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A morning walk down Dalal Street | Inflation data, Q3 earnings, rupee, oil prices in focus

January 15
09:02 2019

Maintaining is negative streak, equity benchmarks closed Monday’s session with cuts of around 150 points on Sensex. The Nifty ended below 10,750-mark.

Weak global cues and a depreciating rupee added to the woes of bulls on Monday.

A smart recovery by the bulls in the last hour helped the market close off their low points. The Sensex recovered around 180 points from the day’s low, while the Nifty recovered around 50 points.

Weakness was visible among banks in particular. ICICI Bank and HDFC Bank contributed over 100 points to Nifty Bank’s loss. Infrastructure and metals were the other big losers, while Nifty Pharma has ended higher. The Nifty Midcap has ended 0.39 percent lower.

The day began on a somber note, tracking mixed Asian cues as well as oil price movements. Selling pressure gripped the market in the afternoon session, with the Sensex falling over 300 points intraday. The last hour recovery helped indices cut some losses.

At the close of market hours, the Sensex was down 156.28 points or 0.43% at 35853.56, and the Nifty down 57.40 points or 0.53% at 10737.60. The market breadth was negative as 1053 shares advanced, against a decline of 1477 shares, while 168 shares were unchanged.

Big News:

The big news to watch out for is the consumer price inflation data, which has eased to 2.19 percent for December against 2.33 percent last month.

The market will also look for cues from the earnings front. Around 18 companies will be declaring their results for the December quarter.

Den Networks, Jay Bharat Maruti, Network18 Media, and Speciality Restaurants, among others will be declaring December quarter results.

Rupee and crude prices are likely to be in focus, amid a weak close for the Indian currency.

Stocks in news:

Tata Metaliks Q3: Profit falls to Rs 39.63 crore versus Rs 40.35 crore, revenue rises to Rs 546.4 crore versus Rs 489.9 crore YoY.

Tata Power: Resurgent Power is a joint venture based out of Singapore and is held 26 percent by Tata Power through its wholly-owned Singapore based subsidiary. Now the balance 74 percent of Resurgent Power is held by ICICI Bank, Power Platform Limited and Kuwait Investment Authority.

Punj Lloyd: Pengeramg invoked $ 58 million performance bond for project. Company achieved 99 percent of engineering project for Pengeramg and is in talks with Pengeramg for refund of bond amount.

ICICI Bank: Bank appoints B Sriram & Rama Bijapurkar as additional (independent) directors.

Vakrangee: Company launched 3,300+ NextGen Vakrangee Kendras across India.

Technical View:

The Nifty formed a bearish candle which resembles a ‘Bearish Belt Hold’ kind of pattern on the daily charts.

Weakness in global markets amid disappointing Chinese data dented sentiment. Banking & financials and technology stocks pulled the benchmark indices lower.

A ‘Bearish Belt Hold’ pattern is formed when the opening price becomes the highest point of the trading day (intraday high) and the index declines throughout the trading day making up for the large body. The candle will either have a small or no upper shadow and a small lower shadow.

Maximum Call OI: 11,000, 10,900, 11,200

Maximum Put OI: 10,500, 10,700, 10,600

Technical Recommendations:

We spoke to Religare Broking and here’s what they have to recommend:

Axis Bank | Buy | Target : 680 | Stop-loss: 640 | Return 3.8 %

Pidilite Industries | Buy | Target: Rs 1,200 | Stop-loss: 1090 | Return 6.2 %

Godrej Industries | Sell January Futures | Target: Rs 500 |Stop-loss: 545 |Return 6.4 %

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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