RepleteBell Market Update


  • Nifty close down 1 point after high volatile session. After made a low of 9813 we saw a sharp recovery in intraday. ONGC, VEDL top gainer on Nifty.
  • The volatility is expected to continue after easing of North Korea tensions for the time being, and ahead of the expiry of September derivative contracts on Thursday.
  • On sectoral front Reality & Metal sectors was top gainer for today’s session close with a gain of 2.69% & 2.40% respectively.
  • The rupee on Tuesday hit a 6-month low of 65.44 against the US dollar as foreign investors continued pulling out of Indian debt and equities on unfavourable cues from both India and abroad.
  • Reliance health insurance, a subsidiary of Anil Ambani-owned Reliance Capital, has received 1st round of approval from IRDAI and will become operational early next year, said Anmol Ambani (executive director, Reliance Capital) at the 31st Annual General Meeting.
  • The Asian Development Bank (ADB) has slashed India’s GDP growth forecast for the present fiscal to 7 % from 7.4 % due to weakness in private consumption, manufacturing output and business investment.The 7 % GDP growth expected in 2017-18 is lower than 7.1 % recorded in 2016-17 and its earlier projection of 7.4 per cent in July.
  • The share price of Avenue Supermarts, the operator of D-Mart retail chain, hit a fresh record high of Rs 1,122.95, up 9.15 % intraday when the global research house has initiated coverage with a buy rating on the stock.Goldman Sachs has initiated coverage on the stock with a buy rating and 12-month target price of Rs 1586 per share, implying a whopping 53 % upside potential.While adding Avenue Supermarts to conviction list, the research house expects earnings before interest and tax to grow 13 times in next ten years.
  • Shares of Coal India lost over a % intraday as investors might have turned cautious of a target cut on the stock.Nomura, in its report, stated that it had maintained its neutral stance on the stock, however reduced the target price to Rs 260, implying a downside of around 19 % from the previous target.The global research firm determined that the earnings risk is quantified, whereas coal price revision is imperative. Further, a no revision in non-coking coal prices is key downside risk to the stock. It also cut FY18-19 EPS by 16/10 %, whereas it saw normalised EPS at 2-3 % below mean consensus.
  • Global research house UBS has upgraded Hero MotoCorp to buy from sell because it believes the company is expected to benefit from increasing robust rural and urban demand for motorcycles.Volume growth of 10 % CAGR over FY17-19 isn’t priced in, it aforesaid whereas raising FY18 2-wheeler industry sales growth forecast from 10 % to 12 %.According to the research firm, double-digit volume growth over FY17-19 is anticipated to drive a re-rating on the stock.UBS has additionally increased its target price for the stock to Rs 4,750 per share, from Rs 3,100 earlier.The rise in target price was after it raised EBITDA (earnings before interest, tax, depreciation and amortisation) margin estimates for FY19 to 15.9 % and earnings per share estimates hiked by 3/12 % for FY18/19.

Technical Summary for 27/09/2017

Yesterday nifty break rising trendline and close below it. Today after made a low of 9813 it recover all his loss and manage to close flat. On downside 9790 is a strong support for the Nifty close below will lead to more downside. On upper side 10000 will act as a strong resistance. On the option data 9800 & 10000 strikes has highest open interest. So for now 9800 act as a strong support based on technical and option data. This is expiry week so volatility must be high in this week. Trade with proper risk management.

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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