RepleteBell Market Update

Market Update 4th October 2017

Benchmark indices finished the session on a positive note, however, trimmed some of its post-policy gains, while the Nifty managed to finish above 9920-mark.The Sensex closed up 174.33 points at 31671.71, while the Nifty gained 65.95 points at 9925.45. The market breadth was narrow as 1,474 shares advanced against a decline of 1,157 shares, whereas 126 shares were unchanged.Reliance Industries, Sun Pharma and Tata Motors DVR were the top gainers on both indices, whereas Bharti Airtel, Axis Bank and ICICI Bank lost the most.

The reserve bank of India (RBI) on Wednesday kept its key lending rate—the repo rate—unchanged at 6 %, dashing hopes of lower borrowing costs for households and also the companies ahead of the festival season.The six-member monetary policy committee (MPC), headed by RBI governor Urjit Patel, kept one eye firmly on the rising inflation that’s perilously inching towards the RBI’s 4 % threshold level August, the MPC had suggested a 25 basis point (0.25 % point) cut in the repo rate to 6 %. Business leaders are affirming a repeat action to revive investment, spur spending and aid a turnaround within the broader economy’s growth that has slumped to a 13-quarter low of 5.7 at some point of April-June.The central bank and the-the MPC also made it clear that it stood firmly on the side of inflation control within the growth-inflation trade-off.

The government on Tues reduced the basic excise duty on petrol and diesel by Rs 2 per litre. The finance ministry said that the decision was taken in a bid to cushion the impact of the increase in global crude oil prices and to guard the interests of the common man.

The initial public offering of Godrej Agrovet opened on Wednesday. the company raised a little over Rs 341 crore from anchor investors ahead of its initial public offer on Tuesday.Over 74.17 lakh shares would be alloted to 25 anchor investors at Rs 460 each, that is the upper end of the price band, the company informed stock exchanges.At this worth, the whole amount works out to be Rs 341.19 crore.Goldman Sachs, SBI life insurance Company,  Reliance Capital Trustee Company, Nomura, Government of Singapore and Birla Sunlife Trustee Company are among the anchor investors.

Gold prices were higher by Rs 61 to Rs 29,416 per 10 gram in futures trade as speculators widened their bets taking positive cues from the global market.At Multi commodity exchange, gold for delivery in October was up by Rs 61 or 0.21 % to Rs 29,416 per 10 gram in business turnover of 28 lots.The metal for delivery in far-month December also moved up by Rs 44 or 0.15 % to Rs 29,553 per ten gram in a turnover of 516 lots.

Shares of Greaves Cotton rose 4.6 % intraday Wednesday because of its entrance in a partnership with Altigreen Propulsion Labs.This partnership will provide a range of clean energy powertrain solutions for 3-wheeler and micro 4-wheeler commercial vehicles.

The share price of Cyient gained 2.4 % intraday because the company has signed the global software licensing agreement with Elpis squared(a startup software company from Portland).Cyient and Elpis can jointly pursue utility business opportunities, by leveraging their complementing solutions and technology respectively,” the company told.The partnership can combine Cyient’s data governance management solution – Intelligent data Management solution (iDMS) with Elpis’ innovative RE|Grid platform to enhance the role of data in supporting electric utilities’ Advanced Distribution Management System (ADMS) and Asset Management programs, it added.

Technical Summary for 05th October 2017

We saw a good start in nifty today, but close below our resistance level of 9950. In last hour we saw some weakness on upper levels and it manages to close above 9900. Ranko is showing some positiveness.

NSENIFTY is long term Bullish as the 144 days moving average of 9,577.93 is increasing. The Relative Strength Index is at 49.44 in the neutral territory. The Relative Momentum Index is at 39.34 in the neutral territory. An important indicator for Elliott waves, the Elliott oscillator is at -40.97, in negative territory; this is a bearish sign. An equally important indicator, the STORSI is at 34.96. This value is in the neutral territory.

Weekly Pivot Point Resistance and Support

The first weekly resistance level is at 9,936.88 while the second resistance level at 10,085.17. The first weekly support level is at 9,663.93 while the second support level is at 9,539.27.

Additional information

Tomorrow’s projected High: 9,970.42, the projected Low:9,882.77. The top 21-day Bollinger band is at: 10,163.63 while the bottom 21-day Bollinger band is at: 9,678.01.

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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