Sensex, Nifty Highlights on October 30: After opening positive, market indices turned bearish and closed on a negative note for the week on Friday, amid weka global markets. Sensex ended 135 points lower at 39,614 and Nifty fell 28 points to 11,642. Yesterday, Sensex ended 172 points lower at 39,749 and Nifty fell 58 points to 11,670. Meanwhile, September quarterly earnings announcements by Reliance Industries, Deepak Nitrite, Dixon Technologies, Indian Oil Corporation, DLF, IndusInd Bank, Jindal Steel, Just Dial will also set the tone for the stock market today.
Here's a look at the updates of the market action on BSE and NSE today
3. 51PM: Closing
After opening positive, market indices turned bearish and closed on a negative note for the week on Friday, amid weka global markets. Sensex ended 135 points lower at 39,614 and Nifty fell 28 points to 11,642.
3. 46PM: Market outlook
On markets closing --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"The markets broke yesterday's low of 11600 and this makes the Nifty bearish in the short term. Ideally it should fall further and touch 11400-11450 levels. The upside is capped at 11900-11950 so traders can consider a closing above those levels as a stop loss and initiate short positions for a target of 11400."
3.33PM: InterGlobe Aviation share falls over 2%
InterGlobe Aviation share fell over 2% in trade today after the airline reported widening of losses in Q2. The operator of budget airline IndiGo, which was hit by Covid-19 led disruptions, reported a loss of Rs 1,194.8 crore in Q2 higher than the loss of Rs 1,062 crore posted in the corresponding quarter of the previous fiscal.
Share price of InterGlobe Aviation fell 2.59% to Rs 1,296 against previous close of Rs 1,331 on BSE.
3. 12PM: DLF share climbs 3%
Share price of DLF gained 3% ahead of the firm's Q2 earnings today. The stock has gained after 5 days of consecutive fall. The stock touched an intraday high of Rs 157.7, gaining 2.94%. DLF share trades higher than 100 day moving averages but lower than 5 day, 20 day, 50 day and 200 day moving averages. The share has lost 14.52% in one year and fallen 32.82% since the beginning of this year.
2. 53PM: Glaxo Pharma update
On Glaxo Pharma - Q2FY21 Update - Centrum Broking said:"The management strategy is to drive growth by aiming on the three pillar approach Grow, Build and shred. The top-20 brands focus continues to be key driver for growth. Building new specialty brands (parents pipeline) over a period of time would enable room for focused growth. Continuous cost optimization and digitalized platform enables way for medium to long term growth. We expect 2-3 innovative drugs to India, in coming fiscal followed by oncology pipeline. Post Vemgal, management has been focusing on improving cost efficiency which should be earnings accretive. We value GSK at 39xFY22E, At CMP of Rs1,480 it trades at 42x FY21E EPS of Rs 35.6 and 33x FY22E EPS of Rs 45.6."
2. 35PM: Tech Mahindra update
Tech Mahindra, Geojit Financial Services said,"In Q2FY21, revenue rose 2.9% QoQ (3.3% YoY), owing to recovery in demand. In USD terms, on constant currency (CC) basis, revenue came in as mixed bag 2.9%/-3.0% on QoQ/YoY. EBIT margin expanded by ~410bps QoQ, led by demand/supply improvement (160bps), prudent cost management (160bps) and seasonality benefit (160bps). No. of active clients stood at 988 vs. 981 in Q1FY21 and the company has won various multi-year deals to provide services across locations. The improved demand/supply scenario, margin expansion and increase in deal wins should support the company's steady recovery. Hence, we retain our BUY rating on the stock with a revised TP of Rs. 923 on 17x FY22E adj. EPS."
2. 21PM: PI Industries update
On PI Industries, Centrum Broking said in its note," Given strong performance in H1 driven by better rainfall trends and good sowing pattern and optimization of costs, we revise our FY21/22E EPS estimates higher by 11/3% for FY21/22E, driven by higher revenue growth and higher other income (via the QIP proceeds likely to be only gradually deployed). We see material upside at current valuations of 36x PER/ 25x EV/EBITDA and 5.4x PBV, in view of the robust 25/30/41% CAGR expected in revenue/EBITDA/PAT over FY20-22E. BUY with TP of Rs2,700/share."
2. 15PM: Zydus Cadila update
Yash Gupta Equity Research Associate, Angel Broking said," Zydus Cadila announced that the company has received tentative approval from the USFDA to market Dapagliflozin Tablets, 5 mg and 10 mg Dapagliflozin is a sodium-glucose cotransporter 2 (SGLT2) inhibitor indicated as an adjunct to diet and exercise to improve glycemic control in adults with type 2 diabetes mellitus and to reduce the risk of hospitalization for heart failure in adults with type 2 diabetes mellitus and established cardiovascular disease or multiple cardiovascular risk factors. Company believed that cadila is only company with tentative approval that has submitted a paragraph IV certification for US Patent No. 6,515,117 that claims the Dapagliflozin compound. The US District Court for the District of Delaware has scheduled a trial in February 2021 regarding Zydus Cadila's patent challenge. The drug will be manufactured at the group's formulation manufacturing facility at the SEZ, Ahmedabad. This will be a very big opportunity for the company. Positive development for Zydus Cadila ".
2.00 PM: Yes Bank trades flat
Shares of YES Bank were lower for the fifth straight day on Friday. Earlier at the opening bell, YES Bank share price hit intraday high of Rs 12.60. Later, the stock erased gains and fell 0.64% to the intraday low of Rs 12.31, as against the earlier close of Rs 12.39 on BSE.
1. 43 PM: TVS Motor jumps 9%
Shares of TVS Motor gained over 9% on Monday's opening trade desipte the company reporting a decline of 23% in its net profit at Rs 196 crore. The company had posted a net profit of Rs 256.88 crore in the July-September period of the previous fiscal.
Snapping its two-day losing streak, shares of TVS Motor rose as much as 9.27% to the intraday high of Rs 461.4 on BSE, as against the last close of Rs 422.25 on BSE. The stock opened with a gain of 2.39% today at Rs 425, also its intraday low today.
1. 23PM: JSW Steel update
Reliance Research said in ts note:
JSW Steel : Directional Short
"The stock has made a hanging man candle on the weekly chart after a sharp outperformance over the past few weeks indicating a reversal. A double top near 328 levels and breakdown of the short-term averages on daily charts should cap the upside. Its Relative Strength Index has reversed from the higher side on weekly charts and expects to break down witnessing a sell signal. Therefore, we recommend directional short position can be initiated for a target of Rs.265 with a stop loss of Rs 345 on closing basis."
1. 14PM: Cholamandalam Inv update
Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking said,"Cholamandalam Inv. & Finance (CIFC) reported the above estimate numbers for Q2FY21. AUM grew at 13% YoY / 6% QoQ, NII increased 36% YoY. NIM improved 120bps/60bps YoY/QoQ led by Growth in higher yield asset and Lower cost of fund. PAT reported growth of 40% led by healthy NII growth and controlled Opex however, partially offset by higher credit cost. On the asset quality front, The GNPL ratio improved by 60bp QoQ to 2.8%. 95% of morat. customers have paid at least one installment. Disbursal and AUM growth is much better than listed peers, The company has been gaining market share, especially in Tractor. We have BUY recommendation on CIFC owing to stable asset quality, focussed management, diversified AUM, and the ability to raise funds at competitive rates."
1.02 PM: Can Finance update
Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking said," Canfin Homes reported a healthy set of numbers for Q2FY21. The loan book grew at 6% YoY and remained stable sequentially. NII growth was robust at 32% YoY, primarily led by a lower cost of funds. NIM jumped 29bps to 3.89% QoQ, which is one of the best NIM compared to the last many quarters. The incremental cost of funds is 6.54%. Pre-provision profit increased by 36%, and PAT jumped by 32%. Asset quality continues to remain stable. Total covid provisions on the balance sheet currently stand at Rs.86cr, which adequate to absorb the next 3 quarter slippages as per management.
We have a positive view on Can fin home considering stable asset quality, reduced competition from HFCs and the ability to raise funds at a competitive rate would help to report superior RoE."
12. 45 PM: Market falls further
After opening positive, market indices turned bearish note on Friday, amid negative Asian equities. Sensex traded 400 points lower at 39,344 and Nifty fell 110 points to 11,561.
12. 22PM: Nifty outlook
"Overall, we are witnessing consolidation in the markets, with Nifty meeting with resistance around 11850-11900 zone whereas support is seen around 11450-11500 levels. India VIX has gained 10% so far this week, which could become a cause of concern if this trend continues as increased volatility is likely to be witnessed ahead of US Presidential Election," said Aamar Deo Singh-Head Advisory, Angel Broking.
12. 10 PM: Currency market closed today
Forex and money markets to remain shut on Friday on account of 'Id-E-Milad'.
12.03 PM: Gold, Silver prices in India on October 30
Gold prices rose on Friday, in line with the overseas trend as weakness in the dollar and concerns over rising coronavirus cases across the globe raised buying interest toward precious commodities.
Worries of soaring coronavirus cases in the US and Europe have kept investors positive toward the safe-haven asset.
11. 42 AM: Market turns negative
After opening positive, market indices turned bearish note on Friday, amid negative Asian equities. Sensex traded 315 points lower at 39,434 and Nifty fell 65 points to 11,605.
11.38 AM: Coronavirus toll
Worldwide, there were 453 lakh confirmed cases and 11.86 lakh deaths from COVID-19 outbreak. In India, coronavirus cases neared 80-lakh with total deaths standing at 1.21 lakh.
11. 26 AM: Nifty outlook
Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking said," Since the last few days, almost all chartists are keeping a close eye on 11660 and has been considered a strong as well as crucial support. We still remain hopeful but the real conviction will now come only after Nifty surpassing the intermediate hurdle of 11770 - 11800 and if this has to happen, globally we need to have some respite and for us, the banking should resume the upward trajectory. For the coming session, the intraday support is at 11600."
11. 11AM: Gold outlook
Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said," President Donald Trump's administration stated that any agreement on the virus relief fund will only happen after the elections next week. Despite of a weaker labor market the U.S. economy revived at a record pace in the third quarter of 2020 reflecting the enormous amount of stimulus infused by the government which further pressurized the yellow metal prices. However, resurgence of the virus in U.S., Europe and many other nations around the globe amid uncertainty ahead of the U.S. elections limited the losses for the safe haven, Gold. Festival demand and uncertainty on election may support the gold prices. Increase cases of corono virus may increase safe haven demand of gold.
As for today traders can go for buy in gold at Rs 50,200 levels with the stop loss of Rs 49900 levels for the target of 50800 levels. They can also go for buy in Silver at Rs 60,000 levels, with the stop loss of 59,200 levels and for the target of 61,200 levels."
10. 57 AM: Reliance Industries share trading flat
Reliance Industries share was trading flat in early trade today ahead of the Mukesh Ambani-led conglomerate's Q2 earnings today. RIL share gained 0.57% to Rs 2038 against previous close of Rs 2026 on BSE. Total 1.06 lakh shares changed hands on BSE amounting to turnover of Rs 21.64 crore. Market cap of Reliance Industries stood at Rs 13.80 lakh crore.
10. 48 AM: Stocks to watch today on October 30
HPCL, Pidilite, Vedanta, Canara Bank, Vodafone Idea, InterGlobe Aviation among others are the top stocks to watch out for in Friday's trading session
10. 24AM: Nifty outlook
On markets today --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"Yesterday's low of 11600 has become a crucial support for the market. If we break that, a wave of shorts might get triggered and we could see a slide till 11400 levels. The upside resistance is at 11900-11950. Until we do not get past that, the bias will be on the sell side."
10. 15AM: Vodafone Idea share rises over 6%
Vodafone Idea share rose over 6% in early trade today after the telco narrowed its Q2 loss to Rs 7218 crore. In corresponding quarter of previous fiscal, the firm reported a consolidated loss of Rs 50,921.9 crore. In Q1 of current fiscal, losses of the firm stood at Rs 25,460 crore.
Vodafone Idea stock rose up to 6.44% to Rs 8.92 against earlier close of Rs 8.38 on BSE. Total 249.23 lakh shares changed hands amounting to turnover of Rs 21.57 crore on BSE.
9. 40 AM: FII action
Foreign portfolio investors (FPIs) sold shares worth Rs 420.95 crore, while domestic institutional investors (DIIs), were also net sellers to the tune of Rs 253.41 crore in the Indian equity market on 29 October, provisional data showed.
9. 33 AM: Market outlook
AS per Reliance Research, NSE-NIFTY extended loss post a breakdown from its short-term moving average 20-day EMA and slipped to fresh 3-week low. Yesterday, major sectors remained in pressure. Overall market breadth remained negative. As mentioned earlier, our near-term bearish stance will remain intact as its key technical indicators are negatively poised. A sustainable move below 11,661 mark will confirm short-term bearish reversal. That could drag the index towards 11,400 and 11,200 levels subsequently. On the higher side, its psychological hurdle point-12,000 level will cap the up-move.
As for the day, support is placed at around 11,633 and then at 11,537 levels, while resistance is observed at 11,878 and then at 12,026 levels.
9. 23 AM: Opening session
After a muted pre-opening session, market indices opened on a bullish note on Friday, amid positive global equities. Sensex traded 178 points higher at 39,927 and Nifty gained 45 points to 11,715.
9. 12 AM: Global Market
Overseas, Asian stocks are trading higher on Friday, after a rebound in US equities. Global equities were buoyed today amid upbeat domestic economic data and rally in stocks in anticipation of better earnings report.
European stocks turned positive after European Central Bank left its policy unchanged this time around and committed to take new action in December in the form of more bond purchases or cheap credit for banks, in a move to to contain the growing fallout from a second wave of coronavirus infections.
9.01 AM: Earnings today
Investors are also awaiting Sept quarter earnings reports will provide a clear picture of the disruption caused by the coronavirus pandemic-induced lockdown. Reliance Industries, Deepak Nitrite, Dixon Technologies, Indian Oil Corporation, DLF, IndusInd Bank, Jindal Steel, Just Dial, NIIT, Quess Corp, UPL, Vakrangee and Zee Media among others will announce their financial results for the September quarter today.
8. 50 AM: Rupee outlook
Nish Bhatt, Founder & CEO, Millwood Kane International -said:"The slide for the Indian rupee continues, as it slips below the 74/$ level, INR is now trading at a 2-month low. We are just a week away from the US Presidential election and the lack of clarity on the new stimulus package has created market uncertainty. Reports emerging that the Indian government is finalizing the next stimulus package to boost sentiment and bring growth back on track. Going forward a clear outcome from the US election, clarity on stimulus package from the US, and the Indian government will guide the INR."
8. 40 AM: Rupee closing
On the currency front, the rupee fell for the second straight session and ended another 23 paise lower at 74.10 per US dollar, tracking weak domestic equities and strong American currency.
8. 30 AM: Closing
Benchmark indices ended on a bearish note for the second consecutive session on Thursday, the October derivatives expiry day, amid weak global equities.
Yesterday, Sensex ended 172 points lower at 39,749 and Nifty fell 58 points to 11,670
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