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Traders’ Diary: Adopt 'sell on rise' strategy
Benchmark equity indices Sensex and Nifty cracked for a third straight session on Thursday after Chief Economic Adviser K Subramanian in virtually ruled out a major stimulus package.
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FIIs net sell Rs 902.99 cr while DIIs net buy Rs 1,719.07 cr in equities today (provisional)
Nifty breached August’s low of 10,782, thus confirming the fifth leg down as per the Elliott wave structure. The current leg of the fall that started this week is also showing impulse structure on the hourly chart. The subsequent crucial level on the downside will be 10,600, which is near the lower end of the consolidation that Nifty witnessed in January-February this year
- Gaurav Ratnaparkhi, Sharekhan
Nifty broke below its recent low of 10,780. Sustained trade below this level will drag Nifty towards 10,670-10,615. A trade above the level may trigger short covering rallies to 10,840-10,880 zone. Traders should also look out for a possible formation of a positive divergence on RSI, which could signal a temporary bottom formation
- Aditya Agarwala, YES Securities
Nifty continued its formation of lower lows and lower highs from the past three trading sessions and broke its recent swing low of 10,782. Now, till Nifty holds below 10,900, it could drift towards 10,650-10,600 while on the upside hurdles are seen at 10,950 and then 11,000
- Chandan Taparia, Technical & Derivative Analyst, MOFSL
Nifty breached its previous swing low of 10,780, hinting at more pressure. The index has given a bearish flag breakdown, which is also negative for the market. The support is coming near 11,680-11,600 zone and resistance near 11,800-11,890
- Rohit Singre, Senior Technical Analyst, LKP Securities
The recent fall is a result of growing uneasiness among the participants as they’re keenly awaiting some action from the government to boost the market sentiment. Besides, feeble global cues are further adding to the negativity. Nifty has now reached closer to its immediate and critical support of 10,750 so we may see some consolidation or pause ahead. We suggest continuing with ‘sell on rise’ approach and focusing more on stock selection now
- Ajit Mishra Vice President, Research, Religare Broking
CLOSING BELL: Sensex tumbles 587 pts, down for 3rd day; Nifty below 10,750; YES Bank plunges 12%
IRCTC files draft papers with Sebi for IPO
Indian Railway Catering and Tourism Corporation (IRCTC) has filed draft papers with markets regulator Sebi for its initial public offer. As many as 2 crore equity shares of face value of Rs 10 each would be offloaded through an offer for sale by the government. IRCTC is the railways tourism and catering arm. According to market sources, the IPO would be worth about Rs 500-600 crore.
The equity benchmarks Sensex and Nifty extended their declines for the third day in a row dragged down by metal, auto and PSU bank stocks as investors remained concerned over economic slowdown.
Here are key factors that weighed on Dalal Street:
Here are key factors that weighed on Dalal Street:
- Govt non-committal on stimulus
- Global jitters
- Economic slowdown hurting India Inc
- Investors jittery ahead of Jackson Hole Symposium
- Weakness in rupee
The Indian market is down, when the region is largely flat, and US futures are flat. There are multiple reasons, firstly while the measures on FPI regulations are good, the market still awaits clarification on the tax proposals for FPI’s made in the budget. Secondly the market is getting impatient with regards to the prospects of a stimulus package from the government and the comments made by some government officials have dimmed hopes. We continue to expect some weakness in the near term, but expect the economy to stabilize in Q2 FY2019-20 and recover in the second half.
- Vivek Ranjan Misra, Head of Fundamental Research, Karvy Stock Broking
MVL, SRS among top 10 NSE losers
HDFC duo, ICICI Bank, RIL top Sensex drags
Top 10 NSE gainers
I don’t think we are anywhere near a recession
- Subhash Chandra Garg, Power Secy
Profit is private, losses are public... that can't be good economics
Both excessive pessimism or irrational optimism are equally bad
Despite little bit of slowdown, India remains a bright spot in a world that is growing at 2-2.5%
- Krishnamurthy Subramaniam, CEA
Shares of Yes Bank fell as much as 7.34 per cent to Rs 60.6, their lowest level since March 3, 2014. But if we go by technical charts, the stock may plunge up to 23 per cent in coming days. The stock is likely to fall into a range of Rs 52.38 to Rs 47.01, technical chart suggests.
No power on earth can stop India emerging true global power
- Ravi Shankar Prasad, Union Minister
The government no longer thinks big business to be bad: Ravi Shankar Prasad
Politics of entitlement is now maturing into politics of empowerment, which is what Modi symbolises: Ravi Shankar Prasad
Current slowdown is not only impacting manufacturing but also the mood
- Sunil Munjal, Chairman, Hero Corp
India is world’s most noisy and thriving democracy
India is in a unique place now, living new realities: Sunil Munjal
Yes Bank reverses gains, trades at new 52-week low of Rs 61.20
Shares of LIC Housing Finance plunged over 7 per cent in Thursday’s trade, possibly on a block deal that saw 6.7 per cent of the NBFC’s shares exchanging hands at a discount. ET had on Wednesday seen the term sheet, which suggested some marquee investors were to sell the stake in Rs 425.15 – 449.50 price range, which implied a discount of 3-8 per cent to Wednesday’s closing price
Nitin Gadkari announce 'Udyog Mitra' scheme for MSMEs
MSME sector has huge potential for generating income and employment
- Nitin Gadkari
We want to give more priority to agriculture and rural economy
- Nitin Gadkari, Minister for Micro, Small and Medium Scale Enterprises
MSME sector currently employes 11 cr people, will take it to 15 cr in next 5 years: Nitin Gadkari
Mines Tribunal stays Karnataka's move to cancel NMDC's mining
Podcast: Let's talk business & markets
OPENING BELL: Sensex sheds 100 pts, Nifty slips below 10,900; LIC Housing tanks 7%, CCD jumps 5%
Pre-open session: Sensex up 60 points, Nifty nears 10,900; rupee trades at 71.56 against US dollar
Singapore trading sets stage for negative start
Nifty futures on the Singapore Exchange were trading 15 points, or 0.14 per cent, lower at 10,917, indicating a negative start for Dalal Street.
Tech view: Nifty forms bearish candle
Nifty50 on Wednesday slipped for the second day in a row, as it failed to breach the crucial resistance at 11,050. The index, though, respected the 10,900 level, but analysts expect it to eventually breach this level unless it reclaims 11,000 level.
Asian shares, S&P futures edge higher
Asian shares edged ahead on Thursday after Wall Street got a boost from strong retail results. Japan's Nikkei added 0.4 per cent and Australian shares 0.3 per cent, while E-Mini futures for the S&P500 rose 0.2 per cent.
Oil price rises after US crude stocks draw
Oil prices rose on Thursday following a drawdown in US crude inventories but gains in fuel inventories and persistent concerns over the global economy and future demand outlook capped gains. Brent crude futures climbed 27 cents, or 0.5 per cent, to $60.57 a barrel
US stocks gain on strong results
In overnight trade, US stocks closed higher on strong results from retailers, AP reported. The S&P500 index rose 23.92 points, or 0.8 per cent, to 2,924.43. The Dow Jones Industrial Average index gained 240.29 points, or 0.9 per cent, to 26,202.73. The Nasdaq Composite index added 71.65 points, or 0.9 per cent, to 8,020.21.
Sebi eases registration process for FPIs
Sebi has removed the broad-based eligibility criteria. The market regulator reduced the number of overseas investor categories to two from three. This along with a raft of decisions such as tweak in buyback norms and tightening of rules for credit rating agencies among others were taken at Sebi’s board meeting on Wednesday.
Reviving growth top priority: MPC
The MPC was unanimous in its concerns over the economic slowdown that needed an interest rate cut to give growth a push with inflation on the back burner for the first time since its inception, but some raised red flags over the effectiveness of the quantum of the cuts given poor transmission by banks.
FPIs sell Rs 771 cr worth equities
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 771 crore on Wednesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 354 crore, data suggests.
Sensex on Wednesday
BSE Sensex closed 267.64 points, or 0.72 per cent, lower at 37,060.37. While NSE Nifty ended at 10,918.70, down 98.30 points or 0.89 per cent.