RepleteBell Market Update

Indian Market Update for 27th October 2017

Indian equity benchmarks ended mixed as gains in Sun Pharma, ONGC and Tata Motors were offset by losses in Bharti Airtel, State Bank of India and Reliance Industries.

The S&P BSE Sensex was little changed at 33,157 and the NSE Nifty 50 Index declined 0.2 percent to 10,323. For the week, the Sensex posted best weekly gain in over seven months, rising 2.37 percent while the Nifty rose 1.74 percent.

Eleven out of 19 sector gauges compiled by BSE ended higher led by the S&P BSE Healthcare Index’s 1.6 percent gain. On the other hand, the S&P BSE Telecom Index was the top sectoral loser, down 5 percent.

NBCC Gains On Winning Contract From Ministry Of Tourism

Shares of the state-owned construction company rose 1.2 percent to Rs 259.30 after it won a contract from the tourism ministry for upgradation and maintenance of Purana Quila in New Delhi.

Jaypee Infratech Rises After Resolution Professional Seeks Expression Of Interest

Shares of the Noida-based Jaypee Infratech rose as much as 4.7 percent, the most since October 25, to Rs 14.50 after insolvency resolution professional invited expression of interest for resolution plan for company under insolvency and bankruptcy code.

Shoppers Stop Posts Surprise Loss In July-September Quarter

Lifestyle retailer Shoppers Stop Ltd. posted a loss for the third straight quarter, falling short of analyst estimates as it sold grocery retail chain Hypercity and exited its duty-free airport retail business.

  • Net loss stood at Rs 21.8 crore versus estimate of profit of Rs 8.77 crore
  • Incurred one-time loss of Rs 33.79 crore on sale of Hypercity
  • Revenue fell 12 percent to Rs 838 crore

Maruti Suzuki At Record High On Q2 Earnings Beat

Shares of India’s biggest carmaker rose as over 2 percent to record high of Rs 8,242 after it beat Bloomberg consensus estimates in the September quarter.

  • Net profit rises 3.4 percent to Rs 2,484 crore versus estimate of Rs 2,230 crore
  • Revenue up 7 percent at Rs 21,768 crore versus estimate of Rs 22,000 crore
  • Standalone EBITDA up 21 percent at Rs 3,677 crore versus estimate of Rs 3,150 crore
  • Standalone margin at 16.9 percent versus estimate of 14.3 percent
  • Standalone margin at 16.9 percent versus 17 percent (YoY)
  • High commodity prices, advertisement cost hit Q2 margin

Maruti Suzuki’s Management On Q2 Earnings:

  • Lower yield on investments, higher ad expenses hit Q2 PAT
  • Auto industry sales volumes grew over 13 percent during the quarter despite GST
  • 13 percent growth is higher than any other industry post GST implementation
  • Higher value products in product mix aided to margins in Q2
  • Will grow in double digits this year but don’t expect 19 percent growth
  • Suzuki and Indian government partnership has been one of the most successful partnerships
  • Company is second globally in terms of PE Ratio after Tesla in the auto industry

IPO Update

Reliance Nippon AMC’s Rs 1,542 crore IPO was overall subscribed 30.99 times till 2:00 p.m.

  • QIB portion subscribed 45.44 times
  • HNI portion subscribed 74.40 times
  • Retail portion subscribed 4.12 times

*Source- Bloomberg


Technical summary for 30th October, 2017

NSENIFTY is long term Bullish as the 144 days moving average of 9,692.24 is increasing. The Relative Strength Index is at 67.65 in the neutral territory. The Relative Momentum Index is at 73.78 in the overbought territory. An important indicator for Elliott waves, the Elliott oscillator is at 226.51, in positive territory; this is a bullish sign. An equally important indicator, the STORSI is at 89.38. 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.

Additional information:-

Tomorrow’s projected High: 10,344.60, the projected Low:10,289.75. The top 21-day Bollinger band is at: 10,504.64 while the bottom 21-day Bollinger band is at: 9,765.08.

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


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