RepleteBell Market Update

Market Update 28th September 2017

Sharp gain within the last hour of trade helped the market post gains of one-third of a percentage, with the Nifty managed to end above 9750-mark.

The Sensex closed up 122.67 points or 0.39% at 31282.48, whereas the Nifty ended higher by 33.20 points or 0.34% at 9768.95. The market breadth was positive as 1,526 shares advanced against a decline of 974 shares, whereas 164 shares were unchanged.Barring energy, all sectoral indices traded in the green, whereas midcaps ended with 0.5 a % gains.

ITC share price gained 1.5 % intraday after global research firm Deutsche Bank feels the latest proposal to ban non-tobacco products on tobacco kiosks is neutral for cigarette firms.The brokerage house has a buy rating on the stock, with a target price of Rs 350 per share. This target price is 35 % above the closing price of Rs 258.60 on Wednesday.

India is probably going to be the world’s fastest-growing large economy within the next 10 years and hit USD 6 trillion which would propel its equity markets to a recent record high, Morgan Stanley report.According to the report, the concomitant impact of higher GDP growth is that company earnings growth is also likely to accelerate that should propel equity markets.”We estimate that digitization can provide a lift of 50-75 basis points to GDP growth and forecast that India can grow to a USD six trillion economies and achieve upper-middle income status by 2026-27,” Morgan Stanley head {india|India|Republic of india|Bharat|Asian country|Asian nation} research and India equity strategist Ridham Desai told reporters here.India’s history shows a decent correlation between nominal GDP growth and earnings. Ultimately, earnings growth is what drives share prices – however, we also expect Indian multiples to expand.Morgan Stanley expects India’s stock market might be among the world’s best performers within the next 10 years, leading to India’s market cap rising from around USD 2 trillion to USD 6 trillion.

The global investment bank sees the BSE Sensex crossing the 100,000 mark in the base case scenario and 1,30,000 mark within the bull case scenario, albeit the bulk of the returns are likely to be front-ended in the coming 5 years.Indian non-banking financial company MAS financial Services’ initial public offering of shares to raise up to Rs 460 crore will run from October 6 to October 10, according to a public notice issued on Thursday.The company has set a worth vary of Rs 456 to Rs 459 a share for the sale, the notice showed.MAS is looking to raise up to Rs 233 crore by selling new shares while selling shareholders are offering up to Rs 227 crore.Motilal Oswal is the sole banker managing the sale.

Technical summary for 29th September 2017

As yesterday we said that 9700 is still a strong support for nifty. Today we see some positive movement in nifty due to some short covering. Now 9700 to 9790 is the range for nifty which must be broke to go further. Let’s see tomorrow whether nifty continue its upward journey or we see some more downside. Close below 9700 our next target would be 9450 & 9300.

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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