Markets Live: Sensex soars 373 points; Nifty climbs to 10,629

Closing bell

Benchmark indices rose about 1 per cent in a volatile trading, led by gains in index heavyweights HDFC Bank Ltd and consumer goods giants Hindustan Unilever Ltd and ITC Ltd.

The benchmark BSE index ended higher by 373.06 points or 1.07 per cent at 35,354.08, while the broader NSE index climbed 101.85 points or 0.97 per cent to 10,628.60.

Hindustan Unilever jumped nearly 4 per cent. ITC advanced 1.8 per cent.

Rupee a tad up at 70.68

The rupee climbed 39 paise to 70.30 against the US dollar, as global crude prices slipped below the $60 per barrel mark. It hovered in a range of 70.74 and 70.30 before quoting at 70.68, up 1 paise at 3.50 pm local time. Read more

Bullion prices

Gold prices rose Rs 100 to Rs 31,850 per 10 gram due to positive global cues and buying by local jewellers. Silver, too, gained Rs 150 to Rs 37,450 per kg on increased demand from industrial units. Read more

Forex market

The euro strengthened against major currencies, with risk appetite lifted after the European Union and Britain agreed a Brexit deal and signs that Italy is willing to reach a compromise over its 2019 budget plans. Read more

Gold likely to retain its strength

The global spot gold ($1,223 per ounce) prices can remain range-bound in the near-term between its support at $1,220 and resistance at $1,230. A breakout on either side of $1,220 or $1,230 will then decide the next leg of the move. Read more

Average ticket-sizes of investors in equity, debt funds fall

Even as assets under management swell, the average ticket sizes of retail investors in equity and debt-oriented categories have decreased in the last one year. The holding sizes in balanced and liquid schemes have, however, expanded. Read more

Hotel Leelaventure hits upper circuit

Shares of Hotel Leelaventure Ltd rose as much as 19.8 per cent to hit upper trading circuit as according to a media report a consortium, including Thailand's Minor International PCL, is considering an investment of around $350 mln in Leelaventure. Read more

Oil India shares slump 3%

Shares of Oil India Ltd fell as much as 2.9 per cent to Rs 199.2, their lowest in 10 days as Moody's had said on Friday that the company's proposal to buy back shares worth around Rs 1,086 crore ($153.80 million) is credit negative. Read more

Pre-close trade

The S&P BSE Sensex surged 385.78 points or 1.1 per cent to 35,366.80 and the Nifty 50 jumped 102.6 points or 0.97 per cent to 10,629.35 on heavy buying in FMCG, IT, TECk and banking stocks amid firm global cues.

Among BSE sectoral indices, FMCG, IT, TECk and banking remained investors' favourite, while metal, healthcare, infrastructure and PSU succumbed to selling pressure.

I-T Dept sells Cairn Energy shares

Weeks before an international arbitration tribunal rules on retrospective tax levied by India, the Income-Tax Department has sold almost all of Cairn Energy Plc’s attached shares to recover a part of the ₹10,247 crore retrospective tax demand. Read more

Godrej Properties exits Hyderabad

Godrej Properties has exited the Hyderabad market and will move out of Kochi and Mangaluru residential projects as well, as it looks to penetrate deeper in four core markets. The company shares were up 1.7 per cent at Rs 663.35 on the BSE. Read more

Essar Steel: CoC approval of ArcelorMittal bid is flawed and illegal, says StanChart

Throwing a spanner into ArcelorMittal’s bid to acquire Essar Steel, Standard Chartered Bank (SCB) has said it received the revised resolution plan submitted by ArcelorMittal just three minutes before it was put to vote by the Committee of Creditors. Read more

Spot gold at $1,222.36 per ounce

Gold prices were little changed. Spot gold was little changed at $1,222.36 per ounce at 0114 GMT. US gold futures were flat at $1,223.3 per ounce. Read more

Brent crude up at $60 per barrel

Oil prices clawed back some losses after a nearly 8 per cent plunge in the previous session, but remain under pressure with Brent crude below $60 per barrel amid weak fundamentals and struggling financial markets. Front-month Brent crude oil futures rose 91 cents, or 1.6 per cent, to $59.71 per barrel. Read more

Timeline: The Jet Airways story

Jet Airways Ltd, the biggest full-service carrier in India, has been under dark clouds for the past few months. While intense pricing competition, weak rupee and rising fuel costs have hurt Indian airlines like IndiGo owned by InterGlobe Aviation Ltd and SpiceJet Ltd, Jet Airways is in a league of its own. Read more

The Sensex was trading higher by 72.88 points or 0.21 per cent at 35,053.90 and the Nifty up 14.65 points or 0.14 per cent at 10,541.40. Caution prevailed ahead of key macro events later in the week.

“Things are improving on the macro front, but pressure on liquidity persists... Inflation will be in the lower trajectory due to falling oil prices and that is positive for both financial and consumer sectors,” said Anita Gandhi, whole-time director, Arihant Capital Markets.

There was also some cautiousness ahead of the release of the gross domestic product data for the September quarter and expiry of futures and options contract later this week.

Nifty 50 November Futures (10,523)

Nifty 50 futures contract opened the week on a volatile note. The contract opened with a gap-up at 10,573 and made a high of 10,581.9. However, it failed to sustain higher and has come down sharply to make a low of 10,492.4. Read more

ITAT ruling may benefit start-ups

In what could benefit many start-ups in the country, the Mumbai Bench of the Income Tax Appellate Tribunal has ruled that premium earned on allotment of preference shares by a loss-making entity cannot be taxed. Read more

Cochin Shipyard buyback

Cochin Shipyard's Rs 200 crore share buyback offer will open on November 28. It will buyback 43.95 lakh equity shares constituting 3.23 per cent stake of the company. Read more

FPIs infuse Rs 6,310 crore

Foreign investors have pumped in ₹6,310 crore into Indian capital markets this month so far, after pulling out massive funds in October, on easing crude oil prices and a strengthening rupee. Read more

NSE gainers, losers

Private sector lenders such as HDFC Bank and Axis Bank Ltd were among the top boost to the index. Fast moving consumer goods giants ITC Ltd and Hindustan Unilever Ltd were among the other contributors, with shares up nearly 1 per cent each.

IT stocks dragged the markets down, with the Nifty IT index down 1.4 percent. Shares of Tech Mahindra Ltd and Infosys Ltd fell around two per cent each.

The aviation sector also witnessed some cheer after oil prices fell, with the stocks of InterGlobe Aviation Ltd and SpiceJet Ltd up around two per cent each, while those of Jet Airways Ltd gained as much as 3.4 per cent.

The Sensex dropped 62.44 points or 0.18 per cent to 34,918.58 and the Nifty fell 24.8 points or 0.24 per cent to 10,501.95 as investors stayed away from big bets amid caution ahead of key macro events later in the week.

“Things are improving on the macro front, but pressure on liquidity persists... Inflation will be in the lower trajectory due to falling oil prices and that is positive for both financial and consumer sectors,” said Anita Gandhi, whole-time director, Arihant Capital Markets.

There was also some cautiousness ahead of the release of the gross domestic product data for the September quarter and expiry of futures and options contract later this week.

Metal, infrastructure, IT and PSU stocks succumbed to heavy selling pressure, while only FMCG and capital goods found investors' support.

Top five Sensex gainers were Asian Paints, Bharti Airtel, HUL, Axis Bank and HDFC Bank, while the major losers were YES Bank, ONGC, Vedanta, NTPC and Tata Motors.

Asian stocks and US equity futures posted modest gains on hopes of solid US holiday sales, though plunging oil prices fanned worries about a dimming outlook for the global economy. Investors were also cautious before US and Chinese leaders meet for crucial talks at the end of the week as trade tensions between the economic superpowers showed no signs of easing.

Penny stock entities under taxman’s lens

In a bid to crack down on bogus Long Term Capital Gains, the Income Tax Department has initiated a fresh drive against penny stock companies. It has already initiated action against 95 entities and has now formulated an exhaustive Standard Operating Procedure document to get more into the tax net. Read more

Rupee climbs to 70.30

The rupee climbed 39 paise to 70.30 against the US dollar, as global crude prices slipped below the $60 per barrel mark. It was trading at 70.61, up 8 paise, against Thursday's close of 70.69. Read more

Top 10 Nifty gainers, losers

NSE sectoral indices

The Sensex and Nifty turned choppy after opening on a positive note due to profit-booking by investors at higher levels. The BSE index was trading up 21.56 points or 0.06 per cent at 35,002.58 and the NSE index up 0.65 point or 0.01 per cent at 10,527.40.

Among BSE sectoral indices, IT, metal, TECk and infrastructure succumbed to heavy selling pressure. Infosys, TCS and Sun Pharma fell up to 2.13 per cent. YES Bank, Adani Ports, ONGC, Vedanta and Kotak Bank dropped up to 5.55 per cent. On the other hand, Bharti Airtel, Axis Bank, Asian Paints, HDFC and PowerGrid rose up to 1.77 per cent.

On a net basis, foreign portfolio investors had bought Rs 446 crore worth of domestic stocks on Thursday, while domestic institutional investors were net buyers to the tune of Rs 49.68 crore.

Turf war

There’s a turf war going on out there between the various arms of the government. And unless all concerned sit down and hold a mature discussion on all the issues, matters could get out of hand. Read more

Calendar bull spread on L&T

Thanks to recent gains in its stock, the outlook for Larsen & Toubro has turned positive. The stock now finds an immediate support at ₹1,312, and only a decisive fall below ₹1,225 will alter the current bullish outlook. If the current trend sustains, the stock could climb to ₹1,625 and then to ₹1,800. We expect the stock to maintain the positive momentum. Read more

MCX: Promising exchange

Investors can buy the shares of MCX in the light of the recent regulatory changes. At the current market price of Rs 699, the stock discounts its estimated earnings for 2019-20 by 21 times, making it an attractive bet currently.  Read more

Dewan Housing Finance

A conclusive break above ₹275 will strengthen the up-move and take the stock up to ₹300 and ₹320 levels in the medium term. A further rally above ₹320 can accelerate the stock northwards to ₹350 and to ₹400 in the long term. Immediate supports are placed at ₹200 and ₹180.

Sintex Plastics Technology (₹23)

The stock is on a downtrend across all time-frames. Since listing in August 2017, it has been trending down. It now trades near the 52-week low of ₹22.6 recorded on November 21. There has been an increase in daily volume over the past three weeks.

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The 30-share BSE index Sensex was trading higher by 45.64 points or 0.13 per cent at 35,026.66 and the 50-share NSE index Nifty up 9.05 points or 0.09 per cent at 10,535.80.

Sensex gainers, losers

BSE sectoral indices

Aurobindo Pharma: Good medium to grow

Despite a reasonably healthy show in the September quarter, the stock of Aurobindo Pharma’s fell significantly. It is, however, up 19 per cent from our previous recommendation in November 2017. The company’s growth prospects look robust in the medium to long run.  Read more

Asian markets

Asian shares edged higher, though investors were cautious as plunging oil prices fanned worries about a dimming outlook for the global economy.  MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.4 per cent, led by gains in Taiwan shares following local elections, while Japan's Nikkei advanced 0.6 per cent.  Read more

Forex market

The dollar rose versus its major peers on Monday, as investors sought shelter in safe haven currencies as fears of a global growth slowdown and US-Sino trade tensions sapped risk appetite. More on this

Opening bell

The 30-share BSE index Sensex opened in green at 35,118.09, higher by 137.07 against the previous close of 34,981.02. The 50-share NSE index Nifty opened higher by 48.6 points at 10,575.35 against the previous close of 10,526.75.

Weekly Trading Guide

SBI (₹282.6)

SBI made a high of ₹293.4 initially, but came-off from there to close 2.7 per cent lower for the week. However, the price action as well as the indicators on the chart show that the short-term bias remains positive. The 21-day moving average is on the verge of crossing over the 100-day moving average. This is a positive sign, indicating that the downside could be limited in the short term. Cluster of supports are poised in the ₹281 and ₹279 region, which can limit the downside in the near term. Resistance is at ₹293. A range-bound move between ₹279 and ₹293 is possible in the near term. An eventual break above ₹293 will trigger a fresh rally to ₹311. A further break above ₹311 will then increase the likelihood of the stock targeting ₹320 and ₹322. Medium-term traders can hold the long positions taken at ₹282 and ₹279. Retain the stop-loss at ₹269 for the target of ₹308. Revise the stop-loss higher to ₹287 as soon as the stock moves up to ₹294. The bullish outlook will get negated if SBI declines decisively below ₹279. The ensuing target is ₹271.

ITC (₹280.45)

ITC surged over 3 per cent intra-week but fell from the high of ₹286.35, giving back some of the gains. The strong rally breaching the 200-day moving average last week has eased the downside pressure. It is also turning the bias positive. Also the pull-back from the high of ₹286.35 seems to be lacking strength. Immediate support is at ₹279. As long as the stock trades above this support, there is a strong likelihood of it breaking above ₹285. Such a break can take ITC initially higher to ₹290. Inability to breach ₹290 can drag the stock lower to ₹285 and ₹280 again. But a strong break above ₹290 will boost the momentum and take ITC to ₹297 and ₹300. Traders can hold the long positions taken at ₹283 and ₹280. Retain the stop-loss at ₹273 for the target of ₹298. Revise the stop-loss higher to ₹285 as soon the stock moves up to ₹289. Key support below ₹279 is at ₹275. The outlook for the stock will turn negative only if it declines below ₹275. The next targets are ₹270 and ₹265. But such a strong fall, breaking below ₹275, looks unlikely at the moment.

Infosys (₹620.4)

Infosys fell below the key support level of ₹631 last week, as expected. The stock tumbled 4.6 per cent and closed decisively below the 200-day moving average. The downtrend is intact. Key resistances are at ₹631 and ₹637, which are likely to cap the upside in the near term. Intermediate rally to these resistance levels is likely to find fresh sellers coming into the market. Immediate support is at ₹608, which is likely to be tested in the near term. A bounce from this support can trigger an intermediate bounce to ₹630 or ₹637. In such a scenario, a range-bound move between ₹608 and ₹637 can be seen for some time. However, the outlook will continue to remain negative. An eventual break below ₹608 will increase the likelihood of the stock tumbling towards ₹590. The region between ₹600 and ₹590 is a crucial support. Whether Infosys manages to reverse higher from this support zone or not will be key in deciding the direction of the next move. As such, the price action in the ₹600-₹590 support zone will need a close watch.

RIL (₹1,102.8)

RIL snapped its three-week rally last week. The stock made a high of ₹1,155 and reversed lower, giving back all the gains. RIL has closed 2.2 lower for the week. The 55-day moving average resistance has capped the upside. Immediate support is at ₹1,097. The next significant support is at ₹1,088 — the 21-day moving average. A dip to test these supports cannot be ruled out in the near term. But the outlook will turn negative only if RIL declines decisively below ₹1,088. A strong break below ₹1,088 can drag the stock lower to ₹1,055 or ₹1,045. On the other hand, if RIL manages to bounce back from either ₹1,097 or ₹1,088, an up-move to ₹1,150 and ₹1,155 can be seen again. A strong break above ₹1,155 will boost the momentum. Such a break will then increase the likelihood of the stock targeting ₹1,200 and ₹1,210 over the short term. Traders can hold the long positions taken on dips last week at ₹1,115 and ₹1,105. Retain the stop-loss at ₹1,075 for the target of ₹1,195. Revise the stop-loss higher to ₹1,130 as soon the stock moves up to ₹1,155.

Tata Steel (₹539.9)

Tata Steel tumbled about 6 per cent last week. The stock’s failure to sustain above ₹600 and a subsequent sharp fall last week is increasing the downside pressure on the stock. The stock plummeted 11 per cent after making a high of ₹610 on November 14. Crucial support is in the ₹535-530 region. If the stock manages to bounce back higher from this support zone, a relief rally to ₹560 and ₹570 is possible. But Tata Steel looks vulnerable to break below the ₹535-530 support zone. Such a break will drag the stock lower to ₹500 and ₹490 over the short term. A bounce from the ₹500-₹490 support zone can trigger a corrective rally to ₹540 and ₹550 thereafter. But a strong break below ₹490 will increase the likelihood of the stock tumbling towards ₹460 over the medium term. High-risk appetite traders can go short at current levels and on rallies at ₹555 and ₹565. Stop-loss can be placed at ₹590 for the target of ₹465. Revise the stop-loss to ₹527 as soon as the stock moves down to ₹505.

Index outlook

Domestic bellwether indices — the Nifty and the Sensex — could remain volatile and experience selling pressure at higher levels, as the November month derivative expiry is on the cards. The declining crude oil and the US markets will be in limelight once again. US GDP data and FOMC minutes can provide direction to the US markets. Read more

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