Tuesday, 21 February 2017

Sensex, Nifty may open slightly up; TCS could see profit booking

The market may look to build on the bullish momentum from previous sessions on Tuesday. Stocks to watch would be Ambuja Cements as well as TCS. The cement major posted strong earnings in December quarter, while TCS announced a major buyback of Rs 16,000 crore. 

The market on Tuesday may look to continue the momentum from its previous sessions in a truncated, expiry-laden week. The trend on SGX Nifty indicates a flat opening with a positive bias.

Asian markets were higher in early trade on Tuesday. The Nikkei was up nearly half a percent, while the Korean market was trading with smart gains—up over half a percent as well. The Taiwan index was marginally higher, while Straits was down 0.30 percent.

In Europe, markets finished Monday’s trade mostly higher, after investors digested a raft of earnings and economic data, while remaining watchful for any more details from US President Donald Trump regarding his economic policies. Gains in telecom and banks offset a big fall in Unilever, the focus in euro zone debt markets was on politics. Looking ahead for Tuesday would be the Euro zone PMI data for February, which should draw traders' attention.

In India, the market started the expiry week on a strong note, with the Nifty rising over five-month closing high on Monday. The rally was aided largely by TCS, Infosys and HDFC Bank. GST Council's approval to a law for compensation to states as well as positive global cues supported the market that gained strength in afternoon trade after having consolidated in the morning.

The 30-share BSE Sensex rose 192.83 points or 0.68 percent to 28661.58, the highest closing level since September 23, 2016. The 50-share NSE Nifty was up 57.50 points or 0.65 percent at 8879.20, the highest closing level since September 5.

Among stocks to watch on Tuesday would be TCS as well as Ambuja Cements. The Tata Group firm announced a massive share buyback of Rs 16,000 crore for over 5 crore equity shares just before market closing hours on Monday. The buyback offer constitutes 2.85 percent of total paid-up equity share capital. The buyback price has been set at Rs 2,850 per share, a 11 percent premium to the current market price.

“The buyback is proposed to be made from the shareholders of the Company on a proportionate basis under the tender offer route using the stock exchange mechanism in accordance with the provisions contained in the SEBI (Buy Back of Securities) Regulations, 1998 (hereinafter referred to as the "Buyback Regulations") and the Companies Act, 2013 and rules made thereunder,” TCS told stock exchanges. The promoters currently hold 73.33 percent stake in the company. Reacting to the development, the stock ended 4 percent higher on Monday.

New Tata Sons boss N Chandrasekaran will take over the reins at Bombay House on Tuesday. The biggest challenge that he would face is to rekindle growth as well as revive Tata’s weaker units.  

Meanwhile, Ambuja Cements posted an operationally strong quarter on back of higher realisations and lower operating costs. The company’s net profit rose 60 percent to Rs 176 crore. On challenges, Deutsche Bank said that lack of volume growth remained a worry.

The euro was on the defensive - under pressure from fears that the French presidential election could upset the status quo, as rising anti-establishment sentiment surfaced after last year's Brexit and the US elections. Uncertainty over political developments and the timing of a US interest rate hike kept the dollar in check.

Crude prices inched higher as investor optimism over the effectiveness of producer cuts encouraged record bets on a sustained rally. However, growing US output and stubbornly high stockpiles kept price gains in check. Top OPEC exporter Saudi Arabia's crude oil shipments fell in December to 8.014 million barrels per day

Gold prices held steady on Monday as traders awaited further clues on the pace of interest rate rises from Federal Reserve officials due to speak this week. The heads of five regional US Federal Reserve banks are scheduled to speak before Friday.
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Friday, 17 February 2017

Market likely to open higher: SMC Global

According to SMC Global, the market is likely to open higher after shares climbed the most in nearly two weeks, led by automakers, metal producers and information technology stocks. 

Outlook for the day: 

The market is likely to open higher after shares climbed the most in nearly two weeks, led by automakers, metal producers and information technology stocks. Asian shares opened lower as markets took a breather from their recent surge as investors took profits following a weak session on the Wall Street overnight, with investors awaiting details on the Trump administration’s progrowth policy promises.

Investors look for fresh catalysts to keep up the recent rally amidst increasing odds of a US Fed rate hike in March, European shares slid for the first time in eight days.

As per provisional figures, foreign institutional investors (FIIs)/ Foreign Portfolio Investors (FPIs) sold shares worth net Rs 215.69 crore on 16th February 2017. Domestic institutional investors bought shares worth Rs 846.11 crore on that day.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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Wednesday, 8 February 2017

Poll says strong rupee may turn course, plunge to record lows

The prediction that the rupee will weaken to 69.50 to the dollar is based on expectations of a rise in the US currency. 

The rupee may have appreciated more than 1 percent this year, but a Reuters poll  expects the Indian currency to reverse its recent gains and sink to record low in the coming months.

The prediction is based on expectations for a rise in the dollar, even though new US President Donald Trump is a not fan of a strong currency.

The rupee weakened 2 percent last year, but has had a good 2017 so far thanks to a subdued dollar and hopes stimulus in the last week’s Union Budget would supercharge the economy.

However, a poll of more than 30 foreign exchange strategists taken over the past week showed the rupee weakening to 68.00 per dollar by the end of the month from 67.35 it was trading on Tuesday.

The currency is expected to weaken to 69.50 a dollar in 12 months, which would be a record low for the currency.

Navneet Damani at Motilal Oswal Commodities was quoted as saying that the current situation is a knee-jerk reaction to Trump's statements, but once things settle and are a little more actionable, the trend for dollar index strength would resume.

Expectations of a Reserve Bank of India rate cut on Wednesday and a further cut later in the year are also set to keep downward pressure on the rupee.

Acknowledging that last November's note ban will hurt growth, Finance Minister Arun Jaitley made few concessions in the latest Budget and instead targeted a fiscal deficit of 3.2 percent for 2017-18.
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Tuesday, 7 February 2017

Nifty may open flat led by mixed global cues: ICICIdirect

According to ICICIdirect, Nifty is likely to open flat on the back of mixed global cues. 

Nifty

The Nifty took breather above 8800 and consolidated for a major part of the day. On the back of stock specific activity, the ongoing trend continued leading the index to end 60 points higher. Nifty futures settled at a premium of 16 points. India VIX rose 2.1 percent to 13.4.

FIIs sold Rs 404 crore while DIIs bought Rs 450 crore in the cash segment. FIIs bought Rs 170 crore in index futures and Rs 1616 crore in index options. In stock futures, they sold Rs 505 crore.

The highest Put base is at the 8500 strike with 55 lakh shares while the highest Call base is at the 9000 strike with 58 lakh shares. The 8800 and 8600 Call strikes saw reductions of 5.1 and 4.3 lakh shares, respectively, while 8700 and 8800 Put strikes saw additions of 14.1 and 5.5 lakh shares, respectively.

Nifty Bank 

The index moved towards 20500 and witnessed some consolidation for the day. However, looking at the overall options data, we feel 20200 is likely to act as a support for the day.

Nifty Future: The Nifty is likely to open flat on the back of mixed global cues. Buy Nifty in the range of 8775-8785 for targets of 8835-8855, stop loss: 8755.

Nifty Bank Future: The index moved towards 20500 and witnessed some consolidation for the day. However, looking at the overall options data, we feel 20200 is likely to act as a support for the day. Buy Nifty Bank in the range of 20280-20320, targets: 20420-20500, stop loss: 20200.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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Monday, 6 February 2017

Sensex, Nifty, Midcap continue to gain; ICICI leads, DRL drags

ICICI Bank was biggest gainer among Sensex stocks, up 2.5 percent followed by ITC, HDFC, HDFC Bank, SBI, L&T, Axis Bank and Reliance Industries. 

10:30 am Business expansion: First it got into your drawing room with tubelights, then washroom with geysers and now it wants to get more personal. The maker of ‘wires that don’t catch fire’ Havells India now plans to start selling personal grooming products like electronic shavers, trimmers and epilators for men and women.

Booming as it is in India, personal grooming products market is a high-involvement category and caters to discerning consumers.

Conscious of this, the company will initially source the products from the same manufacturers that also supply to established global giants – Netherlands-based Philips and US-based Braun that is owned by Procter & Gamble.

Most of such manufacturers are based in China, Hong Kong and Taiwan.

Also read - Buy, sell, hold: 7 stocks to watch out for your portfolio 

10:00 am Market Check 

Equity benchmarks as well as broader markets maintained early gains, with the Sensex rising over 150 points supported by banking & financials ahead of RBI monetary policy later in the week.

The 30-share BSE Sensex was up 180.44 points or 0.64 percent at 28420.96 and the 50-share NSE Nifty rose 52.60 points or 0.60 percent to 8793.55.

Dipen Shah of Kotak Securities says going ahead, the remaining quarterly results will be important to determine the impact of demonetisation.

Focus will now shift to the RBI meeting this week wherein expectations of interest rate cuts have increased, after the Finance Minister set the fiscal deficit target at 3.2%, he feels.

The BSE Midcap and Smallcap indices also gained 0.6 percent each as about three shares advanced for every share falling on the exchange.

ICICI Bank was biggest gainer among Sensex stocks, up 2.5 percent followed by ITC, HDFC, HDFC Bank, SBI, L&T, Axis Bank and Reliance Industries.

Dr Reddy's Labs slipped over 2 percent after consolidated net profit in Q3 fell 15.9 percent to Rs 492.3 crore YoY, though overall earnings beat analysts' expectations. Analysts don't expect margin to sustain going forward.
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Friday, 3 February 2017

Nifty Future to open flat at 8739: Dynamic Levels

Nifty Future is opening at 8739 as per SGX Nifty at 8:50 am IST, flat form its previous close of 8734, says a report by Dynamic Levels. 

Bank Nifty may give direction to market ahead of Monetary Policy on February 8

Indian Market Outlook: Markets registered strong gains after Arun Jaitley presented the Union Budget 2017-18. The major focus was on infrastructure development, increasing investment on rural areas. Benchmark Index Nifty closed at 8734 after making high of 8758, the Index opened at 8725 and made low of 8686.

Bank Nifty closed at 20070 after making a high of 20147, the Index opened at 20054 and made low of 19915. Small cap index opened flat and remained bullish for the entire trading session, the Index closed 91 points above its previous day’s close of 6408. Small Cap Index made a high of 6524 and a low of 6404 and finally closed at 6499.

Nifty Future is opening at 8739 as per SGX Nifty at 8:50 am IST, flat form its previous close of 8734.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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Thursday, 2 February 2017

Nifty Future to open at 8710, down 28 points: Dynamic Levels

According to Dynamic Levels, Nifty Future is opening at 8710 as per SGX Nifty at 8:50 am IST, almost 28 points down its previous close of 8738. 

Markets to make a fresh start after Union Budget

Indian Market Outlook: Markets registered strong gains after Arun Jaitley presented the Union Budget 2017-18. The major focus was on infrastructure development, increasing investment on rural areas. Benchmark Index Nifty was up by 1.81 percent, closed at 8716 after making high of 8722.

Bank Nifty Index jumped by 2.59 percent and closed at 20021 after making a high of 20048. Realty stocks came in focus as the Budget proposed to provide infrastructure status to affordable housing projects. Unitech, Prestige, HDIL and DLF jumped almost 4-7 percent. Realty index rose 4.96 percent. PSU Index moved up by 3.96 percent, Auto Index rose by 3.6 percent, FMCG was up by 3.04 percent, services was up by 2.69 percent, however IT Index and Pharma closed in negative zone by declining 1 percent and 0.46 percent respectively.

In F&O segment Glenmark Pharma and Marico will announce its Q3 results today.

Nifty Future is opening at 8710 as per SGX Nifty at 8:50 am IST, almost 28 points down its previous close of 8738.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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