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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Brokerages initiate buy call on these 11 stocks in October which could return 10-73%

Hence here are 11 stocks where brokerages initiated coverage with a buy call, which could give 10-73 percent return:

After logging a solid 5 percent gain in September, the Indian market has largely remained rangebound in the month of October. Benchmark indices Nifty and Sensex are around the same levels recorded at the beginning of the month.

The broader markets have taken some beating this month as mid and smallcap index underperformed the frontliners. BSE Midcap index fell more than a percent and Smallcap index lost nearly 3 percent. However, the rate of fall has decreased compared to previous months.

So far, the September quarter earnings of India Inc have largely remained as per the expectations of the street. Hence, the market has not witnessed any knee jerk reaction and has also found support from government measures announced since August.\

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

Ashwani Gujral of ashwanigujral.com recommends buying Voltas with a stop loss of Rs 672, target of Rs 695, Titan Company with a stop loss of Rs 1130, target of Rs 1165 and Tech Mahindra with a stop loss of Rs 718, target of Rs 742.

The Sensex was up 246.68 points, or 0.65 percent, at 38,127.08, while the Nifty was up 70.50 points, or 0.63 percent, at 11,305. About 1,084 shares advanced, 1,360 shares declined, and 155 shares remained unchanged.

The Nifty50 registered a Spinning Top formation on the daily charts, indicating indecisiveness among investors. On the weekly chart, however, it formed a formed bullish candle.

According to the pivot charts, the key support level for Nifty is placed at 11,208.63, followed by 11,112.27. If the index starts moving up, key resistance levels to watch out for are 11,382.13 and 11,459.27.

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Infosys, Avenue Supermart, BoB, NMDC, Cadila Health, HUL

Avenue Supermarts | NMDC | Jain Irrigation | Infosys and Cadila Healthcare are stocks, which are in news today.

                                                     

Indian Railway Catering and Tourism Corporation (IRCTC) will make its grand debut on October 14 after its initial public offering (IPO) received the highest ever subscription among PSUs.

The final issue price is fixed at Rs 320 per share, the higher end of the IPO price band. Retail investors and employees of the company received shares at a discount of Rs 10 per share. Hence the final IPO price for them is Rs 310 per share.

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Bharti Airtel, Vodafone Idea up 7-17% after Jio levies Interconnect Usage Charge

According to CLSA, Jio’s IUC charge is likely to pressure TRAI to abolish the tariff

Shares of Bharti Airtel touched a 52-week high of Rs 384.85, gaining 7 percent and shares of Vodafone Idea added more than 17 percent in intraday trade on October 10.

The movement followed Reliance Jio's announcement that they will be charging an Interconnect Usage Charge (IUC) from customers for calls made to the other networks.

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Transformers & Rectifiers surges 20% on order win from Power Grid

With this order, the company's order book as on date stands around Rs 1,001 crore

Shares of Transformers & Rectifiers India rose 20 percent in early trade on October 10 after the company bagged an order worth Rs 126 crore from Power Grid Corporation of India (PGCIL).

The management in a press release said it has been awarded the order for 21 transformers. With this order, the company's order book as on date stands around Rs 1,001 crore.

At 09:57 hrs Transformers and Rectifiers India was quoting at Rs 7.98, up Rs 1, or 14.33 percent on the BSE.

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Upside hurdle for Nifty at 11,400 – 11,450 levels

The intermediate hurdle on the upside is placed at 11,400 – 11,450 levels. Traders are advised to adopt a mean reversion technique for the index and watch out for opportunities in individual stocks.

The Nifty50 index recently retested its 200-day simple moving average (SMA) and is currently hovering above the same. On the weekly chart, the index formed a ‘Doji’ candlestick pattern formed near the 11,700 mark.

This is a sign of caution for the medium term since the index has started trading below 11,416 which is the low of Doji formation.

Going ahead, if we close the week below 11,41, it would be a confirmation for a ‘Sell on Rise’ strategy. Till the time, 11,700 is not taken out on the upside.

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Hindalco Industries, UCO Bank, Orient Cement, Dhampur Sugar, New India Assurance

Sintex Plastics Technology | Hindalco Industries | UCO Bank | Dhampur Sugar and New India Assurance are stocks, which are in news today.

Dhampur Sugar Mills successfully launched Country Liquor at its Distillery unit at Dhampur.

Orient Cement - CARE Ratings assigns CARE AA- to the Long term Bank facilities and CARE Al+ to the Commercial Paper issue of the company

UCO Bank board approves the proposal for the issue of equity shares on preferential basis to Government of India against capital infusion of Rs 2,130 crore

Hindalco Industries - Novelis receives approval from European Commission for proposed acquisition of Aleris

Sintex Plastics Technology's independent director Sandeep M Singhi resigns w.e.f. October 02, 2019

New India Assurance Company signs pact to enter into ICA for company's exposure to debt instruments of Reliance Home Finance & DHFL

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Yes Bank, Hero MotoCorp, GMR Infra, Eicher Motors, Tata Motors, M&M, NMDC

Yes Bank | Hero MotoCorp | Eicher Motors | Tata Motors | Mahindra & Mahindra and NMDC are among stocks which are in news today.

Yes Bank: The lender said a forced sale of 10 crore equity shares (3.92 percent of the bank's equity share capital) was carried out on October 1.

GMR Infra gets CCI nod  for the proposed equity investment from Tata Group, GIC affiliate and SSG affiliate at GMR Airports, subsidiary of the company

Biocon and Mylan launch first Insulin Glargine Biosimilar, Semglee, in Australia

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Top buy and sell ideas by Rajat Bose, Mitessh Thakkar, Prakash Gaba for short term

Prakash Gaba of prakashgaba.com recommends buying Escorts with target at Rs 640 and stop loss at Rs 580 and HDFC Bank with target at Rs 1280 and stop loss at Rs 1230.

The Sensex closed 362 points, or 0.94 percent, down at 38,305.41, with 23 stocks in the red and only seven in the green, while the Nifty pack fell 115 points, or 1 percent, to 11,359.90 on October 1. As many as 39 stocks ended in the red in the 50-share index.

On the technical front, Nifty formed a large bearish candle on the daily charts after closing below 11,400 levels for the first time since September 20, 2019.

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Use current fall as bargain-hunting opportunity to go long, bet on these 3 stocks for double-digit return

A breakout above 11,500 marks where descending trend line on lower time frame is placed, will give confirmation of retracement complete and original uptrend begin.

Nifty, after rallying for nearly 1,000 points in just two trading sessions post-corporate tax cut announcement, now has corrected by some 450 points denting the market sentiment. Technically, after making a high of 66 in the last week, the RSI momentum oscillator is retracing towards the breakout point of 50 which should be considered as a pullback buy setup (PBB) and it can be used as a bargain-hunting opportunity to go long.

On the lower side, confluence of supports are in a zone of 11,000-11,150 levels. These supports mainly consists of a line of parity placed at 11,150, 61.8% Fibonacci retracement levels of current rise standing at 11,060 and strong psychological levels 11,000. One should add longs as far as Nifty is trading above this crucial demand zone.

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Brokerages turn bullish on these top 9 stocks this week, which could return 13-45%

Experts are positive on the market in the medium to long term, especially after recent government measures

The market started off this week with a negative bias and continued fall for third consecutive session on October 1 as fears of more debt stress in the Indian banking system after the incident of Indiabulls Housing Finance-Lakshmi Vilas Bank and fraud in PMC Bank dented sentiment.

The short covering in late trade on Tuesday cut the BSE Sensex's loss to nearly 700 points for three straight sessions and helped it close above 38,000 levels.

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Use correction to go long on Nifty; RIL, Quess Corp can return 6-11%

Any close above 11,700 levels would result in further short covering which might push the Nifty to even 12,000 levels in coming months

Nifty, after taking support from the gap created on September 23, recovered more than 80 points from the low to close with the losses of 38 points at 11,474 levels on September 30. Though the Nifty has fallen nearly 300 points from the recent high to a low of 11,390 levels, the primary trends is still intact as it is still trading above its 200-day SMA. Oscillators and momentum Indicators like RSI and MACD have been showing strength on the daily and weekly charts for the Nifty and Bank Nifty.

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Top buy and sell ideas by Rajat Bose, Mitessh Thakkar, Prakash Gaba for short term

Prakash Gaba of prakashgaba.com recommends buying Castrol India with target at Rs 145 and stop loss at Rs 134 and ITC with target at Rs 270 and stop loss at Rs 255.

The Sensex closed with a loss of 155 points, or 0.40 percent, at 38,667.33, with 13 stocks in the green and 17 in the red on September 30. The Nifty pack closed 38 points, or 0.33 percent, lower at 11,474.45, with 22 stocks up and 28 down.

The broader markets suffered more than the frontline indices. BSE Midcap and Smallcap indices declined 1.13 percent and 1.21 percent, respectively, underperforming BSE Sensex.

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Market may trade sideways between 11,400 and 11,700 levels, buy on dips

Traders are advised to keep a tab of all the above mentioned levels and should focus on individual stocks that are likely to provide better trading opportunities

The market took a giant leap after Finance Minister Nirmala Sitharaman’s slashed corporate taxes. All of a sudden, the tide turned upwards and before anyone could realise, the Nifty was well above 11,200 levels. Since it was predominantly a short squeezing move, the market was not done with such a sharp one day spurt. We had a good bump up on September 23 to kick-start the week on a strong note.

Participants were so ecstatic; the Nifty went on to almost kiss the 11,700 mark in the initial euphoric move. However, this seemed to be an overreaction and hence, throughout the remaining part of the week, market consolidated in a slender range to eventually conclude a tad above 11,500 levels.

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Top buy and sell ideas by Rajat Bose, Mitessh Thakkar, Prakash Gaba for short term

Prakash Gaba of prakashgaba.com recommends buying Berger Paints with target at Rs 450 and stop loss at Rs 430 and Bata India with target at Rs 1800 and stop loss at Rs 1721.

Indian market ended in the red on September 27, tracking weakness in other Asian markets. The 30-share Sensex closed the day with a loss of 167 points, or 0.43 percent, at 38,822.57, with 20 stocks in the red, while the Nifty50 finished 59 points, or 0.51 percent, lower at 11,512.40. Among the 50 stocks in the index, 39 suffered losses.

Experts are of the view that the market may see some consolidation due to sharp gains during the previous week. The Nifty50 has begun the consolidation phase after a massive rally. All short-term indicators have moved to overbought levels which cap the upside for the time being.

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