Replete Weekly

Weekly Market Review (9th October -13th October)

The equity benchmark started the week on Monday with marginal gains and positive bias. On Tuesday, the indices extended their gains solely to witness some serious distribution on Wednesday mainly because of Korean tensions. however on Thursday, bulls took charge of the market as both the Sensex and also the nifty posted gains of more than 1 percent. Friday observed the Nifty crossing the resistance level and making an intraday all-time high of 10,191.90, whereas the Sensex gained almost 250 points, setting the perfect bullish tone for the market within the festive week ahead.

The nifty started the week at 9,988.20 and traded within the range of 9,955.80-10,191.90. The index closed for the week at 10,167.45, up 1.88% from last week’s close. after opening at 31,862.20, the Sensex gained 1.94% this week to settle at 32,432.69. The index traded within the range of 31,769.40-32,508.59.

This week, both the nifty and the Sensex picked up one distribution day each on Wednesday’s trading session, whereas the nifty dropped a distribution day in Thursday’s trading session. This takes the current distribution day count to 3 on the nifty and 4 on the Sensex. The nifty and the Sensex are down 0.24% and 0.78%, respectively, from their all-time highs. The Indian market condition is currently in an Uptrend under pressure.

Broader indices also extended their gains this week, as the nifty Midcap and the Smallcap indices advanced 1.05 % and 1.52%, respectively.

Apart from nifty PSU Bank and Media, which posted losses of 1.82% and 0.33%, respectively, all sectors emerged as winners. the top 3 gainers were nifty IT, PVT Bank, and Bank, that gained 2.52%, 2.50%, and 2.06%, respectively.

On October 16, 2017, the WPI food, fuel, inflation, and manufacturing inflation data are scheduled to be released at 2:30 p.m. this could serve as a market mover in the coming week.

We have a holiday-truncated week ahead due to Diwali. On October 19, the market will be opened for Muhurat trading, the timing of which shall be notified by the exchange. The market will remain closed on October 20.

Leaders up on Volume: Jindal Worldwide (+28.5%), Guj.Narmada Vly.Fcm. (+16.32%), Sundram Fasteners (+17.23%)

Leaders Down on Volume: Rushil decor (-4.67%)

Technical summary for coming week (16th Oct-20th Oct)

This week Nifty is showing a good gain with value buying. But feeling little pressure on higher levels valuation is little high so a panic selling on higher levels can drag nifty to lower levels so be cautious and be stock specific. aggressive traders can go long with a tight stop loss of 9950. Overall nifty is in an uptrend.

NSE NIFTY is long-term Bullish as the 144 days moving average of 9,618.85 is increasing. The Relative Strength Index is at 64.55 in the neutral territory. The Relative Momentum Index is at 61.43 in the neutral territory. An important indicator for Elliott waves, the Elliott oscillator is at 129.95, in positive territory; this is a bullish sign. An equally important indicator, the STORSI is at 95.77. This value is in the overbought territory.

Some Picks for your portfolio

    Industry-IT Services & Consulting

    Tata Consultancy Services Limited (TCS) is an Indian multinational information technology (IT) service, consulting and business solutions company Headquartered in Mumbai, Maharashtra. It is a subsidiary of the Tata Group and operates in 46 countries.

    TCS is one of the largest Indian companies by market capitalization ($80 billion). TCS is now placed among the ‘Big 4’ most valuable IT services brands worldwide. TCS alone generates 70% dividends of its parent company, Tata Sons. In 2015, TCS is ranked 64th overall in the Forbes World’s Most Innovative Companies ranking, making it both the highest-ranked IT services company and the top Indian company.It is the world’s 9th largest IT services provider by revenue.As of December 2015, it is ranked 10th on the Fortune India 500 list.

    On 12 January 2017, N.Chandrashekaran was elevated as the chairman for Tata Sons.

    Company Posted its Q2 result on 13th October.

    The company’s market valuation went up by Rs 1,570.48 crore to Rs 4,89,435.48 crore. India’s largest software exporter TCS yesterday reported 2.1 percent dip in net profit to Rs 6,446 crore for the September quarter on softness in banking and retail segments but gave better guidance based on client optimism.

    The Tata group company posted a net profit of Rs 6,586 crore in the year-ago period. Its revenue grew 4.3 percent year-on-year and 3.2 percent over the preceding June quarter to Rs 30,541 crore under the Ind AS accounting norms.
    The company, which is the crown jewel of the USD 104 billion salt-to-software Tata Group, declared a dividend of Rs 7 per share and set October 26 as the record date.

    Technical Summary

    TCS is long-term Bullish as the 144 days moving average of 2,454.70 is increasing. The Relative Strength Index is at 65.04 in the neutral territory. The Relative Momentum Index is at 58.99 in the neutral territory. An important indicator for Elliott waves, the Elliott oscillator is at 48.35, in positive territory; this is a bullish sign. An equally important indicator, the STORSI is at 100.00. This value is in the overbought territory.

    We have detected a Gann Swing or Pullback that is usually a bullish pattern! It should be used with other indicators.

    We are keeping it in our portfolio for a medium-term target of 2800.


Performance Check:-

  • NIITTECH recommended around 520 now at 623 around 20% up in two weeks
  • COALINDIA recommended around 260 now at 287.25 around 10% up in 4 weeks

*For Targets & Stoploss or wants to work on proper levels just open a Trading account with us.

DISCLAIMER: – we are not a SEBI research analyst. Views posted here only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product or its contents. This product is not a recommendation to buy or sell, but rather a guideline to interpreting specified analysis methods.  This information should only be used by investors and traders who are aware of the risk inherent in securities trading

About Sachin Siwal

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