RepleteBell Market Update

Market update 10th October 2017

The domestic benchmark indices ended higher on Tuesday, taking their winning streak to a third straight session after a day of observing rangebound volatility.

BSE Sensex ended the day at 31,924.41, up 77 points or 0.24 per cent while nifty50 ended firmly above the 10,000 mark at 10,016.95, up 28 points or 0.28 per cent.

Shares of South Indian Bank plunged close to 7% after the bank posted a poor set of September quarter earnings. Net profit fell 96.07% YoY to Rs 4.32 crore for the September quarter against Rs 110.52 crore in the corresponding quarter last year. Provisions and contingencies stood at Rs 453.68 crore in the September quarter, compared with Rs 224.31 crore in June quarter and Rs 128.33 crore in the September quarter of last year.

Sadbhav Engineering has bagged a project worth Rs 167.46 crore in Gujarat. The project is for development of land for smart industrial port city (SIPC) in Kandla at Kandla-Gandhidham-Adipur complex. “Our company has been declared the successful bidder (L1) in respect of the bid invited by… the Kandla Port Trust, Kutch district, Gujarat,” it said. Bid price for the project is Rs 167.46 crore and construction duration is nine months.

Indian IT professionals are likely to see reduced job opportunities in the next six months as traditional roles are increasingly getting disrupted in the wake of automation and digitisation, reports PTI. According to the Experis IT Employment Outlook Survey by Experis IT-ManpowerGroup India, IT hiring intentions will further slacken for October 2017 to March 2018.The IT industry is looking at adjusting the talent pool, considering major hiring in junior and mid-levels while contemplating layoffs in the senior slab, the survey of 500 Indian IT employers across India said. “The collective number of layoffs that the IT giants are contemplating is way higher than what the Indian IT industry has ever witnessed and this trend is likely to continue for the next 6-12 months,” the survey stated.

The Reserve Bank is expected to cut key interest rate in December amid receding inflation and signal lower rates before the busy October-March industrial season intensifies, reports PTI. According to global financial services major Bank of America Merrill Lynch (BofAML), retail inflation is expected to stay muted at around 3.5% in September and 3.3% in October, which will give RBI the room to ease interest rates.


Technical Summary for 11 October 2017

NSENIFTY is long term Bullish as the 144 days moving average of 9,599.08 is increasing. The Relative Strength Index is at 56.47 in the neutral territory. The Relative Momentum Index is at 54.10 in the neutral territory. An important indicator for Elliott waves, the Elliott oscillator is at 51.05, in positive territory; this is a bullish sign. An equally important indicator, the STORSI is at 100.00. This value is in the overbought territory.

We have 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: 10,041.33, the projected Low:10,009.63. The top 21-day Bollinger band is at: 10,181.31 while the bottom 21-day Bollinger band is at: 9,693.50.

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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