Nifty outlook and top trading ideas by CapitalVia Global Research Limited

Market traded higher on Friday; Nifty likely to touch all-time high soon

The Nifty traded with positive sentiments on Friday on strong global cues, as the US-China trade talk progressed in a positive direction. The index closed at 12,086.70, adding 114.90 points. PSU banks, metal and reality stocks traded with positive sentiments through the day and gained the most among the indices. Banknifty closed at 32,014.30, adding 348.80 points from the previous day’s closing.

As per weekly option data, handful of Put writing on lower strikes ranging from 12,000 to 12,100 which shows the Nifty is witnessing good support in sub-12,050 zones. Call writing on higher strikes ranging of 12,150 to 12,200 shows market likely to face resistance at higher levels. Traders should try to buy any dip as market has maximum put OI at 12,000 which will act as major support levels for the weekly expiry, but 12,200 will act as resistance as maximum OI for the calls stands here. However, if Nifty is able to breach the level of 12,200 it will lead to short covering move up to 12,400. Therefore, we recommend buying at every dip keeping a close eye on 12,000.

We can see a big momentum in following stocks:

Buy Adani Power Ltd.: Above Rs 62.25

Target: Rs 67.50

Stop loss: Rs 58.50

The stock is witnessing a bounce-back from major moving averages in daily chart. Moreover, the stock is witnessing resistance breakout from the level of 62 and breaching this level can result in a good upside momentum. Considering the technical evidence discussed above, we recommend buying the stock above Rs 62.25 for the target of Rs 67.50, keeping a stop loss at Rs 58.50 on a closing basis.

Buy Concor Ltd.: Above Rs 581

Target: Rs 630

Stop loss: Rs 545

After consolidating in a narrow range, the stock is consolidating and ready to witness resistance breakout from 580. Breaking 581 can lead to a bullish movement. We recommend buying the stock at Rs 581 for the target of Rs 630, keeping a stop loss at Rs 545 on a closing basis.

Nifty Outlook and top trading ideas by CapitalVia Global Research Limited

Market witnessed profit booking on Friday; Nifty slipped from psychological level of 12,000

After Moody’s downgrade of outlook from “stable” to “negative” on economy of India, there was a sharp profit booking from 12,000 levels in later half of trading session on Friday. Nifty closed at 11,908.15 shedding 103.90 points. Realty, banking especially private banks traded with positive sentiments throughout the day and gained the most among indices. Nifty bank closed at 30,749.40 adding 116.20 points positive from the previous day’s closing. As per weekly option data, handful of Put unwinding on strikes ranging from 11,900 to 12,000 was there, which shows Nifty is witnessing weakening support in the zone of 11,900. Call writing on higher strikes ranging of 12,000 to 12,200 shows market likely to face resistance at higher levels. Traders should try to book profits at higher levels as market has maximum call OI at 12,000 which will act as major resistance levels for the week, but 11,800 will act as support as maximum OI for the puts stands here. However, if Nifty is able to breach the level of 11,800, it w

ill lead to sell-off which will open risk of correction up to 11,650. Therefore, traders should be cautious and should sell on higher levels every spike keeping close eye on 12,100.

Stock calls

Buy Grasim ltd: (Above Rs 802)

Target: Rs 870

Stop loss: Rs 765

After consolidating in a narrow range stock has formed a bullish flag pattern and has given breakout from level and further strength from the levels of 800 will lead to a bullish movement. We recommend buying the stock at 802 for the target of Rs 870, keeping a stop loss at Rs 765 on closing basis.

Market Wrap, Oct 18: Sensex up 246 pts; RIL hits Rs 9 trillion market cap

Extending their gaining streak into the sixth straight session, benchmark indices ended with over half a per cent gains on Friday even as global peers tumbled after China's GDP growth slipped to a 27-year low of 6 per cent.

Industry heavyweights Reliance Industries (RIL), HDFC Bank, TCS, and Larsen & Toubro (L&T) helped benchmark S&P BSE Sensex settle at 39,298 levels, up 246 points or 0.63 per cent.

YES Bank (up over 8 per cent) emerged as the top gainer on the index while Tata Motors (down 1 per cent) the biggest loser.

In the broader market, both mid and small-caps outperformed the headline indices. The S&P BSE MidCap index added 253 points or 1.78 per cent to close at 14,420 while the S&P BSE SmallCap index ended at 13,127, up 213 points or 1.65 per cent.

On the NSE, the broader Nifty50 index gained 75.50 points or 0.65 per cent to close at 11,662 levels.

On a weekly basis, both Sensex and Nifty ended with 3 per cent gains.

On the sectoral front, barring Nifty IT, all the other indices ended in the green. Relaty stocks advanced the most, followed by metal and PSU bank stocks. The Nifty Realty index climbed nearly 2 per cent to 262.80 levels.

BUZZING STOCKS

Reliance Industries (RIL), the oil-to-telecom behemoth, on Friday hit another milestone as the market capitalisation (m-cap) of the company breached the coveted Rs 9 trillion-mark, the first by any Indian company. The stock hit a high of Rs 1,428 during the session. At the time of writing of this report, the m-cap of the company stood at Rs 9,00,507 crore. At close, the stock stood at Rs 1,415 apiece on the BSE, up over 1 per cent. The m-cap of the company was 8,97,179.47 crore.

Shares of Bharat Heavy Electricals (BHEL) surged 27 per cent to Rs 56.45 on the National Stock Exchange (NSE) in the intra-day deals on Friday amid reports the government may look to reduce stake in the company. The stock recorded its sharpest intra-day rally in more than a decade. The stock ended at Rs 54, up 22.22 per cent.

Shares of Zee Entertainment Enterprises (ZEEL) slipped 9 per cent to Rs 240 in the intra-day deal on the BSE on Friday after the company reported lower-than-expected consolidated net profit for July-September quarterly (Q2) as it provided for an inter-corporate deposit (ICD) worth Rs 171 crore during the period. At close, the stock was down around 6 per cent at Rs 250.

Shares of Alicon Castalloy surged 13 per cent at Rs 395 apiece on the BSE on Friday after the company signed multi-year contracts aggregating Rs 810 crore with leading global original equipment manufacturers (OEMs) and tier 1 suppliers such as Jaguar Land Rover, Daimler, Samsung SDI & MAHLE. At close, the stock was up 10% at Rs 383.

Market Wrap, Sept 30: Sensex slips 155 pts; Indiabulls Hsg Fin tumbles 34%

Equity benchmark indices ended Monday's session in the negative territory, owing to heavy selling in banking, pharma and realty counters. Further, lack of any catalysts and subdued global cues, too, restricted market participants from making fresh bets. The S&P BSE Sensex lost 155 points or 0.40 per cent to settle at 38,667, with YES Bank (down 15 per cent) being the biggest drag and Bharti Airtel (up 5 per cent) the top performer. HDFC, ICICI Bank and HDFC Bank contributed the most to the index's loss while Infosys and Reliance Industries (RIL) gave the much-needed support.

In the broader market, both small and mid-cap indices underperformed the frontline indices. The S&P BSE MidCap index ended at 14,104.13, down 162 points or 1.13 per cent while the S&P BSE SmallCap lost 161 points or 1.21 per cent to end at 13,171.

On the NSE, the Nifty50 index closed at 11,477.25 levels, down 35 points or 0.31 per cent.

Among the sectoral indices, Nifty Bank lost nearly 800 points or 2.59 per cent to end at 29,103.85. Nifty PSU Bank index hit 52-week low in the intra-day session. The index closed at 2,293.85 levels, down 82.50 points or 3.47 per cent. Pharma stocks, too, bled in the session with the Nifty Pharma index ending at 7,549.20, down 146 points or 1.90 per cent.

IT stocks, on the other hand, logged impressive gains with the Nifty IT index surging around 2 per cent to settle at 15,527.55 levels. The Nifty FMCG index also ended in the green.

Top stocks that made news today -

Shares of Indiabulls Group companies were under pressure for the second consecutive trading day, after the Delhi High Court agreed to hear public interest litigation (PIL) seeking special investigation team (SIT) probe into Indiabulls Housing Finance. The stock saw its sharpest intra-day fall since listing, plunging 38 per cent to Rs 240, also its 52-week low on the BSE. At close, shares of the company stood at Rs 255.50, down 34 per cent.

Lakshmi Vilas Bank hit lower circuit limit of 5 per cent to end at Rs 34.75 after RBI put the bank under Prompt Corrective action (PCA).

YES Bank tumbled 15 per cent to settle at Rs 41.45 apiece.

In another news, Reliance Capital Ltd will exit the lending business, group Chairman Anil Ambani said on Monday, sending its shares to over two-decade low.

In the primary market, the IPO of IRCTC got off to a solid start as the issue got subscribed 73 per cent till 04:15 pm.