A morning walk down Dalal Street | Investors could react to RIL Q2 show; 8 cos to declare earnings

Business News

It was a disappointing Wednesday for the Indian equity market. The Sensex reversed gains and fell nearly 900 points from its intraday high of 35,605. It finally closed 382 points down at 34,779 while the Nifty50 saw a fall of 131 points to close at 10,453.

Liquidity concerns hit NBFCs stocks again as financials led the fall in the index. Also, the rise in oil price and volatility in rupee influenced investors to book profits.

Minutes of the Federal Reserve’s latest meeting showed broad agreement among Board members on the need to raise borrowing costs further. The US dollar index and Treasury yields rose to its highest levels in a week on Wednesday, said a Reuters report.

On the technical front, if the bulls fail to push the index above its immediate hurdle at 10,550-10,600 zones then profit booking may take it towards next support of 10,350 zones.

India VIX moved up by 3.51 percent at 17.98. The spurt in volatility after the dips of the last four sessions suggests that upside could be restricted again in the market.

Big News:

RIL will be in focus after the oil & gas major reported 17 percent YoY jump in net profit to Rs 9,516 crore, helped by retail business as well as telecom arm Jio, which reported 4th straight quarter of profit.

If you remember, RIL recently hit a market capitalization of Rs 8 lakh crore. On Wednesday, the company said it would also invest in cable television and digital cable distribution companies to widen its sphere of business.

RIL acquired a majority interest in India’s two largest cable TV and broadband companies — Hathway Cable and DEN Networks for a total sum of Rs 5,230 crore.

Today is a relatively light day for D-Street as around eight companies will report their results for September quarter. These include names such as ICICI Securities, SBI Life Insurance, and UltraTech Cement etc. among others.

UltraTech Cement is likely to report 21 percent YoY growth in net profit to Rs 521 crore

Technical View:

Nifty forms a Bearish Engulfing Pattern on daily charts

Three levels: 10390, 10550, 10780

Max Call OI: 11000, 10700

Max Put OI: 10,000, 10400

Technical Recommendations:

We spoke to Bonanza Portfolio Ltd and here’s what they have to recommend:

MOIL: Buy | CMP: Rs.173.15 | Target Rs 187.50| Stop Loss Rs.165| Return 8.50 percent

Wipro: Buy | CMP: Rs 323.15 | Target Rs 349 | Stop Loss Rs.308| Return 8 percent

GE Power India : Buy | CMP: Rs. 794.80| Target Rs 866| Stop Loss Rs.752| Return 9 percent

Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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