Wrap-up for the day (16 SEPT 2015):
All about today’s Market:
Benchmark share indices closed higher geared up for the much awaited US Fed Reserve’s two day will meet outcome due tomorrow. Nifty closed almost near a day’s high just shy of the 7900 mark upward moment led by Banking, Finance and Pharma stocks.
HEADLINES FOR THE DAY:
- Sun Pharma upon acquisition plan of InSite Vision.
- Kitex Garments gains for the 2nd day on tie-up with Lamaze.
- JMC Projects gain as bagged new orders worth Rs 702 crore.
- Suven shares moved to higher securing product patents.
- ABB India gains after the company bagged new orders.
- IOC shares gains on investment plans.
- TVS Motor up on a block deal.
STOCKS END IN A GREEN TERRITORY:
- Reliance shares were in focus after its arm Reliance Jio launches free wifi service during Ganesh festival in Mumbai.
- Bharti Airtel gains after commercial launch of its high speed 4G services in Thiruvananthapuram.
- ITC gains as its Sunfeast Yippee brand is eyeing to capture a market share of 20% of the total noodle market space.
- Natco Pharma shares moved higher after company raise Rs 341 crore by issuing shares to qualified institutional buyers.
- Jubilant Life Sciences gain with the market positive momentum after the company reported that it has entered into an agreement with Cyclopharm.
- Orchid Chemicals moved higher on the media, news that the company expects to break even in Financial Year17 with the help of new product launches and conversion of rupee loans to foreign currency ones.
- Shares of pharma company Biocon moved higher on a positive news that company opens new facility for insulin devices.
- Maruti Suzuki gains, according to reports, company eyes double-digit sales growth every year.
STOCKS END IN A RED TERRITORY:
- Shares of Tata Motors dips in early trades after rating agency Deutsche Bank downgrades stock rating as well as cut target by 21 pct.
- L&T shares fall despite of positive market and news flow in a market, company secured new orders in Bangladesh worth Rs 17 billion to set up a power plant.
- Indiabulls Housing Finance shares tanks after they get nod from its board for allotment of over 5.6 crore equity shares worth Rs 3,996.79 crore to QIBs.
Stock Tips & Calls For Next Trading Session (Friday):
L&T Finance is consolidating near around its important resistance level, if able to give breakouts and sustain above it fresh buying could be seen, in the daily charts Channel patterns could be seen which also indicates buying from here. Buy above 67.50 targets 68.20/68.90/69.60 SL 66.70.
Take EQ is heading towards is important resistance, upward journey could be seen in this stock, breakouts could be seen in next trading day, Buy above 122.70 targets 123.90/125.20/126.40 SL 121.20.
Indian markets closed in the green today. Markets opened on a higher note, but gradually lost strength.
- Indian markets opened up on the back of strong Asian markets led by China. Chinese markets went up by over 4% on the back of positive news i.e. allowing potential illegal trading companies to continue to work in markets.
- Nifty is still expected to stay weak unless some positive news comes up from the global market. Nifty is expected to face selling pressure at around 7940 levels; its immediate resistance.
Banking stocks went up.
- Both private as well as public sector banks traded up on the back of expectations that RBI would reduce repo rates in the coming monetary policy review.
- Banking is expected to gain over possible RBI’s rate cut.
IT, Pharma stocks were trading higher.
- IT and Pharma sectors are gaining because of the weakness seen in the INR. The INR will weaken further if US increases rates and RBI reduces rates in the early next month meet.
- Pharma sector is witnessing many developments happening on the fundamental side of the industry, like introduction of new drug molecules, tie-ups, USFDA approval, etc. While IT is purely moving up on the expectation of
- Strong demand in US economy and weak INR.
- US Federal Reserve’s FOMC will sit today to decide upon the forward going monetary policy.
- US central bankers will decide the course of action on interest rates by tomorrow night. A mild rate hike is expected; anything above that will be considered as aggressive stance.
- If the interest rate goes up in the US than the gold prices will fall down as equity will become more attractive. However, other commodities might not go down as their demand depends on industries of the US and China.
Chinese markets have gone up despite weak data.
- Chinese markets have gone up today as buyers found current valuations of equity cheap. Long term trend will be set only when the fundamentals of the Chinese economy gets right.
- Chinese markets are expected to weaken again in coming days or will stay at present levels. Fed hike will push Chinese markets further down, taking Asia along with them.
Gold prices are expected to remain highly volatile.
- If US Fed increases rates than prices of gold are expected to fall down as equity will become more lucrative.
- Gold is trading at its resistance of USD 1110. Closing above might push it to a higher range, i.e. USD 1120-40.
Crude oil inventory is due today at 8:00 pm.
- Crude oil is expected to move further up as global demand is set to rise, whici again will be confirmed if US Fed increases rates (US is the biggest consumer of energy). US Shale oil production to have gone down.
- Crude is looking good and is expected to move further up.
US will reveal its inflation (CPI) and housing data today.
- US CPI data is very crucial from a global market perspective as a lot will depend on this data; FOMC’s decision will depend on this too.
- High CPI indicates high demand or the strength of the economy, which will give a positive signal to the Fed bankers or vice versa.
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