The immediate trend is downwards but if it manages to cross and hold above 10200 zones then a bounce could be seen towards 10250 and 10333 levels.
Indian markets ended lower for the fourth straight session in a row, driven largely by weak global cues as well as mixed results from India Inc. The S&P BSE Sensex breached 34,000 while Nifty bounced back after retesting 10,100 levels to hit a 6-month low.
The S&P BSE Sensex slipped 287 points to close at 33,847 while the Nifty50 ended 98 points to end at 10,146.
The broader market indices also reported a weak closing, with BSE Midcap & Smallcap falling by 0.9 percent and 1.2 percent respectively.
Barring power and realty companies which ended marginally higher, all the other sectoral indices ended in the red with IT, Healthcare & FMCG being the top losers, down 1.2-2.8 percent.
Movement of crude oil prices and currency would be closely monitored in the coming sessions.
Apart from the above factors, NBFC stocks will be in focus. Looking at the liquidity situation, the Reserve Bank of India (RBI) has canceled the Certificate of Registration of 31 non-banking financial companies (NBFCs).
Technically, analyst maintains their cautious view on the Indian markets in the near term. While there could be some intermediate bounces, traders are advised to use rallies to go short on Nifty.
The index has recently corrected by around 600 points from swing high of 10710 to 10102 levels.
The immediate trend is downwards but if it manages to cross and hold above 10200 zones then a bounce could be seen towards 10250 and 10333 levels.
If the index holds below 10138, it could open a further decline towards 10000-9952 zones.
Big News:
An earnings heavy day for markets. As many as 48 companies are scheduled to report their results for quarter ended September later today which include names like Bajaj Auto, Bharat Financial Inclusion, Indiabulls Real Estate, IDFC Bank, InterGlobe Aviation, Jubilant FoodWorks, Kotak Mahindra Bank, L&T Finance Holdings, Sterlite Technologies, Syngene International, TTK Prestige and Wipro among others.
Wipro: PAT likely to grow by 1.5 percent to Rs 2221.60 crore
Kotak Mahindra Bank: PAT likely to grow by 11.8 percent to Rs 1.2 crore
Interglobe Aviation: PAT likely to fall by 72 percent YoY to Rs 149 crore
Bajaj Auto: PAT likely to grow by 22.8 percent YoY to Rs 2.4 crore
Technical View:
Nifty formed a Long Legged Doji pattern on charts
Three levels: 10100, 10222, 10450
Max Call OI: 10500, 10400
Max Put OI: 10,000, 10100
Stocks in news:
HCL Technologies has reported 5.7 percent QoQ rise in the second quarter (July-Sept) net profit to Rs 2,540 crore against Rs 2,403 crore in the quarter ended June 2018.
HDFC Life Insurance posted a 20.3 percent year-on-year (YoY) increase in its September quarter net profit at Rs 286.98 crore backed by a strong growth in the protection business.
Adani Ports and Special Economic Zone on Tuesday reported 38.91 percent YoY drop in consolidated profit (attributable to shareholders) at Rs 606 crore for September quarter.
Technical Recommendations:
We spoke to SMC Global Securities Ltd and here’s what they have to recommend:
Colgate Palmolive (India): Buy| Target: Rs 1,200| Stop Loss: Rs 1,075| Return 7%
Divis Laboratories: Sell| Target: Rs 1,145| Stop Loss: Rs 1,310| Return 8%
Strides Pharma Science: Sell| Target: Rs 365| Stop Loss: Rs 440| Return 10%
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