As the Sensex touches 50k as the 49,000-mark for the first time ever on Monday, and the Nifty50 on the National Stock Exchange was trading above 14,400, healthy buying was witnessed in the IT, telecom and FMCG stocks.
For the first time in history S&P BSE Sensex opened above 49,200 whereas Nifty 50 could begin the day above 14,400.
Monday’s trading session started with Domestic equity benchmark with gains following strong global cues.
The IT stocks became the leading gainers. Infosys, HCL Technologies, and ITC became the top gainers.
The other top drags were Axis Bank, Maruti Suzuki India and Bajaj Finance. Midcap 50 was observed to be underperforming whereas Nifty Smallcap 50 was outperforming.
It seems like the earnings of India’s leading companies are about to bounce back strongly after the coronavirus in the third quarter.
This is a great deal because they have incurred loss during the initial months of this fiscal year. Radhakishan Damani’s Avenue Supermarkets net profit grew 16% on-year basis while IT major TCS has reported strong on-year growth. It is a good sign that business activity has picked up and it is expected that October- December earnings would be better.
Radhakishan Damani’s DMart hits fresh highs, as Sensex touches 50k
Damani’s Supermarkets saw the price gush to a height of Rs 3,130 per share on Monday morning.
The DMart reported a net profit of Rs 446.95 crore as they had a 16.3% on-year jump. This particular strong growth in profits was possible as it had a 11% jump in revenue.
It is since October that the stock price of Avenue Supermarkets has taken a leap of 50%. It is being observed that the analysts are still not interested in giving a ‘buy’ call.
It definitely could raise the earning estimates but gave a ‘sell’ recommendation with a value of Rs 1,885. “Sharp stock price performance bakes in consistent revenue growth (possible, in view of large growth opportunity) and margin expansion(difficult, in a competitive business which may see sizable capital infusion from peers in the near-term),” they added.
Sensex touches 50k, FII buying takes Dalal Street to uncharted territory
“Frenzied buying (FII’s bought Rs 6029 cr last Friday) is taking the markets to unchartered territory. Trend prediction has become extremely difficult. Market is in an overbought zone and there is no valuation comfort in the market. Market consensus that liquidity will remain abundant and interest rates low is driving the market. Risk is the consensus going wrong. TCS results & management commentary are very positive and indicate the improving prospects for the sector. But most positives are in the price,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
TCS share price was able to hit new 52-week high on stellar
Tata Consultancy Services (TCS) share price was able to get a jump of 3.5% to hit a fresh 52 week high of Rs 3,230 per piece on BSE today. The IT major has reported 7.17 per cent on-year rise in the consolidated net profit which is upto rs 8,727 crore in comparison to Rs7,504 crore in the month of July- September quarter. The Nifty IT index had a rise of 2.5 per cent which topped 26,800 points in the opening deals.
The New support for Nifty 50 index is something between 14200-14250
They have been able to achieve the next target which was 14450. Their next target would be 14600. And they further say that since they are in the unchartered territory, the targets are becoming smaller.
They think that Intraday dips can be used to enter the index for further higher targets. The above points are mentioned by Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments and he also says that stops must be placed and even strict caution should definitely be practiced.
Facebook, Apple, Amazon, Netflix underperform as Sensex touches 50k
It was a controversial week in the United States of America on the political front. Not only that Wall Street was also in something which is considered to be rare for the equity markets.
There are five big tech companies that are referred to as FAANG, underperforming the benchmark index-NASDAQ. There was a gain of 1.8% in the equity index during the last five trade sessions, whereas most of the FAANG stocks had witnessed loss at the same time.
The leading electric vehicle manufacturer Tesla’s stock price jumped over 20% which helped Elon Musk to become the richest person.
Daily chart suggests 72.90 likely to remain strong support for Rupee
The USDINR pair is all set to find its crucial resistance around 73.55-60 levels and reverses and its momentum towards 73.10-15 levels. The either of the side breakout will decide the further trend of this week.
The daily chart suggests that 72.90 is likely to remain supported and 74.00 is to remain short term resistance. According to Amit Pabari, the managing director , CR Forex Advisors says that “it is advisable to sell on upticks close to 73.50 levels and if it breaches that then one can look for selling around 73.90-74.00 levels”.
Gold, Silver may trade sideways to down in near future
The Crude oil and base metals extended weekly gains whereas the commodity prices traded volatile in the previous week with bullion prices. The dollar index was able to regain above 90 territory and almost ended 0.18% higher in the week with a rise in the US treasury yields.
Trading in Nifty Financial Services Index starts today
NSE is about to introduce Future & Options contracts from today itself. The index includes the leading banks, insurance, housing finance, and NBFC among the other financial services. It has mentioned that NSE will not be charging the exchange transaction charge for the first six months.
RBI is in action, absorbed the inflows of dollar
“USDINR Jan Future gives successful closing above short resistance level of 73.70 then we can see short term price reversal movement which will push the price towards 74.20 levels. FX Reserves declined by $290 million after touching lifetime and high $581.3 Billion. RBI is in action and has absorbed the inflows of dollar, suggesting positivity as aggressive reserve is helpful to uplift local economic activity as they have bought around $13 billion from the market which will help to price reversal from lower levels.” This has been told by Kshitij Purohit, Lead Currency and Commodities at CapitalVia Global Research Limited- Investment Advisor.
Stocks in focus
TCS reported a 7.17 % on-year rise which led to the net profit of Rs8, 727 crore. Tata Steel India reported a 3% on-year growth and the crude steel production at 4.60 million tone. Sobha Ltd’s booking rose 29 percent on-year to Rs 887.6 crore. Cipla is trying to recall over 5.8lakh packets of a drug for the reduction in the occurrence of gastric ulcers.