RepleteBell Market Update

Market update of 30th October 2017

Stock market:- Indian equity benchmarks closed at fresh record highs as a slew of corporates reported earnings that met street expectations.

The S&P BSE Sensex climbed 0.3 percent to 33,266 while the NSE Nifty 50 rose 0.4 percent to 10,363. Sixteen of the 19 sector gauges compiled by the BSE Ltd. rose led by a gauge of consumer durables companies.

Lupin Gains After Q2 Profit Beat

Shares of the drugmaker rose as much as 5.7 percent to Rs 1,058 after reporting better-than-expected profit in the September quarter.

  • Q2 net profit Rs 455 crore versus estimate of Rs 444 crore
  • Revenue Rs 3,950 crore versus estimate of Rs 4,055 crore
  • Total costs Rs 3,420 crore; other income Rs 74.04 crore
  • Ebidta Rs 927 crore versus Rs 1,058 crore YoY
  • North America sales Rs 1,360 crore versus Rs 2,000 crore YoY

Management says

  • Continue to see pricing pressure in U.S. generic market, as per expectations
  • Company on track with complex generic pipeline

Nifty PSU Bank Index Best On NSE

Shares of the state-run lenders were trading higher in noon deals. The Nifty PSU Bank Index was the top sectoral gauge on the National Stocks Exchange, up 1.8 percent

Tea Companies Stage An Upmove

Shares of the tea producers and marketers were trading higher and staged a good upmove in today’s session.

  • Rossel India up 14 percent
  • United Nilgiri Tea Estates up 10 percent
  • Goodricke Group up 5 percent
  • Jayshree Tea up 4 percent
  • Tata Global Beverages up 2.5 percent
  • Mcleod Russel up 0.8 percent

ITC Slips After Brokerages Cut Target Price

Shares of the country’s biggest cigarette maker declined as much as 1.4 percent to Rs 265.55 after brokerages cut target price on the stock.

Axis Capital on ITC

  • Maintain Buy; cut the price target to Rs 320 from Rs 330.
  • Cigarette volume declines 6 percent due to GST rate pass-through.
  • Cut earnings per share estimate by 2-4 percent for the current and next financial year.
  • Expect 2 percent cigarette volume decline in the current financial year.
  • Expect revenue and earning per share to grow at a compound annual growth rate of 9 percent respectively, over three years till March 2019.

Kotak Securities on ITC

  • Maintain Add; cut the price target to Rs 310 from Rs 340.
  • Estimate a cigarette volume decline of 6-7 percent.
  • Cut earnings per share estimates by 2-3 percent for the current financial year till March 2020 on lower cigarette business assumptions.
  • Tobacco taxation policy continues to hurt ITC’s ability to deliver healthier Ebit growth.

*Source-Bloomberg

Technical summary for 31st October 2017

NSE NIFTY

NSE NIFTY is making new high day by day. We are holding our long with a revised stop loss of 10250. Nifty is Facing some resistance at 10400 FUT level but not looking week neither on hourly chart nor on the daily chart. we advise to book some profit at 10450 levels.

NSENIFTY is long term Bullish as the 144 days moving average of 9,701.50 is increasing. The Relative Strength Index is at 69.63 in the neutral territory. The Relative Momentum Index is at 75.51 in the overbought territory. An important indicator for Elliott waves, the Elliott oscillator is at 234.40, in positive territory; this is a bullish sign. An equally important indicator, the STORSI is at 90.37. This value is in the overbought territory.

We have has 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: 10,394.18, the projected Low:10,353.98. The top 21-day Bollinger band is at: 10,515.47 while the bottom 21-day Bollinger band is at: 9,795.85.

 

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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