Promoters and parents of incumbents need to infuse equity

The Supreme Court's recent judgement on Adjusted Gross Revenue (AGR) case has huge ramifications on the well-being of two of the three largest telecom operators in India: Bharti Airtel and Vodafone Idea. The apex court rejected the definition of AGR used by the companies and agreed to the government’s computation. As a result, these companies are liable to pay Rs 21,700 crore and Rs 28,300 crore, respectively, to the exchequer. Given the state of their finances and indebtedness, it is clear that their promoters/parents should infuse money.

These liabilities put further pressure on both companies, especially Vodafone Idea, which is already under so much of stress. While the companies have appealed to the government for a rethink, the fact remains that both companies are mired in a mess. Remember that both companies are already carrying on their book – close to Rs 1.25 lakh crore each as on March 2019. Now, the moot question is how much money their promoters/parent firms can bring 

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The Market Podcast | Big winners and some losers, and is there a truce in sight for US-China trade war?

In today's episode, Moneycontrol Editor Santosh Nair chats with Deputy Executive Editor of CNBC Awaaz Pradeep Pandya to give you all the updates from the market.

We have received multiple requests from our listeners to host The Market Podcast in Hindi. And what better occasion to give you all a Diwali gift. On the show today, Moneycontrol Editor Santosh Nair chats with Deputy Executive Editor of CNBC Awaaz Pradeep Pandya to give you all the updates from the market.

They discuss the biggest winners and losers in the market, the factors that moved stocks and the impact of global news on the Indian market.

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Top buy and sell ideas by Ashwani Gujral, Mitesh Thakkar, Prakash Gaba for short term

Ashwani Gujral of ashwanigujral.com recommends buying Tata Elxsi with a stop loss of Rs 750, target of Rs 775 and Pidilite Industries with a stop loss of Rs 1350, target of Rs 1410.

Benchmark indices erased all gains and ended lower on October 24. Nifty slipped below 11,600 due to selling in the banking and telecom sectors.

Telecom stocks suffered massive selloff after the Supreme Court rejected the telecom companies' definition of Adjusted Gross Revenue (AGR). This means telecom companies will have to pay up as much as Rs 92,642 crore to the government. Bank stocks also fell on concerns about their exposure to the beleaguered telecom companies.

Also, no landslide victory for BJP in Maharashtra and Haryana dented sentiment.

Except for the Nifty Infra, all sectoral indices ended in the red led by the bank, metal, FMCG, pharma and auto. Market breadth was in favour of declines, with just 1,069 shares advancing against 1,367 that declined. 161 shares stayed unchanged.

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Next 100 points will be very crucial for the Nifty; here’s why

We advise traders to hold their longs but with a strict stop-loss of 11,500. A move below the same might halt the upside momentum and we could witness some profit booking

Nifty needs to clear the immediate hurdle placed around 11,700. This being a truncated week, the index has failed to clear the hurdle so far.

The index remained in a tight range during the past three sessions and is currently trading with a weekly change of -0.68 percent. Meanwhile, the Bank Nifty (-0.04%) is extremely flat from its previous week’s close.

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Top buy and sell ideas by Ashwani Gujral, Sudarshan Sukhani, Mitesh Thakkar for short term

Mitesh Thakkar of Miteshthakkar.com recommends buying Motherson Sumi Systems with a stop loss of Rs 104.5 for target of Rs 114 and NIIT Tech with a stop loss of Rs 1454 for target of Rs 1495.

The market recovered from its lows and ended with moderate gains on October 23 as buying in select PSU banks, IT and auto stocks helped Nifty finish above 11,600 and Sensex above 39,000 level. BSE midcap and smallcap indices ended with little change.

At close, the Sensex was up 94.99 points at 39,058.83, while Nifty was up 15.70 points at 11,604.10.

According to the pivot charts, the key support level for the Nifty is placed at 11,555.13, followed by 11,506.17. If the index starts moving up, key resistance levels to watch out for are 11,652.33 and 11,700.57.

Nifty Bank closed with a gain of 48.45 points at 29,459.60 on October 23. The important pivot level, which will act as crucial support for the index, is placed at 29,234.53, followed by 29,009.46. On the upside, key resistance levels are placed at 29,664.23 and 29,868.87.

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ITC, Maruti, L&T, HCL Tech, Hexaware, Hero MotoCorp, Biocon, NIIT Tech

HCL Technologies | L&T | Colgate | Maruti Suzuki | ITC and Raymond are stocks, which are in news today.

Results Today: ITC, Maruti Suzuki, Colgate Palmolive, Raymond, PNB Housing Finance, IDFC First, Cummins, Bandhan Bank, Shriram Transport

Hexaware Q3: Consolidated net profit up 21.4% at Rs 183.7 crore versus Rs 151.3 crore, rupee revenue up 13.2% at Rs 1,481.3 crore versus Rs 1,308.3 crore, QoQ

HCL Tech Q2: Net profit up 19.4% at Rs 2,651 crore against Rs 2,220 crore, rupee revenue up 6.7% at Rs 17,528 crore versus Rs 16,425 crore, QoQ.

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11,700 level likely to act as resistance for Nifty50

Traders should use any dip for creating fresh longs as the current trend is likely to remain bullish with Nifty moving towards 11,750-11,800 levels in the coming sessions.

            

After six days of consecutive gains, Indian markets took a pause on October 22 with Nifty ending well below 11,600 mark on the back of a sharp selloff in IT stocks led by Infosys which suffered its worst single-day drop in over six years.

From the derivative front, 11,700 levels for Nifty should act as a strong hurdle as of now as call writers are seen adding hefty open interest build-up at 11,700 call strike.

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