Closing Bell: Nifty holds 11K, Sensex falls 261 pts; OMCs take a beating, Titan up 2%

Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas:

Taking cues from the global markets the Nifty opened on negative note on Monday. Post the gap down opening however the index received some buying support near the key hourly moving averages. Nevertheless the index couldn’t recover significantly. On the higher side, the Nifty faced another round of selling as it attempted to approach its swing high of 11,084.

On the higher side, the upper end of a potential bearish running triangle & the 40 day exponential moving average are present to restrict further upside. Near these hurdles the Nifty has formed an Inside bar on Monday, which suggests that there is a higher probability of the bar pattern breaking out on the downside.

The breakout level for the same is at 10,945. The short term bearish potential holds true as long as the Nifty trades below 11,180. The short term target on the downside will be the August low of 10,637 with the potential to head lower.

Manav Chopra, CMT, Head Research-Equity, Indiabulls Ventures:

Nifty opened gap down and the index closed on a weaker note however, broader markets were buoyant as mid and small caps outperformed which is encouraging.

We continue our bullish stance on the Nifty and expect the dust to settle shortly. Near term support is placed at 10,850 zone. Overall Nifty is in a path of recovery and the index is likely to test the 11,300-11,500 zone on the upside.

Sep 16, 03:34 PM (IST)
Market Update: Indian indices ended lower but off day’s low with Nifty able to hold above 11,000 level.

At close, the Sensex was down 261.68 points at 37,123.31, while Nifty was down 72.40 points at 11,003.50. About 1360 shares have advanced, 1137 shares declined, and 169 shares are unchanged.

BPCL, M&M, SBI, UPL and Yes Bank were among major losers on the Nifty, while gainers include Titan Company, Britannia Industries, Tech Mahindra, Coal India and Nestle India.

Among sectors, selling seen in the oil & gas, bank, auto, energy and infra, while buying seen in the FMCG and pharma. Smallcap index gains 0.5 percent, while midcap ended lower.

Sep 16, 03:29 PM (IST)
A meeting of the Finance Committee of Grasim Industries will be held on September 19, 2019 to, consider the issue of Non-Convertible Debentures (NCDs) on private placement basis, for an amount not exceeding Rs 750 crore, in one or more tranches

Sep 16, 03:25 PM (IST)
ICRA reaffirmed BBB+ to the Thangamayil Jewellery’s long term bank limit (Rs 300 crore) and A2 to the short term bank limit.

Sep 16, 03:21 PM (IST)
Mindtree to provide SAP support services to Atotech: Mindtree signed an agreement with Atotech, a global leader in surface-finishing solutions for functional, decorative, and electronic applications to help manage their SAP landscap.

Sep 16, 03:14 PM (IST)
GE T&D India has accepted resignation of Gaurav Manoher Negi as whole-time director & chief financial officer of the company to be effective from end of business hours on September 30, 2019.

Sep 16, 03:05 PM (IST)
India Ratings and Research has assigned the credit rating of IND A1+ to the TV18 Broadcast’s commercial paper programme of upto Rs 750 crore and assigned the credit rating of IND A1+ to the Network18 Media & Investment’s commercial paper programme of upto Rs 1,500 crore.

Sep 16, 02:55 PM (IST)
CG Power locked at upper circuit: Shares of CG Power and Industrial Solutions were locked at 5 percent upper circuit at Rs 14.95 on September 16 after media reports indicated that private equity firm KKR held direct equity stake in the company.

Sep 16, 2:38 PM (IST)
Market Update: Indian indices are witnessing a rangebound movement on September 16 with Nifty hovering around 11,000.

The Sensex is down 212.80 points or 0.57% at 37,172.19, while Nifty is down 64.60 points or 0.58% at 11,011.30. About 1225 shares have advanced, 1085 shares declined, and 130 shares are unchanged.

Sep 16, 2:31 PM (IST)
Gold Update: Gold prices jumped 1 percent on Monday as an attack on Saudi Arabia’s oil facilities dented risk appetite, boosting demand for the safe-haven bullion, while investors awaited for clues on monetary easing from major central bank meetings due this week.

Sep 16, 2:19 PM (IST)
Rushabh Maru, Research Analyst – Currency and Commodity, Anand Rathi Shares and Stock Brokers:

Sharp rise in the crude oil prices following drone attacks on Saudi Arabia’s oil facilities has led to steep depreciation in the rupee today. Saudi Arabia has assured that normalcy will resume soon. But there is a risk of military response from Saudi Arabia. Hence the geo-political tension may escalate in the Middle East. Hence higher crude oil prices may have negative impact on Indian market.

Tata Power commissions 150 MW solar capacity in Rajasthan: Company’s 100% subsidiary Tata Power Renewable Energy (TPREL) commissioned 150 MW solar capacity in Village Chhayan, Tehsil Pokharan, State Rajasthan. With this, the overall operating renewable capacity of TPREL now stands at 2,628 MW in India.

Sep 16, 1:52 PM (IST)
Syndicate Bank: CARE Ratings has revised the rating outlook of Tier II / Perpectual / Basel III Tier II / Basel additional tier I bonds to rating under credit watch with developing implications.

OnMobile Global Locked in 20% Upper Circuit

Shares of OnMobile Global were locked in 20 percent upper circuit at Rs 39.30 after promoter signed agreemend to sell stake in company to Jump Networks.

OnMobile Systems Inc (OMSI) is the promoter of OnMobile Global and currently holds 48.18 percent of the total issued and paid-up share capital of company.

Company said OMSI has entered into a share purchase agreement with Jump Networks for the sale of its 1.9 crore equity shares at a price ranging from Rs 75.50-78 per share.

Sep 16, 1:29 PM (IST)
Weakness in Rupee Could Give More Strength To Gold

Gold prices shows strength after drone strike on Saudi Arabia on last Saturday. Prices crossed $1500 per troy ounce at Comex division and test 38,000 levels at MCX.

Ahead of US federal reserve policy meet this week, geo-political tensions between Iran and Saudi Arabia and rising tensions in Hong Kong will support gold prices, said Manoj Kumar Jain, Director at IndiaNivesh Commodities who expects gold prices remain firm and could test $1,520-1,524 at Comex division while at MCX prices are expected to test 38,330-38,400 in one or two trading sessions.

Further weakness in rupee could give more strength to gold in domestic markets and if rupee weaken below 72 levels then gold will cross 38500 again. Trend looks positive for next one-two trading sessions, he said.

Sep 16, 1:25 PM (IST)
ICICI Directs Advises Buying Tata Chemicals

ICICI direct expects incremental utilisation of new capex at India basic chemical unit along with emerging businesses like HDS, nutrition to drive the performance. Furthermore, the nutrition business has return on capital employed (RoCE) of 18-20 percent against base business RoCE of around 10 percent, it said.

Thus, increasing contribution from nutrition is expected to drive group return rations and thereby valuations, according to the brokerage house.

Apart from this, it believes demerger of consumer business provides base business of TCL at Rs 301 per share against fair value of Rs 395 per share. It has a buy rating on Tata Chemicals.

Sep 16, 1:05 PM (IST)
ICRA has placed the long term rating on the Rs 500 crore Basel – II Lower Tier – II bonds on “Rating watch with developing implications”, after considering the latest developments in the Bank, including the proposed amalgamation of Allahabad Bank into Indian Bank and capital infusion.

Sep 16, 12:52 PM (IST)
Buzzing: Shares Emami Paper Mills declined 5 percent on September 16 after company surrendered its plots allotted by GIDC.

Sep 16, 12:45 PM (IST)
Dr. Reddy’s Laboratories launches OTC drug: The company announced the launch of Lansoprazole Delayed-Release Capsules USP, 15 mg, an over-the-counter (OTC) store-brand equivalent of Prevacid 24HR Capsules, in the United States market, as approved by the US Food and Drug Administration (USFDA).

Karan Shah, DGM- Commodity & Currency Research, Indiabulls Ventures:

Oil prices witnessed its biggest intra-day percentage gain since the start of the Gulf War in 1991, after an attack on Saudi Arabian oil facilities shut in the equivalent of 5% of global supply. The commodity which was struggling to hold grounds despite the OPEC production cut also affected by the slowing global economy amid the trade tensions between US & China traded higher by over 9% today.

The attack not only wiped out a portion of supply from the global markets but also raises Global tensions which may now keep the prices inflated. Tensions rose as Donald Trump said on Sunday the US was “locked and loaded” for a potential response to the attack on Saudi Arabia’s oil facilities. Looking at the new emerging factors a buy on dip strategy should be appropriate for the near term.

The above event may act negatively for India which imports the majority of the commodity to meet its demand. Crude contributes a major chunk to India’s import bill. Higher crude prices may result in rupee depreciation against the dollar. We expect spot USD-INR to trade higher within a range of 70.8-71.9 for the immediate near term.

Sep 16, 12:16 PM (IST)
August WPI Inflation flat at 1.08%: August WPI Inflation at 1.08 percent against 1.08 percent, MoM.

The primary articles inflation at 6.43 percent versus 5.03 percent, while core inflation at -0.3 percent against 0.2 percent and food inflation at 5.75 percent against 4.54 percent, MoM.

Sep 16, 12:07 PM (IST)
L&T bags order: The construction arm of L&T has secured orders worth Rs 1,000 to 2,500 crore from prestigious clients across various Indian states for its varied businesses.

Sep 16, 11:57 AM (IST)
Rupee recovers but trades lower: Indian rupee has recovered from the low point of the day but trading lower by paise at 71.52 per dollar, down 60 paise from the previous close.

Rupee opened lower by 70 paise at 71.62 per dollar versus Friday’s close 70.92.

Sep 16, 11:49 AM (IST)
TVS Motor launches TVS NEO NX in Africa: TVS Motor Company launched a new stylish bebek, TVS NEO NX in Mali, Africa.

Sep 16, 11:46 AM (IST)
J Kumar Infraprojects received letter of acceptance from Mumbai Metropolitan Region Development Authority (MMRDA) of Rs 342 crore.

Sep 16, 11:40 AM (IST)
Info Edge to invest Rs 4 crore in Bizcrum Infotech: Share price of Info Edge India gained 2 percent on September 16 after company entered into an agreement to invest about Rs 4 crore in Bizcrum Infotech.

Sep 16, 11:26 AM (IST)
Market Update: Benchmark indices are trading lower with Nifty holding above 11,000 mark. Midcap and smallcap are recovered from the low and trading marginally higher.

The Sensex is down 127.32 points or 0.34% at 37257.67, and the Nifty down 37.80 points or 0.34% at 11038.10.

Sep 16, 11:08 AM (IST)
Buzzing: Shares of Colgate Palmolive gained 6 percent on September 16 as foreign brokerage house Credit Suisse expect 15 percent upside in the share price

Sep 16, 11:03 AM (IST)
Bharat Electronics climbs 4%: Shares of Bharat Electronics rallied more than 4 percent on September 16 after Morgan Stanley expects the stock price to rise relative to Country Index. The stock rallied more than 30 percent in last nine months amid defence orders from government.

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