Strong Comeback By FIIs, Nifty At a Sweetspot To Step 11850 Level

IT, Pharma, Metal Stocks Push Markets to New Highs

Our Analysis

The Indian equity market had a sensational bull run throughout this week. The current optimistic tide concludes the bullish trend for the market, vanishing the pessimism across the street. There was a strong comeback by the FII, which had fled away after the higher surcharge. Moreover, the strategic disinvestment from PSU, along with the further hope of the stimulus package from the government added the sentimental boost among market participants.

Going ahead, the on-going Q2 result of the heavyweights would be the major driver for the benchmark. Moreover, the positive development in the US-China Trade talks & Brexit would provide addition clues globally.

Technically, Nifty is at a sweet spot to test the 12,200 level this year. Considering this the Investors should utilize the buy on dips strategy with the stock having the key fundamental catalyst. The levels to watch would be 11,480 in downside & 11,850 in the upside.

This Weeks Market Highlights:

Benchmark Indices:

1)On Monday, the Sensex was up 87.39 points at 38,214.47, while Nifty was up 36.20 points at 11,341.20. Among sector Except IT and PSU banks, all other sectoral indices ended higher led by the pharma, auto, FMCG, infra and energy.

2) On Tuesday, the Sensex rose by 0.76 percent to 38,506.09 and the Nifty 50 rose 0.77 percent to 11,428.30 at the close. Among sector compiled by NSE traded higher, led by the Auto indexs 2.2 percent gain. On the flip side, the IT Index was the only sectoral loser, down 0.45 percent.

3)On Wednesday, Indian markets ended higher amid volatile trade, extending gains to the fourth day after Wipro boosted investor optimism with earnings that beat all estimates. Interestingly, the benchmark indices ended in the green despite weakness in BankNifty and the entire consumer pack. the Sensex was up 92.90 points at 38,598.99, and the Nifty was up 43.25 points at 11,471.55.

4)On Thursday, the Indian share market had a strong close. The Sensex rose by 1.1 percent to close at 39,052 and the Nifty50 gained 1.07 percent to end at 11,586.35.

5)On Friday, Indian equity benchmarks opened lower after gaining for five straight trading sessions.

Broader Index & Global Market:

-Globally, there was a positive to mixed performance amid the ongoing positive US- china trade deal and Brexit.

- The broader space had been trading positive in this week. The Insurance stock was the outperformer followed by the auto, PSU, and some specific stock names. The momentum is likely to spread across the segment in the coming days.

Movers & Shakers

Shares of GICRE surged more than 30 percent amid the report suggesting that the insurance sector posted a substantial growth rate in premiums.

Shares of JAIN IRRIGATION dropped more than 20 percent in a week after Global rating agency Standard and Poor's has downgraded the credit rating of Jain Irrigation Systems Ltd from 'CCC' to 'D' after the company missed a payment of principle for its working capital loan.

Key Market Drivers

  • World Bank cuts India's growth projection to 6%.
  • Forex reserves at a new life-time high of $437.83 billion.
  • Retail inflation rises to 3.99% in Sept on costlier food items.
  • India's Exports dip 6.57% in September; import contracts 13.58%.
  • Sebi provides clarity on the code of conduct under insider trading rules.
  • Foreign portfolio investors (FPIs) were buyers of domestic stocks to the tun

Event Watch

International:

  • US crude inventory

Domestic:

  • Crude price
  • INR Price
  • Q2 Results

Stocks To Watch

NMDC & RITES On Upside while, HUL & INDIGO on Downside.