Advertisement

Press Release

Updated on: Wednesday, May 29, 2019, 03:31 AM IST

Markets Update: January 10, 2019 – Today’s action in the Markets

Advertisement

16:00 Hrs Update: Latest After the Closing Bell

Nifty (-34, 10822): Bears came to life at Dalal Street after Asian equities and Dow Jones futures showed signs of stalling. You could also blame the negativity to:

• Disappointing Chinese inflation report where in China’s National Bureau of Statistics said that producer price inflation sharply slowed down in December, suggesting slower economic growth.

Advertisement

• The ongoing U.S government shutdown.

Technically speaking and judging by today’s price action at Dalal Street, the benchmark Nifty needs to close above 10871 mark to fuel further optimism.

The key highlights of today’s trade:

Advertisement

• TCS ended 0.32% lower ahead of its Q3 results. TCS will set afire the ceremonial starter’s pistol for the third quarter corporate earnings season of IT stocks INFY’S Q3 tomorrow.

• The benchmark Sensex still managed to end above 36,000 mark.

• NSE Media and NSE Reality index were among top gainers, up 0.77% and 0.61% respectively.

Advertisement

• Prominent gainers were: TITAN (up 1.58%) TATA MOTORS (up 1.34%) and EICHER MOTORS (up 1.18%) BAJAJ AUTO (up 1%)

• Prominent losers were: HPCL (down 2.76%) INDUSIND BANK (down 2.42%) GRASIM (down 1.95%).

• The market breadth, indicating the overall health of the market was positive.

• The NSE Mid-Cap index inched up 0.36%. The BSE Small-Cap index too inched up 0.40%.

Now before we sign off for the day, let’s look at major instruments.

GLOBAL UPDATE:

DOW Futures (-114, 23716)
NASDAQ Futures (-40, 6565)
DAX (-23, 10872)
FTSE (-8, 6898)

OIL (-0.24, $52.12)
GOLD (+1, $1293)
DOLLAR INDEX (+0.20, 95.34)
COPPER (+3, 5968)

How Asia fared today:

HANG SENG (+59, 26521)
NIKKEI (-263, 20164)
SHANGHAI (-9, 2535)

Nifty (-34, 10822)
Sensex (-106, 36107)
Bank Nifty (-0.69%, 27529)
SGX NIFTY (-0, 10859)
USD/INR (+0.07, 70.53)

15:00 Hrs Update: Where’s the Clever Money Going at 3 PM?

Nifty (-45,  10809):

Aggressive long overnight positions not advisable as U.S stock futures are indicating muted trading session as optimism over trade talks are being replaced by worries about a Chinese economic slowdown and the continuing U.S government shutdown.

Also tomorrow’s morning action will be dominated by TCS & INFY’s Q3 results. Aggressive stock specific buying advised only if Nifty moves above 10871.

Probable BTST/STBT trades

Bullish looking BTST stocks: COLPAL, BATA, TITAN, DIVIS LAB, UPL.

Bearish looking STBT stocks: LIC HOUSING FINANCE, BPCL, CANFINA HOMES

14:00 Hrs Update:

Bulls are trying hard to level up, but still unable to make up for the early losses.

You can blame it to disappointing Chinese inflation report where in China’s National Bureau of Statistics said that producer price inflation sharply slowed down in December, suggesting slower economic growth.

Major hurdle for Nifty continues to be at 10871 mark.

DAX (-53, 10840)

FTSE (-37, 6869)

DOW Futures (-0.54%, 23703)

NASDAQ Futures (-0.69%, 6559)

HANG SENG (+69, 26521)

NIKKEI (-263, 20163)

SHANGHAI (-9, 2535)

Nifty (-32, 10822)

Bank Nifty (-0.63%, 27545)

12:00 Hrs Update:

(Nifty 10820, Down 33 points):

A negative session is being witnessed at Dalal Street as the mood is bit sombre.

Nifty’s intraday hurdles seen at 10871 zone. Nifty’s immediate support lies at 10791-10801 zone.

  • The street now gears up to the big Q3 earnings to trickle in from TCS & Bandhan Bank. TCS will unveil post market hours. INFY reports Q3 tomorrow.
  • Amongst sectoral indices, Realty and FMCG stocks are trading higher, while pain is visible among Pvt banks and Energy sector. Metal stocks are in red, down 0.17%.
  • Metal stocks are still seen struggling despite most industrial metals advanced overnight after China signaled measures to spur consumption.
  • NSE Advances 20. NSE declines 30.
  • The NSE Mid-Cap index is in green, up 0.0.27% at 4,876 while the NSE Small-Cap index is up 0.19% at 6401. The market breadth, indicating the overall health of the market is positive.
  • In F&O space, SOUTH INDIAN BANK and RELIANCE INFRA are top gainers, up 2.92% & 2.50% respectively, while on flip side HPCL & INDUSIND BANK are down 2.87% &  2.23% respectively.
  • Yes Bank said on Wednesday it has finalised the potential candidates for the position of chief executive officer to replace the incumbent Rana Kapoor but did not disclose names.
  • Rupee weakens by 5 Paise to 70.51 against Dollar.
  • According to World Bank, India’s GDP (gross domestic product) is expected to grow at 7.3% in the fiscal year 2018-19, and 7.5% in the following two years, attributing it to an upswing in consumption and investment.

10.30 am Update:

Bullions back in action. We have a positive bias

Gold (+5, 1297). Positive Bias. Buy on corrective declines.

MCX Gold (0.16%, 32051). Hurdles at 32700. Support seen at 31400.

Silver (+0.052, 15.787). Buy on dips. Eyes 16.05 mark.

MCX Silver (+0.05%, 39613) Supports at 38400 and then at 37800. Hurdles at 40000.

Crude Oil (-0.52, 51.84). Crude oil in positive momentum. Support at 49.

MCX Crude Oil (-0.76%, 3658). Hurdles at 3900.

Copper (+0.007, 2.666). U.S- China trade truce key catalyst.

MCX Copper (+0.08%, 417.60). Downside risk at 404. Hurdles at 436.

10 am Update:

Nifty’s (-17, 10,837).

Sluggish action seen for Nifty but the only positive takeaways is that the market breadth, indicating the overall health of the market is  positive.

What Technical Tells Us On Nifty:

Nifty’s KEY SUPPORTS: 10791/10715.

Nifty’s KEY HURDLE: 10871/10921.

Nifty’s INTRADAY RANGE: 10,791-10,871.

Nifty’s OUTLOOK FOR THE DAY: Aggressive buying advised above 10871.

9.30 am Update:

(Nifty: 10825, DOWN 29 points): Nifty trades with negative bias in early action amidst profit booking seen in worldwide stock markets. Stocks are simply seen  languishing.

Nifty’s hurdles are now at 10871 and then at 10921 zone.

Amongst stocks on positive side are: TATA MOTORS (+1.07%, 185) UPL (+0.78%, 771) TATA STEEL (+0.69%, 482.50)

On the negative side are INFRATEL (-2.62%, 292.75) HPOCL (-1.88%, 234.50) BPCL (-1.41%, 335).

9 am UPDATE:
DOW FUTURES (-97, 23733)
NASDAQ FUTURES (-38, 6567)
SGX NIFTY (+35, 10910)
NIKKEI (-285, 20142)
HANG SENG (-7, 26455)
SHANGHAI (+3, 2547).
Today, TCS Bank will set afire the ceremonial starter’s pistol for the third quarter corporate earnings season of IT stocks INFY’S Q3 tomorrow.
Bulls Vs. Bears: Time to Pick a Side!!
Preferred trade on Nifty (10855): Buy between 10801-10811 zone, targeting 10921 and then at 11000 and then aggressive targets at 11111-11275 zone with stop at 10685.
Preferred trade on Bank Nifty (27713): Buy at CMP, targeting 28001 and then aggressive targets at 28451-28575 zone with stop at 27001.
STOCKS TO WATCH:
Bullish stocks: BATA, SBI, TITAN, INDIAN BANK, JINDAL STEEL & POWER BATA, CUMMINS INDIA & HDFC.
Bearish stocks: BPCL, HINDPETRO, LIC HOUSING FINANCE.

8 am Update:

  • Nifty January Futures ended Wednesday’s session at a premium of +19 against +30.
  • The Put- Call Open Interest Ratio was at 1.17 for Nifty whereas it was 1.34 for Bank Nifty.
  • The Put-Call Volume Ratio was at 1.00 for the Nifty and 1.27 for Bank Nifty.
  • For Nifty, Maximum Call Open Interest (OI) stands at 11000 Strike Price, followed by 11500 Strike Price for January Series. Short covering was seen at strike prices 10500-10800 for January Series.
  • Maximum Put Open Interest (OI) was seen at strike price 10500 followed by 10000 strike price for January series. Put writing was seen at strike prices 10750-10950 for January Series.
  • For Bank Nifty, Maximum Call Open Interest (OI) stands at 27000 Strike Price and Maximum Put Open Interest stands at 27500 Strike Price.
  • As per Wednesday’s Provisional Data available on the NSE, FII’s bought shares worth Rs. 276.14 crores in the Indian Equity Market. DIIs too bought shares worth Rs. 439.67 crores in the Indian Equity market.
  • Long Buildup: ITC, FEDERL BANK, HDFC BANK, HUL, BATA.
  • Short Buildup: SAIL, L&TFH, GAIL, NMDC, INDIGO.
  • Short Covering: AUROPHARMA, MOTHERSON, MARICO, BHARATFIN, TECHM.
  • Long Unwinding: TATA STEEL, YES BANK, ADANI PORTS, MC DOWELL.
  • Stocks banned in F&O segment for today: ADANI POWER, JET AIRWAYS.

7 am UPDATE:

DOW (+92, 23879)

NASDAQ (+60, 6957)

SGX NIFTY (+31, 10906)

NIKKEI (-257, 20169)

HANG SENG (-175, 26286)

BOVESPA (+1581, 93613)

OIL (-0.37,  $51.99)

GOLD (+2, $1294)

SUCCESSFUL INVESTING IS ANTICIPATING THE TRENDS OF:

Global: Positive.

FII: Neutral.

DII: Positive.

F&O: Positive.

‪Sentiment: Bullish.

NIFTY’s CRUCIAL LEVELS:

Nifty’s CURRENT MARKET PRICE: 10,855.

Nifty’s SUPPORT:

Intraday: 10,811/10,741.

Medium Term: 10,551/10,333.

Long Term: 9,951.

Nifty’s RESISTANCE:

Intraday: 10,921/11,001.

Medium Term: 11,111/11,751.

Long Term: 12,001.

Nifty’s RANGE:

Intraday: 10,811-10,951.

Medium Term: 10,501-11,111.

Long Term: 9,951-11,701.

Nifty’s OUTLOOK

Intraday: Positive.

Medium Term: Neutral.

Long Term: Positive.

Our call of the day suggests the benchmark Nifty should flirt with its bullish line in the sand i:e 11,000 mark. Technically, if this 11,000 mark is breached then that could signal further gains ahead. The way ahead is higher.

Our chart of the day establishing buy positions in stocks like BATA, CUMMINS INDIA &  HDFC with interweek perspective.

IMPORTANT THEMES OF THE DAY:

Well, buoying sentiments at our stock markets are two catalysts:

  1. Dovish tome in the minutes of the most recent Federal Reserve meeting.
  2. Also helping sentiments are reports that the U.S. and China have narrowed differences over trade. There is positive chatter surrounding U.S-China trade issue.

Disclaimer: LotusFunds subscribers/clients may have positions in the stocks recommended in this note. Please note that the actual subscribers may receive additional information in real time not available to the viewers of this note.

To Subscribe, SMS Your Name or Call at 98200 45901

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Published on: Thursday, January 10, 2019, 04:00 PM IST
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement