RepleteBell market update

Market Update 13th October 2017

Domestic Market benchmark indices (nifty 50) finished at a fresh record closing high on Friday as investors cheered macro data, earnings and telcos deals. The rally was driven by banks, telecom and metals stocks, and Reliance Industries(Highest free-float market capitalisation). however, the broader markets underperformed benchmarks, ending flat.
The 50-share NSE Nifty rose 71.10 points or 0.70% to 10,167.50, after touch a fresh record high of 10,191.90 intraday.
The 30-share BSE Sensex rallied 250.47 points or 0.78% to 32,432.69 despite weak market breadth. The index is still 254 points away from its record high of 32,686.48 hit on August 2. About 1,428 shares declined against 1,297 advancing shares on the BSE.

For the week, the nifty and Sensex rallied 1.9 % each, continuing upmove for the second consecutive week.

Telecom stocks hogged the limelight today. Bharti Airtel soared 7.9 % after signing a deal to buy consumer telecom business of Tata Sons. Tata Teleservices maharashtra share price was locked at 10 % upper circuit for second consecutive session.

Idea Cellular gained 6 % as its shareholders approved the merger with Vodafone india.

Reliance Industries was up 0.5 % before July-September quarter earnings due later today. TCS was up 0.3 % after better-than-expected earnings for the quarter finished September 2017.

Banks stocks ended sharply higher, with the nifty Bank rising 328 points on hopes of more rate cut, and likely early resolution to non-performing assets related to telecom sector after major telecom deals – Bharti Airtel-Tata Teleservices. Even idea Cellular-Vodafone india merger is also likely to happen by March 2018.

Better macro data also lifted sentiment. Kotak Mahindra Bank, HDFC Bank, ICICI Bank, Axis Bank and yes Bank gained 1-2 % whereas SBI was up 0.3 percent.
Meanwhile, industrial production grew to a 9-month high of 4.3 % in August whereas retail inflation fell to {3|to three}.28 % in September, unchanged from August.

All sectoral indices barring FMCG and pharma ended higher. Tata Steel, Coal India, Asian Paints and Tata Motors gained 1-3 % whereas GAIL, M&M and Dr Reddy’s Labs fell 1-2 %.


Technical Summary for 16th October

Nifty made a new all time high today. On charts now it’s looking good, renko also giving a buy signal, so we can initiate a long position from here but still a panic selling at higher levels may drag nifty to lower levels but we can go long with a stoploss of slightly below 9950.

NSENIFTY 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.

Additional information:-

Tomorrow’s projected High: 10,215.58, the projected Low:10,143.78. The top 21-day Bollinger band is at: 10,232.52 while the bottom 21-day Bollinger band is at: 9,717.51.

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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