MARKET WRAP: Sensex ends 276 points higher; RBI hikes repo rate by 25 bps

Markets ended higher after the RBI maintained neutral stance in its second policy decision of FY19

9:29 AM

Ahead of RBI Policy

9:27 AM

Stocks In News

Corporation Bank to consider raising of capital by way of issuance of fresh equity shares and/or by issuance of additional Tier – I or Tier – II capital

Bank of Baroda has raised lending rates by 5 bps.

NMDC: The company’s iron ore output is at 4.5 MT in 2 months of FY19

Hindustan Copper: Company gets nod to carry own exploration, FY19 capex at Rs 700 crore

Karur Vysya Bank ties up with Aditya Birla Health as bancassurance channel

Bajaj Finance raises fixed deposit rates by 30 bps

Ram Vilas Paswan says Cabinet will consider up to Rs 8,000 crore package for the sugar industry.

United Spirits receives shareholders’ approval for 5:1 stock split.

Mcleod Russel to sell certain tea estates of the company in Assam to MK Shah Exports for Rs 331 crore.

ADF Foods to buyback 10 lakh equity shares (4.71 percent equity) at Rs 300 each.

Kirloskar Oil Engines to hike prices of power generator sets by 5-8 percent due to rising raw material costs.

Nalco sets a capex target of Rs 1,100 crore for 2018-19.

(Source: Nirmal Bang report)

9:24 AM

MARKET COMMENT Amar Ambani, head of research, IIFL

The carnage in several counters continued even as the main indices closed with modest losses amidst volatile trade on Tuesday. Sensex fell below 35,000 and Nifty closed below 10,600 mark. Ahead of the Reserve Bank of India's second bi-monthly policy meeting outcome expected today, investors will remain cautious.

There is widespread consensus of a status quo on interest rates, but the commentary of the Monetary Policy Committee is expected to take a hawkish stance. A rate hike, if it happens could spook the market. The market will also focus on MPC's view on rising crude oil prices, inflation and US Federal Reserve's rates. The Nikkei Services Purchasing Managers' Index, contracted to 49.6 in May from 51.4 in April, for the first time in three months, though business sentiment improved. Asian shares are trading mixed. Wall Street ended lower.

 

9:24 AM

Sectoral Trend

9:20 AM

Top Sensex gainers and losers

9:17 AM

Markets at Open

At 9:17 am, the S&P BSE Sensex was trading at 34,917, up 14 points while the braoder Nifty50 index was ruling at 10,598, up 5 points

9:10 AM

Top trading ideas by Prabhudas Lilladher:

 

BUY BAJAJ FINANCE

 

CMP: Rs 2,100.60

TARGET: Rs 2,260

STOP LOSS: Rs 2,030

 

The stock has had a decent run outperforming many of the front liners and in recent times has been consolidating at around 2100 maintaining good support at around 2050 levels gaining strength and potential to rise further in the coming days. The indicators like RSI has shown improvement with a trend reversal and a positive bias is maintained and with decent volume participation witnessed, we recommend a buy in this stock for an upside target of 2260 keeping a stop loss of 2030. Click here for more

9:05 AM

Markets at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,953.03	+49.82	+0.14
S&P BSE SENSEX 50	11,086.32	-38.10	-0.34
S&P BSE SENSEX Next 50	31,974.76	-270.10	-0.84
S&P BSE 100	10,874.72	-45.42	-0.42
S&P BSE Bharat 22 Index	3,473.26	-27.86	-0.80

9:01 AM

Nifty outlook Prabhudas Lilladher:

 

Ahead of the RBI policy, Nifty and Bank Nifty witnessed volatility with the former making an intraday low of 10550 and this zone at around 10,520-10,530 levels, technically we anticipate a good support and if that is broken, the sentiment would be weakened and further downside movement would be initiated with 10,400 as the next support level to watch for. However, the support for the day is seen at 10530 while resistance is seen at 10,640.

8:55 AM

Top trading ideas by HDFC Securities

 

SELL TVS MOTORS

 

CMP: Rs 565

Stop Loss: Rs 585

Target: Rs 535

 

Stock has been making lower tops and lower bottoms on the daily charts. Stock price is currently placed below 50,100 and 200 DMA, indicating positional downtrend. Oscillators also indicates bearish trend for the stock on daily and weekly charts We recommend Selling Tvs Motos for the downside target of 535, keeping SL at 585. Click here for more

8:50 AM

Nifty outlook by HDFC Securities

 

Sell Nifty below 10,530; Target: 10,360

 

The recent high 10,770 has now become strong resistance in Nifty. Any level below 10,530 would result in to the fresh breakdown in Nifty, which could push the index towards next support of 200 DMA, currently placed at 10,360. The Support of 10,530 is derived from the upward sloping trend line adjoining daily bottoms of 23rd Mar 2018(9,951) and 23rd May 2018(10,417). Nifty Midcap and Small cap indices have broken down on the charts and have reached at the lowest levels for last 8 to 10 months, respectively.

8:44 AM

Today's picks

 

Tata Motors

 

Current price: Rs 285

Target price: Rs 277

 

Keep a stop at Rs 289 and go short. Add to the position between Rs 279 and Rs 280. Book profits at Rs 277. 

 

Click here for more

8:39 AM

Reserve Bank of India to hold rates, but August hike now close call: Poll

 

An increasing number of economists expect the Reserve Bank of India (RBI) to raise interest rates on Wednesday, a Reuters poll found, but most still think the central bank will stay on hold and use this week’s meeting to prepare for an August hike.

 

In a snap poll of 56 economists taken after gross domestic product data on Thursday, 26 of those respondents, or about 46 percent, expect the RBI to take the repo rate higher at the June 6 meeting. The GDP data showed Asia’s third-largest economy grew at its fastest pace in nearly two years in the January-March period. READ MORE

8:34 AM

Markets on Tuesday

S&P BSE Sensex	34,903.21		-0.31%
Nifty 50	10,593.15		-0.33%
S&P BSE 200	4,572.52		-0.53%
Nifty 500	9,110.50		-0.71%
S&P BSE Mid-Cap	15,534.67		-1.20%
S&P BSE Small-Cap	16,219.58		-2.43%

8:28 AM

SGX Nifty

 

Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 20 points or 0.19%. Nifty futures were trading around 10,587-level on the Singaporean Exchange.