Market Pulse

The Sensex witnessed its biggest ever fall during a Muhurat session on Thursday -- this much for the "Jumla Government" at the centre with "Tughlaquian" mindet. There is no news in the media regarding Jay Shah's firm as the BJP goes "Ga, Ga" over "Fake" scam - free rule. 

The BJP is going to elections in Gujarat with a shoddy economic card -- but then as long "Brain Dead" voters are there, behind the "Juma Brigade" in Gujarat and elsewhere, the party could sail past the majority mark in the future elections -- with two crooks continuing to rule the minds and hearts of some Indians.

CPI(M) general secretary Sitaram Yechury today termed the NDA government's demonetisation move as the "biggest diabolical method of money laundering" and said it had converted all black money into white.

Hitting out at the Narendra Modi-led central dispensation on the economy front, he said government's policies "have virtually ruined" the country's economy and said it did not know how to revive it and provide relief to people.

The 30-share pack shed 194 points (0.6%) on last Thursday, to close at 32,390, as small investors sold stocks on the back of weak global cues, corporate earning concerns, following twin shocks of demonetization and implementation of the GST without a proper framework. The Nifty closed 64 points down at 10,147.

The FIIs sold shares worth Rs.43.74 crore on Thursday, while domestic institutional investors bought shares worth Rs.40.78 crore.

Meanwhile, 2nd quarter earning season is going to kick off in a big way, this week, with some of the big names announcing their numbers during the period -- Hindustan Zinc, Indiabulls Housing Finance, the IT major Infosys Ltd, HDFC Bank, Asian Paints, Hindustan Unilever, HCL Technologies, et all. 

The Nifty went up in a straight line after it hit a low of 9,685 on September 28 to a record high of 10,251 on October 17, just a few days before Deepawali. The Nifty has also made a strong bearish candle on the daily candlestick charts after a ‘Doji’ type pattern. Thus both fundamentally and chartically, the Bears are on a stronger wicket. 

According to charts, the key support level is placed at 10,109, followed by 10,072. The Nifty will therefore find it very tough to cross the resistance zone of 10200 - 10700. Over and above, the October series F&O contracts will expire on Thursday, October 26, 2017, adding to the volatility in the markets. 

Another signification development is the listing of the Energy Exchange (IEX) on the BSE on Monday. The issue, which ran from October 9 to October 11, could manage to garner 2.28 times subscription. The company, which sold shares in Rs 1,645 - Rs 1,650 range had to cut the anchor investor allocation to 7,89,120 shares from 18,19,501 announced earlier. This also could bring some movements in the power related stocks. 

In midst of such doom and gloom, the investors can have a look at two stocks: Adani Enterprises Ltd at Rs.125.7 and Idea Cellular at Rs.91.30. These are however not buy calls. 

Depending on the market graph, the Paid Members, will either be given a short call in the F&O or a small cap long call this week. Watch out for the names in this blog, in the coming days.