Stocks for Muhurat Trading

Samvat 2074 was largely impacted by subdued investor sentiment and diminishing foreign inflows, while the Sensex and the Nifty remained nearly flat. The broader indices followed suit and underperformed, with key composites such as the Nifty Midcap and Smallcap falling nearly 9% and 30%, respectively.

On the sectoral front, Realty and Auto stocks hogged the limelight, while IT and FMCG stocks performed poorly. Overall, it turned out to be a negative year for most sectors. Continue reading “Stocks for Muhurat Trading”

Daily Big Picture – Nifty Feels Pressure as Pharma stocks lose

Today’s Action

Market snubs Friday’s rally. Nifty, -0.2%; Sensex, -0.2%; Model Portfolio, +0.4%; MSI Ind 47, -0.7%.

Daily Market Review

India’s benchmark indices were under pressure through the trading session and before a partial recovery in the last hour. Except Nifty IT and Nifty Bank, all sectoral indices ended in the red, Nifty Metal ended flat. Nifty Bank ended marginally positive supported by better-than-expected quarterly results by Axis Bank and State Bank Of India. Nifty Pharma was the worst performer, which declined 0.9% led by results below expectations from CiplaGlaxosmithkline Pharms. was the other top pharma loser.

In line with frontline indices, the Nifty Midcap and Nifty Smallcap each fell 0.4%. Continue reading “Daily Big Picture – Nifty Feels Pressure as Pharma stocks lose”

Industry Update: October 2018

A combination of global events including rising oil prices, a few earnings misses, a brewing conflict between Italy and the European Union over budget spending, and apprehension over rising interest rates weighed down the markets in October. Here is a quick update on ten key sectors:

Automobile: In the past one month, the Auto index has underperformed by declining 9.0% compared with a 6.2% fall in the market. In the last few months, automobile sales have been affected by rising fuel cost, higher insurance premiums, and recent price hikes by automobile companies. In October, M&M and Hyundai reported a strong growth versus a m/m decline in September 2018.

Banking and Finance: Results in Q2 FY 2019 were mixed, with most banks failing to trigger a positive sentiment. HDFC Bank and Kotak met estimates, whereas IndusInd missed expectations.

Capital Equipment: The sector has weakened in India this month due to market headwinds like indices falling to their 52-week lows, the rise in oil prices, and a weakening rupee. On a positive note, equipment manufacturers could benefit from the ongoing U.S-China trade war.

Consumer: The Nifty FMCG index grew 7% YTD but fell 4.6% m/m, hurt by valuation contraction since the end of August. Dabur is down due to lackluster Q2 earnings, while Nestle and Britannia may be the safest bets in the present downtrend.

Materials: Nifty Metal was in an Uptrend Under Pressure during the start of the month and ended it in a correction. Over the month, the index fell about 6.5% on heavy volume. Continue reading “Industry Update: October 2018”

Breakouts: Key to materialize gains

When markets are in correction or in a Downtrend, 3 out of 4 stocks feel the pressure. Even fundamentally strong stocks with good financial strength and growth story fail to deliver results expected of them. These situations can be confusing and discouraging for investors. Even when the market seems to revive, one feels inhibited to actively take positions in individual stocks. Before the situation becomes clear, all the good stocks have already rallied and what’s left is a lost opportunity.

How does one cope and find a reliable and profitable way out of this randomness? Thanks to technical analysis and historical research, there are tools which can bring some method to this madness and be beneficial. Continue reading “Breakouts: Key to materialize gains”