Sensex ends flat, Nifty below 9,800; broader markets underperform

All that happened in Tuesday's trade

9:05 AM

Trading ideas from Prabhudas Lilladher for today's trade:

 

BUY DHFL 
CMP: Rs 448.75       

TARGET: Rs 480        

STOP LOSS: Rs 430

 

BUY MAX INDIA      

CMP: Rs 139.20       

TARGET: Rs 150        

STOP LOSS: Rs 134

 

BUY TECH MAHINDRA  

CMP: Rs 431.10       

TARGET: Rs 465        

STOP LOSS: Rs 415

 

Click here for details

9:03 AM

Nifty Outlook from MOSL

 

Nifty index failed to hold above its crucial hurdle of 9,880 and corrected sharply after breaking its immediate support of 9,775 mark. It formed a bearish candle on the daily chart and closed below to its 50 DEMA which has a negative implication if follow up selling continues.

The index is just few points away from the major support trend line by connecting the lows of 9,088, 9,448, 9,685 and 9,720. If this trend line is broken decisively then short term trend may continue its pace of selling pressure towards 9,600 zones while on the upside resistances are shifting lower to 9,820 

Click here for stock recos from MOSL

9:03 AM

Intraday support for Nifty seen at 9,700, says Prabhudas Lilladher. CHECK OUT THEIR STOCK PICKS FOR THE DAY 

9:01 AM

Nifty to witness selling pressure in the short-term, says Chandan Taparia CLICK HERE FOR MORE

9:00 AM

Gold falls

Gold prices were a touch lower amid a steady dollar early on Tuesday, with investors eying developments on the geopolitical front and remaining cautious ahead of an annual central banking meeting in Jackson Hole later this week.

8:57 AM

ICICI SECURITIES ON AVIATION SECTOR

 

The July 2017 preliminary monthly traffic data shows passenger growth of ~13% in July. Doubting Thomases would suspect a slowdown in domestic aviation. Our belief rests on the contrary; because the lower traffic growth is only a reflection of the engine problems faced by neo engines which are operated by InterGlobe Aviation (IndiGo) and Go airlines (Go). The underlying growth of the market remains strong. This can be checked by the traffic growth ex-IndiGo, ex-Go.

 

With airline companies reporting a strong Q1FY18 (IndiGo and SJet reported 37%/18% PAT growth), there are tailwinds of lower base due to demonetisation in Q3FY17 and higher fare momentum in FY18 YTD. Reiterate BUY on IndiGo (target Rs 1,446) and SpiceJet (target Rs 150).

 

8:56 AM

BSE to 'compulsorily' delist 200 companies on Wednesday

 

Leading stock exchange BSE will 'compulsorily' delist 200 firms this week and bar their promoters from the markets for 10 years as trading in these shares have remained suspended for over a decade. All these companies will be delisted from August 23.

 

The move also comes at a time when authorities are clamping down on shell companies -- listed as well as unlisted -- for allegedly being used as conduits for illicit fund flows, said a report.

 

Among the firms to be delisted are Eupharma Laboratories, Athena Financial Services, Magnus Rubber Industries, Rajasthan Polyesters, Transpower Engineering, Dupont Sportswear, Dynavox Industries and GDR Media. A majority of these companies have remained suspended for more than 10 years and are “under liquidation”.

Click here for more details

8:55 AM

MOTILAL OSWAL RESEARCH ON INFOSYS

 

Return of business stability may be prolonged till Infosys is settled on dual fronts of: [1] New CEO search, and [2] Peace between the current Board and Mr. Narayana Murthy, amid what is a battle out in the open. Given that Panaya acquisition and the associated corporate governance issues have been at the center of the saga, we believe there may be calls for significant Board changes as well.

 

These factors may limit upside despite attractive valuations. Our price target of Rs 1,030 (15x forward earnings) implies a 17% upside, driving our Buy rating. We will revisit the same as developments around the differences and appointment of the new CEO unfold.

Infosys headquarters in Bengaluru

8:53 AM

SGX Nifty

 

The Nifty50 futures on the Singapore Stock Exchange were trading 39 points higher at 9812 indicating a flat to positive opening for the domestic market.

8:53 AM

EDELWEISS RESEARCH ON NIFTY EARNINGS

 

Nifty earnings contracted 12% (2% contraction estimate) in Q1FY18. As a result, FY18/19E EPS was downgraded by 3-4%. Current FY17/FY18E/FY19E Nifty EPS is pegged at Rs 450/515/630 (consensus: Rs 450/500/605), implying 16-18% earnings CAGR over next two years.

 

Post the earnings downgrade, the implied asking rate for next 9 months in FY18 is 20% EPS growth (Consensus: 16%). While earnings are likely to bounce back (owing to low base effect of demonetisation and GST re-stocking) from current subdued levels, there are risks to FY18E earnings.

 

We maintain our bullish stance on markets despite subdued earnings outlook, with Nifty target of 11,100 by June 2018. This is mainly premised on fundamental transitions taking place in the economy, along with much higher than anticipated interest rate cuts and strong domestic flows, which warrant higher valuations in our view

8:51 AM

Market outlook for the day

 

Today the markets are likely to open on flat note. All emerging markets are trading mixed. The coming session is likely to witness a range of 9650 (Nifty) on declines and 9850 on advances: SMC Global

8:48 AM

Asian shares edged higher following Wall Street

Asian shares edged higher on Tuesday, taking solace from modest gains on Wall Street even as investors remained wary ahead of the annual central banking conference in Jackson Hole later this week.

 

MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1%.

 

South Korean shares added 0.5%, despite lingering worries about tensions on the Korean peninsula.

 

Japan's Nikkei stock index dipped 0.1%, while Australian shares added 0.2%.

8:46 AM

Wall Street gains in overnight trade

US stocks rose after two days of declines, though a drop in oil prices weighed on energy shares and tensions between the United States and North Korea kept investors on edge.

 

Market participants began to turn their focus to the Federal Reserve meeting at Jackson Hole, Wyoming later this week which will be attended by Fed Chair Janet Yellen, European Central Bank president, Mario Draghi, and other global central bankers.

 

The Dow Jones Industrial Average rose 29.24 points, or 0.13%, to 21,703.75, the S&P 500 gained 2.82 points, or 0.12%, to 2,428.37 and the Nasdaq Composite dropped 3.40 points, or 0.05%, to 6,213.13.

8:44 AM

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