Tuesday, November 06, 2018

Winning Strokes: Think Different
Photo: Best Stock Picks from Dolly Khanna
Amid a divergent trend among various index constituents, the key benchmark indices settled with small gains. The Nifty gained marginally 6 points to close at 10530 lead by Reliance, Coal India, NTPC and ONGC. The Sensex settled a tad below the psychological 35,000 level after moving above and below that level amid volatility in intraday trade.

The market saw a positive opening led by buying demand in index pivotals. Stocks trimmed gains in morning trade. Key indices hovered in positive zone in mid-morning trade. Stocks gyrated in a small range with positive bias in early afternoon trade. Indices firmed up in afternoon trade. Key indices dipped in negative zone in mid-afternoon trade. Stocks regained positive zone in late trade.

The Sensex rose 40.99 points or 0.12% to settle at 34,991.91. The index rose 245.11 points, or 0.70% at the day's high of 35,196.03. The index fell 61.20 points, or 0.18% at the day's low of 34,889.72.

The Nifty 50 index rose 6 points or 0.06% to settle at 10,530. The index rose 76.25 points, or 0.72% at the day's high of 10,600.25. The index fell 32.55 points, or 0.31% at the day's low of 10,491.45.

The S&P BSE Mid-Cap index fell 0.62%. The S&P BSE Small-Cap index fell 0.06%.

The market breadth, indicating the overall health of the market, was just about positive. On the BSE, 1284 shares rose and 1274 shares fell. A total of 154 shares were unchanged.

Power Grid Corporation of India rose 1.08%. The company's net profit rose 7.9% to Rs 2309.49 crore on 14.2% increase in net sales to Rs 8283.03 crore in Q2 September 2018 over Q2 September 2017. The result was announced after market hours yesterday, 5 November 2018.

Coal India rose 0.64%. The company said that the Government of India reduced its stake in the company by 3.19% to make its holding stand at 75.13% of the equity share capital of the company. The announcement was made after market hours yesterday, 5 November 2018.

Adani Gas gained 4.95% after the company announced that in order to leverage India's rapidly growing gas market, the company has planned to invest over Rs 8000 crore in the next 5 years to consolidate its position as the largest private company in the sector. It is noteworthy that India's current city gas distribution (CGD) consumption is about 15-18% of domestic gas production and even at peak demand, consumption will be around 25-30%. The announcement was made after market hours yesterday, 5 November 2018.

Domestic stock markets will remain shut tomorrow, 7 November 2018, on account of Diwali Laxmi Pujan and again on Thursday, 8 November 2018 on account of Diwali Balipratipada. However, markets will remain open for special Muhurat trading session between 17:15 IST and 18:30 IST on 7 November 2018.

On the political front, the ruling Congress-JDS alliance has won 2 Lok Sabha seats and 2 Assembly seats in the Karnataka bypolls, which were held on Saturday. In a blow ahead of the 2019 general elections, the Bharatiya Janata Party managed to win only one parliamentary seat. The Congress has won Ballari parliamentary constituency and Jamkhandi assembly seat, while its ally JD(S) has taken Mandya and Shivamogga Lok Sabha seats. The Congress and JD(S) allied together to fight the BJP in the by-polls that would be a testing ground for the alliance before 2019 general elections. With today's victory, the Congress-JD(S) alliance's tally has increased to 120 seats in the 224 member assembly where the BJP has 104 MLAs.

Among the global markets, Asian markets closed on a smart rally while European markets declined. USD-INR declined 6 paisa and Brent Crude slipped over half percent at below $73/bbl. 

On Thursday, the US  Fed concludes a two-day policy meeting, which isn't expected to deliver a change in rates, but may offer fresh insights to investors about the pace of coming rate increases and the effects of trade clashes between the US and China on the domestic economy. US mid-term poll will be held today. In US economic data, the ISM services index slipped to 60.3 in October, down from 61.6 in September.

Nifty formed a Spinning Top Candle on daily chart as follow up buying/selling is missing on either side. Since some days Nifty has been consolidating between 10450-10600. Nifty has multiple supports around 10423/10277/10254 ranges and hence bullish trend is likely to continue as the Nifty consolidates around 10423-10600 zones. If this support level holds then we would look forward for targets of 10650 -10750 for Nifty_Spot in the coming days. 

#Omkar Speciality Chemicals Ltd hit the Upper Circuits in the NSE at Rs.10.40. It's sister concern Lasa Supergenerics Ltd has also hit the Upper Circuits at Rs.21.65 in the BSE. Both the stocks are likely to give solid returns to the investors going forward, as mentioned in my earlier posts. Moreover, you can choose either of the two or both for long term value creation. 

#The scrip of Yes Bank Ltd today made an intraday high of Rs.217.90, which is almost near my 2nd target of Rs.221. It closed at Rs.214.45 with a gain of around 2.07% in the NSE.

#The stock of UCO Bank Ltd which was recommended on Facebook last Sunday made a high of Rs.22.35 before closing at Rs.21.30. There are lot of positive developments taking place in this bank, and hence once the level of Rs.22-23 is cleared on the upside we can look for targets of Rs.27-31. Keep  a SL at Rs.19, in case the share does not perform as expected. 

#The stock of Anant Raj Ltd, which has a good land bank in the NCR region today closed flat at Rs.36.55, after making an intrday high of Rs.37.25. The stock has multiple supports around Rs.32-35 ranges and hence accumulate it on dips to build your long term portfolio. 

#The stock of Ishan Dyes & Chemicals Ltd (Rs.58.35) which was recommended last week in this blog at around Rs.47-48. today made a high of Rs.63 and closed above the psychological level of Rs.57 up more than 4%. It is one of the manufacturers of H-acid, which his a hot commodity now due to Chinese crackdown. For those who have entered earlier should look to book some profits as the scrip is looking a little stretched on the charts. I feel after some consolidation around the current ranges, the stock would again try to test the Rs.62-63 zone. Hence, if you have invested recently then you can remain invested with a SL at Rs.56 (exit) on closing basis.

#There is no stopping of Eros International Media Ltd after the company came out with superb Q2FY19 results. Today the share made an intraday high of Rs.106.80 before closing at Rs.105.60. The scrip is showing good momentum and have formed a bullish 3-white soldier pattern on the daily chart confirming reversal of the bearish trend. We can look for targets of Rs.131-137 in the coming days. Remain invested with a SL at Rs.97.

WISH YOU ALL A VERY HAPPY KAALI POOJA, LAXMI POOJA & DEEPAWALI. MAY GOD BLESS YOU ALL, WITH WEALTH AND PROSPERITY. 

 ~~with inputs from Capital Market Live News....

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