mark else it could test it's resistance level of 8750 again.
Break and sustain above 8750 will take to its next hurdle at 8820—8850.
Bank Nifty..
On the other hand, Bank Nifty has immediate support at 19700 and hurdle is intact at 20000.
Break and sustain below 19700 can take Bank Nifty to 19400—19250 else could test it resistance level of 20000 again.
Trade with levels only
Today's Top Pick
Adani port... We have seen sharp upside move in it on news flow. Trend still looks positive and can buy in panic around 305---302 with stop loss below 290 for the upside target of 320+++
