RepleteBell Market Update

Market briefing for 26th October 2017

Indian equity benchmarks rose to fresh record highs led by gains in Maruti Suzuki, Axis Bank, Larsen & Toubro and Tata Steel.

The S&P BSE Sensex rose 0.32 percent to 33,147.13 and the NSE 50 Index advanced 0.47 percent to 10,343.80.

Sixteen out of 19 sector gauges compiled by BSE ended higher led by the S&P BSE Oil & Gas Index’s 2.2 percent surge. On the other hand, the S&P BSE Consumer Durables Index was the top sectoral loser, down 0.8 percent.

Engineers India: The stock gained nearly 10 percent, the most in over a year, to Rs 173.4 on the back of strong earnings. The company’s net profit jumped 25 percent to Rs 119 crore on the back of sales of Rs 429 crore.

NBCC: The state-owned construction company rose over 5.5 percent, the most since October 17, to Rs 260 after the company said that it may get into road construction business.

Jubilant Lifesciences: The Noida-based drugmaker rose nearly 6 percent, the most in over two months, to Rs 640 after HDFC Securities initiated coverage on the stock with a buy rating for a target price of Rs 850 indicating an upside potential of 41 percent.

Saksoft: The Chennai-based IT company rose as much as 14 percent, the most in over a month after its promoters SAK Industries acquired 0.9 percent stake in the company.

Oil Marketing Companies Gain On UBS Upgrade

Shares of the state-owned oil marketing companies rallied after brokerage house UBS initiated coverage on most of them with a bullish rating.

The broking firm expects to see earnings pick up driven by steady volume and margin expansion. Besides that, it also expects support from the government on free pricing for socially sensitive cooking fuel, liquefied petroleum gas, to drive constant earnings growth.

KEC International Gains On Winning Orders Worth Rs 1,931 Crore

Shares of the Mumbai-based power transmission company jumped as much as 4.86 percent, the most in over a month, to Rs 301 after it won orders worth Rs 1,931 crore.

Key order highlights:

  • Transmission and distribution business bagged orders worth Rs 1,756 crore across India, SAARC, Middle East, Africa and Americas
  • Cable business secured order worth Rs 112 crore covering various types of cables
  • Railways business secured order worth Rs 54 crore from IRCON for railway electrification work in North India
  • Solar business received order worth Rs 9 crore for construction of 6-megawatt ground mount project in North India

Technical summary for 27th October 2017

Nifty

Nifty made a new all-time high today. The trend is confirmed UP. We are holding Long with a revised stop loss of 10200.

NSE NIFTY is long-term Bullish as the 144 days moving average of 9,683.42 is increasing. The Relative Strength Index is at 69.82 in the neutral territory. The Relative Momentum Index is at 71.93 in the overbought territory. An important indicator for Elliott waves, the Elliott oscillator is at 215.42, in positive territory; this is a bullish sign. An equally important indicator, the STORSI is at 81.38. 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: 10,391.63, the projected Low:10,307.82. The top 21-day Bollinger band is at 10,475.70 while the bottom 21-day Bollinger band is at 9,756.38.

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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