Investor sentiment indicates turnaround, 11,700 a decisive level for Nifty

Samvat 2076 began on a positive note for the Indian market as equity barometer Sensex and Nifty logged healthy gains on Muhurat trading on October 27.

The Nifty index managed to reclaim 11,600 levels on the Muhurat trading day which is a positive sign. The rally was broad-based and experts say that there is a visible turnaround in sentiments.

The Sensex closed 192 points, or 0.49 percent higher at 39,250.20 with 19 stocks in the green, while the Nifty closed 43 points, or 0.37 percent, up at 11,627.

Tata Motors, Yes Bank, Vedanta, Infosys, and Mahindra & Mahindra settled as the top gainers in the Sensex, but Maruti, Bharti Airtel, HCL Technologies and TCS ended as the top losers.

Secondary indices BSE Midcap and Smallcap outperformed the benchmark, closing with gains of 0.69 percent and 1.20 percent, respectively.

Token buying was seen by institutional investors as well. FPI were net buyers in Indian markets for Rs 6.6 cr while DIIs also poured in Rs 54 cr, provisional data showed.

Big News:

As many as 17 companies will declare their results for the September quarter today which include names like Bharti Airtel, Hindustan Zinc, Peronet LNG, Tata Metaliks, and Hindustan Zinc, etc. among others.

Bharti Airtel: Likely to report a loss of Rs 1387 cr

Petronet LNG: PAT likely to grow by 18% YoY

Hindustan Zinc: PAT likely to grow marginally by 0.4% YoY

(All the estimates are from Motilal Oswal)

Technical View:

Nifty formed a bullish candle on the Muhurat session to close above 11,600 levels

If Nifty corrects below 11,500 levels further weakness could come in which could take it towards 11,390

More clarity on index shall arise once Nifty registers a close above 11,700 levels.

A close above 11700 could take the index towards 11770 – 11,790.

Three levels: 11,550, 11,600, 11,700

Max Call OI: 12,000, 11,700

Max Put OI: 11,000, 11,500

Stocks in news:

Tata Motors which rallied over 16 percent in Muhurat session will be in focus after the company reported a 79 percent year-on-year (YoY) fall in its net loss at Rs 216.6 crore for the September quarter of FY2020.

ICICI Bank which rose marginally in Muhurat session will be in focus after the private sector lender reported a 27.9 percent YoY fall in the net profit at Rs 655 crore, compared to Rs 908.9 crore in the year-ago period.

Pfizer which rallied over 7 percent in Muhurat session will be in focus after the pharma major reported 61 percent YoY growth in net profit to Rs 154.3 crore versus Rs 95.8 crore in the year-ago period.

Technical Recommendations:

We spoke to Angel Broking and here’s what they have to recommend:

Kansai Nerolac: Buy| LTP: Rs 545| Target: Rs 580| Stop Loss: Rs 518| Upside 6%

Jyothy Labs: Buy| LTP: Rs 171| Target: Rs 194| Stop Loss: Rs 156| Upside 13%

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