RepleteBell Market Update

Market update for 23rd October 2017

Indian equity benchmarks ended higher led by gains in index heavyweight Reliance Industries and Bharti Airtel.

The S&P BSE Sensex rose 0.36 percent to 32,506.72, snapping its three-day losing streak and the NSE Nifty 50 Index advanced 0.38 percent to 10,184.85.

Fourteen out of 19 sector gauges compiled by BSE ended higher led by the S&P BSE Telecom Index’s 2.8 percent surge. On the flipside, the S&P BSE FMCG Index was the top sectoral loser, down 0.66 percent.

Idea Cellular: The stock gained close to 9 percent to Rs 99.30 as the government is considering rules to let telecom companies share infrastructure, according to a Financial Express report. Trading volume 7.5 times the 20-day average.

UltraTech Cement: The stock gained the most in nearly six months to Rs 4,219 after CLSA upgraded the stock to ‘Buy’ from ‘Outperform’ and hiked its target price to Rs 4,900 from Rs 4,700.

Bhushan Steel: Shares of the beleaguered steel maker rose as much as 20.14 percent, the most in over a year, to Rs 69.80 after Lakshmi Niwas Mittal-led ArcelorMittal submitted an expression of interest to acquire Bhushan Steel, The Economic Times newspaper reported citing top banking sources.

GVK Power: The stock was locked in 5 percent upper circuit after the Hindu Business Line newspaper reported that the company is ‘set to’ bag order to construct Navi Mumbai airport project.

Shares of the Hindustan Zinc slipped as much as 1.5 percent to 317. The company’s net profit rose 34 percent in the quarter ended September over the year-ago period to Rs 2,545 crore, according to its exchange notification. However, the profit number included one-time exceptional gain of Rs 291 crore due to the reversal of royalty.

*Source-Bloomberg

Nifty 50

Technical summary for 24th October:-

NSE Nifty gained 0.76% to 10,224 in the opening hour. Later in the first half, it feels some pressure but later recover all its minor loss and closed 0.36% Up. Market breadth is positive. The trend is UPWARD. No sign of weakness neither on hourly nor on the daily chart. We are holding long with a stop loss of 10000. The range for this week should be 10100-10250. Expecting a range bound activity in coming sessions.

NSE NIFTY is long-term Bullish as the 144 days moving average of 9,657.91 is increasing. The Relative Strength Index is at 61.57 in the neutral territory. The Relative Momentum Index is at 70.34 in the overbought territory. An important indicator for Elliott waves, the Elliott oscillator is at 159.44, in positive territory; this is a bullish sign. An equally important indicator, the STORSI is at 58.11. This value is in the neutral territory.

We have detected an Isolated Low at 10,123.35 one bar ago; this is usually a bullish sign that is not to be used alone!

Additional information

Tomorrow’s projected High: 10,254.32, the projected Low:10,154.67. The top 21-day Bollinger band is at 10,369.08 while the bottom 21-day Bollinger band is at 9,750.11.

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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