Nifty 8485 /Sensex 27430/ Bank Nifty 19179
18 Advances / 33 Declines/ 0 Unchanged
“Nifty near 4-month closing low, ends below 8500 on US poll woes”
Equity benchmarks ended at nearly four-month closing lows on Thursday on continued concerns over the US presidential elections that scheduled for November 8.
Equity benchmarks ended at nearly four-month closing lows on Thursday on continued concerns over the US presidential elections that scheduled for November 8. Investors also maintained cautious stance ahead of rate decision in GST Council meet that started today and Bank of England's meeting tonight.
Overall it was range bound session for the market but late sell-off drove the Nifty below crucial support level of 8500. Benchmark indices closed lower for the fourth consecutive session.
The 30-share BSE Sensex was down 96.94 points at 27430.28 and the 50-share NSE Nifty fell 29.05 points to 8484.95, the lowest level since July 11, 2016.
Little respite is expected until at least next week, but surprises from US jobs data or Bank of England, could allow markets let go off election worries, while consensus on GST rates, could also give a distraction for domestic markets," Anand James of Geojit BNP Paribas Financial Services says.
If Donald Trump wins and the market takes a dive, it will be a perfect opportunity to buy, says Ajay Srivastava, CEO of Dimensions Consulting while advising investors to keep cash on the sides now.
European markets were mixed on concerns over US elections and ahead of Bank of England's meeting tonight. Asian markets ended mixed after a short-lived recovery, even as oil prices gained 1 percent.
Our recommendations
Our call to sell PNB (FUT) around 138.20—138.50 proved great as PNB future cracked and made low of 132.65 before settling at 133.80 on closing. We Booked full profit below 133.40.
[Profit of Rs 35700 on 1 Lot]
Our call to sell Sunpharma (FUT) around 726 proved great as Sunpharma future made low of 704 before settling at 705.50 on closing. We booked full profit around below 710
[Profit of Rs 9600 on 1 Lot]
Our call to Buy Hindalco (Cash) around 155—154 proved great as even in weak market hindalco made high of 166.40 before settling at 162.80 on closing. We booked profit around at 165.
[Return of 7% in just 2 Days]
Key Results Today
Allahabad Bank.
Apcotex Ind
Central Bank
Jindal Saw
Federal Mogul
Gati
Indian Hotels
Munjal Auto Ind
Pfizer
Radico Khaitan
Titan Company
Union Bank
United Brewerie
*“Buy Titan Company; target of Rs 397: Edelweiss”
Expectation: Edelweiss is bullish on Titan Company has recommended buy rating on the stock with a target price of Rs 397 in its research report.
Result Analysis & Poll:
-Titan Company’s (Titan) Q2FY16 revenue and EBITDA came exactly in line with our estimates, but was below Street’s expectations.
-Though jewellery sales were flattish impacted by the strike in March (INR2bn hit), strong off-take coupled with maintenance of guidance (15-20%) gives us confidence of a much better FY17.
-Success of new launches (Niloufer, Uttara) and another new launch in July in price point of INR0.2-0.5mn will aid growth. Titan, the largest brick and mortar jeweller, post acquisition of Caratlane also becomes the largest online jeweller. Maintain ‘BUY’on dips.
-Despite a weak Q1FY16 (reflects in stock price), we remain optimistic given Titan’s sharp focus on innovation and retail expansion. Increasing share in wedding jewellery will aid margins.
-Estimate EPS CAGR of 26.4% over FY16-18. The stock is currently trading at 37.0x FY17E and 29.4x FY18 EPS. We recommend/rate ‘BUY on dips/SP’ with target price of INR397.
Technical levels of Titan
CMP 377 Titan is looking stable in charts and has immediate support at (372—370) and immediate resistance at 384.
If Immediate Support of (372—370) is not sustained then lower support at 365.Below 365 it weak as Next support seen around 350 below which its positionally weak.
If immediate resistance of 384 is breached positively and sustained the next resistance at 392.
Next hurdle at 399 and above 399 its positionally strong.
Now what to expect??
Nifty and Bank Nifty future levels
-Nifty has immediate support at (8500—8480) and immediate resistance is at 8580
A move and sustain below 8480 will take to 8430---8380 and then to 8300 else it could test it's resistance level of 8580 again.
Break and sustain above 8580 will take it to its next hurdle at 8650---8720 mark.
-On the other hand, Bank Nifty has immediate support at 19150 and hurdle is intact at 19400.
Break and sustain below 19150 can take Bank Nifty to 19000--18850 or it can test its resistance of 19400. A move above 19400 can take bank nifty to the next resistance level of 19600---19750.
Today's Top Pick
Most of the stock looks weak on charts. Yesterday our sell call of PNB proven great. Trend still looks weak and traders should have a close eye on this stock.
Keep watch on BIOCON... Target intact 830---780.
More will update soon!!
