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24 Sep, 2018 | 07.07PM IST
Traders’ Diary: Book profits on your short positions
Liquidity worries dominated market proceedings today. Key indices tumbled for the fifth straight session, hit by losses in banking and auto stocks.
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Those levels of fear were seen back in January last week or February 1st week when volatility spiked and the global markets saw a major sell-off. So here at present levels something we can relate to is happening and going forward this may call in for a sector rotation, deleveraging in a stretched valuations market and liquidating as well. So we may continue to see declines interrupted with some minor pullbacks. A consolidation should be seen between 10800 - 11200 while all the above-mentioned things happen. Nifty may see some minor consolidation with pullbacks going ahead though this will be a transition phase for bears. We continue to remain to sell on advances as a strategy
- Mustafa Nadeem, CEO, Epic Research
ETMarkets Evening Podcast: Trading tips from top D-Street experts
https://economictimes.indiatimes.com/markets/stocks/etnews?active=65936952
Selling appears to be overdone in last two sessions. Some stability owing to short covering can’t be ruled out ahead of the forthcoming F&O expiry. Besides, whenever long lower shadows are formed, as witnessed in Friday’s session, prices of financial assets have the tendency to consolidate for a while inside the range of such a lower shadow, before making a fresh move on either direction
- Mazhar Mohammad, Chartviewindia.in
Nifty has been forming lower tops and lower bottoms and closed below its rising trend line by connecting the swing lows of 9,952, 10,557 and 11,100. As long as Nifty holds below 11,080, weakness could continue and take it towards the recent swing lows at 10,866 and 10,850 levels, which is the 50 per cent retracement of the entire upward swing from 9,952 to 11,760 levels
- Chandan Taparia, Technical & Derivative Analyst, Motilal Oswal Securities
At Sundaram we have raised Rs 1,000 crore in our services fund that just got allotted yesterday. We are sitting on Rs 1000 crore of cash but we are not in a hurry to deploy right now because we will just wait for the time being and see where this whole volatility cycle ends and then we will step in
- Sunil Subramaniam, MD & CEO, Sundaram Mutual
Nifty has broken 11,000 level and given close below this level. Lower top lower bottom formation continued on the chart. For Tuesday’s trading 10,925 will act as strong support, break on this level will create fresh panic up to 10,865. On the upper side, it will face hurdle at 11,085 level
- Rahul Sharma, Senior Technical Research Analyst, Equity99
Stock market reeled under selling pressure through the day to finally close with losses of nearly 1.5%. The slide in benchmark indices was led by selling pressure in banking and NBFC stocks. Liquidity crunch fears, consistent selling by foreign institutional investors (FIIs), rupee volatility, rising crude oil prices and trade war tensions weighed on sentiment. Barring the IT index which gained over 2% in trade today, all other sectoral indices on the NSE closed the day with losses of over 2%
- Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas MF
CLOSING BELL: Sensex takes losing streak to 5th day, drops 537 pts; Nifty ends below 11,000; 4 out of every 5 stocks settle lower
Airline stocks fall as crude jumps, domestic passenger growth slows
Shares of Indian carriers SpiceJet, Jet Airways (India) and InterGlobe Aviation, which owns IndiGo, fell as much as 4.2 per cent-7.9 per cent in Monday's session amid a fresh rise in global crude oil price. Brent crude jumped over 2 per cent on tight supply in global market as US sanctions restricted Iranian crude exports.
Shankar Sharma calls financial stocks the market's troublemakers
That's why I always steer clear of financials like NBFCs and Banks. ( Some exceptions like HDFC Bank, IndusInd notw… https://t.co/JxVDACF2PJ
— Shankar Sharma (@1shankarsharma) 1537776850000Sensex tanks 500 points again: Is it only about NBFC hangover?
1. Crude prices
Brent crude futures for November delivery crossed $80-mark in Monday’s session to trade at $80.27 a barrel, up 1.83 per cent, ICE data showed. Oil prices rose as Opec nations and Russia snubbed calls by US President Donald Trump to increase crude output, ahead of US sanctions against Iran.
2. Rupee
A surge in crude oil prices have been a key concern for the market, especially for the rupee, which drops on weakening fundamentals. The domestic currency on Monday opened 27 paise down at 72.47 against dollar on account of buying of American currency by banks and importers.
3. NBFC/valuation hangover
While shares of DHFL climbed on clarification, NBFC shares such as PNB Housing and Can Fin Homes continued to plunge on Monday on worries over tight liquidity. This has had a rub-off on the broader market, as investors judged many counters still being richly valued.
4. Fed meet
Foreign brokerage Nomura said the market is widely expecting a 25 basis points rate hike at the Fed meeting on September 25-26. With US growth above potential, a Fed pause is unlikely this year, it said.
Brent crude futures for November delivery crossed $80-mark in Monday’s session to trade at $80.27 a barrel, up 1.83 per cent, ICE data showed. Oil prices rose as Opec nations and Russia snubbed calls by US President Donald Trump to increase crude output, ahead of US sanctions against Iran.
2. Rupee
A surge in crude oil prices have been a key concern for the market, especially for the rupee, which drops on weakening fundamentals. The domestic currency on Monday opened 27 paise down at 72.47 against dollar on account of buying of American currency by banks and importers.
3. NBFC/valuation hangover
While shares of DHFL climbed on clarification, NBFC shares such as PNB Housing and Can Fin Homes continued to plunge on Monday on worries over tight liquidity. This has had a rub-off on the broader market, as investors judged many counters still being richly valued.
4. Fed meet
Foreign brokerage Nomura said the market is widely expecting a 25 basis points rate hike at the Fed meeting on September 25-26. With US growth above potential, a Fed pause is unlikely this year, it said.
Market is still not cheap. If you look at the market, today we are closer to the all-time high than at a situation where we can say that the market is dirt cheap at this point of time. But if you look at the smallcap indices, they have gone up 200% in five years. Obviously, they have corrected 20% from the top but I do not think we are in a phase yet where we can say smallcaps is cheap, put your money in smallcaps
- S Naren, CIO, ICICI Prudential AMC
Just in
Brent crude price rises to $80.50 a barrel, its highest level since Nov 2014
Cipla on USFDA radar, stock goes down
Cipla is on the UDFDA radar as the regulator is carrying out a surprise inspection at its Goa facility, said sources. Three USFDA auditors are believed to have started the inspection at the Goa plant today. The stock was down more than half a per cent on the BSE in afternoon trade today.
Oil jumps 2% as market tightens, more gains seen
Oil prices rose 2 percent on Monday as US sanctions restricted Iranian crude exports, tightening global supply, with some traders forecasting a spike in crude to as much as $100 per barrel. Brent crude hit its highest since May at $80.47 per barrel, up $1.63 or more than 2 percent, before easing back slightly to around $80.40 by 0730 GMT. US light crude was $1.18 higher at $71.96.
Rupee slide to continue despite measures to boost capital inflows: Moody's
The Indian government's decision to boost capital inflows in an attempt to curtail rupee slide might not work. Thats what rating agency Moody's said in its research note on Monday as it believes that the government's recently announced measures to maintain its fiscal deficit target are unlikely to reverse the rupee slide, and perhaps might even slow down the currency further.
Nifty Bank index slips 500 pts
Nifty Realty plunges over 5%; HDIL, DLF among top losers
The Nifty Realty index plunged over 5 per cent in Monday's session on heavy losses in most components.
Extending the losses to the fourth consecutive session, the Nifty Realty index was trading 5.45 per cent down at 235 around 12:40 pm with all components in the red.
Default rattles investors in Asia's best-performing stock market
India’s benchmark equity index fell for a fifth day, as turmoil in non-bank finance companies deepened after a troubled lender disclosed further missed debt payments late on Friday and panic seeped into Asia’s best-performing stock market.
Equities declined even as Finance Minister Arun Jaitley assured that the government will take all measures to ensure adequate liquidity for non-banking finance firms, while the nation’s central bank and market regulator on Sunday said they are “closely monitoring recent developments” and are ready to take “appropriate actions,” if necessary.
Equities declined even as Finance Minister Arun Jaitley assured that the government will take all measures to ensure adequate liquidity for non-banking finance firms, while the nation’s central bank and market regulator on Sunday said they are “closely monitoring recent developments” and are ready to take “appropriate actions,” if necessary.
A short duration or ultra short duration debt where you invest for one to two years is something where people have not been putting their money in and that is an area where you have not seen money for a long period of time. I would say that is an interesting area.
- S Naren, ICICI Pru AMC
Samir Arora makes a case for deferring LTCG tax
Govt should use market forces to turn the market. Defer/take back long term capital gains tax for next 3 years. Aft… https://t.co/w3bVv9Wjvv
— Samir Arora (@Iamsamirarora) 1537772932000IT stocks gain as rupee falls
Price as on 24 Sep, 2018 12:34 PM, Click on company names for their live prices.
Market Now: Sensex drops nearly 500 pts
11,000-11,020 important support for Nifty index
Nifty is expected to remain volatile and further weakness is expected if 11000 is broken in this week. Supports are placed at 11,000 and 10,840 whereas 11,200 and 11,350 would act as resistance on the way up. We strongly advise hedging long portfolios with Nifty December 2018 11000 Put Options and keeping leveraged positions light until volatility settles down. On the upside, sustenance above 11200 would be comforting for the bulls and can attract fresh buying interest.
Jhunjhunwalas’ Rs 5,000 crore holding in Titan faces hit from Modi CAD control
Rakesh Jhunjhunwala’s biggest bet has just received a ‘sell’ rating from a well-known foreign brokerage. At Friday’s closing price, the 7.09 per cent stake that the ace investor and his better half Rekha Jhunjhunwala held in this jewellery company as of June 30 was worth just over Rs 5,000 crore.
These stocks gain amid falling market
Price as on 24 Sep, 2018 11:44 AM, Click on company names for their live prices.
Oil prices could rise to $100 a barrel by 2019, warn merchants
Oil prices could rise towards $100 per barrel by 2019 as US sanctions against Iran tighten markets, commodity merchants Trafigura and Mercuria said on Monday at the annual Asia Pacific Petroleum Conference (APPEC) in Singapore.
IndusInd Bank hits more than 6-month low; chart suggests further downside
- Shares of IndusInd Bank Ltd fall as much as 3.96 per cent to Rs 1,692.60 , lowest since March 9
- Stock breaks below a support at Rs 1,746.3, the 23.6 per cent Fibonacci retracement level of the uptrend from Feb. 29, 2016 low to Aug. 3, 2018 high
- This suggests stock may fall up to the next retracement level at Rs 1,565.85, the 38.2 per cent retracement level
- Stock's wave pattern suggests it have completed a five- wave uptrend and is now in a corrective cycle
- Trend Intensity (TI) indicator rises to 22, suggesting prices are trending downwards; MACD is negative and below its signal line
- Stock down 10.8 per cent in the past month as of Friday's close, compared with the broader NSE index's 3.7 percentage fall in the same period
Midcaps, smallcaps underperform Sensex
Broader midcap and smallcap indices were underperforming Sensex during Monday's session.
Around 11:20 am, the BSE Midcap index was trading 1.93 per cent down at 15,294 and the BSE Smallcap index was trading 1.86 per cent down at 15,470. The BSE Sensex was 0.67 per cent down at 36,596 at that time.
Investment tip by Sandip Sabharwal
Sell off in high quality Auto stocks is now creating a good investment opportunity as demand drivers are intact and… https://t.co/qH3PLHdTBe
— sandip sabharwal (@sandipsabharwal) 1537767584000What should MF investors do after YES, HFCs tanked?
Investors in several equity mutual fund schemes took a hit on Friday due to a sharp plunge in share prices of YES Bank, Dewan Housing Finance Ltd (DHFL) and Indiabulls Housing Finance. These shares dipped as much as 29 per cent, 42 per cent and 8 per cent, respectively, resulting in net asset value (NAV) dipping by 2 per cent on Friday.
Over 220 stocks hit 52-week lows on NSE
Over 220 stocks, including YES Bank, Aditya Birla Capital, Allahabad Bank APL Apollo Tubes, Ashoka Buildcon and BEML, hit 52-week lows on NSE during Monday's session.
Blue Dart Express, Central Bank of India, Deepak Fertilizers, Godrej Properties, Kalpataru Power Transmission, MAS Financial Services, MIC Electronics, MTNL, Rane Holdings, Reliance Infrastructure, Reliance Capital, Reliance Power, Sagar Cements, Sharda Motor Industries, Symphony, TVS Srichakra, Ujjivan Financial Services and Unitech also featured among the stocks that touched 52-week lows.
Blue Dart Express, Central Bank of India, Deepak Fertilizers, Godrej Properties, Kalpataru Power Transmission, MAS Financial Services, MIC Electronics, MTNL, Rane Holdings, Reliance Infrastructure, Reliance Capital, Reliance Power, Sagar Cements, Sharda Motor Industries, Symphony, TVS Srichakra, Ujjivan Financial Services and Unitech also featured among the stocks that touched 52-week lows.
Usha Martin surges on deal to sell steel business to Tata Steel
- Special steel and wire rope maker Usha Martin Ltd surges as much as 15 per cent to Rs 36, stock's highest in a fortnight, on deal to sell steel business to Tata Steel
- Tata Steel said on Saturday it had agreed to buy steel business of Usha Martin through a slump sale on a going concern basis for between 43 billion rupees and 47 billion rupees ($595.3 million-$650.7 million)
- More than 5 million shares traded vs 30-day avg volume of around 2.7 million
- Tata Steel marginally down at 0.57 per cent
- Usha Martin has a P/Book of 1.31 vs sector avg of 2
- Usha Martin gained 26.2 per cent this year as of last close, while Tata Steel shed 5.5 per cent in the same period ($1 = 72.2300 Indian rupees)
DHFL rebounds 20% after Friday horror; should you buy?
Shares of Dewan Housing Finance Corporation made good some of its losses today by recovering 20 per cent after the management said the company has not defaulted on any bonds or repayment nor has there been delay on its payout of liability.
NBFCs mixed; DHFL rises, but Bajaj Finance cracks
After suffering major losses on Friday, non-banking financial (NBFC) stocks were trading mixed in the morning session of trade on Monday.
Shares of Monarch Networth Capital (up 13.99 per cent), Dewan Housing Finance Corporation (DHFL) (up 13.27 per cent), Mangalam Industrial Finance (up 9.68 per cent), Arnold Holdings (up 9.48 per cent), Swastika Investmart (up 9.38 per cent) and PML (up 9.11 per cent) were trading higher.
Shares of Monarch Networth Capital (up 13.99 per cent), Dewan Housing Finance Corporation (DHFL) (up 13.27 per cent), Mangalam Industrial Finance (up 9.68 per cent), Arnold Holdings (up 9.48 per cent), Swastika Investmart (up 9.38 per cent) and PML (up 9.11 per cent) were trading higher.
Here's the investment idea for today by smallcap czar Porinju Veliyath
Equity market has corrected by 20-25% for an average investor in 2018. Not sure about the highest quality high PEx… https://t.co/aL9JlIg7N7
— Porinju Veliyath (@porinju) 1537761965000Check out the top 10 losers on NSE
Price as on 24 Sep, 2018 10:06 AM, Click on company names for their live prices.
Investors can skip GRSE IPO; no immediate earnings triggers
Long-term investors could wait for attractive secondary market valuations to emerge instead of buying big-time into the IPO of Garden Reach Shipbuilders and Engineers, a maker of warships for the Indian Navy.
The company does not have immediate earnings triggers; however, it would start booking revenues from three new frigates — medium size warships — from fiscal year 2021. The order for new corvettes is to the tune of Rs 19,500 crore, and slated for delivery from 2023.
The company does not have immediate earnings triggers; however, it would start booking revenues from three new frigates — medium size warships — from fiscal year 2021. The order for new corvettes is to the tune of Rs 19,500 crore, and slated for delivery from 2023.
No one benefits from panic: Safir Anand
I hear more regrets of ppl who missed buying Friday's lows than of investors who lost. The human reaction of happin… https://t.co/m4lw6TIHm6
— Safir (@safiranand) 1537757792000Rupee opens 27 paise down at 72.47 against dollar
The rupee on Monday opened 27 paise down at 72.47 against the US dollar on account of buying of American currency by banks and importers. Higher oil prices and overnight gains in the US dollar further impacted the forex market in early trade.
Check out the most active stocks on NSE
Price as on 24 Sep, 2018 09:22 AM, Click on company names for their live prices.
OPENING BELL: Sensex drops 100 pts; Nifty50 tests 11,100; DHFL rallies 20%, YES Bank tanks 3%
Pre-open session: Sensex gains 150 pts, Nifty50 flat
Pre-open session: Sensex gains 150 pts, Nifty50 flat; rupee trades at 72.47 against dollar
Singapore trading sets stage for negative start
Nifty futures on the Singapore Exchange were trading 21.50 points, or 0.19 per cent, lower at 11,199.50, indicating a negative start for the Nifty50.
Tech view: Nifty forms strong bearish candle
At Friday’s low of 10,866, the Nifty not only retraced 62 per cent of the entire rally from the lows of 10,417 registered in May 2018, but almost tested 200-day moving average, which is placed around 10,750 levels. “Usually, corrections tend to end with this kind of classic panic and retracement levels. It will be too early to conclude so,” said Mazhar Mohammad, Chief Strategist, Technical Research and Trading Advisory, Chartviewindia.in.
Sebi, RBI watching recent market selloff
The central bank and Sebi stand ready to act to ensure there’s no crisis when markets reopen on Monday, following Friday’s wild fluctuations on account of a debt default scare. “The RBI and Sebi are closely monitoring recent developments in financial markets and are ready to take appropriate actions, if necessary,” RBI and Sebi said in separate but identical statements issued on Sunday.
Most Asian markets shut today
Most financial markets in Asia including Japan (Autumn Equinox), China (Mid-Autumn Festival) and South Korea (Chusok - Full Moon Festival) were closed on Monday on account of public holidays.
Select Asian markets eased in early trade
Asia shares eased in holiday-thinned trading on Monday after China canceled upcoming tariff talks with the United States, Reuters reported. US stock futures were a touch weaker while MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.3 per cent. Australian shares fell 0.25 per cent and New Zealand’s benchmark index faltered 0.6 per cent.
Saudi, Russia rule out more oil output
Opec leader Saudi Arabia and its biggest oil-producer ally outside the group, Russia, ruled out on Sunday any immediate, additional increase in crude output, effectively rebuffing U.S. President Donald Trump’s calls for action to cool the market.
US stocks ended mixed on Friday
On Friday, Wall Street closed mixed with the Dow Jones Industrial Average gaining 0.32 per cent, the S&P500 index mostly unchanged and the Nasdaq easing 0.51 per cent.
PM Modi launches Ayushman Bharat
Prime Minister Narendra Modi invoked both Bhim Rao Ambedkar and Pandit Deendayal Upadhyaya while launching what he termed as the world’s biggest government-funded medical assurance scheme, the PM Jan Arogya Yojana (PMJAY) or Ayushman Bharat
NBFC stocks may remain under pressure
Non-banking finance companies’ stocks are likely to remain under pressure as the sentiment remains wobbly after the IL&FS default and Friday’s collapse of housing finance companies’ stocks. “The panic in NBFC stocks has not settled completely. There are concerns over short-term liquidity in the market for commercial papers raised by NBFCs. Further, there is also an uncertainty about the ability of certain NBFCs to raise capital,” said IIFL in a note.
FPIs buy Rs 761 cr worth of equities
Foreign portfolio investors (FPIs) bought Rs 761 crore worth of domestic stocks on Friday, provisional data available with BSE suggested. DIIs were net buyers to the tune of Rs 497 crore, data suggested.
Sensex on Friday
The BSE benchmark Sensex swung 1,500 points before settling the day 279.62 points, or 0.75 per cent lower at 36,841.60. The NSE barometer Nifty closed the session at 11,143.10 down, 91.25 points or, 0.81 per cent.
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