Mr. Debabrata Bhattacharjee, Head of Research, CapitalAim
The weekly overview formed a sizable bear candle having lower highs and lower lows. Which indicates a continuation of correction, However, the market is correcting from seven consecutive sessions. Nifty futures is showing lack of upside momentum as markets failed to move higher in its multiple attempts after breaking 11000 level.
Earning season is almost over, with most of the companies logs double-digit Top-line growth, but feels some pressure on margins and on bottom-line & expected will remain in next quarters also Tata-motors posted net loss of Rs. 26,961 crore pulls the sentiment of Auto companies in a bear grip. Slowing Demand for Commercial Vehicles and Drilling companies put weigh on Indexes.
Tuesday's market fell almost 36 points or 0.35% at 10604. Nifty Index has a support zone at around 10550-10500. The only breakdown below 10550 on nifty index can correct markets further towards 10300 level in near term.
SUNTV : Buy| Above: Rs 560| Target: Rs 590-600| Stop loss: Rs 535|
As the nifty retrace from lower levels this counter has initiated consolidation on lower levels, which could lead it to 600 and more in the day ahead. Sun-tv and peers are benefiting from TRAI regulations of selecting channels individually. Sun-tv has a large subscriber base in the southern region.
TATASTEEL : Buy| above : Rs 477| Target: Rs 490| Stop loss: Rs 465|
Tata steel plays the sentimental call b'coz of ongoing talks between China and US resumes there is a expectation of positive outcome from the trade talk. Technically Metals sectors are bouncing back from lower levels in international commodity exchanges.
NIIT-TEC : SELL| BELOW: Rs 1250| Target: Rs 1220| Stop loss: Rs 1275|
Stock in the recent week shows lack of momentum toward upside, Below 1250 one can easily target for 1200-1180 in near term. IT sectors is mostly sensitive to Dollar moments. On the dollar front, there is a hope building towards China & US deal if and so this deals doesn't comes to an logical end then this will derail the upside momentum of Emerging as well as Developed markets in the world.