MARKET WRAP: Global cues, K'taka result drag Sensex 156 pts; PNB down 12%

Benchmark indices fell on Wednesday on doubts over the composition of the next government in Karnataka

8:54 AM

TECHNICAL CHECK

Due to an intraday volatility, the daily chart now depicts a ‘Gravestone Doji’, which is considered as a probable trend reversal pattern. More importantly, it has occurred exactly at the 78.6% retracement of the recent down move. Yes, the pattern needs a confirmation below its low; but considering the overall set up, we will not be surprised it to happen soon.

A move below 10780 on the Nifty50 index would provide credence to this stance. In this scenario, the index may immediately correct towards 10724 - 10700 levels; whereas, on the higher side, 10840 followed by 10880 would act as strong hurdles. Any attempt to bounce back towards these levels can be used as an exit opportunity.

(Source: Angel Broking)

8:52 AM

Sharekhan on KEC International

We have upgraded the stock of KEC International Limited (KEC) to Buy with a revised price target of Rs. 450. For Q4Y2018, revenue of KEC showed robust growth, driven by the T&D segment. The company has an order backlog of Rs. 17,298 crore, which provides revenue visibility of 1.7x its FY2018 revenue

8:52 AM

Views on Karnataka verdict by Siddharth Khemka, Head of Retail Research, Motilal Oswal Securities 

 

“Equity market witnessed increased volatility as the election outcome indicated that BJP was just short of a clear majority. Investors generally like a stable government and a decisive mandate is something markets always take positively. Going by last few weeks’ trends, markets were factoring in a decisive win for BJP. While they may be short of the majority, BJP has emerged as the single largest party and that trend is something that could help them in the upcoming General Elections.”

8:52 AM

Top trading ideas from Prabhudas Lilladher: Buy JSW Energy, Man Inds

BUY JSW ENERGY

CMP: Rs 70.40

TARGET: Rs 79

STOP LOSS: Rs 67

 

The stock has witnessed a decent erosion from the peak of 86 to bottom out at around 68 levels and currently has produced a positive bullish candle pattern in the daily chart to signify strength and potential to rise further in the coming days. The RSI has indicated a trend reversal which has hit the oversold zone and is poised for an up move with a positive bias. The chart looks attractive and with decent volume participation seen, we recommend a buy in this stock for an upside target of 79 keeping a stop loss of 67. READ MORE

8:50 AM

Nifty Outlook by HDFC securities for today

REMAIN LONG IN NIFTY WITH SL OF 10700. TARGET 10950

 

While the Nifty closed just 5 points down at 10,802, the gloom was high as the BJP gave up its intraday majority mark with just 104 leads at the time of market close. The PSU bank index and the real estate index were the worst decliners.
 

Though the BJP dramatically improved its performance from the last elections, reports that the Congress was ready to provide support to the JDS, the indices slipped. It’s an event that is now out of the way. The markets will now be more reactive to the international cues. READ MORE
 

8:49 AM

MARKET COMMENT Amar Ambani, head of research at IIFL

The Karnataka verdict has brought the governor in focus as he could call the shots on whom to call to form the next government. Though the BJP emerged as the single largest party, it fell short of the requisite numbers to form a government on its own. The BJP and the JD(S)-Congress combine are staking claim and the developments will be closely watched by the market.  A flat start with a negative bias is in store today. 

The market had its share of swings. The rupee tumbled to a 16-month low of 68.11 against the US dollar. US markets ended in the red on surging bond yields. Asian shares are trading weak. ITC, JSW Steel, Tata Steel, Hindalco, TVS Motor, Birla Corporation, DB Corp are set to announce their results

8:44 AM

Markets on Tuesday

 

S&P BSE Sensex	35,543.94		-0.04%
Nifty 50	10,801.85		-0.04%
S&P BSE 200	4,678.22		-0.16%
Nifty 500	9,365.90		-0.26%
S&P BSE Mid-Cap	16,068.57		-0.81%
S&P BSE Small-Cap	17,525.45		-0.65%

8:43 AM

SGX Nifty

The SGX Nifty was at 10,756.50, down 0.64 per cent from the previous close.

8:42 AM

Asian Markets

Asian markets fell in early trade on Wednesday after Pyongyang called off talks with Seoul, throwing a major US-North Korean summit into question, and a spike in the US 10-year Treasury yield to a seven-year high knocked sentiment on Wall Street.

 

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1 per cent. South Korea's KOSPI was 0.4 per cent lower and Japan's Nikkei was down 0.3 per cent.

8:42 AM

Wall Street

A surge in US government bond yields to their highest level in almost seven years sent Wall Street shares sliding on Tuesday after strong retail sales data stoked inflation concerns and investors fretted about looming trade talks between the US and China.

 

The Dow Jones Industrial Average fell 193 points, or 0.78 per cent, to 24,706.41, the S&P 500 lost 18.68 points, or 0.68 per cent, to 2,711.45 and the Nasdaq Composite dropped 59.69 points, or 0.81 per cent, to 7,351.63.

8:41 AM

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