Markets reacted on Tuesday from higher levels of 17800 on the back of a subdued global market with the Nifty 50 ending lower by 0.5% with breadth turning in favor of declines. The decline should be seen as a mere throwback after a recent breakout in the spread of the Nifty 50 – Nifty 500 index and we may see an immediate reaction of +13% in Nifty 50 in the next 15-20 trading session.
Any gap up opening above 17800 should be seen as a ‘break away gap’ for current consolidation with the minimum target seen at 18600 in a matter of 4-5 trading sessions. Remember the breakout in the spread of the Nifty 50- Nifty 500 index has been activated after 1-year of consolidation. Thus, we expect bullish firepower to the Nifty 50 index may prevail for at least 1.5 months.
Nifty 50 & Spread Nifty 50- Nifty 500 Index
Stocks to watch
Positive Read Through
- Dabur acquires 51 percent stake in Badshah Masala
- Zee Entertainment to sell 3 channels- Big Magic, Zee Action, and Zee Classic for Sony Merger
- Tata Power launches cost-efficient solar off-grid solutions
- Autos- Reports say overall sector may report 40 pct YoY rise in festive volumes
- Century Textile- Revenue up 21 pct, margin at 13 pct vs 9.7 pct YoY
Negative Read Through
- Gland Pharma reports a decline of over 20 percent in net profit for the quarter that ended September.
- Glenmark- Baddi facility placed under import alert by USFDA
- Lupin- Pune unit observations include a lack of remedial action
- Crompton Consumer- Revenue up 23 pct, margin at 11.4 pct vs 15.5 pct
- Aurobindo- recalls 2 lots of blood pressure drugs Quinapril and HCL Tabs
- Oil marketing companies- Industry estimates, fuel, LPG under-recoveries at over Rs 1 lakh cr.
A financial planning platform where you can plan all your goals, cash flows, expenses management, etc., which provides you advisory on the go. Unbiased and with uttermost data security, create your Financial Planning at Rs. 1499/-
Disclaimer: The views shared in blogs are based on personal opinions and do not endorse the company’s views. Investment is a subject matter of solicitation and one should consult a Financial Adviser before making any investment using the app. Making an investment using the app is the sole decision of the investor and the company or any of its communication cannot be held responsible for it.