RepleteBell Market update

Market update 11st October 2017

The market wiped out morning gains in the last couple of hours of trade and ended lower on Wednesday as investors turned cautious prior to September CPI inflation and August industrial output data due on Thursday. The cut in India’s growth forecast by world bank also dampened sentiment.
The 30-share BSE Sensex was down 90.42 points at 31,833.99, whereas the 50-share NSE Nifty ended below 10,000-mark, down 32.15 points at 9,984.80.

The broader markets hit the most as the nifty Midcap and Smallcap indices lost more than 1 % on weak breadth. About 1,129 shares declined against 456 advancing shares on the BSE.

Meanwhile, India’s GDP may slow from 8.6 % in 2015 to 7 % in 2017 because of disruptions by demonetisation and the GST, the World Bank has forecast and warned that subdued private investment due to internal bottlenecks could put downside pressures on the country’s potential growth. The International monetary fund also lowered India’s growth projection to 6.7 % in 2017, 0.5 percentage points less than its previous two forecasts and slower than China’s 6.8 percent.

All sectoral indices barring IT ended in red today. PSU Bank index fell 2.4 percent, could also be after disappointing earnings from Lakshmi Vilas Bank that reported an 84 % degrowth in net profit on the sharp rise in provisions for the quarter ended September 2017.
Nifty Bank, Metal and pharma indices were down 1-1.4 % whereas IT index gained 0.55 % prior to TCS earnings that will be declared on Thursday after market hours. TCS, Wipro and HCL Technologies gained 1-1.7 %, however, Infosys fell 0.5 percent.
Bharti Airtel tanked 5 % and Bharti Infratel was up 2.66 % on a media report indicated that KKR-led consortium of funds is in talks to accumulate Indus Towers and Bharti Infratel.Oil marketing companies HPCL, IOC and BPCL were up 1.5-4 % whereas Vedanta, Tata Motors, yes Bank and SBI slipped 2-2.6 percent.

Avenue Supermarts continued its run, up 2.4 percent. Uttam Galva was up 12 % as a media report said four companies are in the race to acquire the company.

Goa Carbon was up 3 % as July-September quarter profit increased nearly three-fold to Rs 13.8 crore YoY while gm Breweries was up 20 % as Q2 net profit surged 41.1 % to Rs 15.7 crore YoY.

South Indian Bank was up 2 % as management said the worst is behind after disappointing earnings.

Technical Summary for 12th October 2017

Today we saw some value buying in early hours but due to some panic selling nifty loose all it’s gain and closed below 10000 mark. that’s why we are little cautious and didn’t give any suggestion for a new entry. on 15 min chart NIFTY giving a sell signal but still need a confirmation on the Hourly chart. So wait and watch until the market is not giving a good reason to enter.

NSE NIFTY is long-term Bullish as the 144 days moving average of 9,604.40 is increasing. The Relative Strength Index is at 53.73 in the neutral territory. The Relative Momentum Index is at 55.29 in the neutral territory. An important indicator for Elliott waves, the Elliott oscillator is at 71.62, in positive territory; this is a bullish sign. An equally important indicator, the STORSI is at 95.47. This value is in the overbought territory.

Additional information.

Tomorrow’s projected High: 10,026.02, the projected Low:9,914.57. The top 21-day Bollinger band is at 10,185.22 while the bottom 21-day Bollinger band is at 9,698.20.

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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