Nifty 8615 /Sensex 27836/ Bank Nifty 19484
12 Advances / 38 Declines/ 1 Unchanged
“Tata group stocks, NPA woes, global cues drag Sensex 255 pts”
The broader markets also caught in bear grip with the BSE Midcap falling 0.9 percent on weak breadth. About 1586 shares declined against 1192 advancing shares on the exchange.
Equity benchmarks fell for the second consecutive session with the Sensex shedding more than 300 points intraday Wednesday, weighed by global cues, asset quality concerns and Tata Group stocks.
The 30-share BSE Sensex was down 254.91 points or 0.91 percent at 27836.51. The 50-share NSE Nifty hit an intraday low of 8596.60, before closing down 76.05 points or 0.88 percent at 8615.25.
Experts say the market is expected to consolidate further as it already priced in September quarter earnings. According to them, Nifty's expiry may be within the range of 8600-8700.
The Indian economy may have improved considerably following a good monsoon, but the earnings may only improve in the second half of current fiscal and will hold strong till the end of FY18, Krishna Kumar Karwa of Emkay Global Financial Services says.
He sees the banks' non-performing assets' (NPA) situation and the implementation of the Goods and Services Tax as the biggest long-term triggers for the market.
The broader markets also caught in bear grip with the BSE Midcap falling 0.9 percent on weak breadth. About 1586 shares declined against 1192 advancing shares on the exchange.
Our recommendations
Our call to Sell Nifty (FUT) below 8680 proved great as Nifty future cracked and made low of 8585 before settling at 8611 on closing.we Booked full profit below 8610.
[Profit of Rs 5250 on 1 Lot]
Our call to Sell Bank Nifty (FUT) around 19750 proved great as Bank Nifty future and made low of 19432 before settling at 19500 on closing.we Booked full profit around 19450.
[Profit of Rs 12000 on 1 Lot]
Our call to buy Maruti Suzuki 5800 CE (Option) around 70--60 proved great as it flared and made high of 126.05 before settling at 104 on closing. We Booked part profit at above 110.
[Profit of Rs 6000 on 1 Lot]
Our call to buy Heromotocorp (Fut) around 3410--3400 proved great as it flared and made high of 3457.50 before settling at 3420 on closing. We Booked part profit above 3440.
[Profit of Rs 6000 on 1 Lot]
Key Results Today
Maruti Suzuki
MRF
ABB India
Bajaj Finance
Bajaj Finserv
Bharat Elec
Castrol
Cholamandalam
Dalmia Sugar
Escorts
Force Motors
Glenmark
IFB Industries
IOC
JSW Steel
Jubilant Life
Pricol
PVR
Redington
United Spirits.
VRL Logistics
Karur Vysya
Maruti Suzuki 27th October 2016
Expectation : Maruti Suzuki Q2 profit seen up 52% but margin may contract
-India's biggest car manufacturer Maruti Suzuki is expected to report stellar performance in July-September quarter with profit rising a whopping 52 percent year-on-year to Rs 1,868 crore but margin may decline, according to analysts polled by CNBC-TV18.
-Revenue during the quarter is seen rising 30 percent year-on-year to Rs 18,222 crore as the mix shifted towards high priced vehicles like Vitara Brezza and Baleno.
-Compact car segment growth was 9 percent due to success of new Baleno and Celerio. Utility vehicle segment also saw big surge due to success of Vitara Brezza and Ertiga.
-Maruti sold 4.2 lakh vehicles in Q2, registering a 19 percent growth compared with 3.53 lakh units sold in year-ago period with exports and domestic volumes rising 18 percent.
-Realisations may rise led by higher export selling prices and higher priced recent launches like Vitara Brezza, Baleno. The company has maintained market share of 45-47 percent the last 15 years.
-EBITDA (earnings before interest, tax, depreciation and amortisation) is likely to grow 25 percent YoY to Rs 2,832 crore but margin may contract 80 basis points to 15.5 percent as raw material prices were slightly higher than last year due to higher steel prices.
-Direct forex exposure is likely to be netted out due to Baleno exports. Forex impact may be limited to indirect exposure. Analysts see only 40 basis points drag from forex.
Technical levels of Maruti Suzuki
Maruti Suzuki is trading at all time high with a positive breakout given at 5770 which seems to be sustaining.
It has immediate resistance at 5900.
If this resistance is breached and sustained positively then it may continue its bullish trend and may test 6000—6100+ in coming days. Above 5900 stock will be positionally strong and may make a case for upside rally on strong quarterly results.
Support is intact at 5770.If this immediate support is not sustained and breached negatively then Lower supports at 5600--5580.Below 5600 its positionally weak as lowers support at 5400.
Now what to expect next??
Nifty and Bank Nifty future levels
-Nifty has immediate support at 8580 and resistance is at 8680
A move and sustain below 8580 will take to 8520--8480 else it could test it's resistance level of 8660 again.
Break and sustain above 8660 will take it to its next hurdle at 8720---8750.
On the other hand, Bank Nifty has immediate support at 19400 and hurdle is intact at 19700.
Break and sustain below 19400 will take Bank Nifty to 19200---19050 and then to 18900 else it could test its resistance level of 19700 again.
Trade with levels only
Today's Top Pick
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