Weekly market updates| Nifty and Bank Nifty targets 7th to 11th Oct
Indian markets traded in a negative zone throughout the week. Nifty fell 337.65 points and Bank Nifty fell 2144.80 during the four trading sessions last week. Even RBI’s 25 bps rate cut could not hold Nifty and Bank Nifty on the last day of the week. Indian markets fell continuously for five straight sessions.
Nifty midcap 100 index was also down 697.85 points or 4.47% last week. Whereas the Nifty smallcap 100 index declined 266.75 points or 4.70% during the week. Sector-wise the Banks, Media, Metal, Power, Real Estate and Telecom are the losers and IT, Insurance, Oil & Gas, Footwear and FMCG are the gainers last week.
The top five gainers in Nifty50 stocks are BPCL, IOCL, HCL Tech, M&M and ITC. The five losers in Nifty50 stocks last week are IndusInd Bank, Yes Bank, Zee Ent, SBI and Grasim. The top gainers in Nifty midcap space are Info Edge, MRPL, Reliance Nip Life whereas the top losers in Nifty midcap 100 are Indiabulls Vent, Edelweiss Fin and RBL Bank. In the Nifty smallcap space the gainers are Credit Acct. Gram, ITI and Stride Pharma the losers are DHFL, Indiabulls Real Est and Delta Corp.
Stocks in the News Last week
The RBI initiated Prompt Corrective Action (PCA) against Lakshmi Vilas Bank due to high levels of bank’s bad loans, insufficient capital to manage risks and a negative return on assets for two consecutive years.
Morgan Stanley has downgraded the Asian Paints from overweight to equal weight. It has set the target of Asian Paints of Rs 1820 per share and slashed the target price of Zee Ent by 33% on debt concern.
Indiabulls Housing declined 34.40 % on intraday after the Delhi High Court accepted a PIL filed against the company. Investors are also concerns over its merger with Lakshmi Vilas Bank which is at present placed under RBI’s Prompt Corrective Action (PCA) plan.
As per CNBC-TV18, Adani Group is exploring the options to bid for government stake in CONCOR. The government is planning to sell 30% stake in CONCOR to strategic investors
Last week Auto sales figures were announced by the companies, Atul Auto and Escorts have mentioned an increased in sales whereas Bajaj Auto, Maruti, Eicher Motor, TVS, M&M have reported a decline in sales.
The Yes Bank declined 30% in a single day on 1st Oct due to the stake sale by Rana Kapoor and concern on exposure in Indiabulls Housing Finance. The next day on 3rd it has bounced 33% after CEO Ravneet Gill’s fundraising plan and complete offload of promoters pledge shares.
RBL Bank has declined last week with a concern of exposure in Indiabulls Housing Finance.
Citi maintained a Buy recommendation on IndusInd Bank with a price target of Rs 1980.
CLSA maintained a Buy rating on Maruti with a target price of Rs 7950.
Chinese Investor Ant Financial may invest $600 million in Zomato, Info Edge holds 26.38% stake in Zomato. The share price of Info Edge gained on the news
RBI Monetary Policy
The RBI cut the repo rate by 25 bps for the fifth time in a row to 5.15%. RBI has revised the GDP growth for FY 19-20 from 6.9% in August to 6.1 %. RBI has reduced the reverse repo rate to 4.9% and the bank rate stands at 5.40%.
Crude and Rupee Update
Brent crude oil futures are currently trading at $ 58.50 per barrel, on a weekly basis, it has declined 5.72%. Indian rupee closed at Rs 70.89 ended lower by 33 paise in the last week.
Technical levels of Nifty share price in future for 7th Oct to 11th Oct
Primary Trend Nifty Future: Mild down
Range-Bound Trend of Nifty Future: All up Moves Initiates Profit Booking (Sale) @ 11350 whereas All Down Moves Initiates Short Covering (Buy) @ 11050
If Nifty share price in Future Moves Above 11228 and sustain. Then you should Buy with 1st Target of 11252 during the day or in a week with a Stop Loss of 11192 FOR the Target of 11252- 11282- 11320-11415
If Nifty share price in Future Moves Below 11192 tomorrow and sustained. Then you should Sell with 1st Target of 11145 during the day or in a week with a Stop Loss of 11230 FOR the Target of 11145- 11118- 11093 - 11050
Technical levels of Bank Nifty share price in future for 7th Oct to 11th Oct
Primary Trend of Bank Nifty Future: Mild down
Range-Bound Trend of Bank Nifty Future: All up Moves Initiates Profit Booking (Sale) @ 28500, whereas All Down Moves Initiates Short Covering (Buy) @ 27150
If Bank Nifty share price in Future Moves Above 27927 on 1st Oct and sustained. Then you should Buy with 1st Target of 27974 during the day in a week with a Stop Loss of 27778 FOR the Target of 27974 - 28150 - 28345- 28550
If Bank Nifty share price in Future Moves Below 27774 on 1st Oct and sustained. Then you should Sell with 1st Target of 27645 during the day or in a week with a Stop Loss of 27927 FOR the Target of 27645- 27478- 27276 - 27130
Conclusions:
Next week also Indian market will have four trading sessions, Tuesday 8th October will be a Holiday on account of Dussehra. The corporate results announcement will start from next week, TCS, IndusInd Bank, and Infosys will announce their 2 quarterly results next week. On the global front, the much-awaited US-China trade talk will begin next week. Traders should remain cautious and can follow our Nifty and Bank Nifty targets for the next week with strict stop loss.
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Finogyan Team
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