Winning Strokes: Think Different

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After reporting steep losses last week, key equity benchmark started the week on a positive note, led by bargain hunting in banks and oil sector stocks. Trading was highly volatile as indices swung between gains and losses in intraday trade. The Sensex bounced back after briefly slipping below the 34,000 mark.

The Sensex rose 97.39 points or 0.28% to settle at 34,474.38, its highest closing level since 4 October 2018. The index rose 259.44 points, or 0.75% at the day's high of 34,636.43. The index fell 402.33 points, or 1.17% at the day's low of 33,974.66.

Broader market tumbled. Among secondary barometers, the BSE Mid-Cap index fell 1.99%. The BSE Small-Cap index fell 2.01%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On BSE, 734 shares rose and 1910 shares fell. A total of 197 shares were unchanged.

Oil sector stocks surged. Among public sector oil marketing companies, BPCL (up 0.19%), HPCL (up 8.15%) and Indian Oil Corporation (up 5.63%), edged higher.

Among oil explorers and refiners, ONGC (up 1.94%), Oil India (up 4.79%) and Reliance Industries (up 5.53%), edged higher.

On the political front, the Election Commission (EC) on Saturday announced the dates for the Rajasthan, Madhya Pradesh, Chhattisgarh, Telangana and Mizoram Assembly polls. While Chhattisgarh will go to the polls in two phases on November 12 and 20, the Madhya Pradesh and Mizoram Assembly elections will be held on November 28. Polling in Rajasthan and Telangana will be held on December 7. Counting of votes will be held across all the five states on December 11.

In the foreign exchange market, the partially convertible rupee was hovering at 74.025, compared with its close of 73.76 during the previous trading session.

In the global commodities markets, Brent for December 2018 settlement was down $1.11 a barrel at $83.05 a barrel. The contract had fallen 42 cents, or 0.50% to settle at $84.16 a barrel during the previous trading session.

Asian markets slipped further on Monday. Japan's market is closed for a public holiday. China's markets tumbled following a week-long holiday and after its central bank cut banks' reserve requirements in a bid to support growth. Reserve requirement ratios (RRRs) - currently 15.5 percent for large commercial lenders and 13.5 percent for smaller banks - would be cut by 100 basis points effective October 15, the People's Bank of China (PBOC) said on Sunday.

US stocks closed sharply lower Friday as worries about rising interest rates overshadowed the September jobs report, which pointed to strength in the labor market and the broader economy.

On the US data front, the September jobs report showed 134,000 jobs added in the month. The report showed the unemployment rate dropping to 3.7%. In addition, average hourly wage paid to American workers rose 0.3% an hour, while the 12-month rate of hourly wage gains came in at 2.8%. The wage data were of particular interest because of what it can communicate about inflation in the US economy.

#The stock of Indian Oil Corporation Ltd was given a buy around Rs.113-117, when it fell from earlier recommended price of around Rs.141. The stock made an intraday high of Rs.125.80, before closing at Rs.124.70. However, I would suggest you to exit the stock on market rises, as this is election year and there could be further cut in the petrol and diesel prices. 

#The stock of Kwality Ltd recommended to the Premium Members on Monday at around Rs.12 hit the buyer freeze at Rs.12.57 in the BSE. The scrip is going to hit some more buyer freees and hence remain invested. 

#The Nifty as expected bounced from the levels of 10283. The following message was sent to the Premium Members on Monday morning on their Whatsapps: 

//Nifty Levels: There is a strong support along 10001 - 10283 levels, from where a bounce is expected, especially from the oversold positions, which should be used to come out of overnight short positions. However, if this support level breaks then next support come at 9830 - 9680 - 9377 zone. I feel the Nifty should not fall below 9377- 9368 in the short term//

#I will soon be recommending either a Put/Call scrip or a small/mid cap counter to the Premium Members, for the short term trading. Those who want to know the names should get enrolled to the Premium Services at the earliest. 

#My recently recommended Yes Bank Ltd today made a high of Rs.227.65 during intraday before closing at Rs,220.80 in the BSE.