RepleteBell Market Update

Market Update 09 October 2017

Equity benchmark began the week on a flat note, with the nifty ending below 10,000-mark.

The Sensex closed up 32.67 points at 31846.89, whereas the Nifty ended higher by 8.00 points at 9987.70. The market breadth was narrow as 1,530 shares advanced against a decline of 1,186 shares, whereas 122 shares were unchanged.

Shares prices of pump manufacture rallied between 8 % and 12 % intraday once the fall in goods & services tax (GST) on water pumps.

For the coming earnings season, Credit Suisse expects Q2 for pharmaceuticals to possess another weak quarter.It expects US sales to be impacted by the full quarter impact of Mckesson Walmart bidding, whereas sequential improvement will be driven by the recovery in India post GST.The global research observed that the companies which bucked the trend are Cadila and Alkem Labs. in addition, Dr Reddy’s Labs reported a weak Q1, however, recovery in Q2 is not significant, it said.On Sun pharma, it expects earnings to be hit by notional forex loss at Taro, whereas Lupin may report weak September quarter.Going forward, a recovery in India sales should facilitate Cipla report sequential improvement, the brokerage house said in its report.

The Development Bank of Singapore (DBS) expects policy fine-tuning from the Indian government — on the lines of the goods and Services Tax (GST) — in coming weeks.According to DBS, incoming high-frequency data are likely to improve. The index of industrial production for August — due this week — is poised to extend gains from July’s 1.2 percent, said DBS in its daily economic report today.As GST-driven distortions fade, expectations are set on festive-driven demand, a good monsoon, remonetisation and better disposable income following an increase in wage or allowances to provide support to the production outlook, it said. Production in 2017-18 is probably going to be around 2, slower than last year’s 4.6 percent, added the Singapore banking group.It saw more such pockets of improvement in high-frequency data prints, including core industries index, PMI (Purchasing Managers Index) and auto sales. this should translate into a growth average of 6-7 percent in the second half of 2017-18 after the trough in the June quarter, the bank stated.

MAS Financial Services’ initial share sale has been oversubscribed 1.5 times today, as per information available on exchanges.The issue received bids for 1.07 crore equity shares against IPO size of 71.24 lakh equity shares, excluding anchor investors’ reserved portion.

Nifty

Technical Update for 10 October 2017

NIFTY has taken strong resistance at upper levels at 10,000. Renko is showing some positiveness but we are recommending any new position at this time need more time for confirmation. Overall Trend is positive but under pressure.

NSE NIFTY is long-term Bullish as the 144 days moving average of 9,593.23 is increasing. The Relative Strength Index is at 54.58 in the neutral territory. The Relative Momentum Index is at 51.31 in the neutral territory. An important indicator for Elliott waves, the Elliott oscillator is at 31.57, in positive territory; this is a bullish sign. An equally important indicator, the STORSI is at 80.03. This value is in the overbought territory.

 

Additional information

Tomorrow’s projected High: 10,030.40, the projected Low:9,974.10. The top 21-day Bollinger band is at 10,172.90 while the bottom 21-day Bollinger band is at 9,685.99.

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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